FFA - Financial Accounting

About FFA

FFA - Financial Accounting introduces you to the fundamental principles of financial accounting and their application in preparing basic financial statements.

This course 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, including the preparation of basic financial statements for single entities.

Why FFA is Important

FFA is essential for anyone pursuing a career in accounting or finance. It provides the fundamental knowledge needed to:

Understand the context and purpose of financial reporting
Apply accounting concepts and principles
Prepare basic financial statements for different entities
Interpret financial statements for decision-making
Progress to higher-level financial accounting exams

Exam Details

Duration: 2 hours

Pass Mark: 50%

Availability: March, June, September, December

Format: Computer-based exam

Questions: 50 marks (35 objective test questions + 2 multi-task questions)

Prerequisites

No formal prerequisites, but basic understanding of business mathematics is recommended.

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FFA Syllabus Areas

Context and 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 Bookkeeping

Accounting equation and double-entry principles
Recording transactions in ledger accounts
Sales and purchases cycles
Cash book and petty cash book
Bank reconciliation statements

Accounting for Transactions

Inventory valuation methods
Tangible non-current assets and depreciation
Intangible non-current assets
Accruals and prepayments
Irrecoverable debts and allowances

Preparing Financial Statements

Income statement preparation
Statement of financial position preparation
Statements of cash flows (basic)
Accounting for partnerships
Accounting for limited companies

Interpretation of Financial Statements

Calculation and interpretation of accounting ratios
Profitability and liquidity analysis
Efficiency and gearing ratios
Limitations of financial statements
Inter-firm comparison techniques

Accounting Standards and Framework

Introduction to International Accounting Standards
Conceptual framework for financial reporting
Accounting policies and estimates
Events after the reporting period
Fair value measurement principles

Exam Structure

Section A

35 Objective Test Questions

70% of the exam

Multiple choice questions
Multiple response questions
Number entry questions
Drag and drop questions

Section B

2 Multi-Task Questions

30% of the exam

Scenario-based questions
Each worth 15 marks
Test application of knowledge
Require preparation of financial statements

Professional Skills Developed

Double-Entry Accounting

Ability to apply double-entry principles to record business transactions

Financial Statement Preparation

Skills to prepare complete sets of financial statements for different entities

Accounting Principles

Understanding and application of fundamental accounting concepts

Financial Analysis

Ability to analyze and interpret financial statements for decision-making

Technical Proficiency

Technical skills in accounting for various transactions and adjustments

Regulatory Understanding

Knowledge of accounting standards and regulatory framework

Career Opportunities with FFA

Financial Accountant

Prepare financial statements and maintain accounting records

Accounts Assistant

Support financial accounting functions and bookkeeping

Junior Financial Analyst

Assist in financial analysis and reporting activities

Study Resources

Study Text

Comprehensive coverage of the FFA syllabus with examples

Exam Kit

Practice questions and past exam papers with solutions

Video Lectures

Expert-led video tutorials covering all syllabus areas