Accounting Grade 13

Overview

The A Level Accounting syllabus aims to enable candidates to develop an ability to apply accounting concepts, principles, and practices. It also makes the students understand the role of accounting as an information system for monitoring, problem solving and decision-making and the place of accounting in changing economic, social, and technological environments. Students enrolled in this course at Wesgreen develop a critical and analytical approach to examining and evaluating accounting policies and practices in the real-world scenarios. This course also develops skills of communication, analysis, interpretation, and presentation of both qualitative and quantitative accounting information.

Learning Outcomes

The aims are to enable students to develop:

  • an understanding of how to plan, budget and manage financial resources
  • an ability to critically apply, analyze and evaluate accounting policies and practices
  • an understanding how to use accounting information to make viable business decisions

Unit Overviews

Term 1

Unit 1 Financial statements - Manufacturing businesses  

Approximate length: 1 week

By the end of this unit, the learner should be able to understand the purpose of preparing a manufacturing account for a manufacturing concern clearly indicating the direct and indirect costs involved. Learners will also explore the process of adding factory profit and transfer of finished inventory to income statement.

Cambridge International Curriculum Standards

  • To prepare all the financial statements of a manufacturing business
  • To calculate the provision for unrealized profit
  • To prepare a manufacturing account, including profit on transfer from factory to finished inventory
  • To account for manufacturing profit and the elimination of unrealized profit from unsold inventory and its treatment in the income statement.

Unit 2 Financial statements - Clubs and Societies         

Approximate length: 2 weeks

By the end of this unit, the learner should be able to prepare financial statements for ‘not for profit’ organizations, including a trading account, an income and expenditure account and a statement of financial position.

Cambridge International Curriculum Standards

  • To use the correct terminology employed in the financial statements of clubs and societies
  • To calculate the surplus or deficit incurred by a club/society
  • To prepare a full set of financial statements for a club
  • To incorporate additional/adjusting activities
  • To show the treatment of life membership subscriptions, donations, and entrance fee.

Unit 3 Financial Statements of Limited Companies / IAS 7 Statements of Cash Flows

Approximate length: 3 weeks

By the end of these unit, the learner should be able to understand the nature and purpose of the financial statements of limited companies, and the regulatory framework in which they operate. Students will prepare an income statement, statement of financial position and statement of cash flows for a limited company in line with the relevant international accounting standards.

Cambridge International Curriculum Standards

  • To identify and comment on the main disclosure requirements associated with the published annual reports of limited companies, including:
    1. Income Statement
    2. Statement of Financial Position
    3. Cash Flow Statement
    4. Statement of Changes in Equity
    5. Director’s Report
    6. Auditor’s report
  • To prepare cash flow statement using IAS 7 format and the headings required by IAS 7
  • To explain the purpose of preparing cash flow statements
  • To calculate the cash flows associated with depreciation and disposal of non-current assets
  • To explain the effect of an issue of bonus shares on cash flows
  • To explain the effect of revaluation of assets on cash flows
  • To reconcile net cash flows with movements in net debt

Unit 4 International Accounting Standards                          

Approximate length: 1 week

By the end of this unit, the learner should be able to explain and apply the main provisions of each of the following International Accounting Standards (IAS) while treating multiple items in accounting. Students will also be able to explain the need for an ethical framework in accounting.

Cambridge International Curriculum Standards

  • To demonstrate knowledge of the following IAS:
    1. IAS 1 Presentation of financial statements
    2. IAS 2 Inventories (not long-term contracts)
    3. IAS 7 Statement of cash flows
    4. IAS 8 Accounting policies
    5. IAS 10 Events after the reporting period
    6. IAS 16 Property, plant, and equipment
    7. IAS 36 Impairment of assets
    8. IAS 37 Provisions, contingent liabilities, and contingent assets
    9. IAS 38 Intangible assets
  • To understand the non-financial aspect of decision making
  • To identify a number of social costs and ethical considerations
  • To discuss the conflict of profitability versus social responsibility and identify areas of such conflict.

Unit 5 Auditing and stewardship of limited companies          

Approximate length: 1 week

By the end of this unit, the learner should be able to

Cambridge International Curriculum Standards

  • To discuss the role of the auditor and auditor’s basis of opinion
  • To identify the records that need to be audited
  • To explain the connection between shareholders, directors, and auditors
  • To understand what is meant by the term “true and fair view”
  • To discuss the role of directors.

Unit 6 Business Purchase and Merger                             

Approximate length: 2 weeks

By the end of this unit, the learner should be able to understand the nature and purpose of the merger of different types of businesses to form a new enterprise. Students will make entries in the relevant ledger accounts to record the merger of two or more sole traders’ businesses to form a partnership, merger of a sole trader’s business with an existing partnership to form an enlarged partnership and acquisition of a sole trader’s business or partnership by a limited company. Students will further evaluate and discuss the advantages and disadvantages of the proposed merger.

Cambridge International Curriculum Standards

  • To evaluate a business with a view to its acquisition
  • To prepare statement of financial position of:
  1. Unincorporated businesses merging to form a partnership by combining or purchasing assets and liabilities
  2. A limited company taking over an unincorporated business by issuing shares, debentures and by cash
  3. One business purchasing the assets and liabilities of another business (not merging)
  4. A new company purchasing one or more existing businesses
  5. A limited company acquiring shares in another limited company

Unit 7 Consignment and Joint venture accounts                    

Approximate length: 2 weeks

By the end of these units, the learner should be able to distinguish between consignments and joint ventures and the environment in which they operate. Students will prepare ledger accounts for consignment transactions, including the calculation of closing inventory valuation, prepare ledger accounts for joint ventures and calculate the profit for joint ventures.

Cambridge International Curriculum Standards

  • To recognize the terms used in the preparation of consignment accounts
  • To prepare ledger accounts to record the consignment of goods to agent and to record joint venture transactions
  • To calculate the value of inventories held by an agent at the end of an accounting period
  • To explain why businesses, undertake a joint venture
  • To calculate the profit/loss generated by a joint venture by preparing a joint venture memorandum account
  • To share the profit/loss and record the transfer of the cash settlement between the partners to the venture.

Unit 8 Computerized Accounting Systems                             

Approximate length: 1 week

By the end of this unit, the learner should be able to understand the need for and be able to discuss the process of computerizing the accounts of a business. Students will discuss the advantages and disadvantages of introducing a computerized accounting system, explain the process of computerizing the business accounts and identify the ways in which the integrity of the accounting data can be ensured during the transfer to a computerized accounting system.

Cambridge International Curriculum Standards

  • To explain the need to computerize an accounting system
  • Discuss the advantages and disadvantages that occur when a computerized system is introduced into a business
  • Explain the process of computerizing an accounting system  Describe ways that ensure the integrity of a computerized system

General teaching methodologies will include Online and Face to Face (Blended) learning, Face to face students will be in class while online learners will log in remotely and follow the instructor, who will have the laptop camera facing the smartboard. Teaching will be done using a combination of writing and illustrating on the smartboard and PowerPoint presentations.  This should include a combination of oral and visual methods to differentiate instruction modes to cater to student preferences effectively.

Use of Phoenix to allocate differentiated activities catering to varying learning abilities of the students – these online activities will include quizzes, assignments, research-based projects, digital group activities and formative tests.

Feedback to students will be given through the Gems Phoenix platform. Feedback will include rubrics, teacher, and peer marking.

Questions from students – time allocated to allow students the opportunity to ask questions and give written and oral feedback through digital platforms.

Term 2

Unit 9 Investment and Other Ratios                

Approximate length: 2 weeks

By the end of this unit, the learner should be able to understand the need for the analysis of financial data to aid decision making by potential investors in a business. Students will use various investment and other ratios for analysis and communication of accounting information. Students will analyze and evaluate the results of the ratios and draw conclusions, make appropriate recommendations to potential investors based on the analysis undertaken and evaluate the interrelationships between ratios.

Cambridge International Curriculum Standards

  • To understand the reasons for converting financial information into ratios
  • To be aware of the need and use of investment/stock exchange ratios for potential investors
  • To calculate and comment on:
  1. working capital cycle (in days)
  2. net working assets to revenue (sales)
  3. income gearing
  4. gearing ratio
  5. earnings per share
  6. price earnings ratio
  7. dividend yield
  8. dividend cover
  9. dividend per share

Unit 10 Activity Based Costing – Cost & Management Accounting  

Approximate length: 1 week

By the end of this unit, learners should be able to understand and discuss the application of activity-based costing and identify and explain its uses and limitations. Students should be able to use ABC to apportion overheads, calculate the total cost of a unit, calculate the value of inventory, demonstrate the effect of different methods of, overhead absorption on profit, and apply ABC costing techniques to make business decisions and recommendations using supporting data.

Cambridge International Curriculum Standards

  • To define the terms used in ABC
  • To allocate appropriate overheads to cost drivers
  • To calculate activity cost driver rates
  • To absorb direct and indirect costs into a product and calculate a selling price after absorbing all costs
  • To identify the advantages and disadvantages of using ABC

Unit 11 Budgeting and Budgetary Control   

Approximate length: 3 weeks

By the end of this unit, learners should understand the need for and benefits of a budgetary control system to an organization. Students will be able to prepare the following budgets: sales, production, purchases, labor, trade receivables, trade payables, cash and master budget.

Cambridge International Curriculum Standards

  • To understand the need for budgeting and explain the benefits of budgeting and budgetary control
  • To explain the limitations of budgetary control
  • To prepare sales, production, purchases, labor, trade receivables, trade payables, cash, and master budgets
  • To prepare a flexed budget statement
  • To identify and explain the causes of differences between actual and flexed budgeted data while calculating variances from actual data
  • To make business decisions and recommendations using supporting data
  • To discuss the behavioral aspects of budgeting.

Unit 12 Standard costing                                             

Approximate length: 2 weeks

By the end of this unit, learners should understand the application of a system of standard costing to an organization. Students will calculate multiple variances such as direct material price and usage, direct labor rate and efficiency, fixed overhead expenditure, capacity, efficiency and volume and sales price and volume. Students will further discuss how standard costing can be used as aid to improve the performance of a business.

Cambridge International Curriculum Standards

  • To explain the use of a system of standard costing
  • To calculate and interpret sales variances, material variances, labor variances and fixed overhead variances
  • To reconcile standard cost to actual cost
  • To reconcile standard profit to actual profit
  • To understand the inter-relationship of variances
  • To appreciate the usefulness of variance analysis to management
  • To discuss the advantages and disadvantages of a standard costing system.

Unit 12 Capital Investment Appraisal                            

Approximate length: 2 weeks

By the end of the unit, learner should be able to understand the process of investment appraisal. Students will ascertain future net cash inflows and outflows arising from the project, including the treatment of working capital, discuss the advantages and disadvantages of, and apply the various capital investment appraisal techniques. The unit enables students to make investment decisions and recommendations using supporting data, evaluate, apply and discuss sensitivity analysis techniques in respect of the data prepared.

Cambridge International Curriculum Standards

  • To understand the need for appraising capital investment options available to a business
  • To calculate net present values of future cash flows
  • To understand the payback, discounted payback, internal rate of return, accounting rate of return and net present value methods of capital investment appraisal
  • To analyze and evaluate capital investment proposals

Term 3

Mock Examinations and Study Leave for CIE (External Examinations)

Assessment

Formative: Throughout the units, the learners will complete graded work, quizzes, assignments, past paper projects and investigation activities, which allows the teacher to assess the students’ attainment and inform their planning

Next Steps

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