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Syllabus: CICTA 201
SYLLABUS CICTA 201 - FINANCIAL ACCOUNTING 2 - INTERMEDIATE 2
14.0 FINANCIAL ACCOUNTING II INTERMEDIATE II SYLLABUS


14.1 Course Objective

The core aim of this module is to introduce students to the advanced studies in the principles, concepts and techniques in preparation and presentation of financial statements. The course prepares students to grasp the computation and techniques at a more advanced level at the Intermediate Stage.

14.2 Course Description

The course is designed as an advanced module of the Intermediate Level I. It seeks to delve deeper into the preparation and presentation of financial statements. It thus helps students to grasp the computation techniques at a more advanced level at the Intermediate Level I.

14.3 SYNOPSIS

14.3.1 Single Entry and Incomplete Records
* Business and the application of Single Entry and Incomplete Records.


* The Nature of Single Entries

* The nature of Incomplete Records and Missing Figures.

* Goods Stolen and Destroyed by fire their effect on Final Accounts.


14.3.2 Accounting for Non-Trading Concerns / Organizations (Non-Manufacturing Accounts)
* Definition of Non-trading organizations.


* Terminologies / Terms in Manufacturing Environments

* Elements and Classification of Costs.

* The Difference between Receipts and Payments Account and the Income and Expenditure Account.

* The Final Accounts of Manufacturing Concerns.

* The Manufacturing Account, Transfer to Trading Account, Profit and Loss Account and the Balance Sheet.

* The Treatment of Market Value in Manufacturing Accounts.



14.3.3 Partnership Accounts
* Definition of Partnership Business.


* Distinction between Partnership and other Business Units.

* Final Accounts of Trading Partnership.

* The Treatment of Goodwill.

* Admission and Retirement of New Partner.

* Revaluation of Assets and Liabilities.

* Dissolution of Partnership.


14.3.4 Purchase of Business Accounts
* The concept of the Seller and Buyer.


* The issue of Purchase Consideration/Price.

* Revaluation of Assets and Liabilities.

* Purchase Consideration other than cash.

* The Journal

* Balance Sheet Extract.


14.3.5 Companies Accounts
* Definition of Company.


* Characteristics of Companies.

* Types of Companies

* Formation of Companies

* Difference between Companies and other Business Units

* Issuance and Redemption of Shares and Debentures

* Issuance and Redemption of Loan Stock

* Purchases of a sole trader business by a company

* Conversion of a Partnership Business into a Company.

* Fundamentals of Group Accounts


14.3.6 Departmental Accounts
* Definition of Departmental Accounts


* Basis of Apportioning Common Expenses

* Purpose of Departmental Accounts

* Format of Departmental Trading, Profit and Loss Account

* Inter-departmental transfers



14.3.7 Branch Accounts
* Introduction to Branch Accounts, the Concept and the application


* Branch Final Accounts, including the Balance sheet


14.3.8 Cashflow Statement
* Meaning of cashflow statement


* Cash and Cash Equivalents

* Uses or Benefits of Cashflow Statement.

* Demerits / Disadvantages of Cashflow Statement

* Cashflow Statement and cash ratios

* Format and preparation of cashflow statement


14.3.9 Interpretation of Accounts / Financial Ratio Analysis
* Nature of Ratios and Mathematical perspective


* Standard of Comparison and Benchmarking

* Advantages and Disadvantages of Ratios Analysis.

* Types of Ratios and Business Application:

* Profitability Ratios

* Liquidity or Near Cash Ratios

* Activity / Operation Ratios

* Leverage / Capital / Solvency Ratios

* Investment or Market - based Ratios


14.3.10 Hire Purchase Accounts
* The nature of hire purchase and legal framework


* The vendor / seller and the vendee/buyer

* Distinction between finance lease and operating lease
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