Course Content
INTRODUCTION TO ACCOUNTING
The nature and purpose of accounting Objectives of accounting Users of accounting information and their respective needs The accounting equation Regulatory framework of accounting (regulatory bodies such as ICPAK, IFAC, IASB, IPSASB, IAESB) Accounting standards (IASs/IFRSs) (importance and limitations) Professional ethics Accounting concepts/principles Qualities of useful accounting information
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RECORDING TRANSACTIONS
Source documents: quotations, purchase orders, statement of account, remittance advice, receipts, petty cash vouchers, sales and purchase invoice, credit notes and debit notes, bank statements Books of original entry: sales journal, purchases journal, returns inwards journal, returns outward journal, cash book, petty cash book and general journal Double entry and the ledger; use of T- accounts and double entry aspects (debit and credit), sales ledger and purchases ledger The trial balance Computerised accounting systems - role of computers, application and accounting softwares in the accounting process, benefits and challenges of operating computerised accounting systems
0/5
ACCOUNTING FOR ASSETS AND LIABILITIES
Assets Property, plant and equipment – recognition, capital and revenue expenditure, measurement (depreciation and revaluation), disposal and disclosures, property, plant and equipment schedule Intangible assets – recognition, measurement (amortisation, impairment and revaluation), disposals and disclosures Financial assets – examples and risks only Inventory – recognition, measurement and valuation using specific cost method, FIFO and weighted average cost only Trade receivables – bad debts and allowance for doubtful debts and receivables control accounts Accrued income and prepaid expenses Cash at bank – cash book and bank reconciliation statement Cash in hand – cash book and petty cash books Liabilities Bank overdraft – cash book and bank reconciliation statement Trade payables – control accounts Loans – accounting treatment of repayment of principal and interest Prepaid incomes and accrued expenses
0/12
CORRECTION OF ERRORS AND SUSPENSE ACCOUNT
0/1
FINANCIAL STATEMENTS OF A SOLE TRADER
Income statement Statement of financial position
0/2
FINANCIAL STATEMENTS OF A PARTNERSHIP
Partnership agreement Introduction to partnership accounts Distinction between current and fixed capital Income statement Statement of financial position Changes in partnership – admission of a new partner, retirement, death and change in profit sharing ratio
0/6
FINANCIAL STATEMENTS OF A COMPANY
Types of share capital – ordinary shares and preference shares Issue of shares (exclude issue by instalment and forfeiture) Types of reserves – share premium, revaluation reserve, general reserves and retained profits Income tax - accounting treatment and presentation (exclude computation) Financial statements – income statement and statement of financial position Published financial statements (describe a complete set of published financial statements but not preparation)
0/6
FINANCIAL STATEMENTS OF A MANUFACTURING ENTITY
Features of a manufacturing entity Classification and apportioning costs between manufacturing, selling and administration Financial statements – manufacturing account, income statement and statement of financial position
0/3
ACCOUNTS FROM INCOMPLETE RECORDS
Features Types of incomplete records(pure single entry, simple single entry, quasi single entry) Ascertainment of profit by capital comparison Preparation of statement of affairs and profit determination Techniques of obtaining complete accounting information
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FINANCIAL STATEMENTS OF A NOT FOR PROFIT ORGANISATION
Distinction between not for profit making organisation and profit making organisation Nature of receipts and payments account Accounting treatment of some special items Income and expenditure account Statement of financial position
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ANALYSING FINANCIAL STATEMENTS
Statement of cash flows (categories of cash, methods of preparing statement of cash flows and the importance) Financial ratios – definition, categories, analysis and interpretation, application and limitations
0/2
INTRODUCTION TO PUBLIC SECTOR ACCOUNTING
Features of public sector entities (as compared to private sector) Structure of the public sector (National and county governments, state corporations and other agencies) Regulatory structures and oversight [IPSASB, PSASB (establishment, mandate and functions), Director of Accounting Services, National Treasury, Parliamentary Committees, Accounting Officers at national and county levels] Objectives of public sector financial statements Objectives of IPSAS Accounting techniques in public sector (budgeting, cash, accrual, commitment and fund) (Preparation of financial statements excluded)
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EMERGING ISSUES AND TRENDS
About Lesson

Accounting, for academic interest, can be defined as the task of systematically recording, reporting, and archiving all the financial information of the business. The purpose of the accounting department of an organization is to keep track of the financial transactions at one place.

The Objectives of Accounting

  1. Record Keeping: The basic role of any accounting section of an organization is to keep a systematic record of all the financial transactions. Systematic record keeping will ensure a proper level of analysis to arrive at the financial health of an organization. This will go a long way in analyzing systematic and accurate decision making.
  2. Analyzing and ascertaining the financial results: The accounts department prepares the profit and loss details of the organization based on the income statement generated with the help of the records that is has kept for the period. It is an ongoing process and continues irrespective of the stipulated periods
  3. Analysis of the financial status of affairs: The accounting also has an objective of ascertaining the status of financial affairs of the organization. This will include debts, liabilities, property, and assets. The accounts section should be able to provide updated information on the financial conditions of the enterprise on an ongoing basis. This is ideally achieved through the preparation of the balance sheet.
  4. Decision Making: Accounting has yet another wider objective of helping the managers and business owners in decision making. Systematic accounting will be an essential factor for making business decisions and set realistic goals for the targets and plans for future growth eg Product pricing to achieve the maximum possible profit. 
  5. Liquidity Status: Proper accounting should be such that it aids the managers and business owners to ascertain how much cash and other resources they have at their disposal to pay for the financial commitments they may have. The knowledge of liquidity will also be helpful in working out the quantum of the working capital and the capital that can be used for paying off the liabilities.
  6. Securing the positioning: One of the major objectives of accounting should be to help in the positioning of the organization. Accounting offers you a good deal of financial statements to help achieve this goal. The financial position of an organization will ideally go a long way in promoting the financial status of the company eg The complete balance sheet of the organization showing cumulative profit or loss etc
  7. Accountability: One of the most major objectives that accounting can perform to perfection will include enhancing the accountability of the firm to its fullest. It is the accounting section of the organization that provides a solid base for the assessment of the actual performance of the organization over some time. Financial statements from the accounting department can also be helpful in providing enough confidence for the shareholders. Credible and accountable financial status can help you secure financing either through the loans or from the investors.
  8. Legal Objectives: Accounting has been made a legal requirement as per the legislation across the world. As per the law, every business is required to manage and maintain the financial record of the transactions for the specified periods and share this information with the shareholders, promoters and regulating agencies. Moreover, proper accounting can also be helpful for you as an organization to arrive at the correct financial rights, obligations, and liabilities positively.
  9. Detection and prevention of frauds: When the records are proper and authentic, you can ensure that no employee of the organization will be able to indulge in any financial activity that is fraudulent. Accounting will bring in the much-needed transparency into the transactions of the firm as a whole and thus ensures that the incidences of fraud are reduced to almost none.
     
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