AVA

Guided Learning Hours:

Levels:

Credits:

Unit grading system:

1. Understand purpose and role of financial management

1.1 Assess the financial management function and environment

1.2 Evaluate the role of stakeholders and their interests and impact on corporate objectives

1.3 Critically discuss different financial objectives and the relationship with overall corporate strategy

1.4 Explain the role of financial markets and financial institutions

2. Understand and use effective working capital management techniques

2.1 Discuss the nature, elements and importance of working capital

2.2 Assess working capital needs and funding strategies of different organisations

2.3 Apply working capital management techniques

2.4 Critically discuss the management of inventories, cash, accounting receivable and payable in different organisations

3. Be able to perform investment appraisals

3.1 Evaluate different investment appraisal techniques

3.2 Discuss the different adjustments needed for risk, uncertainty, taxation and inflation in investment appraisals

3.3 Perform advanced calculations for investment appraisals

3.4 Assess specific investment decisions (lease or buy and asset replacement)

4. Understand the process of identification, comparison and evaluation of alternative sources of business finance

4.1 Critically discuss sources and raising of business finance

4.2 Perform advanced calculations for cost of capital and debt estimation

4.3 Evaluate different sources of finance and any cost of each source

4.4 Discuss different capital structures and related optimisation techniques

4.5 Analyse different sources of finance for Small and Medium-size Entities (SMEs)

5. Be able to conduct business valuations

5.1 Discuss the nature and purpose of business valuations and different methods of evaluating financial assets

5.2 Evaluate different business valuation techniques and models

5.3 Perform advanced calculations for the valuation of debt and other instruments

5.4 Critically discuss Efficient Market Hypotheses and any implications in business valuations

6. Understand risk management techniques in business

6.1 Analyse the nature and types of risk

6.2 Discuss and apply risk management approaches

6.3 Critically discuss the causes and implications of foreign currency risk and interest rate risk

6.4 Assess hedging techniques for foreign currency risk and interest rate risk.

1. Understand the role and context of financial accounting

1.1 Discuss the role and nature of financial accounting information within the internal and external environment of an organisation

1.2 Assess the different priorities and concerns of stakeholders who have an interest in financial accounting information

1.3 Explain the role of financial and management accountants in a variety of business organisations

1.4 Discuss the role and nature of corporate governance, statutory and internal audit

1.5 Critically evaluate accounting concepts and legal requirements underpinning the preparation of financial statements

2. Be able to record accounting transactions and prepare a trial balance

2.1 Use double-entry accounting techniques to maintain accounting records, including the use of bank reconciliations, journal entries, purchase and sales ledger, control accounts

2.2 Record the following transactions in the accounting system of the organisation:

• Sales and purchases
• Cash and inventory
• Tangible assets and depreciation
• Intangible assets and amortisation
• Provisions

2.3 Prepare a trial balance of an organisation including any correction of errors, control accounts and bank reconciliations

3. Be able to prepare financial statements

3.1 Assess the key features of financial statements

3.2 Prepare and present the following financial statements from complete and incomplete accounting data:

• Statement of Financial Position
• Statement of Profit and Loss
• Statement of Cash flow

including their corresponding notes.

3.3 Prepare consolidated financial statements of both subsidiaries and associates

3.4 Explain the interrelationships between the key features of financial statements

3.5 Report events after the accounting period

4. Be able to interpret the financial performance of organisations

4.1 Calculate and analyse key accounting rations and evaluate their limitations

4.2 Discuss the importance and purpose financial statement analysis

4.3 Evaluate business performance using financial statements and ratios and trend analysis

1. Understand the underlying concepts that determine how businesses are organised, functioning and governed

1.1 Assess the purpose and types of business organisations and main stakeholders and their needs

1.2 Evaluate the external factors affecting business which include Political, Economic, Legal, Social, Technological and Environmental

1.3 Critically discuss different organisational structures and designs

1.4 Discuss the organisational culture in business, committees in business organisation

1.5 Assess corporate governance and corporate social responsibility of an organisation

2. Demonstrate knowledge of managerial aspects in an organisation

2.1 Discuss different managerial styles, behaviors and leadership styles

2.2 Critically discuss the team building process and individual and group motivation techniques

2.3 Evaluate different human resources processes, including recruitment and selection and employee appraisal

2.4 Analyse personal effectiveness techniques

2.5 Prepare personal career and development plans

3. Understand importance of financing and regulatory issues

3.1 Discuss a framework for financial decision making

3.2 Analyse international aspects of business finance

3.3 Critically discuss corporate restructuring (including takeovers and divestments)

3.4 Evaluate the regulation of financial services industry and the protection available to customers

4. Understand the different sources of financing available for individuals and businesses

4.1 Discuss the cost and suitability of different sources of finance for individuals

4.2 Evaluate the cost and suitability of short term and long term finance sources for businesses

4.3 Evaluate the roles of financial services providers and the stock exchange

4.4 Prepare cost of capital calculations and the discount rate

Understand the regulatory framework for financial reporting

1.1 Discuss the framework of accounting and standard setting process

1.2 Evaluate contemporary issues in financial reporting

1.3 Critically discuss the need and application of a conceptual framework in financial reporting

1.4 Assess current regulatory framework of financial reporting

1.5 Discuss the concepts and principles of group accounting and consolidated financial statements

1.6 Critically discuss fundamental accounting concepts and principles: recognition and measurement and the concept of ‘faithful representation’ (‘true and fair view’)

2 Be able to prepare financial statements and present single entity and consolidated financial statements in conformity with IFRSs from complete or incomplete records

2.1 Prepare single entity financial statements in conformity with IFRSs including:

• statements of financial position
• comprehensive income
• changes in equity
• cash flows and extracts from accounting policies and notes

2.2 Prepare consolidated financial statements in conformity with IFRSs including:

• Statement of financial position
• Comprehensive income
• Cash flows and
• Extracts from accounting policies and notes

3 Be able to analyse and interpret financial statements

3.1 Perform financial ratios calculations and analyse the financial performance of the firm for different stakeholders

3.2 Critically discuss trends in financial performance

3.3 Assess the limitations of financial statements

3.4 Evaluate the fina

4 Specialised accounting for transactions in Financial Statements

4.1 Perform calculations and discuss accounting treatment for:

• Intangible assets;
• Tangible non-current assets;
• Impairment of assets;
• Inventory and biological assets;
• Financial Instruments;
• Leasing;
• Taxation;
• Revenue;
• Financial performance reporting; and
• Foreign currency transactions

5 Understand the role of directors, company secretaries and the auditors in financial reporting and the

5.1 Critically evaluate the role of directors, company secretaries and the auditors in financial reporting and the management of companies

1 Understand audit and related regulatory framework

1.1 Discuss audit, accountability and levels of assurance engagement

1.2 Assess external audits and corporate governance

1.3 Analyse the scope and purpose of different types of audit

1.4 Assess internal audit and governance and discuss the differences between external and internal audit

1.5 Critically discuss the conceptual framework including independence, evidence and ethics

1.6 Evaluate the regulatory framework of auditing including:

• The Auditing Practices Board, international standards and guidelines
• The requirements of the Companies Act Legal liability of auditors
• The prevention and detection of fraud

2 Be able to perform audit planning and risk assessment

2.1 Discuss the planning of audit work and documentation

2.2 Apply and critically evaluate appropriate audit principles and procedures to different organisational situations

2.3 Analyse the process of obtaining and accepting audit engagements

2.4 Evaluate and perform audit risk assessment

2.5 Perform analysis of the entity and its environment

2.6 Critically discuss fraud, laws and regulations

3 Understand audit procedures

3.1 Evaluate audit evidence required

3.2 Analyse audit procedures, sampling and testing techniques

3.3 Critically discuss different audit techniques with the use of software

4 Understand internal control systems

4.1 Discuss internal control of audit work and compliance testing

4.2 Assess principles and practice relating to internal control, internal audit and internal review

4.3 Perform evaluation of internal control systems as they are performed by auditors

5 Understand reporting for audit purposes

5.1 Evaluate principles related to the formation of audit judgement and the presentation of an audit report

5.2 Discuss subsequent events, going concern and written representations

1. Be able to extract and analyse financial data and management information

1.1 Discuss the role of accountancy and the information needs of managers

1.2 Prepare and present management information for both short term and long term decision making

1.3 Classify costs and explain their behavior

2. Understand the use of cost accounting techniques

2.1 Discuss elements of costs and perform calculations of direct materials, direct labour costs

2.2 Evaluate and use different cost accounting methods, including absorption, marginal costing and activity-based costing

2.3 Assess the factors that influence the pricing decision and cost plus pricing, break-even pricing and profit oriented pricing

2.4 Critically discuss alternative cost accounting principles

2.5 Critically examine and prepare standard costing system and perform variance calculations and analysis

3. Understand the use of financial information systems for planning and controlling purposes

3.1 Develop plans and budgets and discuss the influence of target setting for managers

3.2 Prepare and use statistical techniques for budgeting purposes

3.3 Prepare budgetary controls flexible budgets

3.4 Discuss budgetary behavior, control and reporting

4. Understand use of investment appraisal techniques for capital budgeting

4.1 Discuss long-term/ short-term financing methods and financing working capital

4.2 Evaluate projected financial returns using investment appraisal techniques

4.3 Assess working capital management needs

5. Be able to explore the use of performance measurement systems in organisations

5.1 Discuss the use of key performance indicators and the role of performance measurement in organisations

5.2 Evaluate and use scorecard type systems, including the Balanced Scorecard

5.3 Monitoring and reporting financial performance to the management of an organisation

1. Understand specialist cost and management accounting techniques

1.1 Evaluate Activity Based Costing and the cost drivers involved 1.2 Discuss target and life-cycle costing 1.3 Critically discuss contemporary issues in management accounting techniques including environmental accounting

2. Understand decisionmaking process and techniques

2.1 Discuss the concept of relevant costing

2.2 Assess different pricing strategies and decisions

2.3 Recommend research techniques to reduce uncertainty in decision-making

2.4 Perform Break Even analysis and identify limiting factors

3. Understand budgetary systems

3.1 Discuss budgetary control systems and assess different types of budgets

3.2 Perform quantitative analysis for budgetary purposes of an organisation

3.3 Select and analyse appropriate budgetary systems for an organisation and discuss standard costing

4. Be able to prepare forecasts and budgets for a business

4.1 Discuss and use standard costs

4.2 Assess the performance of an organisation with the use of performance analysis

4.3 Discuss the scope of performance measurement

4.4 Discuss material and sales mix and perform appropriate variance analysis

5. Understand performance measurement, monitoring and control

5.1 Assess different performance management information systems

5.2 Evaluate different sources of information and prepare appropriate management reports

5.3 Discuss external considerations and behavior aspects of performance measurement

5.4 Perform divisional performance analysis and transfer pricing

1. Understand the Legal System

1.1 Discuss the Legal system including courts, tribunals and procedures to resolve disputes

1.2 the main divisions

1.3 Discuss Sources of Law, including the European Union

1.4 Evaluate the role of the legal profession in the Legal System

1.5 Assess the differences between criminal and civil law, and the ways of enforcing Court judgements

2. Understand fundamental concepts of contract and tort law

2.1 Discuss contract law including:

• formation,
• terms including exclusion of liability,
• defects,
• breach of contract,
• remedies, and
• termination

2.2 Discuss employment contracts, employee dismissal and redundancy

2.3 Discuss specific areas of tort law affecting business including:

• the meaning of a tort,
• aspects of the law of negligence,
• vicarious liability,
• contribution and
• indemnity

2.4 Evaluate fraudulent behavior in corporate management and legal liabilities caused by illegal activities

2.5 Discuss professional ethics in accounting and business, including ethical codes and dilemmas

3. Understand the legal rules and regulations relevant to business organisations

3.1 Discuss the legal personality, formation and constitution of a corporation

3.2 Discuss the concept of limited liability and corporate personality

3.3 Assess the law of agency in an organisational context, including duties of partners and directors and authority of the agent

3.4 Critically discuss different types of companies, including partnerships

3.5 Analyse the procedures for registering a company and thereafter regulation of companies

3.6 Analyse the documents required for the constitution of a company (articles and memorandum of association)

4. Understand internal company regulation and insolvency law

4.1 Discuss the relationship between members and managers, including the role and duties of directors, secretary and auditors

4.2 Discuss the purpose of a company meeting and resolutions

4.3 Discuss the role of the bankruptcy administrator and functions of the Administrator, debtor’s assets, creditor’s rights, Bankruptcy liquidation.es mix and perform appropriate variance analysis

5. Understand Securities Law

5.1 Discuss and compare the characteristics of share capital and loan capital, listing and trading of securities

5.2 Critically evaluate capital maintenance and dividend law

5.3 Discuss dividend distribution rules

5.4 Evaluate the takeover of a listed company and legal liabilities caused by illegal activities

1. Understand the tax system and related procedures

1.1 Analyse the function and purpose of a tax system

1.2 Evaluate the system of self-assessment and the making of returns

1.3 Critically discuss tax procedural issues which include: the time limits for information submission, claims on payments, compliance checks and disputes

1.4 Discuss penalties for non-compliance with tax system

2. Understand income tax

2.1 Discuss the scope of income tax

2.2 Evaluate income from employment, self-employment, property and investment income

2.3 Discuss Gains and losses on the disposal of movable and immovable property, shares and securities

3. Understand the taxation of individuals, businesses and corporate entities

3.1 Discuss the major taxes levied on individuals and the scope of the taxation of capital gains

3.2 Discuss the major taxes levied businesses and corporate entities in the UK and the scope of corporation tax

3.3 Evaluate the tax effect of different corporate structures

3.4 Critically discuss the impact of government policy on taxation

4. Be able to prepare computations for: income tax, corporation tax and capital gains tax

4.1 Perform computations for taxable income and income tax liability for individuals

4.2 Perform computations for national insurance contributions for both employed and self-employed individuals

4.3 Perform comprehensive computations for corporation tax

4.4 Prepare computations for capital gains tax

5. Understand the requirements of Value added tax (VAT)

5.1 Analyse the VAT registration requirements

5.2 Critically assess the implications of VAT for businesses

5.3 Perform computations of VAT liabilities

5.4 Assess the effect of special schemes

6. Understand how to minimise the impact of tax for individuals and businesses

6.1 Assess strategies to minimise the impact of tax for individuals, exemptions and reliefs in deferring tax liabilities arising from the disposal of capital gains assets

6.2 Assess strategies to minimise the impact of tax for businesses

7. Be able to discuss inheritance tax

7.1 Discuss the transfers of value and liabilities arising from chargeable lifetime transfers and death of an individual

7.2 Analyse payment of inheritance tax and exemptions in deferring and minimising inheritance tax