INSTITUTE OF BANKERS OF ZIMBABWE

EXAMINATION SYLLABUS CERTIFICATE LEVEL FINANCIAL ACCOUNTING I THE NATURE OF THE SUBJECT This syllabus has been designed to introduce the concept of double entry, its practical applications in Commercial and Non-commercial organisations and the relationship between detailed accounting records and periodic financial statements. AIMS AND OBJECTIONS OF THE EXAMINATION To enable candidates to demonstrate their ability to answer questions on basic accounting within the Zimbabwean context. THE EXAMINATION The Examination will be of three hours duration, plus ten minutes reading time during which period candidates may write on the Question Paper but not in their Answer Book. Syllabus. Candidates should note that it is not the intention to examine subject areas shown below individually. Rather, answers will provide the opportunity for candidates to demonstrate their knowledge and abilities over the whole of the syllabus or at least, those areas that are appropriate to the Question, The examination will cover the following areas. 1. (a) Definition of Accounting and its relationship to Book-keeping; the accounting equation and the double-entry method (b) Approaches to the preparation of accounting records i.e. the balance sheet approach and the cash book approach. 2. (a) Fundamental accounting concepts -Going concern -accruals -Consistency -Prudence (b) Other accounting concepts and conventions (c) Introduction to selected international accounting standards. No calculations will be required at this stage.

-Disclosure of accounting policies (IAS 1) -Information reflecting the effects of changing prices (IAS 15) 3. The preparation of accounts (a) The use of the accounting system to record financial facts and relationships through the Journal the cash book, and other books of original entry, the Ledger, and the Trial Balance. (b) Drawing up of financial statements for internal use -The income Statement including year-end adjustments - The Balance Sheet including year -end adjustments -The Statement of Cash Flows, using both the direct and indirect methods

(c) A detailed knowledge of depreciation methods and calculations, with particular reference to: -The straight-line method -The reducing balance method -The sum-of-digits method - Valuation method -The usage method 4. Accounting for unincorporated businesses (a) Sole traders (b) Partnerships - Legal aspects - Basic accounts (c) Clubs and Societies 5. Incomplete records -Preparation of financial statements when accounts are not kept using the double entry

system 6. Bank reconciliation statements - Basic procedures - Identification of reconciling items - Correction of errors 7. Valuation of stock -First-in-first-out (FIFO) method -Last-in-last-out (LIFO) method -Weighted average (WA) method -Periodic and continuous Stock-taking methods -Lower of Cost and Net Realisable Value (NRV ) basis

8.

Correction of errors - Errors which do not affect the trial balance - Errors which affect the trial balance; use of suspense accounts - Effects of errors on reported profits

9.

Elementary Interpretation of accounts - Horizontal analysis

Recommended Texts Business Accounting - F Wood (17th International Edition) (Pitman) (Also Longmans) Financial Accounting. Questions and Answers - Cox. D (Success Study Books) Introductory Accounting J F Musamba. (M G Publishers) A Practical Foundation in Accounting - H Johnson and A Wit tham Accounting for Zimbabwe - P Paradza (Polytechnic publications) Denmark Study Pack