Scheme of Work s5

Scheme of work This scheme of work for AS/A-level Accounting (7126/7127) is designed to help you plan your teaching. Year 1 Week Specification topic Resources 1 An introduction to the role of the accountant in Video – role of accounting in business business. Video – functions of accounting Types of business organisation. Types of business organisations – uses US examples

2–3 The double entry system including the Video – double entry explained recording of transactions from source Video – basic principles of double entry bookkeeping documents in books of prime entry and ledger accounts; transferring accounts to income Video – accounting equation statements, balancing accounts and the Video – double entry bookkeeping preparation of statements of financial position. Video – sole trader accounts Prepare and understand accounting records based on source documents and use the main books of prime entry and ledger accounts.

4–5 Apply the double entry model in the Video – the balance sheet explained preparation of financial statements for a range Video – an introduction to the balance sheet of business organisations. Video – an introduction to the income statement Prepare income statements (trading and profit

AS/A-level Accounting Scheme of work – August 2017 and loss accounts) and statements of financial position (balance sheets) working from trial balances and additional information. Prepare statements of financial position (balance sheets) with subheadings.

5–7 The recording of adjustments in ledger Video – the adjustment process accounts and financial statements. ACCA article: adjustments to financial statements Make entries for simple adjustments for ACCA article: trade receivables expense prepayments and accruals in ledger accounts and in income statements and statements of financial position. Make entries for irrecoverable debts in the sales ledger and financial statements. Make entries for depreciation in the income statement and statement of financial position.

8 Holiday

9–10 Verification of the double entry records. Video – introduction to control accounts and revision of double entry The benefits and limitations of verification Video – control accounts techniques. Video 1 – bank reconciliations Video 2 – bank reconciliations Video 3 – bank reconciliations Video 4 – bank reconciliations Video 1 – trial balance errors

AS/A-level Accounting Scheme of work – August 2017 Video 2 – trial balance errors Video – suspense accounts

11 How to correct errors in double entry records. This may be too detailed for some students The effect of errors on profit calculations and Video – control accounts statements of financial position. ACCA article: suspense accounts and error correction

12–13 Accounting concepts used in the preparation of Video – eight accounting concepts accounting records. Video – accounting concepts and principles The use of concepts in the preparation of Video – accounting worked example: financial statement for sole trader financial statements. Video – financial accounts of sole trader ACCA article: a matter of principle

14–15 Mock exams and revision

16–17 Holiday

18–20 How to prepare financial statements of sole Recap of earlier link – video – sole trader accounts traders from ledger accounts including adjustments from the application of accounting concepts. How to prepare income statements and statements of financial position from a trial balance including adjustments from the application of accounting concepts.

21–23 Limited company accounts Video – financial statements conceptual framework

AS/A-level Accounting Scheme of work – August 2017 Video – preparing and understanding limited company accounts Video – statement of changes in equity

24 Holiday

25–26 Calculation and interpretation of financial Useful introduction measures and ratios. Video – introduction to ratio analysis Appraising business performance by using Video – ratio analysis: profitability financial statements and ratios. Video – ratio analysis: Return on Capital Employed (ROCE) The limitations of financial statements and ratio analysis when assessing business Video – liquidity ratios performance. Video – ratio analysis: gearing Video – receivables and payables days Video – limitations of ratios

27 The difference between cash and profits and Video – cash flow and profits the effect of transactions on profitability and Video – cash and accrual: conceptual liquidity. Video – why are cash and profit different? ACCA article: working capital management

28–29 The need for budgeting in business Video – introduction to budgeting organisations. Video – the master budget The benefits and limitations of budgeting and ACCA article: comparing budgeting techniques (incremental vs ZBB) budgetary control. The use of accounting techniques in the

AS/A-level Accounting Scheme of work – August 2017 preparation and analysis of budgets: financial statements: income statement financial statements: statements of financial position. How budgets are used in planning and control and the calculation and interpretation of variances.

30–31 Holiday

32–34 Categorisation of costs by behaviour and Video – breakeven analysis: contribution and contribution per unit understanding of terms. Video – breakeven analysis: the margin of safety Calculation and interpretation of breakeven Video – how to find breakeven point in sales and units point, interpreting break-even charts and the uses and limitations of breakeven analysis Video – variable costs and fixed costs methods. Video – contribution margin and CVP analysis The use of marginal costing in decision making Video – contribution margin and a limiting factor situations. Video – managerial accounting: special order decisions Video – special order Video – constrained resource Video – drop or retain Video – sunk and differential costs Video – keep or replace ACCA article: cost-volume-profit analysis

AS/A-level Accounting Scheme of work – August 2017 35–37 Mocks/summer exams and revision

38 Holiday

39–40 Mocks/summer exams and revision

41–42 The use of accounting techniques in the Video – the sales budget preparation and analysis of budgets: Video – the production budget cash Video – the cash budget sales Video – flexible budgeting purchases ACCA article: cash budgets production labour.

AS/A-level Accounting Scheme of work – August 2017 Year 2 Week Specification topic Resources 1–2 Recap of Year 12 Activities/exercises to refresh student understanding of previous learning. The fundamental principles of ethical behaviour. Video – AAT Level 3 professional ethics How the principles of ethical behaviour impact Video – ethics and corporate governance the behaviour of accounting professionals and Video – why are ethics important in accounting? organisations. ACCA article: a question of ethics ACCA article: corporate governance Extension ACCA article: rules, principles and Sarbanes-Oxley ACCA article: internal controls ACCA article: Bribery Act

3–4 The calculation of profit of an organisation Video – incomplete records worked question and answer where there are insufficient records to prepare Video – worked question and answer ACCN3 June 2014 income statements. Calculations could include the use of statements of affairs. Video – calculate sales and purchases How accounting techniques are applied in the Video – incomplete records preparation and analysis of financial statements ACCA article: corporate governance – from the inside out for a business with incomplete records. ACCA article: corporate governance – internal and external actors The legal and regulatory frameworks which relate to the accounting sector, the importance of working within regulatory guidelines and the consequences of failing to do so.

AS/A-level Accounting Scheme of work – August 2017 5 The benefits and limitations of maintaining accounting records using different systems including single and double entry records.

6 The difference between the issue of shares, a Video – accounting for limited companies rights issue and a bonus issue, and recording Video – preparing and understanding limited accounts the effect of such transactions in financial statements.

7 The use of accounting techniques and principles Short introduction when drafting financial statements for limited Video – cash flow statements companies (based on IAS1). Video – statements of cash flows indirect method Accounting for the revaluation of noncurrent assets. Video – statement of cash flows explained ACCA article: cash flow statements

8 Holiday

9 The use of accounting techniques and principles Video – noncurrent assets in financial accounting when drafting financial statements for limited Video – schedule of fixed assets worked question and answer companies (based on IAS1). ACCA article: IAS 16 Property, Plant and Equipment useful background for Accounting for the revaluation of noncurrent Schedule of Non-Current Assets. assets.

10 The requirement to publish accounts and how Video – IAS1 financial statements these are used by a variety of stakeholders. CIMA discussion panel on ethics in accounting, rather lengthy as in 3 parts The purpose and importance of the international but could allocate sections to individual students to feedback to rest of accounting standards framework. class: The role of professional bodies in establishing Video – CIMA discussion: ethical culture

AS/A-level Accounting Scheme of work – August 2017 and enforcing codes of conduct. Video – CIMA discussion: accounting for ethics Video – CIMA discussion: ethical dilemmas Video – professional ethics and ACCA code Kaplan Masterclass on codes of conduct

11 Prepare and comment on the financial Video – accounting for partnerships some useful examples of profit statements of partnerships. sharing later in this lengthy clip. Prepare capital and current accounts of ACCA article: partnerships partners. ACCA article: accounting for partnerships

12–13 Prepare capital and current accounts of Video – accounting admission of new partner partners. Video – retirement of a partner Account for changes in partnership.

14–15 Mock exams and revision

16–17 Holiday

18 How performance is evaluated both internally ACCA article: ratio analysis and across accounting periods and externally in ACCA article: performance appraisal comparison to competitors. The difference between cash and profits and the effect of transactions on profitability and liquidity.

19 How accounting techniques, measures and Video – accounting college: investor ratios ratios are used to analyse and interpret Video – shareholder ratios accounting information (both financial and management) and the limitations of using Video – CIMA: investor ratios 1

AS/A-level Accounting Scheme of work – August 2017 financial statement and ratio analysis when Video – CIMA: investor ratios 2 assessing business performance. ACCA article: how to approach performance appraisal questions

20 The impact, advantages and disadvantages of systems of recording data.

21–22 The interests of stakeholders and importance of ACCA article: all about stakeholders – part 1 effective communication to both internal and ACCA article: giving investors what they need external stakeholders. Video – ethics and rules of professional conduct The critical assessment of recommendations and their impact on stakeholders, the local and national economy and the environment. How to act ethically when working with clients, suppliers, colleagues and stakeholders and the importance of adhering to organisational and professional value, codes of practice and regulations.

23 The purpose, advantages and disadvantages of See week 25 a standard costing system. Calculation and interpretation of variances. The interrelationship between variances.

24 Holiday

25 The purpose, advantages and disadvantages of Video – standard costs and variance analysis a standard costing system. Video – direct labour variance analysis Calculation and interpretation of variances. Video – variance analysis

AS/A-level Accounting Scheme of work – August 2017 The interrelationship between variances. Video – benefits of standard costs Video – standard costing variance interpretation includes overhead variances.

26 How to prepare statements and the use of accounting techniques to reconcile budgeted and actual figures.

27 The use of absorption costing to calculate the Video – absorption costing total cost of a product.

28 The use of activity based costing (ABC) to Video – activity based costing part 1 calculate the total cost of a product. Video – activity based costing part 2 Video – activity based costing with example Video – activity based costing lecture Video – activity based costing: a simple explanation ACCA article: activity-based costing

29–30 Holiday

31–32 Use of absorption and ABC to calculate the Video – activity based costing vs traditional costing selling price of a product. Video – variable costing The benefits and limitations of absorption, ABC Video – absorption vs variable costing and marginal costing.

32–33 The calculation and use of cash flows in capital Video – payback period investment appraisal. Video – net present value Payback and net present value (discounted

AS/A-level Accounting Scheme of work – August 2017 cash flow) of a capital project. Video – calculating net present this one uses profits as cash flows. The benefits and limitations of the payback and Video – relevant cash flows net present value methods of capital investment appraisal.

34–35 The use of capital appraisal measures in the Video – CIMA: ethics in three minutes evaluation of projects. Video – ethics in accounting Appropriate courses of action if there is a Video – ethical conduct is never out of vogue suspicion that and unethical or illegal act has been, or may be, committed by an employer, Video – standards of ethical conduct for management accountants colleague or client. Video – professional ethics ACCA article: ethical decision making

36–37 Summer exams and revision

38 Holiday

39–42 Summer exams and revision

AS/A-level Accounting Scheme of work – August 2017