The ACCA examination comprises 14 papers broken down into 3 levels:
Level 1 – knowledge module
Level 2 – Skills module
Level 3 – Professional module

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KNOWLEDGE MODULE
This is a fundamental module for the ACCA examination. Its intent is to equip students with the rudimentary knowledge they need in order to ensure that there progress towards being a finance professional is well grounded.
The papers in this modules are:
1. Paper F1 – Accountant in business (AB)
2. Paper F2 – Management Accountant (MA)
3. Paper F3 – Financial Accounting (FA)

1) Paper F1 – Accountant in business (AB)
This paper will opens the mind of an aspiring accountant to the interconnectedness of the domestic and foreign environment within which businesses operate. It clarifies the interrelationship of businesses with one another in their strive to achieve their business goals. Fundamentally, the role of an accountant in this sphere of then exposed.
The attribute of a good accountant in terms of the influence he can have on his operating environment and his business is looked into. Key areas covered by the paper are:
• Internal and external stakeholders of a business
• How businesses structure their operations
• Systems of control, accounting and reporting systems
• Teamwork
• Effective communication
• Business Ethics
• Accounting profession values

2) Paper F2 – Management Accountant (MA)
This paper opens up the student to the relevance of quantitative data and analysis to support decision making.


Key areas covered by the paper are:
• Standard costing
• Budgeting
• Management information
• Cost accounting methods
• Performance assessment and measures

3) Paper F3 – Financial Accounting (FA)
The papers expose the students to accounting principles, practices and regulation. The sacrosanct double entry rule of the accountancy profession is brought to bear in this paper. The students are expected to get a grip on the preparation of basic financial statement and interpretation.
Key areas covered by the paper are:
• Double entry accounting principle
• Quantitative attributes of financial information
• Capturing/recording of transaction
• Trail balance preparation
• Financial reporting
• Basic financial statement preparation
• Basic consolidated financial statements
• Financial statements interpretation

SKILLS MODULE
This is the middle stage level of the ACCA qualification. Students are expected to have an appreciable understanding of technical areas. The level of knowledge to be developed at this level is equivalent to a bachelor’s degree.
The papers in this module are:
1. Paper F4 – Corporate & Business Law
2. Paper F5 – Performance Management (MA)
3. Paper F6 – Taxation (TX)
4. Paper F7 – Financial Reporting (FR)
5. Paper F8 – Audit & Assurance (AA)
6. Paper F9 – Financial management (FM)

1. Paper F4 – Corporate & Business Law (CL)
The paper deals with general legal framework and how law regulates the business environment.
Key areas covered by the paper are:
• Features of a legal system
• Management and regulation of companies
• Employment law
• Solvency
• Business formation and regulations
• Criminal Fraud
• Criminal behavior

2. Paper F5 – Performance Management (PM)
Students are introduced to those essential skills needed to have a good handle on qualitative and quantitative aspects of management accounting.
Key areas covered by the paper are:
• Budgeting
• Decision making
• Specialist management accounting
• Performance measurement

3. Paper F6 – Taxation (TX)
This papers focuses on taxation and issues surrounding the tax systems. The impact of the tax regulatory system on businesses and individuals is to be understood by students.
Key areas covered by the paper are:
• Tax system
• Corporate Tax
• Income Tax
• Value added tax
• Inheritance Tax
• Chargeable gains

4. Paper F7 – Financial Reporting (FR)
Students are expected to have a substantive understanding of the theoretical framework guiding the presentation of financial statements and know how to interpret financial statements. Exposure to various accounting standards is also to be learnt from this paper.
This paper comes in two variants; United Kingdom or international
Key areas covered by the paper are:
• Conceptual and regulatory framework for financial reporting
• Accounting for transactions in financial statements
• Financial statements analysis and interpretation
• Financial statements preparation

5. Paper F8 – Audit & Assurance (AA)
Audit and assurance paper gives the student a knowledge of different assurance engagement and the regulation of assurance services. The values and principles underpinning assurance activities is also elaborated on
This paper comes in two variants; United Kingdom or international
Key areas covered by the paper are:
• Regulatory framework for audit and assurance engagement
• Planning and risk assessment
• Internal audit and control
• Audit evidence
• Review and reporting

6. Paper F9 – Financial management (FM)
The paper enlightens student on the workings of the financial and investment markets, instruments and tools for analysis and decision making. Evaluation of investment opportunities is also looked at.
Key areas covered by the paper are:
• Financial management environment
• Financial management function
• Working capital management
• Business appraisal and valuation
• Finance options
• Risk management

PROFESSIONAL MODULE
This is the final level for the ACCA qualification. Though book knowledge is key, but much more important at this level is the grasp of real world scenario. Students are expected to not only have a comprehensive understanding of the content of the papers but more importantly to be fluid in the application of that knowledge as appropriate with cognizance of the specific scenario/context that is under consideration. The end goal is to ultimately add value to individuals, corporate entities and the business environment at large.
The papers in this module are:
• Paper P1 – Governance, Risk and Ethics (GRE)
• Paper P2 – Corporate Reporting (CR)
• Paper P3 – Business Analysis (BA)
• Paper P4 – Advanced Financial Management (AFM)
• Paper P5 – Advanced Performance Management (APM)
• Paper P6 – Advanced Taxation (ATX)
• Paper P7 – Advanced Audit & Assurance (AAA)

The first three (3) papers in this module are mandatory, together they are referred to as ‘essentials’. The last four papers are referred to as ‘optional’ out of which 2 of the four would be chosen.
• Paper P1 – Governance, Risk and Ethics
Governance issues as it relates to business activities and business environment are exposed. Areas pertaining to internal control, compliance, and risk management in the corporate world are also highlighted.
Key areas of focus includes:
• Governance
• Internal control and review
• Risk identification and assessment
• Risk mitigation and Control
• Professional values, ethics and social responsibility

Paper P2 – Corporate Reporting (CR)
In-depth treatment of financial reporting and standards for reporting are comprehensively emphasized. A practical approach is taken as real life scenarios are emphasized along with best practice. Need for professional judgement is also highlighted in treatment of complex issues in alignment with the underlying principle-based framework.
Specific areas of focus are:
• Reporting the financial performance of entities
• Financial statements of groups of entities
• Specialized entities and specialized transactions
• Implications of changes in accounting regulation on financial reporting
• The appraisal of financial performance and position of entities
• The ethical and professional duty of the accountant
• The financial and legal reporting framework
• Current developments

Paper P3 – Business Analysis (BA)
This paper concentrates on strategy and overall business assessment for optimal performance. The designation of a professional accountant as a business expert through thorough knowledge of business models and synergies are highlighted. Issues surrounding systems, structure, processes, planning and implementation of various tasks and projects.
Focus of paper includes:
• Financial analysis
• Process and business change
• Information technology
• Project management
• Strategic position, choices and action
• People management

Advanced Financial Management (AFM)
This paper is the first of the four optional papers in the professional stage. Financial management proficiency is the focus of this paper. A professional accountant is equipped with the capacity to contribute to financial management decisions in any type of organization at a senior level.

The focus of this paper includes:
• Stakeholders consideration
• Financial management
• The nature of the operations of multinationals
• Advanced investment appraisal
• Business modelling, mergers and acquisitions
• Reconstruction and re-organisation
• Treasury management
• Advanced risk management techniques
• Emerging issues in finance

Paper P5 – Advanced Performance Management (APM)
This is the second of the four optional papers at the professional stage. Practical application of appropriate management accounting techniques and system is assessed. The use of different business scenarios and the evaluation of the appropriateness or otherwise of the specific organizational structure and development.
The focus of this paper includes:
• Internal and external factors affecting organizational performance
• Strategic planning, control and decision making
• Performance measurement systems and design
• Strategic performance evaluation
• Corporate failure
• Current developments and emerging issues in performance management

Paper P6 – Advanced Taxation (ATX)
This is the third paper among the professional options. The paper explores the application of knowledge and skills in providing statutory tax advice and consultancy to businesses and individuals in various scenarios. Assessment of major tax policies and changes in policies are also dealt with.
• The syllabus is tailor made for different region and there are different variants accordingly e.g Cyprus (CYP), Hong Kong (HKG), Ireland (IRL), Malaysia (MYS), Malta (MLA), Singapore (SGP), South Africa (ZAF), United Kingdom (UK)

Paper P7 – Advanced Audit & Assurance (AAA)
This is the last of the optional papers at the professional stage. Comprehensive treatment of various assurance engagement and other related issues concerning engagement. Best practice for carrying out assurance engagement are also highlighted. Preparation of report on advanced audit and assurance problems is also looked at.

Specific areas of focus:
• Regulatory Environment
• Ethical & Professional Considerations
• Management Practice
• Financial information audit
• Reporting
• Current Issues and Development

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Article Credit: Paradigm Shift Professionals

Impact of Accounting Standard in Preparation of Financial Statement (A Case Study of Nigeria Bottling Company Plc (N.B.C) Enugu)

The auditor must ensure that the accounts prepared by the financial accountant have been properly drawn up according to best accounting practice, as expressed in statements of accounting standard approved by the professional accounting bodies,

http://www.scharticles.com/impact-of-accounting-standard-in-preparation-of-financial-statement/