Free ACCA FA Exam Prep

The scope and purpose of financial statements for external reporting, types of business entity (sole trader, partnership, limited liability company), users' and stakeholders' needs, the main elements of financial statements, the regulatory framework (IFRS Foundation, IASB, ISSB), and duties of those charged with governance.

Key accounting principles and concepts (going concern, accruals, materiality, prudence, duality, substance over form) and the qualitative characteristics of useful financial information (relevance, faithful representation, comparability, verifiability, timeliness, understandability) from the IASB Conceptual Framework.

Double-entry bookkeeping principles, the accounting equation, books of prime entry and source documents, general ledger accounts and journal entries, sales and purchase tax, and the features of computerised accounting systems including cloud storage.

Sales and purchases, cash, inventories (cost formulas and NRV), tangible non-current assets and depreciation, intangible non-current assets and amortisation, accruals and prepayments, receivables and payables, provisions and contingencies, and capital structure and finance costs.

Bank reconciliations (purpose, identifying and correcting differences between the bank ledger and bank statement, deriving balances) and payables account reconciliations to supplier statements.

Extracting a trial balance from ledger accounts, the limitations of a trial balance, correction of errors (those revealed and not revealed by the trial balance), and the use of suspense accounts to clear errors.

Statement of financial position, statement of profit or loss and other comprehensive income, disclosure notes, events after the reporting period (IAS 10), the statement of cash flows under IAS 7 (impacted by IFRS 18 formats), and incomplete records techniques.

Subsidiaries and control, the consolidated statement of financial position (goodwill, non-controlling interests, fair value adjustments, intra-group balances and unrealised profit), the consolidated statement of profit or loss, and associates accounted for by the equity method (IAS 28).

The purpose of analysing financial statements, calculating key profitability, liquidity, efficiency and position ratios, interrelationships between ratios, and drawing valid conclusions for users.