Levels of Study

Knowledge module

The Knowledge module introduces you to the core areas of financial and management accounting. The module comprises:

F1 Accountant in Business

F1 develops your understanding of business in the context of its environment, including economic, legal, and regulatory influences on such aspects as governance, employment, health and safety, data protection and security.

Additionally, you will be introduced to certain aspects of the regulatory framework affecting auditing and governance, examine the roles of internal and external auditors and be introduced to the importance of internal control. The syllabus also introduces key management and people issues such as individual and team behaviour, leadership, motivation, personal effectiveness and professional ethics in accounting and business.

• Business organisation, structure, governance and management
• Environmental influences and constraints on business and accounting
• History and role of accounting in business
• Specific functions of accounting and internal financial control
• Leading and managing individuals and teams

F2 Management Accounting

F2 develops your knowledge and ability to apply appropriate management accounting concepts and foundations in accountancy techniques for decision making, planning and control including forecasting techniques, the preparation of budgets and standard costs and performance measurement.

Additionally, you will be introduced to certain aspects of the regulatory framework affecting auditing and governance, examine the roles of internal and external auditors and be introduced to the importance of internal control. The syllabus also introduces key management and people issues such as individual and team behaviour, leadership, motivation, personal effectiveness and professional ethics in accounting and business.

Subjects include:

• The nature and purpose of cost and management accounting
• Cost classification, behaviour and purpose
• Business mathematics and electronic spreadsheets
• Cost-accounting techniques
• Short-term decision making techniques

F3 Financial Accounting

F3 develops your knowledge and understanding of the underlying principles and concepts relating to financial accounting. It will enable you to demonstrate technical proficiency in the use of double entry techniques, including the preparation and interpretation of basic financial statements for sole traders, companies and simple groups of companies.

Subjects include:

• The context and purpose of financial reporting
• The qualitative characteristics of financial information and the fundamental bases of accounting
• The use of double entry and accounting systems
• Recording transactions and events
• Preparing a trial balance
• Preparing basic financial statements
• The basics of group accounting

Skills module

The Skills module comprehensively covers the main technical areas of law, performance management, taxation, financial reporting, auditing and financial management. The Skills module is positioned at an intellectual level equivalent to a Bachelors degree.

The Skills module is assessed by three-hour written exams, in June and December each year at official ACCA exam centres.

The module comprises:

F4 Corporate and Business Law

F4 develops your skills and knowledge of the general legal framework relating to business.

Subjects include:

• Essential elements of the legal system
• The law of obligations
• Employment law
• The formation and constitution of business organisations
• Capital and the financing of companies
• Management, administration and regulation of companies
• Legal implications relating to companies in difficulty or crisis
• Governance and ethical issues relating to business

F5 Performance Management

F5 teaches you how to apply management accounting techniques to quantitative and qualitative information. It builds on the knowledge gained in paper F2, so you will need to re-familiarise yourself with topics such as absorption and marginal costing.

Subjects include:

• Specialist cost and management accounting techniques
• Decision-making techniques
• Budgeting
• Standard costing and variance analysis
• Performance measurement and control

F6 Taxation

F6 helps you to develop knowledge and skills relating to the tax system, as it applies to individuals and companies.

Subjects include:

• The UK tax system
• Income tax liabilities
• Corporation tax liabilities
• Chargeable gains
• National insurance contributions
• Value added tax
• The obligations of tax papers and/or their agents

F7 Financial Reporting

F7 enables you to prepare, present, analyse and interpret financial statements which conform to International Accounting Standards. It builds on the knowledge gained in paper F3. So if you are exempt from F3, you are advised to revise double entry techniques before attending the F7 course.

Subjects include:

• A conceptual framework for financial reporting
• A regulatory framework for financial reporting
• Financial statements
• Business combinations
• Analysing and interpreting financial statements

F8 Audit and Assurance

F8 develops your knowledge and understanding of the process and application of undertaking an audit assurance engagement.

Subjects include:

• Audit framework and regulation
• Internal audit
• Planning and risk assessment
• Internal control
• Audit evidence
• Review and audit reporting
• Audit reporting

F9 Financial Management

F9 gives you an understanding of what is expected of a financial manager, including issues affecting investment and financing.

Subjects include:

• Financial management function
• Financial management environment
• Working capital management
• Investment appraisal
• Business finance
• Cost of capital
• Business valuations
• Risk management

Essentials module

These three exams build upon the technical skills acquired at the Fundamentals Level. They explore advanced professional skills, techniques and values that you will require to act as an expert accountant in an advisory or consultancy role at senior level.

The Essentials module is assessed by three-hour written exams, in June and December each year at official ACCA exam centres.

The module comprises:

P1 Governance, Risk and Ethics

P1 teaches you how to apply relevant knowledge, skills and judgment gained from previous papers when carrying out the role of an accountant.

Subjects include:

• Governance and responsibility
• Internal control and review
• Identifying and assessing risk
• Controlling risk
• Professional values and ethics

P2 Corporate Reporting

P2 teaches you how to evaluate financial reporting principles and practices. It builds on the knowledge gained in papers F3 and F7. If you book P2 course either online or in the classroom you will be given online access to BPPs Assumed Knowledge resources for F7, to help you get back up to speed for P2.

Subjects include:

• Professional and ethical duty of the accountant
• Financial reporting framework
• Reporting the financial performance of entities
• Financial statements of groups of entities
• Specialised entities
• Implications of changes in accounting regulation on financial reporting
• Appraisal of financial performance and position of entities

P3 Business Analysis

P3 teaches you how to apply knowledge and skills gained from previous papers to the assessment and implementation of business strategy.

Subjects include:

• Strategic position, choices and actions of an organisation
• Modelling and redesigning business processes
• Information technology solutions
• Quality initiatives to implement and support an organisations strategy
• People management
• Role of finance in formulating and implementing business strategy
• Role of leadership and people management in business strategy

Options module

The Options module is assessed by three-hour written exams, in June and December each year at official ACCA exam centres.

P4 Advanced Financial Management

This module allows you to specialise in particular topic areas, equipping you with the knowledge needed to give you a head start along your anticipated career path.

You are required to do 2 papers from this module and the module comprises:

P4 gives you an understanding of what is expected of a senior financial executive, in terms of the financial management of an organisation. Subjects include:

• Role and responsibility towards stakeholders
• Advanced investment appraisal
• Acquisitions and mergers
• Corporate reconstruction and re-organisation
• Economic environment for multinationals
• Treasury and advanced risk management techniques

P5 Advanced Performance Management

P5 teaches you how to evaluate business performance through the application of strategic management accounting techniques. Subjects include:

• Strategic planning and control
• Economic, fiscal and environmental factors
• Performance measurement systems and design
• Strategic performance measurement
• Performance evaluation and corporate failure
• Current and emerging issues in management accounting and performance management

P6 Advanced Taxation

P6 teaches you how to apply relevant knowledge and skills gained from previous papers to evaluate the impact of major taxes, focusing on the financial decisions of both individuals and organisations.

It builds on the essential knowledge and grounding you gained when studying for F6 taxation. As part of this module we provide introductory chapters to help you to master any rule changes that may have occurred since you last studied taxation.

Subjects include:

• Knowledge and understanding of the UK tax system
• Importance of taxation to personal and corporate financial management
• Impact of relevant taxes
• Tax planning measures
• Communicating with clients, HMRC and other professionals

P7 Advanced Audit and Assurance

P7 teaches you how to obtain, plan, control and conclude both audit and assurance engagements.

At P7 you are expected to build on your knowledge from F8 the basic mechanics of assurance engagement and obtaining evidence and apply it to audit management. So awareness of the risks associated with practice management comes in, alongside more detailed technical financial reporting experience, which you would have gained from P2.

Subjects include:

• Regulatory environment
• Professional and ethical considerations
• Practice management
• Assignments
• Reporting
• Current issues and developments