THE ACCOUNTANT IN BUSINESS - ACCA Global

15 Pages·2012·0.11 MB·English

Accountant in Business

(FAB/F1) Detailed syllabus

December 2011 to
This shows the breakdown of the main capabilities
(sections) of the syllabus into subject areas. This is
January 2013
the blueprint for the detailed study guide.

This syllabus and study guide is designed to help Approach to examining the syllabus
with teaching and learning and is intended to
provide detailed information on what could be This section briefly explains the structure of the
assessed in any examination session. examination and how it is assessed.

THE STRUCTURE OF THE SYLLABUS AND Study Guide
STUDY GUIDE
This is the main document that students and
Relational diagram with other papers learning and content providers should use as the
basis of their studies, instruction and materials
This diagram shows direct and indirect links respectively.
between this paper and other papers preceding or Examinations will be based on the detail of the
following it. Some papers are directly underpinned study guide which comprehensively identifies what
by other papers. These links are shown as solid line could be assessed in any examination session.
arrows. The links between papers where there is The study guide is a precise reflection and
only an indirect link and no required underpinning breakdown of the syllabus. It is divided into sections
are shown as dotted line arrows. The relational based on the main capabilities identified in the
diagram therefore indicates where you are expected syllabus. These sections are divided into subject
to have underpinning knowledge and where it would areas which relate to the sub-capabilities included
be useful to review previous learning before in the detailed syllabus. Subject areas are broken
undertaking study. down into sub-headings which describe the detailed
outcomes that could be assessed in examinations.
Overall aim of the syllabus These outcomes are described using verbs
indicating what exams may require students to
This explains briefly the overall objective of the demonstrate, and the broad intellectual level at
paper and indicates in the broadest sense the which these may need to be demonstrated
capabilities to be developed within the paper. (*see intellectual levels below).

Main capabilities Learning Materials

This paper’s aim is broken down into several main ACCA's Approved Learning Partner - content (ALP-
capabilities which divide the syllabus and study c) is the programme through which ACCA approves
guide into discrete sections. learning materials from high quality content
providers designed to support study towards ACCA’s
Relational diagram of main capabilities qualifications.

This diagram illustrates the flows and links between ACCA has one Platinum Approved Learning Partner-
the main capabilities (sections) of the syllabus and content which is BPP Learning Media. In addition,
should be used as an aid to planning teaching and there are a number of Gold Approved Learning
learning in a structured way. Partners - content.

Syllabus rationale For information about ACCA's Approved Learning
Partners - content, please go ACCA's Content
This is a narrative explaining how the syllabus is Provider Directory.
structured and how the main capabilities are linked.
The rationale also explains in further detail what the The Directory also lists materials by Subscribers,
examination intends to assess and why. these materials have not been quality assured by
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ACCA but may be helpful if used in conjunction with tuition time, self study, revision and assessment
approved learning materials. You will also time.
find details of Examiner suggested Additional For QCF registered learners in England, Wales and
Reading which may be a useful supplement to Northern Ireland, passing the exam related to the
approved learning materials# above syllabus gives credit for the following QCF
units:
ACCA's Content Provider Directory can be found
here –  Work effectively in accounting and finance
http://www.accaglobal.com/learningproviders/alpc/c  Principles of internal control
ontent_provider_directory/search/.  Evaluating accounting systems
 Professional ethics in accounting and
finance
Relevant articles will also be published in Student
 Professional values and basic business
Accountant.
legislation

 Business environment, structure and
LEVEL OF ASSESSMENTS – INTELLECTUAL
governance
DEMAND
 Leadership, management and

communication
ACCA qualifications are designed to progressively

broaden and deepen the knowledge and skills
GUIDE TO EXAM STRUCTURE
demonstrated by the student at a range of levels on

their way through each qualification. These relate to
The structure of examinations varies within and
intellectual levels as designated by the UK
between modules and levels.
qualifications and credit framework (QCF) and other
The FIA examinations contain 100% compulsory
qualifications frameworks. As a benchmark, these
questions to encourage candidates to study across
levels progress from GCSE equivalent at the
the breadth of each syllabus.
Introductory Certificate level of the Foundations in
All FIA examinations are assessed by two-hour
Accountancy (FIA) programme, to A level, or its
paper based and computer based
equivalent, at the Intermediate Certificate level and
examinations.
to first year degree level at the Diploma level. The
The pass mark for all FIA examination papers is
Advanced Diploma (the Skills module plus
50%.
professional Ethics Module) within the ACCA

Qualification is equivalent to undergraduate degree
GUIDE TO EXAMINATION ASSESSMENT
level and the Professional level is benchmarked at

Masters level.
ACCA reserves the right to examine anything

contained within any study guide at any
Throughout, the study guides assess both
examination session. This includes knowledge,
knowledge and skills. Therefore a clear distinction is
techniques, principles, theories, and concepts as
drawn, within each subject area, between assessing
specified.
knowledge and skills and in assessing their

application within an accounting or business
For the financial accounting, audit and tax papers,
context. The assessment of knowledge is denoted by
except where indicated otherwise, ACCA will
a superscriptK and the assessment of skills is
publish examinable documents once a year to
denoted by the superscriptS.
indicate exactly what regulations and legislation

could potentially be assessed within identified
VALUE OF ASSESSMENTS – GUIDED LEARNING
examination sessions.
HOURS

Examinations regulation issued or legislation passed
For the FIA syllabuses the approximate number of
on or before 30th September annually, will be
standard learning hours that a candidate needs to
assessed from June 1st of the following year to May
commit to each examination is based on the credit
31st of the year after. Please refer to the
value of the Qualifications and Credit Framework
examinable documents for the paper (where
(QCF) UK, units which make up the syllabus. For
relevant) for further information.
FAB, Foundations of Accounting and Business, the

total learning hours or credit value of the syllabus is
18 credits or 180 hours which includes direct
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Regulation issued or legislation passed in
accordance with the above dates may be
examinable even if the effective date is in the
future. The term issued or passed relates to when
regulation or legislation has been formally approved.
The term effective relates to when regulation or
legislation must be applied to entity transactions
and business practices.

The study guide offers more detailed guidance on
the depth and level at which the examinable
documents will be examined. The study guide
should therefore be read in conjunction with the
examinable documents list.
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Qualification structure

The qualification structure requires candidates who wish to be awarded the Diploma in Accounting and Business
to pass the F1/FAB, F2/FMA and the F3/FFA examinations and successfully complete the Foundations in
Professionalism module.

F1/FAB F2/FMA F3/FFA Diploma in
+ + + Fi P* = Accounting
and
Business

* Foundations in Professionalism

Syllabus structure

'The Foundations in Accountancy suite of
qualifications is designed so that a student can
progress through three discrete levels; Introductory
Certificate level, Intermediate Certificate level and
the Diploma level. Students are recommended to
enter FIA at the level which is most appropriate to
their needs and abilities and to take examinations in
order, but this is not a requirement.

P1 P3 ACCA

FIA FAB F1

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Syllabus The final section of the syllabus examines how
behaviour at all levels within business should be
underpinned by accepted professional ethics and
AIM professional values.

To introduce knowledge and understanding of the MAIN CAPABILITIES
business and its environment and the influence this
has on how organisations are structured and on the On successful completion of this paper, candidates
role of the accounting and other key business should be able to:
functions in contributing to the efficient, effective
and ethical management and development of an A Understand the purpose and types of
organisation and its people and systems. businesses and how they interact with key
stakeholders and the external environment.
RATIONALE
B Understand business organisation structure,
The syllabus for FAB/F1, Foundations of functions and the role of corporate governance
Accounting in Business introduces students who
may not have a business background, to the C Recognise the function of accountancy and
business, which as an entity is made up of people audit in communicating, reporting and assuring
and systems which interact with the environment financial information and in effective financial
and with each other. The syllabus begins with control and compliance
examining the purpose and types of business which
exist, the key stakeholders and the rights and D Recognise the principles of authority and
responsibilities that businesses have in connection leadership and how teams and individuals are
with them, exploring the external influences that recruited, managed, motivated and developed.
affect the business in its environment, including
economic, legal, social and technological factors. E Understand the importance of personal
The syllabus then examines the structure and effectiveness as the basis for effective team
functions of business, focusing on corporate and organisational behaviour.
governance and the specific accounting related roles
in this process, particularly in financial reporting, F Recognise that all aspects of business and
assurance, control and compliance. The syllabus finance should be conducted in a manner
then introduces key leadership, management and which complies with and is in the spirit of
people issues such as effective individual and team accepted professional ethics and professional
behaviour, motivation and personal effectiveness. values

RELATIONAL DIAGRAM OF MAIN CAPABILITIES

The business organisation, its stakeholders and the external environment (A)

Business organisation structure,
functions and governance (B)
Leading and
managing
Accounting and reporting individuals
systems, controls and compliance (C) and teams
(D)

Personal effectiveness

and communication (E)

Professional ethics in accounting and business (F)
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DETAILED SYLLABUS 5. Financial systems, procedures and related IT
applications
A The business organisation, its stakeholders
and the external environment 6. Internal controls, authorisation, security of data
and compliance within business
1. The purpose and types of business organisation
7. Fraud and fraudulent behaviour and their
2. Stakeholders in business organisations prevention in business, including money
laundering.
3. Political and legal factors affecting business
D Leading and managing individuals and teams
4. Macro economic factors
1. Leadership, management and supervision
5. Micro economic factors
2. Recruitment and selection of employees
6. Social and demographic factors
3. Individual and group behaviour in business
7. Technological factors organisations

8. Environmental factors 4. Team formation, development and
management
9. Competitive factors
5. Motivating individuals and groups

B Business organisational structure, functions 6. Learning and training at work
and governance
7. Review and appraisal of individual
1. The formal and informal business organisation performance.

2. Business organisational structure and design E Personal effectiveness and communication

3. Organisational culture in business 1. Personal effectiveness techniques

4. Committees in business organisations 2. Consequences of ineffectiveness at work

5. Governance and social responsibility in 3. Competence frameworks and personal
business development

C Accounting and reporting systems, controls 4. Sources of conflicts and techniques for conflict
and compliance resolution and referral

1. The relationship between accounting and other 5. Communicating in business.
business functions
F Professional ethics in accounting and business
2. Accounting and finance functions within
business organisations 1. Fundamental principles of ethical behaviour

3. Principles of law and regulation governing 2. The role of regulatory and professional bodies
accounting and auditing in promoting ethical and professional standards
in the accountancy profession
4. The sources and purpose of internal and
external financial information, provided by 3. Corporate codes of ethics
business
4. Ethical conflicts and dilemmas
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APPROACH TO EXAMINING THE SYLLABUS

The syllabus is assessed by a two hour paper-based
or computer-based examination. Questions will
assess all parts of the syllabus and will test
knowledge and some comprehension or application
of this knowledge. The examination will consist of
50 two mark questions.

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Study Guide 3. Political and legal factors affecting business

a) Explain how the political system and
A THE BUSINESS ORGANISATION, ITS government policy affect the organisation.[K]
STAKEHOLDERS AND THE EXTERNAL
ENVIRONMENT b) Describe the sources of legal authority,

including supra-national bodies, national and
1. The purpose and types of business regional governments.[K]
organisation

c) Explain how the law protects the employee and
a) Define ‘business organisations’ and explain why the implications of employment legislation for
they are formed.[K] the manager and the organisation.[K]

b) Describe common features of business d) Identify the principles of data protection and
organisations.[K] security.[K]

c) Outline how business organisations differ.[K] e) Explain how the law promotes and protects
health and safety in the workplace.[K]
d) List the industrial and commercial sectors in
which business organisations operate.[K] f) Recognise the responsibility of the individual

and organisation for compliance with laws on
e) Identify the different types of business data protection, security and health and
organisation:[K] safety.[K]
i) Commercial
ii) Not-for-profit g) Outline principles of consumer protection such
iii) Public sector as sale of goods and simple contract.[K]
iv) Non-governmental organisations
v) Cooperatives 4. Macro-economic factors

2. Stakeholders in business organisations a) Define macro-economic policy.[K]

a) Define stakeholders and explain the agency
b) Explain the main determinants of the level of
relationship in business and how it may vary in business activity in the economy and how
different types of business organisation.[K] variations in the level of business activity affect
individuals, households and businesses.[K]
b) Define internal, connected and external
stakeholders and explain their impact on the c) Explain the impact of economic issues on the
organisation.[K] individual, the household and the business: [K]
i) inflation
c) Identify the main stakeholder groups and the ii) unemployment
objectives of each group.[K] iii) stagnation
iv) international payments disequilibrium.
d) Explain how the different stakeholder groups
interact and how their objectives may conflict d) Describe the main types of economic policy
with one another.[K] that may be implemented by government and
supra-national bodies to maximise economic
e) Compare the power and influence of various welfare.[K]
stakeholder groups and how their needs should

be accounted for, such as under the Mendelow
e) Recognise the impact of fiscal and monetary
framework.[K] policy measures on the individual, the
household and businesses.[K]

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5. Micro economic factors 9. Competitive factors

a) Define the concept of demand and supply for a) Identify a business’s strengths, weaknesses
goods and services.[K] opportunities and threats (SWOT) in a market
and the main sources of competitive
b) Explain elasticity of demand and the impact of advantage.[K]
substitute and complementary goods.[K]
b) Describe the activities of an organisation that
c) Explain the economic behaviour of costs in the affect its competitiveness:[K]
short and long term.[K] i) purchasing
ii) production
d) Define perfect, imperfect and monopolistic iii) marketing
markets.[K] iv) service

6. Social and demographic factors c) Explain the factors or forces that influence the
level of competitiveness in an industry or sector
a) Explain the medium and long-term effects of using Porter’s five forces model.[K]
social and demographic trends on business
outcomes and the economy.[K] B BUSINESS ORGANISATION STRUCTURE,
FUNCTIONS AND GOVERNANCE
b) Describe the impact of changes in social
structure, values, attitudes and tastes on the 1. The formal and informal business organisation
organisation.[K]
a) Explain the informal organisation and its
c) Identify and explain the measures that relationship with the formal organisation.[K]
governments may take in response to the
medium and long-term impact of demographic b) Describe the impact of the informal
change.[K] organisation on the business.[K]

7. Technological factors 2. Business organisation structure and design

a) Explain the effects of technological change on a) Describe the different ways in which formal
the organisation structure and strategy:[K] organisations may be structured:
i) Downsizing entrepreneurial, functional, matrix, divisional,
ii) Delayering departmental, by geographical area and by
iii) Outsourcing product.[K]

b) Describe the impact of information technology b) Explain basic organisational structure
and information systems development on concepts: [K]
business processes.[K] i) separation of direction and management
ii) span of control and scalar chain
8. Environmental factors iii) tall and flat organisations

a) List ways in which the businesses can affect or c) Explain the characteristics of the strategic,
be affected by its physical environment.[K] tactical and operational levels in the
organisation in the context of the Anthony
b) Describe ways in which businesses can operate hierarchy.[K]
more efficiently and effectively to limit damage
to the environment.[K] d) Explain centralisation and decentralisation and
list their advantages and disadvantages.[K]
c) Identify the benefits of economic sustainability
to a range of stakeholders.[K]

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e) Describe the roles and functions of the main b) Define corporate governance and social
departments in a business organisation: [K] responsibility and explain their importance in
i) research and development contemporary organisations.[K]
ii) purchasing
iii) production c) Explain the responsibility of organisations to
iv) direct service provision maintain appropriate standards of corporate
v) marketing governance and corporate social
vi) administration responsibility.[K]
vii) finance.
d) Briefly explain the main recommendations of
f) Explain the role of marketing in an best practice in effective corporate
organisation: [K] governance:[K]
i) the definition of marketing i) Non-executive directors
ii) the marketing mix ii) Remuneration committees
iii) the relationship of the marketing plan to the iii) Audit committees
strategic plan iv) Public oversight

3. Organisational culture in business e) Explain how organisations take account of their
social responsibility objectives through analysis
a) Define organisational culture.[K] of the needs of internal, connected and external
stakeholders.[K]
b) Describe the factors that shape the culture of
the organisation.[K] f) Identify the social and environmental
responsibilities of business organisations to
c) Explain the contribution made by writers on internal, connected and external
culture:[K] stakeholders.[K]
i) Schein – determinants of organisational
culture C ACCOUNTING AND REPORTING SYSTEMS,
ii) Handy – four cultural stereotypes CONTROLS AND COMPLIANCE
iii) Hofstede – international perspectives on
culture 1. The relationship between accounting and
other business functions
4. Committees in business organisations
a) Explain the relationship between accounting
a) Explain the purposes of committees.[K] and other key functions within the business
such as procurement, production and
b) Describe the types of committee used by marketing.[K]
business organisations.[K]
b) Explain financial considerations in production
c) List the advantages and disadvantages of and production planning.[K]
committees.[K]
c) Identify the financial issues associated with
d) Explain the roles of the Chair and Secretary of marketing.[S]
a committee.[K]
d) Identify the financial costs and benefits of
5. Governance and social responsibility in effective service provision.[S]
business
2. Accounting and finance functions within
a) Explain the concept of separation between business
ownership and control.[K]
a) Explain the contribution of the accounting
function to the formulation, implementation,
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