Level 6 – Page 2 – Accountants Institute

Learning Outcome

To demonstrate a comprehensive knowledge of the practical implications of maintaining a full set of accounts in groups of companies and multinational companies and of accepted accounting rules and practices. This includes the advanced study of accounting, performance evaluation, international harmonisation of the accounting profession and financial reporting, as well as Financial Accountancy.

Special Accounts:
1. Branch accounts
2. Hire purchase accountsCompanies:
1. Company structure
2. Shares and debentures
3. Companies purchasing and redeeming their own shares and debentures
4. Taking over other companies
5. Taxation in financial statements
6. Provisions, reserves and liabilities
7. Increase and reduction of the share capital
8. Accounting standards
9. Profit and Loss accounts
10. Balance sheets
11. Published accounts and accompanying notes
12. Cash flow statements
13. Contract accountsGroups:
1. Group financial statements
2. Consolidation of balance sheets
3. Intercompany dealings
4. Consolidated financial statements
5. Intragroup dividends
6. Consolidated Profit and loss
Financial Analysis:
1. Accounting ratios
2. Interpretation of financial statements
Issues in Financial Reporting:
1. Accounting theory
2. Current cost accounting
3. Social accounting
4. Accounting for management control
1. Elements of costing
2. Absorption and marginal costing
3. Job, batch and process costing
4. Standard costing
5. Materials and labour variances
6. Overhead and sales variancesBudget, Planning, Control and Decision Making:
1. Budgeting and budgetary control
2. Cash budgets
3. Co-ordination of budgets
4. Break-even analysis
5. Interest, annuities and leasing
6. Capital expenditure appraisal
7. The balanced scorecard