Accountant

in Business
(AB/FAB)
Syllabus and study guide

September 2019 to August 2020

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© ACCA 2019-2020 All rights reserved.
 SUMMARY OF CONTENT

INTRODUCTION
1. Intellectual levels
2. Learning hours and educational recognition
3. Guide to ACCA examination structure
4. Guide to ACCA examination assessment
ACCOUNTANT IN BUSINESS SYLLABUS
5. Qualification Structure
6. Relational diagram linking Accountant in
Business with other exams
7. Overall aim of the syllabus
8. Rationale
9. Main capabilities
10. Approach to examining the syllabus
11. The syllabus
ACCOUNTANT IN BUSINESS STUDY GUIDE
12. Detailed study guide
13. Summary of changes to Accountant in
Business

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 1. INTELLECTUAL LEVELS ACCA will publish examinable documents once a
year to indicate exactly what regulations and
ACCA qualifications are designed to progressively legislation could potentially be assessed within
broaden and deepen the knowledge and skills identified examination sessions.
demonstrated by the student at a range of levels
through each qualification. For this examination regulation issued or legislation
passed on or before 31st August annually, will be
Throughout, the study guides assess both assessed from September 1st of the following year to
knowledge and skills. Therefore a clear distinction is August 31st of the year after. Please refer to the
drawn, within each subject area, between assessing examinable documents for the exam (where
knowledge and skills and in assessing their relevant) for further information.
application within an accounting or business
context. The assessment of knowledge is denoted by
Regulation issued or legislation passed in
a superscriptK and the assessment of skills is
accordance with the above dates may be
denoted by the superscriptS.
examinable even if the effective date is in the future.
The term issued or passed relates to when
2. LEARNING HOURS AND EDUCATIONAL
regulation or legislation has been formally approved.
RECOGNITION
The term effective relates to when regulation or
As a member of the International Federation of legislation must be applied to entity transactions
Accountants, ACCA seeks to enhance the education and business practices.
recognition of its qualification on both national and
international education frameworks, and with The study guide offers more detailed guidance on
educational authorities and partners globally. In the depth and level at which the examinable
doing so, ACCA aims to ensure that its qualifications documents will be examined. The study guide
are recognized and valued by governments, should therefore be read in conjunction with the
regulatory authorities and employers across all examinable documents list.
sectors. To this end, ACCA qualifications are
currently recognized on the education frameworks in
several countries. Please refer to your national
education framework regulator for further
information about recognition.

3. GUIDE TO ACCA EXAMINATION

STRUCTURE AND DELIVERY MODE

The structure of examinations varies.

The Foundations examinations contain 100%
compulsory questions to encourage candidates to
study across the breadth of each syllabus.
All Foundations examinations are assessed by two-
hour computer based examinations.
The pass mark for all FIA examinations is 50%.

4. GUIDE TO ACCA EXAMINATION

ASSESSMENT

ACCA reserves the right to examine anything

contained within any study guide within any
examination session. This includes knowledge,
techniques, principles, theories, and concepts as
specified.

For specified financial accounting, audit and tax

examinations, except where indicated otherwise,
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© ACCA 2019-2020 All rights reserved.
 5. QUALIFICATION STRUCTURE

The qualification structure requires candidates who wish to be awarded the ACCA Diploma in Accounting and
Business (RQF Level 4) to pass the Accountant in Business (AB)/FAB, Management Accounting (MA) /FMA and
the Financial Accounting (FA)/FFA examinations and successfully complete the Foundations in Professionalism
(FiP) module.

6. RELATIONAL DIAGRAM LINKING FINANCIAL ACCOUNTING WITH OTHER EXAMS

The Foundations in Accountancy suite of qualifications is designed so that a student can progress through three
discrete levels; RQF Level 2, 3, and 4. Students are recommended to enter Foundations in Accountancy at the
level which is most appropriate to their needs and to take examinations in order, but this is not a mandatory
requirement.

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 7. OVERALL AIM OF THE SYLLABUS

To introduce knowledge and understanding of the

business and its environment and the influence this
has on how organisations are structured and on the
role of the accounting and other key business
functions in contributing to the efficient, effective
and ethical management and development of an
organisation and its people and their interaction
with technology, data and information systems.

8. RATIONALE

The Accountant in Business (AB/FAB) syllabus

introduces students who may not have a business
background, to the business, which as an entity is
made up of people and systems which interact with
the environment and with each other. The syllabus
begins with examining the purpose and types of
business which exist, the key stakeholders and the
rights and responsibilities that businesses have in
connection with them, exploring the external
influences that affect the business in its
environment, including economic, legal, social and
technological factors. The syllabus then examines
the structure and functions of business, focusing on
corporate governance and the specific accounting
related roles in this process, particularly in financial
reporting, assurance, control and compliance. The
syllabus then introduces key leadership,
management and people issues such as effective
individual and team behaviour, motivation and
personal effectiveness.

The final section of the syllabus examines how

behaviour at all levels within business should be
underpinned by accepted professional ethics and
professional values.

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 9. MAIN CAPABILITIES

On successful completion of this exam, candidates should be able to:

A Understand the purpose and types of businesses and how they interact with key stakeholders and the
external environment.

B Understand business organisation structure, functions and the role of corporate governance..

C Recognise the functions, systems and new technologies in accountancy and audit in communicating,
reporting and assuring financial information, including the effective compliance, internal control and security
of financial and other data.

D Recognise the principles of authority and leadership and how teams and individuals are recruited, managed,
motivated and developed.

E Understand the importance of personal effectiveness as the basis for effective team and organisational
behaviour.

F Recognise that all aspects of business and finance should be conducted in a manner which complies with
and is in the spirit of accepted professional ethics and professional values.

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 10. APPROACH TO EXAMINING THE C Accounting and reporting systems, compliance,
SYLLABUS control, technology and security

The syllabus is assessed by a two hour computer- 1. The relationship between accounting and other
based examination. Questions will assess all parts of business functions
the syllabus and will test knowledge and some
comprehension or application of this knowledge. 2. Accounting and finance functions within
The examination will consist of two sections. business organisations
Section A will contain 30 two mark objective
questions and 16 one mark objective questions. 3. Principles of law and regulation governing
Section B will contain 6 four mark multi-task accounting and auditing
questions each of which will examine one of the six
main sections of the syllabus. 4. The sources and purpose of internal and
external financial information, provided by
11. THE SYLLABUS business

A The business organisation, its stakeholders and 5. Financial systems, procedures and related IT
the external environment applications

1. The purpose and types of business organisation 6. Internal controls, authorisation, security of data
and compliance within business
2. Stakeholders in business organisations
7. Fraud and fraudulent behaviour and their
3. Political and legal factors affecting business prevention in business, including money
laundering.
4. Macroeconomic factors
8. The impact of Financial Technology (Fintech)
5. Micro economic factors on accounting systems

6. Social and demographic factors D Leading and managing individuals and teams

7. Technological factors 1. Leadership, management and supervision

8. Environmental factors 2. Recruitment and selection of employees

9. Competitive factors 3. Individual and group behaviour in business

organisations
B Business organisational structure, functions
and governance 4. Team formation, development and
management
1. The formal and informal business organisation
5. Motivating individuals and groups
2. Business organisational structure and design
6. Learning and training at work
3. Organisational culture in business
7. Review and appraisal of individual
4. Committees in business organisations performance.

5. Governance and social responsibility in 8. The application and impact of Financial

business Technology (FinTech) in accountancy and audit

E Personal effectiveness and communication

1. Personal effectiveness techniques

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 2. Consequences of ineffectiveness at work

3. Competence frameworks and personal

development

4. Sources of conflicts and techniques for conflict

resolution and referral

5. Communicating in business.

F Professional ethics in accounting and

business

1. Fundamental principles of ethical behaviour

2. The role of regulatory and professional bodies

in promoting ethical and professional standards
in the accountancy profession

3. Corporate codes of ethics

4. Ethical conflicts and dilemmas

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 12. DETAILED STUDY GUIDE b) Describe the sources of legal authority,
including supra-national bodies, national and
A THE BUSINESS ORGANISATION, ITS regional governments.[K]
STAKEHOLDERS AND THE EXTERNAL
ENVIRONMENT c) Explain how the law protects the employee and
the implications of employment legislation for
1. The purpose and types of business organisation the manager and the organisation.[K]

a) Define ‘business organisations’ and explain why d) Identify the principles of data protection and
they are formed.[K] security.[K]

b) Describe common features of business e) Explain how the law promotes and protects
organisations.[K] health and safety in the workplace.[K]

c) Outline how business organisations differ.[K] f) Recognise the responsibility of the individual
and organisation for compliance with laws on
d) List the industrial and commercial sectors in data protection, security and health and
which business organisations operate.[K] safety.[K]

e) Identify the different types of business g) Outline principles of consumer protection such
organisation and their main characteristics:[K] as sale of goods and simple contract.[K]
i) Commercial
ii) Not-for-profit 4. Macro-economic factors
iii) Public sector
iv) Non-governmental organisations a) Define macro-economic policy and explain its
v) Cooperatives objectives.[K]

2. Stakeholders in business organisations b) Explain the main determinants of the level of

business activity in the economy and how
a) Define stakeholders and explain the agency variations in the level of business activity affect
relationship in business and how it may vary in individuals, households and businesses.[K]
different types of business organisation.[K]
c) Explain the impact of economic issues on the
b) Define internal, connected and external individual, the household and the business: [K]
stakeholders and explain their impact on the i) Inflation
organisation.[K] ii) Unemployment
iii) Stagnation
c) Identify the main stakeholder groups and the iv) International payments disequilibrium.
objectives of each group.[K]
d) Describe the main types of economic policy
d) Explain how the different stakeholder groups that may be implemented by government and
interact and how their objectives may conflict supra-national bodies to maximise economic
with one another.[K] welfare.[K]

e) Compare the power and influence of various e) Recognise the impact of fiscal and monetary
stakeholder groups and how their needs should policy measures on the individual, the
be accounted for, such as under the Mendelow household and businesses.[K]
framework.[K]
5. Micro economic factors
3. Political and legal factors affecting business
a) Define the concept of demand and supply for
a) Explain how the political system and goods and services.[K]
government policy affect the organisation.[K]

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 b) Explain elasticity of demand and the impact of 9. Competitive factors
substitute and complementary goods.[K]
a) Identify a business’s strengths, weaknesses
c) Explain the economic behaviour of costs in the opportunities and threats (SWOT) in a market
short and long term.[K] and the main sources of competitive
advantage.[K]
d) Define perfect competition, oligopoly,
monopolistic competition and monopoly.[K] b) Identify the main elements within Porter’s
value chain and explain the meaning of a value
6. Social and demographic factors network'.[K]

a) Explain the medium and long-term effects of c) Explain the factors or forces that influence the
social and demographic trends on business level of competitiveness in an industry or sector
outcomes and the economy.[K] using Porter’s five forces model.[K]

b) Describe the impact of changes in social d) Describe the activities of an organisation that
structure, values, attitudes and tastes on affect its competitiveness:[K]
the organisation.[K] i) Purchasing
ii) Production
c) Identify and explain the measures that iii) Marketing
governments may take in response to the iv) Service
medium and long-term impact of
demographic change.[K] B BUSINESS ORGANISATION STRUCTURE,
FUNCTIONS AND GOVERNANCE
7. Technological factors
1. The formal and informal business organisation
a) Explain the potential effects of technological
change on the organisation structure and a) Explain the informal organisation and its
strategy:[K] relationship with the formal organisation.[K]
i) Downsizing
ii) Delayering b) Describe the impact of the informal
iii) Outsourcing organisation on the business.[K]

b) Describe the impact of information technology 2. Business organisation structure and design
and information systems development on
business processes and the changing role of a) Describe Mintzberg’s components of the
the accountant in business as a result of organisation and explain the different ways in
technological advances.[K] which formal organisations may be structured
[K]
:
8. Environmental factors (i) Entrepreneurial
(ii) Functional
a) List ways in which the businesses can affect or (iii) Matrix
be affected by its physical environment.[K] (iv) Divisional: (geographical, by product, or by
customer type)
b) Describe ways in which businesses can operate (v) Boundaryless: (virtual, hollow or modular)
more efficiently and effectively to limit damage
to the environment.[K] b) Explain basic organisational structure
concepts:[K]
c) Identify the benefits of economic sustainability i) Separation of ownership and management
to stakeholders.[K] ii) Separation of direction and management
iii) Span of control and scalar chain
iv) Tall and flat organisations
(v) Outsourcing and offshoring,

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 (vi) Shared services approach d) Explain the roles of the Chair and Secretary of
a committee.[K]
c) Explain the characteristics of the strategic,
tactical and operational levels in the 5. Governance and social responsibility in
organisation in the context of the Anthony business
hierarchy.[K]
a) Explain the agency concept in relation to
d) Explain centralisation and decentralisation and corporate governance.[K]
list their advantages and disadvantages.[K]
b) Define corporate governance and social
e) Describe the roles and functions of the main responsibility and explain their importance in
departments in a business organisation: [K] contemporary organisations.[K]
i) Research and development
ii) Purchasing c) Explain the responsibility of organisations to
iii) Production maintain appropriate standards of corporate
iv) Direct service provision governance and corporate social
v) Marketing responsibility.[K]
vi) Administration
vii) Finance. d) Briefly explain the main recommendations of
best practice in effective corporate
f) Explain the role of marketing in an governance:[K]
organisation: [K] i) Executive and non-executive directors
i) Definition of marketing ii) Remuneration committees
ii) Marketing mix iii) Audit committees
iii) Relationship of the marketing plan to the iv) Public oversight
strategic plan
e) Explain how organisations take account of their
3. Organisational culture in business social responsibility objectives through analysis
of the needs of internal, connected and external
a) Define organisational culture.[K] stakeholders.[K]

b) Describe the factors that shape the culture of f) Identify the social and environmental
the organisation.[K] responsibilities of business organisations to
internal, connected and external
c) Explain the contribution made by writers on stakeholders.[K]
culture:[K]
i) Schein – determinants of organisational C ACCOUNTING AND REPORTING SYSTEMS,
culture TECHNOLOGY, COMPLIANCE AND
ii) Handy – four cultural stereotypes CONTROLS
iii) Hofstede – international perspectives on
culture 1. The relationship between accounting and other
business functions
4. Committees in business organisations
a) Explain the relationship between accounting
a) Explain the purposes of committees.[K] and other key functions within the business
such as procurement, production and
b) Describe the types of committee used by marketing.[K]
business organisations.[K]
b) Explain financial considerations in production
c) List the advantages and disadvantages of and production planning.[K]
committees.[K]
c) Identify the financial issues associated with
marketing.[S]

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 d) Identify the financial costs and benefits of b) Explain the broad consequences of failing to
effective service provision.[S] comply with the legal requirements for
maintaining and filing accounting records.[K]
2. Accounting and finance functions within
business c) Explain how the international accountancy
profession regulates itself through the
a) Explain the contribution of the accounting establishment of reporting standards and their
function to the formulation, implementation, monitoring.[K]
and control of the organisation’s policies,
procedures, and performance.[K] 4. The sources and purpose of internal and
external financial information, provided by
b) Identify and describe the main financial business
accounting functions in business:[K]
i) recording financial information a) Explain the various business purposes for
ii) codifying and processing financial which the following financial information is
information required:[K]
iii) preparing financial statements (i) The statement of profit or loss
(ii) The statement of financial position
c) Identify and describe the main management (iii) The statement of cash flows
accounting and performance management (iv) Sustainability and integrated reports
functions in business:[K]
i) Recording and analysing costs and b) Describe the main purposes of the following
revenues types of management accounting reports.[K]:
ii) Providing management accounting i) Cost schedules
information for decision-making (ii) Budgets
iii) Planning and preparing budgets and (iii) Variance reports
exercising budgetary control.
5. Financial systems, procedures and related IT
d) Identify and describe the main finance and applications
treasury functions:[K]
i) Calculating and mitigating business tax a) Identify an organisation’s system requirements
liabilities in relation to the objectives and policies of the
ii) Evaluating and obtaining finance organisation.[S]
iii) Managing working capital
iv) Treasury and risk management. b) Describe the main financial systems used
within an organisation:[S]
e) Identify and describe the main audit and i) Purchases and sales invoicing
assurance roles in business ii) Payroll
i) Internal audit iii) Credit control
ii) External audit.[K] iv) Cash and working capital
management.
f) Explain the main functions of the internal
auditor and the external auditor and how they c) Explain why it is important to adhere to
differ.[K] policies and procedures for handling clients’
money.[K]
3. Principles of law and regulation governing
accounting and audit d) Identify weaknesses, potential for error and
inefficiencies in accounting systems including
a) Explain basic legal requirements in relation to computerised accounting systems.[S]
retaining and submitting proper records and
preparing and auditing financial reports.[K] e) Recommend improvements to accounting
systems to prevent error and fraud and to
improve overall efficiency.[S]

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 e) Define the term money laundering.[K]
f) Explain why appropriate controls are necessary
in relation to business and IT systems and f) Give examples of recognised offences under
procedures.[S] typical money laundering regulations.[K]

g) Identify business uses of computers and IT g) Identify methods for detecting and preventing
software applications:[S] money laundering.[K]
i) Spreadsheet applications
ii) Database systems h) Explain how suspicions of money laundering
iii) Accounting packages should be reported to the appropriate
authorities.[K]
h) Describe and compare the relative benefits and
limitations of manual and automated financial 8. The impact of Financial Technology (Fintech)
systems that may be used in an organisation.[K] on accounting systems

6. Internal controls, authorisation, security and a) Describe cloud computing as a capability in

compliance within business accountancy and how it creates benefits for the
organisation.[K]
a) Explain internal control and internal check.[K]
b) Explain how automation and artificial
b) Explain the importance of internal financial intelligence (AI) in accounting systems can
controls in an organisation.[K] affect the role and effectiveness of
accountants.[K]
c) Describe the responsibilities of management for
internal financial control.[K] c) Describe how the application of big data and
data analytics can improve the effectiveness of
d) Describe the features of effective internal accountancy and audit.[K]
financial control procedures in an organisation,
including authorisation.[K] d) Outline the key features and applications of
Blockchain technology and distributed ledgers
e) Identify and describe the types of information in accountancy.[K]
technology and information systems used by
the business organisation for internal control.[S] e) Define cyber security and identify the key risks
to data that cyber-attacks bring.[K]
f) Describe general and application systems
controls in business.[K] f) Identify and describe features for protecting the
security of IT systems and software within
7. Fraud and fraudulent behaviour and their business.[S]
prevention in business.
D LEADING AND MANAGING INDIVIDUALS
a) Explain the circumstances under which fraud is AND TEAMS
likely to arise.[K]
1. Leadership, management and supervision
b) Identify different types of fraud in the
organisation.[K] a) Define leadership, management and
supervision and explain the distinction between
c) Explain the implications of fraud for the these terms.[K]
organisation.[K]
b) Explain the nature of management:[K]
d) Explain the role and duties of individual i) Scientific/classical theories of management
managers in the fraud detection and prevention Fayol, Taylor
process.[K] ii) The human relations school – Mayo

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 iii) The functions of a manager – Mintzberg, 4. Team formation, development and
Drucker management

c) Explain the areas of managerial authority and a) Explain the differences between a group and a
responsibility.[K] team.[K]

d) Explain the situational, functional and b) Explain the purposes of a team.[K]

contingency approaches to leadership with
reference to the theories of Adair, Fiedler, c) Explain the role of the manager in building the
Bennis, Kotter and Heifetz.[K] team and developing individuals within the
team.[K]
e) Describe leadership styles and contexts: using i) Belbin’s team roles theory
the models of Ashridge, and Blake and ii) Tuckman’s theory of team development
Mouton.[K]
d) List the characteristics of effective and
2. Recruitment and selection of employees ineffective teams.[K]

a) Explain the importance of effective recruitment e) Describe tools and techniques that can be used
and selection to the organisation.[K] to build the team and improve team
effectiveness.[K]
b) Describe the recruitment and selection process
and explain the stages in this process.[K] 5. Motivating individuals and groups

c) Describe the roles of those involved in the a) Define motivation and explain its importance to
recruitment and selection processes.[K] the organisation, teams and individuals.[K]

d) Describe the methods through which b) Explain content and process theories of
organisations seek to meet their recruitment motivation: Maslow, Herzberg, McGregor, and
needs.[K] Vroom.[K]

e) Explain the advantages and disadvantages of c) Explain and identify types of intrinsic and
different recruitment and selection methods.[K] extrinsic reward.[K]

f) Explain the purposes and benefits of diversity d) Explain how reward systems can be designed
and equal opportunities policies within the and implemented to motivate teams and
human resources plan.[K] individuals.[K]

g) Explain the practical steps that an organisation 6. Learning and training at work
may take to ensure the effectiveness of its
diversity and equal opportunities policy.[K] a) Explain the importance of learning and
development in the workplace.[K]
3. Individual and group behaviour in business
organisations b) Describe the learning process: Honey and
Mumford, Kolb.[K]
a) Describe the main characteristics of individual
and group behaviour.[K] c) Describe the role of the human resources
department and individual managers in the
b) Outline the contributions of individuals and learning process.[K]
teams to organisational success.[K]
d) Describe the training and development process:
c) Identify individual and team approaches to identifying needs, setting objectives,
work.[K] programme design, delivery and validation.[K]

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e) Explain the terms ‘training’, ‘development’ and b) Explain how a competence framework
‘education’ and the characteristics of each.[K] underpins professional development needs.[S]

f) List the benefits of effective training and c) Explain how personal and continuous
development in the workplace.[K] professional development can increase
personal effectiveness at work.[S]
7. Review and appraisal of individual performance d) Explain the purpose and benefits of coaching,
mentoring and counselling in promoting
a) Explain the importance of performance employee effectiveness [K]
assessment.[K]
e) Describe how a personal development plan
b) Explain how organisations assess the should be formulated, implemented, monitored
performance of human resources.[K] and reviewed by the individual.[S]

c) Define performance appraisal and describe its 4. Sources of conflict and techniques for conflict
purposes.[K] resolution and referral

d) Describe the performance appraisal process.[K] a) Identify situations where conflict at work can
arise.[S]
e) Explain the benefits of effective appraisal.[K]
b) Describe how conflict can affect personal and
f) Identify the barriers to effective appraisal and organisational performance.[S]
how these may be overcome.[K]
c) Identify ways in which conflict can be
E. PERSONAL EFFECTIVENESS AND managed.[S]
COMMUNICATION IN BUSINESS
5. Communicating in business
1. Personal effectiveness techniques
a) Describe methods of communication used in
a) Explain the importance of effective time the organisation and how they are used.[K]
management.[K]
b) Explain how the type of information differs and
b) Describe the barriers to effective time the purposes for which it is applied at different
management and how they may be levels of the organisation: strategic, tactical
overcome.[K] and operational.[K]

c) Describe the role of information technology in c) List the attributes of good quality information.[K]
improving personal effectiveness.[S]
d) Explain a simple communication model:
2. Consequences of ineffectiveness at work sender, message, receiver, feedback, noise.[K]

a) Identify the main ways in which people and e) Explain formal and informal communication
teams can be ineffective at work.[S] and their significance in the workplace.[K]

b) Explain how individual or team ineffectiveness f) Identify the consequences of ineffective

can affect organisational performance.[K] communication.[K]

3. Competence frameworks and personal g) Describe the attributes of effective

development communication.[K]

a) Describe the features of a ‘competence h) Describe the barriers to effective

framework’.[S] communication and identify practical steps that
may be taken to overcome them.[K]

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 i) Identify the main patterns of communication.[K] connected to the organisation should be
reported [K]
F PROFESSIONAL ETHICS IN ACCOUNTING
AND BUSINESS 3. Corporate codes of ethics

1. Fundamental principles of ethical behaviour a) Define corporate codes of ethics.[K]

a) Define business ethics and explain the b) Describe the typical contents of a corporate
importance of ethics to the organisation and to code of ethics.[K]
the individual.[K]
c) Explain the benefits of a corporate code of
b) Describe and demonstrate the following ethics to the organisation and its employees.[K]
principles from the IFAC (IESBA) code of
ethics, using examples.[K] 4. Ethical conflicts and dilemmas
(i) Integrity
(ii) Objectivity a) Describe situations where ethical conflicts can
(iii) Professional competence arise.[K]
(iv) Confidentiality
(v) Professional behaviour b) Identify the main threats to ethical behaviour.[K]

c) Describe organisational values which promote c) Outline situations at work where ethical
ethical behaviour using examples.[K] dilemmas may be faced.[K]
(i) Openness
(ii) Trust d) List the main safeguards against ethical threats
(iii) Honesty and dilemmas.[K]
(iv) Respect
(v) Empowerment
(vi) Accountability

d) Explain the concept of acting in the public

interest.[K].

2. The role of regulatory and professional bodies

in promoting ethical and professional standards
in the accountancy profession

a) Recognise the purpose of international and

organisational codes of ethics and codes of
conduct, IFAC (IESBA), ACCA etc.[K]

b) Describe how professional bodies and

regulators promote ethical awareness and
prevent or punish illegal or unethical
behaviour.[K]

c) Identify the factors that distinguish a profession

from other types of occupation.[K]

d) Explain the role of the accountant in promoting

ethical behaviour.[K]

e) Recognise when and to whom illegal, or

unethical conduct by anyone within or

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 13. SUMMARY OF CHANGES TO FINANCIAL ACCOUNTING (AB)/(FAB)

ACCA periodically reviews its qualification syllabuses so that they fully meet the needs of stakeholders including
employers, students, regulatory and advisory bodies and learning providers. These syllabus changes are effective
from September 2019 and the next update will be September 2020

The following syllabus changes effective from September 2019 are as follows:

Due to the rapid emergence of Fintech and its application in accountancy and audit, ACCA has now added a new
subject area in Section C of the ‘Accountant in Business’ syllabus. The new subject area is C8 ‘The application
and impact of Financial Technology (Fintech) in accountancy and audit’

To reflect this, the title of Section C has now changed to:

C ACCOUNTING AND REPORTING SYSTEMS: TECHNOLOGY, COMPLIANCE AND CONTROLS

Table 1 – changes to FAB/AB

Section Syllabus content new outcomes Rationale

and
subject
area
C8a) Describe cloud computing as a capability
in accountancy and how it creates
benefits for the organisation.[K]
C8b) Explain how automation and artificial
intelligence (AI) in accounting systems
can affect the role and effectiveness of
accountants.[K]
C8c) Describe how the application of big data
and data analytics can improve the
effectiveness of accountancy and audit.[K]
C8d) Outline the key features and applications
of Blockchain technology and distributed
ledgers in accountancy.[K]
C8e) Define cyber security and identify the key
risks to data that cyber-attacks bring.[K]
C8f) Identify and describe features for Outcome C6f) in the previous syllabus
protecting the security of IT systems and has now become C8f) because this
software within business.[S] outcome fits more logically into the new
subject area added.

Additionally there are the following changes to support the above:

Existing outcome New Outcome

A7b) is amended 7b) Describe the impact of information
technology and information systems
development on business processes
and the changing role of the
accountant in business as a result
of technological advances.[K]
C5d) is amended 5d) Identify weaknesses, potential for

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 error and inefficiencies in
accounting systems including
computerised accounting
systems.[S]

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