New Kasneb CPA (Certified Public Accountants) Syllabus


PART I

SECTION 1

PAPER NO.1 FINANCIAL ACCOUNTING

GENERAL OBJECTIVE

To provide the candidate with knowledge of accounting principles, concepts and conventions and preparation of financial statements

1.0 SPECIFIC OBJECTIVES

A candidate who passes this paper should be able to:
  • Explain the nature and purpose of accounting
  • Write up books for original entry
  • Prepare basic ledger accounts under double syatem
  • Prepare basic financial statements of sole traders, partnerships and companies
  • Explain the regulatory framework of accounting
  • Account for assets and liabilities
  • Prepare financial statements of profit and not-for-profit organisations
  • Analyse financial statements

CONTENT

1.1 Introduction to Accounting

- The nature and purpose of accounting
- Objectives of accounting
- Users of accounting information and their respective needs
- Qualities of useful accounting information
- Regulatory framework of accounting
- Regulatory bodies
- Nature and role of organisations that set accounting standards and guidelines such as ICPAK, IFAC, IASB, IPSASB
- Accounting standards, their importance and limitations
- Professional ethics
- The accounting equation
- Accounting concepts and principles
  • Going concern
  • Accruals
  • Consistency
  • Prudence
  • Business entity
  • Duality
  • Monetory measurement
  • Substance over form
  • Realisation
1.2 Double entry bookkeeping

- Source documents: Quotations, purchases order, statement of account, remittance advice, receipts, internal cheque requisitions, petty cash vouchers, payroll
- Books of original entry: Sales journal, purchases journal, returns inwards and returns outwards journals, cashbook, petty cashbook
- The ledgers: General ledger, sales ledger, purchases ledger
- The trial balance
1.3 Final accounts of a sole trader

- Statement of financial performance (income statement)
- Statement of financial position (balance sheet)
1.4 Adjustments

- Accrued and prepaid income and expenses
- Bad and doubtful receivables
- Depreciation and disposal of property, plant and equipment
- Bank reconciliation statements
- Control Accounts
- Correction of errors and suspense accounts
- Valuation of inventory
- Capital and revenue expenditure
1.5 Accounting for assets and liabilities

- Non current assets: Property, plant and equipment, intangible assets, investments, shares and loan stocks
- Current assets: Inventory, receivables
- Liabilities: Payables, loans and loan stocks
1.6 Partnership accounts

- Contents of partnership agreement
- Partners current and capital accounts
- Basic final accounts
- Statement of financial performance (income statement)
- Statement of financial position (balance sheet)
- Realignments (excluding dissolution, amalgamation and conversion)
- Retirement of a partner
- Change in profit sharing ratios
- Other changes in the partnership agreement
1.7 Company accounts

- Capital structure of a company: Ordinary shares, preference shares, loan stocks
- Types of reserves: Share premium, retained profit, general reserves
- Final accounts: Statements of financial performance (income statement), statement of financial position (balance sheet)
- Accounting for issue and forfeiture of shares: Issue of shares, forfeiture and re-issue of shares
- Published accounts: Components of a complete set of published financial statements
1.8 Financial statements analysis

- Ratio analysis
- Statement of cash flow
1.9 Not-for-profit organisations

- Receipts and payments accounts
- Income and expenditure accounts
- Statement of financial position
- Fund accounting, for example, life membership fund
1.10 Manufacturing accounts

- Classification of manufacturing costs
- Apportionment of costs between manufacturing account and statement of financial performance
- Preparation of final accounts for manufacturing entities
1.11 Public sector accounting

- The features of public sector accounting
- Accounting concepts, bases, policies of relevance to public sector accounting
- Fund accounting and its relationship with entity theory
- Income measurement and valuation in the public sector
- The preparation, analysis and interpretation of financial statements of government units
- The accounts of state corporations and similar organisations
1.12 Computerised accounting

- Different accounting packages
- Rationale for computerised accounting system
- Components of a computerised accounting system
- Selecting a good computerised accounting system
- Challenges of a computerised accounting system
- Current trends in computerised accounting software

INDEX


CPA Part I

Section 1

  1. Financial Accounting
  2. Introduction to law
  3. Entrepreneurship and communication

Section 2

  1. Economics
  2. Cost accounting
  3. Auditing and assurance

CPA Part II

Section 3

  1. Management Information Systems
  2. Financial Management
  3. Financial Reporting
Next: Introduction to law