Financial Accounting (FA)

Master the fundamentals of financial accounting and preparation of financial statements for single entities.

Applied Knowledge Level Third Paper Global Pass Rate: 68%
Financial Accounting

About FA

Financial Accounting (FA) develops knowledge and understanding of the underlying principles and concepts relating to financial accounting and technical proficiency in the use of double-entry accounting techniques.

This subject provides the foundation for all subsequent financial accounting studies. You'll learn how to prepare basic financial statements, understand the regulatory framework of accounting, and apply accounting standards to various transactions and events.

Why FA is Important

FA is essential for building strong accounting fundamentals and is crucial for anyone pursuing a career in accounting or finance. It helps you understand:

  • The context and purpose of financial reporting
  • Double-entry accounting and recording transactions
  • How to prepare basic financial statements
  • The use of trial balance and correction of errors
  • Preparation of simple consolidated financial statements

Exam Details

Duration: 2 hours
Pass Mark: 50%
Availability: March, June, September, December
Format: Computer-based exam
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FA Syllabus Areas

Context & Purpose of Financial Reporting

  • The scope and purpose of financial statements
  • Users and their information needs
  • Main elements of financial statements
  • Accounting concepts and principles
  • Regulatory framework of accounting

Double-Entry Accounting

  • The accounting equation and double-entry system
  • Recording transactions and events
  • Sales, purchases, and cash transactions
  • Inventory, tangible non-current assets
  • Depreciation and disposal of assets
  • Accruals, prepayments, and irrecoverable debts

Recording Transactions

  • Books of prime entry and ledgers
  • Accounting for partnerships and companies
  • Capital structure and finance costs
  • Events after the reporting period
  • Accounting for leases

Preparation of Trial Balance

  • Trial balance preparation
  • Correction of errors and suspense accounts
  • Control accounts and reconciliations
  • Bank reconciliations
  • Accounting for payroll

Basic Financial Statements

  • Statement of financial position
  • Statement of profit or loss
  • Statement of cash flows
  • Notes to the financial statements
  • Preparation of simple consolidated statements

Interpretation of Financial Statements

  • Calculation and interpretation of ratios
  • Limitations of financial statements
  • Accounting policies and estimates
  • Fair presentation and compliance
  • Ethical issues in financial reporting

Skills Developed

Double-Entry Proficiency

Master the double-entry accounting system for accurate transaction recording

Financial Statement Preparation

Prepare complete sets of financial statements for different entities

Transaction Analysis

Analyze and record complex business transactions accurately

Error Correction

Identify and correct accounting errors using appropriate techniques

Financial Analysis

Interpret financial statements using ratio analysis and other techniques

Regulatory Compliance

Apply accounting standards and regulatory requirements appropriately

Master Financial Accounting with CrackACCA

Build strong foundations in financial accounting principles essential for your ACCA journey

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