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Summary of changes

A comparison of the new AS/A-level Accounting qualifications to the previous qualifications.

New topics

The impact of ethical considerations.

Topics covering content from the previous specification

Types of business organisation – ACCN2/3.

The double entry model – ACCN1/2.

Analysis and evaluation of financial information – ACCN2.

Marginal costing – ACCN4.

Standard costing and variance analysis – ACCN4.

Capital investment appraisal – ACCN4.

Accounting for organisation with incomplete records – ACCN3.

An introduction to the role of the accountant in business

What’s new What’s gone What’s the same

The responsibilities of the accountant within business.

The role of the accountant in developing and overseeing accounting information systems to provide reliable and relevant information for both financial and management purposes.

  The difference between financial accounting and management accounting and the purpose of each. From ACCN2.

Verification of accounting records

What’s new What’s gone What’s the same
Correcting errors in double entry journal includes the use of the general journal and suspense account.  

Verification of the double entry records. From ACCN1.

How to correct errors in double entry records. From ACCN1.

The effect of errors on profit calculations and statements of financial position. From ACCN1.

The benefits and limitations of verification techniques. From ACCN1.

Accounting concepts used in the preparation of accounting records

What’s new What’s gone What’s the same

Money measurement.

Duality.

Objectivity.

General accounting concepts. From ACCN2.

The use of accounting concepts in a variety of situations. From ACCN2.

Preparation of financial statements of sole traders

What’s new What’s gone What’s the same

Sole traders’ financial statements could be for service businesses.

 

The use of concepts in the preparation of financial statements. From ACCN1/2.

How to prepare financial statements of sole traders from ledger accounts including adjustments from the application of accounting concepts. From ACCN1/2.

How to prepare income statements and statements of financial position from a trial balance including adjustments from the application of accounting concepts. From ACCN1/2.

Limited company accounts

What’s new What’s gone What’s the same

Statement of financial position heading to be used instead of balance sheet.

Guidance on layout and headings.

Preference shares.

Revenue reserves.

How to prepare the internal financial statements of limited liability companies. From ACCN2.

Budgeting

What’s new What’s gone What’s the same

Zero-based budgeting.

Incremental budgeting.

 

The need for budgeting in business organisations. From ACCN2/4.

The benefits and limitations of budgeting and budgetary control. From ACCN2/4.

The use of accounting techniques in the preparation and analysis of budgets. From ACCN2/4.

Absorption and activity based costing

What’s new What’s gone What’s the same

Use of absorption and ABC to calculate the selling price of a product.

Comparison of inventory valuations.

Manufacturing accounts.

FIFO and AVCO methods of determining inventory values.

The use of absorption costing to calculate the total cost of a product. From ACCN4.

The use of activity based costing (ABC) to calculate the total cost of a product. From ACCN4.

The benefits and limitations of absorption, ABC and marginal costing. From ACCN4.

Partnership accounts

What’s new What’s gone What’s the same
Dissolution of a partnership.

Prepare and comment on the financial statements of partnerships. From ACCN3.

Prepare capital and current accounts of partners. From ACCN3.

Account for changes in partnership. From ACCN3.

Accounting for limited companies

What’s new What’s gone What’s the same
Specific international accounting standards (other than reference to IAS1 & IAS7). However, the general guidance from standards is still relevant, for example, IAS2 – Inventories, is not included as a specific topic, but the requirement to value inventory at the lower of cost versus net realisable value is.

The use of accounting techniques and principles when drafting financial statements for limited companies (based on IAS1). From ACCN2/3.

Accounting for the revaluation of noncurrent assets. From ACCN3.

The difference between the issue of shares, a rights issue and a bonus issue, and recording the effect of such transactions in financial statements. From ACCN2.

The requirement to publish accounts and how these are used by a variety of stakeholders. From ACCN3.

The purpose and importance of the international accounting standards framework. From ACCN3.

Interpretation, analysis and communication of accounting information

What’s new What’s gone What’s the same
Investor ratios.  

How accounting techniques, measures and ratios are used to analyse and interpret accounting information (both financial and management) and the limitations of using financial statement and ratio analysis when assessing business performance. From ACCN2.

How performance is evaluated both internally and across accounting periods and externally in comparison to competitors. From ACCN2.

The difference between cash and profits and the effect of transactions on profitability and liquidity. From ACCN2.

The interests of stakeholders and importance of effective communication to both internal and external stakeholders. From ACCN1/4.

The impact, advantages and disadvantages of systems of recording data. From ACCN2/3.

The critical assessment of recommendations and their impact on stakeholders, the local and national economy and the environment. ACCN1/4.

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