5.

3 Preparation of - Depreciation of non current assets including

CS/CCP Financial their disposal (by part exchange; ordinary
Principles of accounting Statements & sale; accident)
Year End - Methods and reasons of providing for
Adjustments depreciation
LEARNING OUTCOME: - Preparation of movement of property plant
At the end of this course the candidate should be able to equipment (as per International Financial
 Demonstrate sound understanding of the aims of accounting the two fold aspects of record Reporting Standards)
keeping and the ability to adapt it to different situations. - Trade receivables, bad debts w/o and
 Explain the regulatory framework of accounting, prepare financial statements for non- provision for bad and doubtful debts.
Profit oriented organizations and interpret financial information contained in the financial - Accruals, prepayments, reserves and
statements provisions.
 Analyze financial statement by use of ratios and statements of cash flows - Necessary adjustments in statements of
financial performance to record increase and
CONTENT: decrease in provision for bad and doubtful
debts.
No Topics Content
5.4. Financial - Features
5.1 Introduction to - The nature and purpose of accounting what is
Statements of - Types of small and medium sized entities
Accounting accounting?
small and - Income statement
- Users of financial statements and their
medium sized - Statement of financial position
information needs
entities
- Accounting Standards and their purposes
5.5 Confirming - Bank reconciliation statements
- Regulatory framework (ICPAK, IASB,
and Correcting - Control Accounts
IPSAB)
Mechanism
- Professional ethics
- Principles; Concepts and Conventions 5.6 Manufacturing - Elements of cost and cost behaviour
underlying the preparation of accounting Account - Preparation of manufacturing accounts,
statement statement of financial performance and
statement of financial position
5.2 Accounting - Double entry book-keeping
- Accounting treatment of manufacturing
procedures & - The cash book-two and three column
profit/loss and unrealized profit and closing
techniques including cash journal
stock (F/G)
- The ledger and their role in recording and
summarizing accounting data
- Books of original entry 5.7 Errors and - Errors AFFECTING & NOT AFFECTING
- Balancing accounts and preparing the trial their correction the agreement of the trial balance
balance - Use of the suspense accounts
- Introduction to simple statements of financial - The effect of errors on statement of financial
performance performance and statement of financial
- Statements of financial position position
5.8 Non-profit - What non-profit making organizations are
oriented - Receipts and payments accounts
organizations - Income and Expenditure accounts and
statement of financial position

5.9 Incomplete - Why incomplete records

Records and - Preparation of statement of affairs
Single entry - Preparation of financial statements
book keeping

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 Introduction to - What are companies?
5.10 simple - Share capital and reserve
Company - Issue of shares at PAR; PREMIUM;
Accounts DISCOUNT
- Over and under subscriptions
- Allotment and calls on shares, forfeiture of
shares
- Preparation of statements of financial
performance and appropriation account and
the statement of financial position
- Published accounts: Components of a
complete set of published financial
statements
- Published financial statements – (describe a
complete set of published financial
statements but not preparation)
Partnership - Basic contents of partnership agreement
5.11 Accounts - Provision of Kenya Partnership Act (Cap
29)
- Partnership statement of financial
performance and appropriation account
- Partners current account and statement of
financial position
- Financial statements to reflect elementary
changes in partnership such as admission,
retirement and dissolution.
5.14 Computerized - Different accounting
Accounting packages
- Rationale for computerized
accounting system
- Components of a
computerized accounting system
- Selecting a good
computerized accounting system
- Challenges of a computerized
accounting system
- Current trends in
computerized accounting software.
5.15 Group - Consolidated income
Accounts statement and consolidated statement of
financial position (simple group structures
comprising a holding company and one
subsidiary company and/or one associate
company)
- Consolidated cash flow
statement
5.16 Other Areas - Petty cash book
- Methods of classifying expenditure
between capital & revenue
- Emerging issues and trends in Financial
Accounting

5.12 Analysis of (i) Introduction to accounting ratios

Financial - Profitability ratios
Statement - Revenue ratios
- Liquidity ratios
(ii) Preparation of cash flow statement
(International Accounting Standards 7)

5.13 Public sector - Features of public sector entities (as

Accounting compared to private sector)
- Structure of the public sector and examples
of entities in public sector
- Objectives of public sector financial
statements
- Users of public sector financial statement
and officers (treasury, accounting officers,
public accounts committee, auditor general)
- Accounting techniques in the public sector
(budgeting, cash, accrual, commitment and
fund)
- IPSAS on inventory, property, plant and
equipment & intangible assets (the ledger
accounts of central and country governments
are not examinable)
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