ACA 2024 Syllabus Handbook Certificate

ACA Syllabus and
Technical Knowledge Grids
Certificate Level
FOR EXAMS IN 2024
Contents
ACA OVERVIEW 3
ACA COMPONENTS 5
Skills progression through the ACA exams 9

ACA Syllabus 13
CERTIFICATE LEVEL 14
Accounting15
Assurance17
Business, Technology and Finance 20
Law24
Management Information 27
Principles of Taxation 30
TECHNICAL KNOWLEDGE 33
Assurance and Audit 34

Business and Finance 36
Ethics Codes and Standards 41
Financial Reporting – IFRS® Standards 42
Taxation44
ACA overview
The ICAEW chartered accountancy qualification, the ACA, is one of the most advanced learning and
professional development programmes available. Its integrated components provide an in-depth
understanding across accountancy, finance and business. Combined, they help build the technical
knowledge, professional skills and practical experience needed to become an ICAEW Chartered
Accountant.
Each component is designed to complement each other, which means that students can put theory
into practice and can understand and apply what they learn to their day-to-day work.
The four components are:
ETHICS AND
PRACTICAL WORK PROFESSIONAL
EXPERIENCE SCEPTICISM
ACA qualification
15 ACCOUNTANCY,
FINANCE AND PROFESSIONAL
BUSINESS MODULES DEVELOPMENT
ICAEW constantly reviews the content of the ACA qualification to reflect real life business challenges.
Today's most urgent business challenges range from sustainability, to rapid changes in technology and
the role of ethics in the profession. We work closely with employers, tuition providers, academics and
examiners to ensure that the ACA equips the chartered accountants of the future with the skills and
knowledge they need to meet these challenges and to be successful.
THE ACA QUALIFICATION AND SUSTAINABILITY

Finance and accounting professionals need to move beyond simply measuring and reporting the
impact of climate change, environmental regulation, supply chain pressure and rising energy costs.
They must focus on understanding these and other emerging sustainability-related implications,
integrating them into financial management and business planning. ICAEW has been at the forefront
of this movement over the past decade and has adapted the ACA qualification to reflect that. We
see its role as not simply integrating knowledge and understanding the broader implications of
environmental, social and governance issues into organisations, but also seeding this thinking into the
mindset of our members.
Our syllabus and ethical and professional development framework contribute towards creating ICAEW
Chartered Accountants who recognise that sustainability is at the core of what they do and are capable
of actively using their business skills to analyse how to make the new sustainable economy work for
their business.
Despite some unfamiliar terminology associated with sustainability issues, there is much that is closely
related to the skills and experience of ICAEW Chartered Accountants; for example, the identification
and management of risks, corporate governance, compliance with laws and regulations, design and
© ICAEW 2023 3
operation of management control systems, THE ACA QUALIFICATION AND ETHICS
measurement of liabilities and impaired assets, Culture and values are central to long-term
information reporting and assurance, financial success. How a business adopts an ethical
instruments, and new forms of taxation. approach towards its staff, shareholders,
Where the technical issues extend beyond an customers and regulators, as well as within
accountant’s reach, working with other experts is its own operations, has a bigger impact than
already recognised as good practice. any performance measure or operational
improvement.
THE ACA QUALIFICATION AND Demonstrating a clear commitment to ethical
TECHNOLOGY behaviour is one of the main drivers of better
Changes in technology have automated many performance; it delivers an advantage when
routine aspects of accountancy. But with recruiting, it adds value to a brand, and it instils
changes in technology also come complexity trust and confidence in partners, suppliers and
and risk. Accountants need to adapt and others that the organisation is well run and
develop new skills to manage these changes. resilient.
While there are many new technology Achieving that is not a matter of simple
capabilities that have broad application across knowledge. Few ethical challenges will have
the business and consumer environment, simple right and wrong responses. They require
seven trends have the greatest potential to technical understanding, rigorous appraisal,
transform the accountancy profession: Artificial application of professional scepticism and skilful
intelligence, Automation, Blockchain, Cyber handling. Accountants must have the necessary
security, Cloud computing, and Data and Digital skills to apply professional judgement in a given
Disruption (ABCD of technology). situation, taking into account what has been
These and other innovations are likely to learned as an ACA student about their ethical
have a significant impact on the way that responsibilities as a Chartered Accountant.
accountants access information, transact and There will be unique ethical challenges
manage business finances. Technology tools throughout any Chartered Accountant’s process
can provide information more quickly and of learning and career. They serve a variety
often more accurately than humans, but they of masters: senior management, external
cannot replicate human intelligence and quality stakeholders, regulators; and above all the
decision making, or effectively communicate public interest responsibility of their profession.
the output of analysis. Therefore, chartered Because of the rigorous and effective training
accountants hold key roles such as validating the (and continued professional development)
source of the data, interpreting and analysing chartered accountants can speak up and take a
the outputs, and ensuring the tools support lead.
effective management of the organisation.
None of this can happen without one critical
As routine and compliance work reduces, there element: professionalism. That goes beyond
is greater focus on the development of skills merely knowing the Code of Ethics: it means
which equip professionals to work with the embodying the right behaviours and having
outputs of automated processes, with other the ability and willingness to push back against
specialists, and in a changing world. those who might compromise the integrity of
We believe that skills such as analysis, the business.
interpretation, professional scepticism, That confidence comes from a qualification
communication, collaboration, adaptability, that prioritises not only technical knowledge
resilience, and commerciality are essential of the ethical framework but also challenges
for tomorrow’s business leaders; these are accountants with scenarios that accurately reflect
imbedded throughout the ACA exams and the ethical dilemmas a Chartered Accountant
professional development framework. may face in business.
4 ACA OVERVIEW © ICAEW 2023

ACA components
PROFESSIONAL DEVELOPMENT
CE
IEN
P ER
EX 15
RK EX
O A
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L
A
M
C
Adding
TI
O
Communication
AC
D
value
UL
R
FP
ES
S O
D AY
450
Technical Decision
competence making
ACA
ISM
TIC
PR
Teamwork Problem
EP
OF
solving
SC
ES
SI
AL
Ethics and
O
N
N
IO
Professionalism
A
D
L
SS
EV
EL FE
O
O
PM PR
EN D
T AN
I CS
ETH
ICAEW Chartered Accountants are known for • Ethics and professionalism – behave ethically
their professionalism and expertise. Professional and sustainably while respecting others to
development prepares students to successfully uphold the values of the organisation and
handle a variety of different situations that they the accountancy profession
encounter throughout their career. The ACA • Problem solving – analyse a problem,
qualification improves students’ ability and generate options and make
performance in seven key areas: recommendations to arrive at appropriate
• Adding value – add value to the solutions
organisation, team or role in order to achieve • Teamwork – work collaboratively as a
objectives member or leader of a team to achieve
• Communication – communicate effectively shared goals
at all levels, using oral, written and • Technical competence – seek, learn and use
presentational skills to achieve positive technology and technical information to
outcomes support the achievement of organisation or
• Decision making – gather, interpret and team goals
evaluate data to make effective decisions
© ICAEW 2023 5
ETHICS AND PROFESSIONAL • Be sensitive to the integrity of information,
SCEPTICISM including the source of information and the
Ethics is more than just knowing the rules around appropriateness of its presentation
integrity, objectivity, professional competence • Withhold judgement pending thoughtful
and due care, confidentiality and professional consideration of all known and relevant
behaviour. It’s about identifying ethical available information
dilemmas, understanding the implications, • Be alert to potential bias or other
making judgements and behaving appropriately impediments to the proper exercise of
as well as using professional scepticism to build professional judgement
business trust. We integrate ethics throughout
the ACA qualification to develop students’ PRACTICAL WORK EXPERIENCE
ethical capabilities to make suitable decisions.
We embed ethics into the ACA and develop Practical work experience is undertaken as part
students’ ethical capabilities in three ways: of a training agreement with an authorised
training employer or principal. Students need to
1. ICAEW Ethics Learning Programme – complete at least 450 days, which normally takes
this online programme gives students a between three and five years. The knowledge,
fundamental underpinning in ethics. It skills and experience they gain as part of
ensures knowledge of the ICAEW Code their training are invaluable, giving them the
of Ethics, its fundamental principles and opportunity to put what they’re learning into
the ability to apply safeguards to ethical practice. Experience can be completed in at least
threats. It encourages questioning and one of the following six categories:
engaging ethical thinking in a wide range of
applications. 1. Accounting
2. Integration of ethical issues into all 15 2. Audit and assurance (audit is not compulsory)
ACA exams – students are assessed on 3. Financial management
their understanding of, and reaction to, 4. Information technology
ethical dilemmas within the context of the 5. Insolvency
subject matter of each module. Progression
6. Taxation
is made from identification of issues to
judgements on perspectives, conflicts and Student practical work experience should:
responsibilities.
• include responsibility levels that increase in
3. Practical application – having learnt the depth and scope as the student progresses
ethical principles and requirements via through their training;
the Ethics Learning Programme, applying
• be recorded throughout their training
them in context within the ACA exams,
agreement; and
students develop and apply ethical skills and
behaviours within their daily work experience • expose them to as many different practical
supported by their six-monthly reviews assignments, finance functions and/or clients
with their employer and the professional in as many different sectors as possible.
development framework.
15 ACCOUNTANCY, FINANCE AND
Professional scepticism is a key professional BUSINESS EXAMS
skill that supports effective decision making. Students gain in-depth knowledge across a
Chartered Accountants must take an enquiring, broad range of topics in accountancy, finance
questioning approach, not always accepting and business. The exams are designed to
information at face value. We embed the complement their practical work experience,
requirement to apply professional scepticism so they constantly progress through the
within exam questions; students can expect to qualification.
have to apply this skill in one or more of the
following ways: There are 15 exams over three levels – Certificate,
Professional and Advanced. They can be taken in
• Obtain and understand information relevant any order, except for the Case Study which has to
for making reliable judgements based on be attempted last, within the final year of an ACA
facts and circumstances known to them training agreement and once all other exams
• Make informed challenges of views have been attempted or received credit.
developed by others

Case Study
Advanced
Level
Strategic Business
Corporate Reporting
Management
Financial Accounting Business Strategy

Business Planning
and Reporting and Technology
Professional
Level
Audit and Assurance Tax Compliance Financial Management
Accounting Management Information Principles of Taxation

Certificate
Level
Business, Technology
Assurance Law
and Finance
CERTIFICATE LEVEL day-to-day work. The Business Planning and

There are six exams at this level that introduce Business Strategy and Technology exams in
the fundamentals of accountancy, finance and particular help students to progress to the
business. Students may be eligible for credit for Advanced Level.
some exams if they have studied a qualification Alternative exams are available for the Business
we recognise. Find out more at icaew.com/cpl. Planning and Financial Accounting and
The Certificate Level exams are each 1.5 hours Reporting modules.
long, have a 55% pass mark, and can be sat The Business Planning exams provide students
throughout the year. with the opportunity to gain subject- and
sector-specific knowledge while studying for
PROFESSIONAL LEVEL the ACA. The suite of Business Planning exams
The next six exams build on the fundamentals is based on the same syllabus structure and
and test students’ understanding and ability skills frameworks, and will give students the
to use technical knowledge in real-life opportunity to demonstrate their learning and
scenarios. The exams can be taken in March, use this in the context of taxation, banking or
June, September and December. Please note, insurance. There are three to choose from –
the Business Planning alternative exams for Business Planning: Taxation, Business Planning:
banking and insurance are available at the June, Banking, and Business Planning: Insurance.
September and December sittings. Students will need to sit one of the Business
Planning exams.
The Professional Level exams are 2.5 hours long,
except for Financial Accounting and Reporting Alternative financial reporting exams are
which is 3 hours long. Each exam has a 55% pass also available for Financial Accounting and
mark. Reporting. Students can choose between
two different contexts, either UK GAAP or
Prescribed texts are permitted for Audit and IFRS Standards. This means that students
Assurance, Finance Accounting and Reporting can study the financial reporting framework
and Tax Compliance, with the Business Planning most beneficial to their employer and clients.
exams being open book. Students will need to sit one version of the
The Professional Level exams are flexible and Financial Accounting and Reporting exam.
can be taken in any order to fit with a student’s
© ICAEW 2023 7
An authorised training employer or principal PERMITTED TEXTS
will guide their students on the exams which are For some Professional Level exams, students are
right for them. If a student is studying the ACA permitted to use certain publications during the
independently, they should consider their future exam.
ambitions when selecting which exams to sit.
The Professional Level Business Planning exams
and Advanced Level exams are open book, so
ADVANCED LEVEL
students can use any material and texts during
The Corporate Reporting and Strategic Business their exam. Students will have access to their
Management exams test students’ understanding personal ICAEW Bookshelf, containing their
and strategic decision-making at a senior level. copies of the digital learning materials, including
They present real-life scenarios, with increased any highlights and notes that they have made
complexity and implications from the Professional during their study. Students may also take in any
Level exams. hard copy materials, subject to practical space
The Case Study tests all the knowledge, skills and restrictions.
experience gained so far. It presents a complex Details of the specific permitted texts, and how
business issue which challenges students’ ability materials can be accessed within exams can be
to problem solve, identify the ethical implications found at icaew.com/permittedtexts.
and provide an effective solution.
The Advanced Level exams can be taken in July DATA ANALYTICS IN EXAMS
and November. They are fully open book, so Chartered Accountants are increasingly using
they replicate a real-life scenario where all the more advanced approaches to interrogate client
resources are at their fingertips. data. Embedding these techniques within our
The Corporate Reporting and Strategic Business exams ensures that we continue to reflect the
Management exams are 3.5 hours long. The Case current and future workplace and will also help
Study exam is 4 hours long. Each has a 50% pass to develop students’ judgement, professional
mark. scepticism and critical thinking skills.
For more information, guidance and support The use of data analytics in exams is split between
on exams, visit the exam resources area on our the use of data analytics software and the use of
website at icaew.com/examresources. spreadsheet functionality, as described below.
Data analytics software
FLEXIBILITY
ICAEW has incorporated data analytics software
There are no regulations stipulating the order in
within the Audit and Assurance and Corporate
which students must attempt the exams, allowing
Reporting modules.
employers to design training programmes
according to business needs. The exception to In the Audit and Assurance and Corporate
this rule is the Advanced Level Case Study exam, Reporting exams, students will be provided with a
which must be the last exam attempted and when dataset including thousands of transactions. They
a student has entered their final year of training. will be expected to use their data analytic skills to
interrogate the data and identify areas of concern
Students will be permitted a maximum of four
or items which warrant further investigation.
attempts at each Certificate and Professional Level
exam, and unlimited attempts at the Advanced Use of spreadsheet functionality
Level exams.
A number of spreadsheet functions have become
part of the learning materials and skills required
CREDIT FOR PRIOR LEARNING (CPL) of students. These cover three categories of data
Students with previous qualifications may be analysis, namely: structuring and assimilating data,
eligible to apply for CPL for up to 12 modules statistical calculations and financial functions.
at the Certificate and Professional Levels. CPL is
not available at the Advanced Level. For more Within the Financial Management, Business
information, visit icaew.com/cpl. Strategy and Technology and Strategic Business
Management exams students may be examined in
the following ways:

1. Data will be provided in the question,
and the student should populate the
spreadsheet based on the data in the
question.
2. A spreadsheet will be provided in the exam
with pre-populated data for the student to
structure, assimilate, interpret and evaluate.
Details of the use of data analytics in the exams
can be found at icaew.com/das.
Skills progression through the ACA exams

The complete set of professional skills that ICAEW Chartered Accountants are required to develop
during their training are detailed in the seven key areas of skills covered in the previous section on
professional development. A subsection of these skills are embedded in the 15 modules and assessed
in exams. The following skills are present throughout the 15 accountancy, finance and business
modules:
SKILL OVERALL
Understand a business or accounting situation, prioritise by

Assimilating and
determining key drivers, issues and requirements and identify
using information
and use relevant information.
Structuring Structure information from various sources into suitable formats for
problems and analysis and provide creative and pragmatic solutions in a business
solutions environment.
Apply professional scepticism and critical thinking to identify faults,

Applying
gaps, inconsistencies and interactions from a range of relevant
judgement
information sources and relate issues to a business environment.
Concluding, Apply technical knowledge, skills and experience to support

recommending reasoning and conclusion and formulate opinions, advice, plans,
and solutions, options and reservations based on valid evidence and
communicating communicate clearly in a manner suitable for the recipient.
The level of skill required to pass each exam increases as ACA trainees progress upwards through each
Level of the ACA exams. The skills progression embedded throughout the ACA qualification ensures
ACA trainees develop the knowledge and skills to successfully operate in the modern workplace and
which are expected by today’s forward-thinking employers.
© ICAEW 2023 9
Certificate Level Professional Level Advanced Level
Financial
Accounting
Principles & Reporting, Business
Skills Assurance, Corporate
of Taxation, Audit & Planning
Business, Reporting and
Management Assurance, and Business Case Study
Technology & Strategic Business
Information, Financial Strategy &
Finance, Law Management
Accounting Management, Technology
Tax
Compliance
Assimilating and using information
Understanding Objective Objective Scenarios Complex scenarios Unstructured

the situation testing testing complex business
and the and simple scenarios
requirements scenarios
Identifying and Information as provided Single Several Multiple information Multiple

using relevant information information sources provided information
information source sources sources including
provided provided own research
Identifying and Issues given Issues included in scenarios Issues included in Issues included
prioritising key complex scenarios in unstructured
issues complex scenarios
Structuring problems and solutions
Structuring data Specified techniques Specified Techniques Techniques inferred Unspecified

techniques inferred by by nature of techniques
nature of problem
problem
Developing Highly Specified Specified problems Specified and Defined output

solutions specified problems implicit problems but unspecified
tasks problems
Applying judgement
Applying Objective testing Specified Specified Specified Underlying

professional requirement requirement requirement in requirement
scepticism and in simple in scenario complex scenario within complex
critical thinking scenario scenario
Relating issues Objective Objective Issues in scenarios Issues in complex Issues in complex,
to the broader testing testing scenarios unstructured
business and Issues scenarios
environment, in simple
including ethical scenarios
issues
Concluding, recommending and communicating
Concluding and Objective Not assessed Specified conclusions and Specified Conclusions and
recommending testing recommendations in simple conclusions recommendations
scenarios and reasoned supported by own
recommendations evidence
in complex
scenarios
Communicating Prescribed exam format Exam requirements, Professional Professional report

including some professional presentations with appendices
presentation including reasoned
recommendations

PROFESSIONAL SKILLS ASSESSED IN THE ACA EXAMS
ASSIMILATING AND USING INFORMATION
Understand the situation and Identify and use relevant Identify and prioritise key
the requirements information issues and stay on task
• Demonstrate understanding • Interpret information • Identify business and

of the business context provided in various formats financial issues from a
• Recognise new and complex • Evaluate the relevance of scenario
ideas within a scenario information provided • Prioritise key issues
• Identify the needs of • Use multiple information • Work effectively within time
customers and clients sources constraints
• Explain different stakeholder • Filter information provided • Operate to a brief in a given
perspectives and interests to identify critical facts scenario
• Identify risks within a • Identify and interpret
scenario information in data analytics
• Identify elements of software
uncertainty within a scenario
• Identify ethical issues
including public interest and
sustainability issues within a
scenario
STRUCTURING PROBLEMS AND SOLUTIONS
Structure data Develop solutions
• Structure information from various sources • Identify and apply relevant technical
into suitable formats for analysis knowledge and skills to analyse a specific
• Identify any information gaps problem
• Frame questions to clarify information • Use structured information to identify
evidence-based solutions
• Use a range of data types and sources to
inform analysis and decision-making • Identify creative and pragmatic solutions in a
business environment
• Structure and analyse financial and non-
financial data to enhance understanding of • Identify opportunities to add value
business issues and their underlying causes • Identify and anticipate problems that may
• Present analysis in accordance with result from a decision
instructions and criteria • Identify a range of possible solutions based
• Use spreadsheets to assimilate, structure and on analysis
analyse data • Identify ethical dimensions of possible
solutions
• Select appropriate courses of action using an
ethical framework
• Identify the solution which is the best fit with
acceptance criteria and objectives
• Define objectives and acceptance criteria for
solutions
© ICAEW 2023 11
APPLYING JUDGEMENT
Apply professional scepticism

Relate issues to the environment
and critical thinking
• Recognise bias and varying quality in data • Appreciate when more expert help is required
and evidence • Identify related issues in scenarios
• Identify assumptions or faults in arguments • Assess different stakeholder perspectives
• Identify gaps in evidence when evaluating options
• Identify inconsistencies and contradictory • Retain an overview of the business issue or
information scenario
• Assess interaction of information from • Appraise corporate responsibility and
different sources sustainability issues
• Exercise ethical judgement • Appraise the effects of alternative future
scenarios
• Appraise ethical, public interest and
regulatory issues
CONCLUDING, RECOMMENDING AND COMMUNICATING
Conclusions Recommendations Communication
• Apply technical knowledge • Present recommendations in • Present a basic or routine

to support reasoning and accordance with instructions memorandum or briefing
conclusions and defined criteria note in writing in a clear and
• Apply professional • Make recommendations in concise style
experience and evidence to situations where risks and • Present analysis and
support reasoning uncertainty exist recommendations in
• Use valid and different • Formulate opinions, advice, accordance with instructions
technical skills to formulate recommendations, plans, • Communicate clearly to a
opinions, advice, plans, solutions, options and specialist or non-specialist
solutions, options and reservations based on valid audience in a manner
reservations evidence suitable for the recipient
• Make evidence-based • Prepare the advice, report, or
recommendations which can notes required in a clear and
be justified by reference to concise style
supporting data and other
information
• Develop recommendations
which combine different
technical skills in a practical
situation

ACA Syllabus
The ACA syllabus is updated annually. The aim of the annual update is to ensure that the syllabus
remains fit for purpose and can include amendments to cater for technical changes, clarification of
learning outcomes, inclusion of new areas of knowledge impacting ICAEW Chartered Accountants,
and removal of content for subject areas where there is duplication, repetition or content no longer
relevant within the qualification. The process includes consultation with all key stakeholder groups and
covers the skills, learning outcomes, and technical knowledge grids of each module.
This document presents the learning outcomes for each of the ACA exams. The learning outcomes
in each exam should be read in conjunction with the relevant technical knowledge grids and, where
applicable, the skills development grid.
UNDERSTANDING THE SYLLABUS FOR EACH MODULE

Each module has the following syllabus components:
Module These are a series of abilities which trainees will possess once they complete
aims the learning and assessment for this particular module.
Method of
This sets out the length and structure of the exam for each module.
assessment
Students are assessed on their understanding of, and reaction to, ethical
Ethics and
dilemmas within the context of the subject matter of each module. The
professional
application of professional scepticism and critical thinking are a crucial part of
scepticism
the exercise of ethical judgement.
Each module aim creates a syllabus area of technical and skills-based

Specification learning. The specification grid assigns an assessment weighting to each
grid syllabus area, which indicates the proportion of learning represented by each
syllabus area in the exam.
Learning outcomes are detailed statements which identify what the learner
Learning will know and be able to do by the end of the module, and which will be
outcomes demonstrable on passing the exam.
Skills Each module identifies the specific skills that are assessed and how they are
assessed assessed.
The Technical Knowledge Grids show the technical knowledge in the

disciplines of assurance and audit, business analysis, ethics codes and
standards, financial reporting, taxation, banking and insurance covered in the
Technical ACA syllabus by module. For each technical area, the level of knowledge
knowledge required is indicated by a letter from A to D, as follows.
grids • Level D – awareness of the scope of the standard
• Level C – general knowledge with a basic understanding
• Level B – working knowledge with a broad understanding
• Level A – thorough knowledge with a solid understanding
© ICAEW 2023 13
Certificate Level
Accounting
MODULE AIM METHOD OF ASSESSMENT
To ensure that students have a sound The Accounting exam is 1.5 hours long. 40% of
understanding of the techniques of double the marks are allocated from the preparation
entry accounting and can apply its principles of single company financial statements; either
in recording transactions, adjusting financial a statement of profit or loss and statement of
records and preparing non-complex financial financial position or a statement of cash flows,
statements. using a pro-forma template. The remaining
60% of the marks are from 24 multiple-choice,
On completion of this module, students will be:
multi-part multiple choice or multiple-response
• proficient in the use of double entry questions. These questions will cover the
accounting techniques and the maintenance areas of the syllabus in accordance with the
of accounting records; weightings set out in the specification grid.
• able to identify and correct omissions and
errors in accounting records and financial ETHICS
statements; and Ethics is an overarching requirement for the
• able to specify the components of financial professional accountant and students will be
statements and prepare and present expected to recognise that the exercise of
non-complex financial statements for judgement is required in applying fundamental
sole traders, partnerships and limited accounting concepts. Students will learn about the
companies. IESBA Code of Ethics for Professional Accountants
– fundamental principles and the ICAEW Code
of Ethics and consider the merits of a principles-
based code. Specific questions on this area are
included within the ‘Maintaining financial records’
weighting in the Specification Grid.
SPECIFICATION GRID
This grid shows the relative weightings of subjects within this module and should guide the relative
study time spent on each. Over time the marks available in the assessment will equate to the
weightings below, while slight variations may occur in individual assessments to enable suitably
rigorous questions to be set.
SYLLABUS AREA WEIGHTING
1 Maintaining financial records 30%

2 Adjustments to accounting records and financial statements 25%
3 Preparing financial statements 45%
The following learning outcomes should be read in conjunction with the relevant sections of the
technical knowledge grids at the end of this document.
© ICAEW 2023 15
1 MAINTAINING FINANCIAL RECORDS b. specify the key aspects of the accrual
Students will be proficient in the use of basis of accounting and the cash basis of
double entry accounting techniques and the accounting; and
maintenance of accounting records. c. prepare and present a statement of
In the assessment, students may be required to: financial position, statement of profit or
loss, statement of changes in equity and
a. specify why an entity maintains financial statement of cash flows (or extracts) from
records and prepares financial statements; the accounting records and trial balance
b. specify the ethical and sustainability in a format which satisfies the information
considerations for preparers of financial requirements of the entity.
statements;
c. identify the sources of information for the
preparation of accounting records and
financial statements;
d. record and account for transactions and
events resulting in income, expenses, assets,
liabilities and equity in accordance with the
appropriate basis of accounting and the
laws, regulations and accounting standards
applicable to the financial statements;
e. record and account for changes in the
ownership structure and ownership interests
inan entity; and
f. prepare a trial balance from accounting
records and identify the uses of the trial
balance.
2 ADJUSTMENTS TO ACCOUNTING RECORDS

AND FINANCIAL STATEMENTS
Students will be able to identify and correct
omissions and errors in accounting records and
financial statements.
In the assessment, students may be required to:
a. identify omissions and errors in accounting
records and financial statements and
demonstrate how the required adjustments
will affect figures in the financial statements;
b. correct omissions and errors in accounting
records and financial statements; and
c. prepare journals for nominal ledger entry to
correct errors in draft financial statements.
3 PREPARING FINANCIAL STATEMENTS

Students will be able to specify the components
of financial statements, and prepare and present
non-complex accounts for sole traders and
limited companies.
a. identify the main components of a set
of financial statements and specify their
purpose and interrelationship;
16 CERTIFICATE LEVEL © ICAEW 2023

Assurance
MODULE AIM and due care, confidentiality, professional
To ensure that students understand the behaviour and independence.
assurance process and fundamental principles
of ethics, and are able to contribute to the METHOD OF ASSESSMENT
assessment of internal controls and gathering of The Assurance exam is 1.5 hours long. The exam
evidence on an assurance engagement. consists of 50 questions worth two marks each,
covering the areas of the syllabus in accordance
On completion of this module, students will be
with the weightings set out in the specification
able to:
grid. The questions are presented in the form of
• explain the concept of assurance, why multiple choice, multi-part multiple choice, or
assurance is required and the reasons for multiple response.
assurance engagements being carried out
by appropriately qualified professionals with ETHICS AND PROFESSIONAL
an attitude of professional scepticism and SCEPTICISM
the exercise of professional judgement;
The importance of ethics both as a knowledge
• explain the nature of internal controls and area and as a behaviour to be demonstrated is
why they are important, document an reflected in the syllabus area below ‘Professional
organisation’s information flows and internal ethics’. The learning outcomes cover a range of
controls and identify deficiencies in internal threats and dilemmas to be identified as well
control systems; as safeguards and solutions to be resolved.
• select sufficient and appropriate methods of Professional scepticism is included in the
obtaining assurance evidence and recognise requirement for the syllabus area ‘The concept,
when conclusions can be drawn from process and need for assurance’ where students
evidence obtained or where issues need to are also required to recognise the need for the
be referred to a senior colleague; and exercise of professional judgement.
• understand the importance of regulation of
the profession and ethical behaviour to a
professional and identify issues relating to
integrity, objectivity, professional competence
SPECIFICATION GRID
1 The concept, process and need for assurance 20%

2 Internal controls and information flows 25%
3 Gathering evidence on an assurance engagement 35%
4 Professional ethics and regulatory issues 20%
© ICAEW 2023 17
1 THE CONCEPT, PROCESS AND NEED FOR and internal controls and identify deficiencies in
ASSURANCE internal control systems.
Students will be able to explain the concept of In the assessment, students may be required to:
assurance, why assurance is required and the
reasons for assurance engagements being carried a. state the reasons for organisations having
out by appropriately qualified professionals. effective systems of control;
b. identify the fundamental principles of
effective control systems and the risk of over-
a. define the concept of assurance (on financial dependence on IT;
and non-financial information including c. identify the main business processes of an
performance metrics and targets) and entity and information flows between areas
compare the purposes and characteristics of of the business that need effective control
reasonable and limited levels of assurance systems;
obtained from engagements;
d. identify the components of internal control
b. state why users desire assurance reports and including the role of governance and risk
provide examples of the benefits gained management processes;
from them such as to assure the quality of an
e. define and classify different types of internal
entity’s published corporate responsibility or
control, with particular emphasis on general
sustainability report;
IT and information processing controls and
c. compare the functions and responsibilities of identify the difference between preventative
the different parties involved in an assurance and detective controls;
engagement;
f. show how specified internal controls
d. identify the issues which can lead to gaps mitigate risk, including cyber data security
between the outcomes delivered by the and supply-chain risks, and state their
assurance engagement and the expectations limitations;
of users of the assurance reports, and
g. identify internal controls or internal control
suggest how these can be overcome;
deficiencies for an organisation in a given
e. identify the steps involved in obtaining, scenario;
accepting and agreeing the terms of an
h. identify the role of an internal audit function
assurance engagement;
in an organisation; and
f. identify the process of planning an
i. identify, for a specified organisation, the
assurance engagement, including risk
sources of information which will enable a
assessment, the impact of an entity's use of
sufficient record to be made of accounting
technology and the implications of climate
or other systems and internal controls.
change on the recognition, measurement
and disclosure of items in an entity's financial 3 GATHERING EVIDENCE ON AN ASSURANCE
statements; ENGAGEMENT
g. define materiality and identify its role in the Students will be able to select sufficient and
assurance engagement; appropriate methods of obtaining assurance
h. identify how the assurance provider reports evidence and recognise when conclusions can
to the engaging party; be drawn from evidence obtained or where
i. recognise the need to plan and perform issues need to be referred to a senior colleague.
assurance engagements with an attitude of In the assessment, students may be required to:
professional scepticism and the exercise of
professional judgement; and a. state the reasons for preparing and keeping
documentation relating to an assurance
j. recognise the characteristics of fraud and
engagement;
distinguish between fraud and error.
b. identify the different methods of obtaining
2 INTERNAL CONTROLS AND INFORMATION evidence, including remote auditing
FLOWS techniques, from the use of tests of control,
Students will be able to explain the nature of substantive procedures, including analytical
internal controls and why they are important, procedures and data analytics software;
document an organisation’s information flows

c. recognise the strengths and weaknesses of situations that may impair or threaten
the different methods of obtaining evidence; integrity, objectivity and independence;
d. identify the situations within which the f. suggest courses of action to resolve ethical
different methods of obtaining evidence conflicts relating to integrity, objectivity and
should and should not be used; independence;
e. compare the reliability of different types of g. respond appropriately to the request of
assurance evidence; an employer to undertake work outside
f. select appropriate methods of obtaining the confines of an individual’s expertise or
evidence from tests of control and from experience;
substantive procedures for a given business h. recognise the importance of confidentiality,
scenario; including compliance with GDPR, and
g. recognise when the quantity (including identify the sources of risks of accidental
factors affecting sample design) and quality disclosure of information;
(including analysis of data) of evidence i. identify steps to comply with GDPR and
gathered is of a sufficient and appropriate prevent the disclosure of information;
level, after taking account of sampling risk, j. identify situations in which confidential
to draw conclusions on which to base a information may be disclosed, including
report; where reporting suspicions of money
h. identify the circumstances in which written laundering;
confirmation of representations from k. identify the following threats to the
management should be sought and the fundamental ethical principles and the
reliability of such confirmation as a form of independence of assurance providers:
assurance evidence; and
• self-interest threat
i. recognise issues arising while gathering
• self-review threat
assurance evidence that should be referred
to a senior colleague. • management threat
• advocacy threat
4 PROFESSIONAL ETHICS AND REGULATORY • familiarity threat
ISSUES
• intimidation threat; and
Students will be able to understand the
importance of ethical behaviour to a l. identify safeguards to eliminate or reduce
professional and identify issues relating to threats to the fundamental ethical principles
integrity, objectivity, professional competence and the independence of assurance
and due care, confidentiality, professional providers.
behaviour and independence.
a. state the role of regulatory bodies and
ethical codes and their importance to the
profession and identify the key features of
the system of professional ethics adopted by
IESBA and ICAEW;
b. recognise the differences between a rules-
based ethical code and one based upon a
set of principles;
c. recognise how the principles of professional
behaviour protect the public and fellow
professionals;
d. identify the fundamental principles
underlying the ICAEW Code of Ethics;
e. recognise the importance of integrity,
objectivity and independence to
professional accountants, identifying
© ICAEW 2023 19
Business, Technology and Finance
MODULE AIM ETHICS AND PROFESSIONAL
To provide students with an understanding SCEPTICISM
of how businesses operate and how finance Ethical thinking will be required across all
functions help businesses to achieve their areas of the syllabus. A specific weighting is
objectives. given in the syllabus area ‘Key issues for the
On completion of this module, students will be accountancy profession and business’ which
able to: includes ethics and business ethics, in the table
below. The policies and procedures necessary to
• identify the general objectives of businesses promote an ethical culture will be emphasised.
and the functions and tasks that businesses Students will be expected to apply professional
perform in order to meet their objectives; scepticism. Additionally, under the syllabus area
• specify the nature, characteristics, ‘The external environment of business’, students
advantages and disadvantages of different must demonstrate an awareness of the needs
forms of business and organisational of different stakeholders and in the ‘Technology
structure; and data analysis’ area they must be able to
• identify the purpose of financial information identify types of data bias, their causes and
produced by finance functions, specify effects.
how finance functions support business
operations, including the measurement of
risk, and identify sources and methods of
financing for businesses;
• specify the importance and attributes of
the accountancy profession and the role
that governance plays in the management
of a business, including how a business
can promote corporate governance,
sustainability, ESG, corporate responsibility
and an ethical culture;
• specify the impact on a business of the
external environment in which it operates;
and
• specify key issues in relation to data and its
collection, visualisation and analysis, and
identify key features, benefits and risks of
different technologies.
METHOD OF ASSESSMENT
The Business, Technology and Finance exam
is 1.5 hours long. The exam consists of 50
questions worth two marks each, covering the
areas of the syllabus in accordance with the
weightings set out in the specification grid. The
questions are presented in the form of multiple
choice, or multiple response.

SPECIFICATION GRID
1 Business objectives and functions 10%

2 Business and organisational structures 10%
3 The role of finance and the finance function 25%
4 Key issues for the accountancy profession and business 20%
5 The external environment of business 15%
6 Technology and data analysis 20%
1 BUSINESS OBJECTIVES AND FUNCTIONS 2 BUSINESS AND ORGANISATIONAL

Students will be able to identify the general STRUCTURES
objectives of businesses and the functions and Students will be able to specify the nature,
tasks that businesses perform in order to meet characteristics, advantages and disadvantages
their objectives. of different forms of business and organisational
structure.
a. state the general objectives of businesses;
b. state the general objectives of strategic a. identify the differences between businesses
management and specify the strategic carried out by sole traders, partnerships,
management process and interrelationship limited liability partnerships, companies,
between a business’s vision, mission and alliances and groups, and show the
strategic objectives; advantages and disadvantages of each of
these business structures; and
c. identify the functional areas within
businesses (marketing, operations/ b. identify different organisational structures and
production, procurement, HR, IT and finance) specify their advantages and disadvantages.
and show how the functions help the
3 THE ROLE OF FINANCE AND THE FINANCE
achievement of business objectives; FUNCTION
d. identify the nature and functions of Students will be able to identify the purpose
management, and show how this is of financial information produced by finance
influenced by human behaviour; functions, specify how finance functions support
e. identify the relationship between a business operations, including the measurement
business’s overall strategy and its functional of risk, and identify sources and methods of
strategies and the nature and purpose financing for businesses.
of strategic plans, business plans and
operational plans including how a strategic In the assessment, students may be required to:
plan is converted into fully-integrated a. specify the role of financial information
business and operational plans; prepared by finance functions in:
f. identify the main components of the risk • supporting businesses in pursuit of their
management process and show how they objectives, including business partnering
operate; and • providing for accountability of
g. identify the key issues in relation to crisis management to shareholders and other
management, business resilience, business stakeholders
continuity planning and disaster recovery.
© ICAEW 2023 21
• reflecting business position and effectiveness of capital markets, and the
performance links between the public interest, technical
• supporting users in making decisions; competence and professional responsibility,
including the attributes of professional
b. identify the main considerations in
scepticism, professional judgement and the
establishing and maintaining accounting and
public trust;
financial reporting functions and financial
control processes; b. specify the key features of the regulatory
framework within which professional
c. identify, in the context of accounting and
accountants work including the basics of
other systems, key aspects of:
how anti-money laundering requirements
• information processing affect them;
• information security c. state the reasons why governance is needed
• information management; and identify the role that governance plays
d. specify why the management of a business in the management of a business;
require performance measurements; d. identify the key stakeholders and their
e. identify the accountant’s role in preparing governance needs for a particular business;
and presenting information for the e. identify and show the distinction between the
management of a business; roles and responsibilities of those charged
f. specify types of risk and techniques for with corporate governance and those charged
measuring risk, including: measures of with management, including the basics of the
central tendency (mean, mode, median, UK’s corporate governance code;
range); measures of spread (range, standard f. specify how differences in legal systems
deviation, variance, co-efficient of variation); and in national and business cultures affect
the normal distribution; skewness; corporate governance;
g. specify the relationship between a business g. identify the roles and responsibilities within
and its bankers and other providers of a business of the executive board, any
financial products and services; supervisory board, the audit committee
h. identify the characteristics, terms and and others charged with corporate
conditions and role of alternative short, governance, the internal audit function and
medium and long-term sources of finance those responsible for the external audit
available to different businesses; relationship;
i. identify the processes by which businesses h. specify the nature of ethics, business
raise equity, capital and other long-term ethics, sustainability, ESG, and corporate
finance, including green finance; and responsibility; and
j. identify appropriate methods of financing i. specify the policies and procedures a
exports, including: business should implement in order to
• bills of exchange promote good corporate governance,
sustainable practices, corporate
• letters of credit
responsibility and an ethical culture within its
• export credit insurance. operations
4 KEY ISSUES FOR THE ACCOUNTANCY 5 THE EXTERNAL ENVIRONMENT OF BUSINESS
PROFESSION AND BUSINESS
Students will be able to specify the impact on a
Students will be able to specify the importance business of the external environment in which it
and attributes of the accountancy profession. operates.
Students will be able to identify the role that
governance plays in the management of a In the assessment, students may be required to:
business and how a business can promote a. specify the signalling, rewarding and
corporate governance, sustainability, ESG, allocating effects of the price mechanism
corporate responsibility and an ethical culture. on business (including the concept of price
In the assessment, students may be required to: elasticity);
a. identify the importance of the accountancy
profession to the public interest and to the

b. specify the potential types of failure of the
market mechanism and their effects on
business;
c. identify the key macro-economic factors that
affect businesses;
d. specify the principal effects of national and
international regulation upon businesses;
and
e. show how the needs of different
stakeholders in a business (eg, shareholders,
the local community, employees, suppliers,
customers) impact upon it.
6 TECHNOLOGY AND DATA ANALYSIS

Students will be able to specify key issues in
relation to data and its collection, visualisation
and analysis, and identify key features, benefits
and risks of different technologies.
a. specify the purpose of data, the different
types and sources of data, the importance
of data comparability and the role of
professional scepticism in relation to data
collection, analysis and visualisation;
b. specify principles in relation to the collection
and analysis of data, including populations,
surveys, presentation of simple frequency
distributions, basic sampling and data ethics;
c. identify types of error in data, types of data
bias, including their causes and effects, and
types of data protection for commercially
sensitive information;
d. identify issues in relation to the use of
spreadsheets and the visualisation and
interpretation of data in graphs, charts etc;
e. identify the characteristics and implications
of big data;
f. specify uses of data science and data
analytics by organisations;
g. specify different types of cyber risk and
attack and the steps organisations can take
to improve cyber security;
h. specify the features and uses of cloud
accounting, the internet of things, digital
assets, blockchain distributed ledger
technology and fintech; and
i. identify the effect of digital disruption and
technology developments, including those
relating to automation, artificial intelligence,
machine learning and robotic process
automation, on the accountancy profession
and business.
© ICAEW 2023 23
Law
To provide students with an understanding of The Law exam is 1.5 hours long. The exam
the principles of English law. consists of 50 questions worth two marks each,
covering the areas of the syllabus in accordance
with the weightings set out in the specification
able to:
grid. The questions are presented in the form of
• explain the nature of contractual multiple choice or multi-part multiple choice.
agreements, the agency relationship and the
consequences of negligence; ETHICS AND PROFESSIONAL
• understand the legal implications of SCEPTICISM
incorporation, including the roles of The consideration of ethical decision-making
shareholders and directors, and the main is intrinsic to the study of law. In this module,
implications of insolvency law; students will examine the impact of criminal law
• identify instances of criminal behaviour on business and professional services, focussing
that may be encountered by professional on fraud, bribery and money laundering.
accountants; and They will also explore the relationships and
• identify other key areas in which the law interaction between legal principles, legislation,
affects the role and work of the professional case law, ethics and ethical codes.
accountant.
SPECIFICATION GRID
1 The impact of civil law on business and professional services 35%

2 Company and insolvency law 40%
3 The impact of criminal law on business and professional services 10%
4 The impact of law in the professional context 15%

1 THE IMPACT OF CIVIL LAW ON BUSINESS c. identify the administrative consequences of
AND PROFESSIONAL SERVICES incorporation or the formation of a limited
Students will be able to explain the nature of liability partnership including requirements
contractual agreements, the agency relationship regarding statutory books, accounts, meetings
and the consequences of negligence. and the role of the company secretary;
In the assessment, students may be required to: d. identify the procedures for the issue of
shares, including issues at a premium and
CONTRACT pre-emption rights;
a. recognise when a legally binding contract e. identify the requirements of the Companies
exists between two parties and how a Act 2006 in respect of companies’
contract may be enforced; statutory accounts and audit, including the
exemptions for small and medium-sized
b. identify the circumstances under which a
companies and micro-entities;
contract can be terminated and possible
remedies for breach of contract; f. identify aspects of capital maintenance
including:
AGENCY • reduction of capital
c. identify the role of agents, their duties and • redemption and purchase of a
rights, and their authority to enter contracts company’s own shares
on behalf of principal; • financial assistance for the purchase of a
d. identify the nature of a partnership and the company’s own shares
authority given to partners; • distribution of profits;
NEGLIGENCE AND LIABILITY g. identify share transfer requirements and
e. identify instances and consequences disclosure requirements;
of negligence (particularly negligent h. recognise how a shareholder can influence
misstatement) in a given scenario; and the management of a company through
f. identify instances and consequences of meetings and resolutions, including
vicarious liability in a given scenario. shareholders’ rights to requisition a meeting;
i. identify the various statutory rights of
2 COMPANY AND INSOLVENCY LAW shareholders to challenge the management
Students will be able to understand the of the company under the Companies Act
implications of incorporation, including the roles 2006 and the Insolvency Act 1986;
of shareholders and directors, and the main j. identify the rights and duties which a member
implications of insolvency law. of a limited liability partnership possesses;
In the assessment, students may be required to: k. identify the ways in which a director may be
appointed and removed;
a. identify the differences between
unincorporated businesses (sole l. identify directors’ duties, including
traderships and partnerships), limited responsibility for maintaining sustainable
liability partnerships and companies, business practices, explaining the
show the advantages and disadvantages consequences of any major breach;
of incorporation and recognise the m. identify the powers of directors and in what
circumstances when the veil of incorporation circumstances they will bind the company in
can be lifted; a contract with third parties;
b. identify the procedures required to n. identify the nature of fixed and floating
form a registered company or a limited charges, the rationale for the selection of a
liability partnership, including any particular type of charge and the procedures
practical considerations, and the nature for registering them;
and contractual force of a company’s o. identify the nature and function of:
memorandum and articles of association and • company voluntary arrangements
identify the advantages and disadvantages
• administration orders
of off-the-shelf companies;
• receivership
© ICAEW 2023 25
• compulsory and voluntary liquidation In the assessment, students may be required to:
(including relevance of secured debt);
and INFORMATION AND ITS LEGAL ENVIRONMENT
p. identify the main implications of insolvency a. identify the key requirements of the Data
law, including: Protection Act 2018, on the use of personal
• the principal means of termination of information and how the Act can affect the
companies or other business entities manner in which information systems are
used by businesses;
• the priorities on a liquidation of the
distribution of assets including rights EMPLOYMENT LAW AND SOCIAL SECURITY LAW
of creditors and employees (including
b. identify who is an employee and the main
secured assets)
legal consequences of employment status;
3 THE IMPACT OF CRIMINAL LAW ON c. identify the key features of employment
BUSINESS AND PROFESSIONAL SERVICES contracts and recognise circumstances in
Students will be able to identify instances of which an employment contract may be
criminal behaviour that may be encountered by terminated and the consequences arising;
professional accountants. d. identify when dismissal constitutes:
In the assessment, students may be required to: • a wrongful dismissal
a. recognise the relationships and interaction • an unfair dismissal;
between civil and criminal law, legal e. identify the circumstances where an
principles, legislation, case law, ethics and employee can claim a statutory redundancy
ethical codes; payment;
b. explain the role of arbitration as a means of f. identify employers’ obligations under social
alternative dispute resolution; security law; and
c. identify offences and their consequences g. identify the responsibilities of employers
under the anti-money laundering legislation, under the Equality Act 2010 and
identify the obligations on professional sustainability regulations.
accountants to detect and help prevent
money laundering, and select appropriate INTERNATIONAL LAW AND REGULATIONS
courses of action to protect professional h. recognise situations when laws and
accountants from criminal liability; regulations other than English law may be
d. identify instances and consequences of applicable to an organisation, including:
bribery; • international regulation of trade between
e. identify instances and consequences of organisations (International Chamber
fraud in a given scenario, including: of Commerce (ICC) Incoterms, the
UN Convention on Contracts for the
• the effect of the Fraud Act 2006 International Sale of Goods)
• threats to consumers through cybercrime • Sharia law relating to Islamic finance
• offences created under the Computer
Misuse Act 1990
• fraudulent trading
• insider dealing; and
f. identify circumstances where accountants
will be protected from dismissal and
victimisation if they raise concerns about
malpractice in the workplace.
4 THE IMPACT OF LAW IN THE PROFESSIONAL

CONTEXT
Students will be able to identify other key areas
in which the law affects the role and work of the
professional accountant, and understand when
relevant laws and regulations may be applicable.

Management Information
To enable students to prepare essential financial The Management Information exam is 1.5
information for the management of a business. hours long. 20% of the marks are allocated in
one scenario-based question. This will cover a
single syllabus area, either: costing and pricing;
able to:
budgeting and forecasting; performance
• calculate the costs of products and services management; or management decision-making.
and use them to determine sales and The remaining 80% of the marks are from 32
transfer prices; multiple choice, multi-part multiple choice or
• identify appropriate budgeting and multiple response questions. The 33 questions
forecasting approaches and methods and cover the areas of the syllabus in accordance with
prepare budgets; the weightings set out in the specification grid.
• identify key features of effective performance
management systems, select and calculate ETHICS AND PROFESSIONAL
appropriate performance measures, SCEPTICISM
calculate differences between actual Ethics is fundamental to the sound provision
performance and standards or budgets, and of management information upon which basis
identify the key features, risks and benefits sustainable business decisions can be made.
of a range of approaches to management This will form a backdrop to an overall culture
information operations; and of business trust as well as business efficiency. It
• identify and calculate relevant data for use in is treated as ingrained across the syllabus with
management decision making. a weighting of marks being given within the
‘Costing and Pricing’ syllabus area. Students will
be expected to apply professional scepticism.
SPECIFICATION GRID
1 Costing and pricing; 5 Ethics 25%

2 Budgeting and forecasting 25%
3 Performance management and management information operations 25%
4 Management decision-making 25%
© ICAEW 2023 27
1 COSTING AND PRICING f. prepare a cash budget which highlights the
Students will be able to calculate the costs quantity and timing of cash surpluses and
of products and services and use them to deficits;
determine sales and transfer prices. g. calculate the cash (operating) cycle for a
In the assessment, students may be required to: business and understand its significance;
h. identify the constituent elements of working
a. recognise the use of cost information for capital and treasury and specify the methods
different purposes; by which each element can be managed
b. classify costs as fixed, variable, direct or to optimise working capital and cash flows
indirect; taking account of sustainability issues; and
c. calculate overhead absorption rates, unit i. recognise how to manage the surpluses and
costs and profits/losses, using: deficits predicted in cash budgets.
• marginal costing
3 PERFORMANCE MANAGEMENT AND
• absorption costing and reconcile the
MANAGEMENT INFORMATION OPERATIONS
differences between the costs and
profits/losses obtained; Students will be able to identify key features of
effective performance management systems,
d. select the most appropriate method of
select and calculate appropriate performance
costing for a given product or service;
measures, calculate differences between actual
e. calculate the sales price for a product or performance and standards or budgets, and
service using cost based pricing; and identify the key features, risks and benefits
f. calculate transfer prices for sales to of a range of approaches to management
internal customers which take account of information operations.
appropriate costs.
2 BUDGETING AND FORECASTING a. identify the reasons for, and key features of,
Students will be able to identify appropriate effective performance management systems;
budgeting and forecasting approaches and b. select and calculate appropriate financial
methods and prepare budgets. and non-financial performance measures
In the assessment, students may be required to: which effectively encourage the business
as a whole to meet its objectives including
a. recognise how forecasting techniques those for sustainability;
(including high/low, linear regression and
c. calculate differences between actual
time series analysis) help management in
performance and standards or budgets
budgeting and forecasting and perform
in terms of price and volume effects
calculations using these techniques;
and identify possible reasons for those
b. identify how data analytics can be used in differences;
budgeting and forecasting;
d. identify issues relating to the collection of
c. identify issues relating to the collection data (data bias) and interpretation of data
of data (data bias) and interpretation of (professional scepticism) for performance
data (correlation v causation; professional management;
scepticism) for budgeting and forecasting;
e. identify the features of cloud accounting and
d. prepare budgets or extracts therefrom; its associated risks and benefits; and
e. select the most appropriate of the following f. identify the features of shared service
budgeting approaches and methods, centres and their relative merits for the
taking into account their advantages and provision of management information.
disadvantages for planning, control and
motivation: 4 MANAGEMENT DECISION MAKING
• bottom-up and top-down approaches to Students will be able to identify and calculate
generating and managing budgets relevant data for use in management decision
• zero-based and incremental budgeting; making.

a. calculate the breakeven point, contribution
and margin of safety for a given product or
service;
b. allocate scarce resource to those products
or services with the highest contribution per
limiting factor;
c. calculate the net present value, internal rate
of return, payback period or accounting rate
of return for a given project; and
d. identify the advantages and disadvantages
of the investment appraisal techniques
specified in 4(c) above and outline how
sustainability issues can be incorporated into
investment appraisal decisions.
5 ETHICS
a. identify and explain ethical issues relating
to the preparation, presentation and
interpretation of financial information for the
management of a business.
© ICAEW 2023 29
Principles of Taxation
To enable students to understand the general The Principles of Taxation exam is 1.5 hours
objectives of taxation and to calculate long. 20% of the marks are allocated to two
income tax, national insurance contributions, scenario-based questions. These will each cover
capital gains tax, corporation tax and VAT in a single syllabus area: income tax and NIC,
straightforward scenarios. and corporation tax. The remaining 80% of the
marks are from 40 multiple choice, multi-part
multiple choice, multiple response or numeric
able to:
entry questions. These questions will cover the
• explain the general objectives of taxation, remaining areas of the syllabus in accordance
the influences upon the UK system of with the weightings set out in the specification
taxation, the different types of tax in the UK; grid.
• recognise the ethical issues arising in the The tax tables included in the ICAEW learning
course of performing tax work; materials are provided to students on-screen in
• identify the obligations the UK system of the exam.
taxation imposes on taxpayers and the
implications of non-compliance; ETHICS
• calculate the amount of income tax owed by The importance of ethics is fundamental to
or owed to individuals and the amount of professional accountants working in the area of
national insurance payable; taxation. Learning outcomes relating to ethics
• calculate the amount of capital gains tax and integrity are included within the syllabus
payable by individuals and the chargeable area ‘Objectives, types of tax and ethics’ as
gains subject to corporation tax; shown in the table below. Students are required
• calculate the amount of corporation tax to identify the objectives of taxation; ethical
payable by companies; and principles, along with threats and safeguards as
• calculate the amount of VAT owed by or well as issues such as conflicts of interest, money
owed to businesses. laundering, tax avoidance and tax evasion.
SPECIFICATION GRID
study time spent on each. In each assessment, the marks available will equate to the weightings below.
1 Objectives, types of tax and ethics 10%

2 Administration of taxation 20%
3 Income tax and national insurance contributions 24%
4 Capital gains tax and chargeable gains for companies 10%
5 Corporation tax 16%
6 VAT 20%

1 OBJECTIVES, TYPES OF TAX AND ETHICS 2 ADMINISTRATION OF TAXATION
Students will be able to explain the general Students will be able to identify the obligations the
objectives of taxation, the influences upon the UK system of taxation imposes on taxpayers and
UK system of taxation, the different types of the implications for taxpayers of non-compliance.
tax in the UK, and will be able to recognise the
ethical issues arising in the course of performing
tax work. a. identify the records which companies and
individuals must retain for tax purposes, the
method of retention and state the periods
a. identify the objectives of digitalisation of tax; for which the records must be retained;
b. identify the objectives of taxation in b. identify the key features of the PAYE and
general terms of economic, social justice national insurance system and calculate
and environmental issues, the range of tax PAYE tax codes for employees;
opportunities open to the government and c. identify the key features of the self-
the relative advantages of different types of assessment system, including digital tax
tax in meeting the government’s objectives; accounts, both companies and individuals;
c. recognise the impact of relevant external d. determine, in straightforward cases, due
influences on UK tax objectives and policies; dates for:
d. classify entities as individuals, partnerships, • companies’, sole traders’, partnerships’
or companies for tax purposes and state how and individuals’ tax returns, tax payments
they are taxed; and payments on account
e. identify who is liable for the following • businesses’ VAT returns and payments
taxes, how the taxes apply to income and
• employers’ PAYE and national insurance
transactions, identify the government bodies
returns and payments;
responsible for the taxes, and determine
when an individual or entity comes within e. identify and calculate the interest and
the scope of the taxes: penalties due for:
• capital gains tax • late submissions of and/or incorrect
returns
• corporation tax
• late and/or incorrect payments of tax;
• income tax
and
• national insurance
f. identify the periods within which HMRC can
• VAT; enquire into a taxpayer’s returns or other
f. recognise the importance of the budget information and tax liabilities and recognise
cycle, tax year and the following sources of the taxpayer’s right of appeal and the
UK tax law and practice: process for dealing with disputes.
• legislation
3 INCOME TAX AND NATIONAL INSURANCE
• case law CONTRIBUTIONS
• HMRC manuals, statements of practice, Students will be able to calculate the amount of
extra-statutory concessions and press income tax owed by or owed to individuals and
releases; the amount of national insurance payable.
g. identify the five fundamental principles given
in the IESBA Code of Ethics for Professional
Accountants and ICAEW Code of Ethics, and a. recognise the main sources of taxable and
the guidance in relation to a tax practice with non-taxable income;
regard to: b. calculate the personal allowance available
• the threats and safeguards framework to an individual according to personal
• ethical conflict resolution; and circumstances including the marriage
allowance;
h. identify the following:
c. calculate assessable employment income for
• conflicts of interest
an employee or director, including taxable
• money laundering and exempt benefits;
• tax avoidance and tax evasion.
© ICAEW 2023 31
d. recognise the badges of trade; d. calculate the taxable total profits and the
e. allocate given items of business expenditure corporation tax payable for a company
as allowable or disallowable for tax purposes resident in the UK which has a period of
and calculate the adjusted trading profits account of 12 months or less.
after capital allowances on plant and
6 VAT
machinery of a sole trader or partnership
using the accrual basis of accounting; Students will be able to calculate the amount of
VAT owed by or owed to businesses.
f. allocate the tax adjusted profits of a
partnership to each partner and calculate In the assessment, students may be required to:
the tax assessable profits for each partner for a. classify supplies in given straightforward
any given tax year; situations as exempt, zero-rated, standard-
g. calculate the assessable trading profits rated, subject to a reduced rate of 5%, or
for an unincorporated business which is outside the scope of VAT;
commencing, continuing or ceasing to trade; b. recognise the implications of supplies being
h. calculate total taxable income and the classified as reduced-rated, standard-rated,
income tax payable or repayable for zero-rated or exempt;
individuals; and c. identify when a business could or should
i. calculate the total national insurance register or deregister for VAT and state the
contributions payable by employees, time limits;
employers and self-employed individuals. d. determine the tax point for a supply of
4 CAPITAL GAINS TAX AND CHARGEABLE goods or services;
GAINS FOR COMPANIES e. state the principles of VAT payable or
Students will be able to calculate the amount of repayable on the supply of goods or services
capital gains tax payable by individuals and the by a taxable person and calculate the
chargeable gains subject to corporation tax. monthly, quarterly or annual VAT payable or
repayable by a business; and
f. state the alternative schemes for payment
a. classify persons, assets and disposals as of VAT by businesses and calculate the VAT
either chargeable or exempt for capital gains payable or repayable for a business using
purposes; these.
b. calculate the chargeable gains and losses on
the disposal of assets;
c. calculate total taxable gains for both
individuals and companies; and
d. calculate the capital gains tax payable by
individuals.
5 CORPORATION TAX
Students will be able to calculate the amount of
corporation tax payable by companies.
a. identify accounting periods for a company;
b. recognise the interaction of having one or
more related 51% group companies with
corporation tax payment dates;
c. allocate given items of business expenditure
as allowable or disallowable for tax purposes
and calculate the adjusted trading profits
after capital allowances on plant and
machinery; and

Technical knowledge
The tables contained in this section show the technical knowledge in the disciplines of financial
reporting, audit and assurance, business analysis, ethics and taxation covered in the ACA syllabus by
module.
For each individual standard the level of knowledge required in the relevant Certificate and
Professional Level module and at the Advanced Level is shown.
The knowledge levels are defined as follows:
LEVEL D
An awareness of the scope of the standard.
LEVEL C
A general knowledge with a basic understanding of the subject matter and training in its application
thereof sufficient to identify significant issues and evaluate their potential implications or impact.
LEVEL B
A working knowledge with a broad understanding of the subject matter and a level of experience in
the application thereof sufficient to apply the subject matter in straightforward circumstances.
LEVEL A
A thorough knowledge with a solid understanding of the subject matter and experience in the
application thereof sufficient to exercise reasonable professional judgement in the application of the
subject matter in those circumstances generally encountered by chartered accountants.
KEY TO OTHER SYMBOLS:

→ The knowledge level reached is assumed to be continued
© ICAEW 2023 33
Assurance and Audit
AUDIT AND ADVANCED
TOPIC ASSURANCE
ASSURANCE LEVEL
The International Auditing and Assurance Standards Board D C

The Authority Attaching to Standards Issued by the International Auditing and
C A
Assurance Standards Board
The Authority Attaching to Practice Statements Issued by the International
A
Auditing and Assurance Standards Board
FRC Scope and Authority of Audit and Assurance Pronouncements B A →
Discussion Papers C
Working Procedures C
International Standards on Quality Management (ISQMs) (UK)
Quality Management For Firms That Perform Audits Or Reviews Of Financial
C B
Statements, Or Other Assurance Or Related Services Engagements
Engagement Quality Reviews C B
International Standards on Auditing (UK)
200 (Revised June 2016) (Updated May 2022) Overall Objectives of the
Independent Auditor and the Conduct of an Audit in Accordance with B A →
International Standards on Auditing (UK)
210 (Revised June 2016) (Updated May 2022) Agreeing the Terms of Audit
B →
Engagements
220 (Revised July 2021) Quality Management for an Audit of Financial
B →
Statements
230 (Revised June 2016) (Updated May 2022) Audit Documentation C B A
240 (Revised May 2021) (Updated May 2022) The Auditor’s Responsibilities
C B A
Relating to Fraud in an Audit of Financial Statements
250 Section A (Revised November 2019) (Updated May 2022) Consideration
B A
of Laws and Regulations in an Audit of Financial Statements
250 Section B (Revised November 2019) The Auditor’s Statutory Right and
Duty to Report to Regulators of Public Interest Entities and Regulators of Other C
Entities in the Financial Sector
260 (Revised November 2019) (Updated May 2022) Communication with
B A
Those Charged with Governance
265 (Updated May 2022) Communicating Deficiencies in Internal Control to
B A
Those Charged with Governance and Management
300 (Revised June 2016) (Updated May 2022) Planning an Audit of Financial
B A →
Statements
315 (Revised July 2020) Identifying and Assessing the Risks of Material
B A →
Misstatement
320 (Revised June 2016) (Updated May 2022) Materiality in Planning and
C A →
Performing an Audit
330 (Revised July 2017) (Updated May 2022) The Auditor’s Responses to
C B A
Assessed Risks
402 (Updated May 2022) Audit Considerations Relating to an Entity Using a
C B
Service Organization
450 (Revised June 2016) (Updated May 2022) Evaluation of Misstatements
C A
Identified During the Audit
500 (Updated May 2022) Audit Evidence B A →
501 (Updated May 2022) Audit Evidence – Specific Considerations for
B A
Selected Items
505 (Updated May 2022) External Confirmations B B A
510 (Revised June 2016) Initial Audit Engagements - Opening Balances C B A
520 (Updated May 2022) Analytical Procedures B A A
34 TECHNICAL KNOWLEDGE © ICAEW 2023

AUDIT AND ADVANCED
TOPIC ASSURANCE
ASSURANCE LEVEL
530 (Updated May 2022) Audit Sampling B B A

540 (Revised December 2018) (Updated May 2022) Auditing Accounting
C B A
Estimates, and Related Disclosures
550 (Updated May 2022) Related Parties C B A
560 Subsequent Events B A
570 (Revised September 2019) (Updated May 2022) Going Concern A →
580 (Updated May 2022) Written Representations C B A
600 (Revised September 2022) Special Considerations – Audits of Group
C A
Financial Statements (including the Work of Component Auditors)
610 (Revised June 2013) (Updated May 2022) Using the Work of Internal
C B A
Auditors
620 (Revised November 2019) (Updated May 2022) Using the Work of an
B A
Auditor’s Expert
700 (Revised November 2019) (Updated May 2022) Forming an Opinion and
B A →
Reporting on Financial Statements
701 (Revised November 2019) (Updated May 2022) Communicating Key
B A
Audit Matters in the Independent Auditor’s Report
705 (Revised June 2016) Modifications to the Opinion in the Independent
A →
Auditor’s Report
706 (Revised June 2016) Emphasis of Matter Paragraphs and Other Matter
A →
Paragraphs in the Independent Auditor’s Report
710 Comparative Information – Corresponding Figures and Comparative
B A
Financial Statements
720 (Revised November 2019) (Updated May 2022) The Auditor’s
B A
Responsibility Relating to Other Information
800 (Revised) Special Considerations – Audits of Financial Statements
C A
prepared in Accordance with Special Purpose Frameworks
805 (Revised) Special Considerations – Audits of Single Financial Statements
C A
and Specific Elements, Accounts or Items of a Financial Statement
International Standards on Assurance Engagements (ISAEs) (UK)
3000 (July 2020) Assurance Engagements Other Than Audits Or Reviews Of
C B
Historical Financial Information
International Standards on Auditing
810 (Revised) Engagements to Report on Summary Financial Statements B
International Auditing Practice Note (IAPN)
1000 Special Considerations in Auditing Financial Instruments B
International Standards on Review Engagements (ISREs)
2400 (Revised) Engagements to Review Historical Financial Statements C B
International Standards on Review Engagements (UK)
2410 (Revised May 2021) Review of Interim Financial Information Performed
C B
by the Independent Auditor of the Entity
International Standards on Assurance Engagements (ISAEs)
3400 The Examination of Prospective Financial Information C A
3402 Assurance Reports on Controls at a Service Organisation C B
3410 Assurance Engagements on Greenhouse Gas Statements C →
International Standards on Related Services (ISRSs)
4400 Agreed-upon Procedures Engagements (Revised) B
4410 Compilation Engagements (Revised) B
Other Guidance
Bulletin (August 2021): Illustrative Auditor’s Reports on UK Private Sector
B B
Financial Statements
© ICAEW 2023 35
Business and Finance
CERTIFICATE AND PROFESSIONAL LEVELS
BUSINESS ADVANCED
TOPIC BUSINESS, LEVEL
MANAGEMENT FINANCIAL STRATEGY
TECHNOLOGY
INFORMATION MANAGEMENT AND
AND FINANCE
TECHNOLOGY
STRATEGIC ANALYSIS
Industry and market analysis tools
PESTEL analysis C A →
Porter’s five forces C A →
Product life cycle C A →
Boston consulting group matrix C A →
Prices and markets C A →
Competitor analysis C A →
Positional and other analysis tools
Resource audit C A →
Resource-based strategy C A →
Value chain analysis C A →
SWOT analysis C A →
Gap analysis C A →
Marketing analysis C A →
Competitive advantage C A →
Benchmarking C A →
Directional policy matrix B
Business process analysis B A
Strategic risk analysis A →
Balanced scorecard C A →
STRATEGIC CHOICE
Strategy formulation, evaluation and
C A →
choice
Business risk management C A →
Financial analysis and data analysis A →
Stakeholder analysis C A →
Objectives and stakeholders’
C A →
preferences
STRATEGIC IMPLEMENTATION
Business plans C A →
Organisational structure C A →
Information management C B A
Change management A →
Project management A
BUSINESS MANAGEMENT
Performance management C A
Strategic marketing and brand
B A
management
Corporate governance C B A
Information strategy B A
Human resource management C B A

BUSINESS ADVANCED
TECHNOLOGY
AND FINANCE
TECHNOLOGY
COST ANALYSIS FOR DECISION MAKING

Costing
Cost classification A → →
Costing systems – direct, marginal,
B → →
absorption
Activity based costing (ABC) C → B
Break even analysis B → A
Multi-product break even analysis B
Budgeting and performance
B → A
management
Pricing
Pricing decisions B A →
Transfer pricing B A →
Decision making techniques
Expected values B A
Relevant cash flows B A
Sensitivity analysis B A
BUSINESS AND SHAREHOLDER VALUE
Valuation Techniques
Income – dividend yield B A
Income – P/E B A
Income – discounted cash flow B A
Asset based measures B A
Options approach B
Shareholder value
Value based management (VBM) B
Value drivers B A
Shareholder value analysis (SVA) B A
Short and long term growth rates and
A
terminal values
Economic profit A
Cash flow return on investment (CFROI) A
Total shareholder return (TSR) A
Market value added (MVA) A
INVESTMENT APPRAISAL AND RISK ANALYSIS
Project appraisal
NPV B A →
IRR B A →
MIRR A
Payback B A →
Relevant cash flows A →
Tax and inflation A →
Replacement analysis A →
Capital rationing A →
Adjusted present value (APV) A →
© ICAEW 2023 37
BUSINESS ADVANCED
TECHNOLOGY
AND FINANCE
TECHNOLOGY
Assessing risk
Project appraisal and risk B A
Expected values C B A
Scenario planning A
Gap analysis B →
Continuous vs event risk B →
FINANCIAL ANALYSIS
Cost of capital
Cost of equity B A
Cost of debt B A
Cost of preference shares B A
Cost of bank loans B A
Weighted average cost of capital
B A
(WACC)
Effective interest rates A
Splitting convertibles into equity and
A
debt elements
Equity instruments A
Portfolio theory and CAPM
Portfolio theory B A
CAPM B A
Asset pricing models B
CAPM and cost of capital B A
International cost of capital A
Bonds and fixed interest securities
Bond pricing B A
Yields to maturity B A
Duration and price volatility A
Convexity A
Term structure of interest rates A
Corporate borrowing and default risk A
Data analytics
Spreadsheet functions (per published
A A A
list)
Sensitivity analysis B B A
Scenario analysis B B A
Data distributions C B B A
Data bias B A A A
Quantitative methods
Standard deviation C C C B
Co-efficient of variation C C C B
Probabilities B B A
Correlation C C B
Z-score B
Confidence intervals B

BUSINESS ADVANCED
TECHNOLOGY
AND FINANCE
TECHNOLOGY
SOURCES OF FINANCE AND FINANCING ARRANGEMENTS

Short, medium and long term sources
C A
of finance
Green finance C B A
Loan agreement conditions (warranties;
B A
covenants; guarantees)
Raising capital C A
Gearing and capital structure A →
Loan agreements and covenants A →
Dividend policy A →
Financing reconstructions (eg, group
reconstruction, spin off, purchase of B A
own shares, use of distributable profits)
Treasury and working capital
C A
management
Small and medium company financing B
History of finance C
FINANCIAL ENGINEERING
Futures, options and swaps
Options B A
Interest rate futures B A
Interest rate options B A
Interest forward rate agreements (FRAs) B A
Interest rate swaps B A
Commodity derivatives A
Hedging B A
Foreign exchange
Currency forward contracts B A
Currency money market cover B A
Currency options B A
Currency swaps B A
Managing currency risk B A
Determinants of foreign exchange rates B A
Option value
Valuing call and put options C B
Black Scholes option pricing model B
Binomial option pricing model B
Real options C B
SUSTAINABILITY IN BUSINESS AND FINANCE
Types of sustainability (environmental,
C C C A A
social, economic)
ESG C C B A A
Corporate responsibility, sustainability
C B A
and climate change
Green finance C B A
© ICAEW 2023 39
BUSINESS ADVANCED
TECHNOLOGY
AND FINANCE
TECHNOLOGY
Measurement and metrics in

C B A
sustainability
Reporting on sustainability (mandatory
A
and non-mandatory)
Risk management and sustainability C A
Regulation of sustainability B
Sustainability and ethics B B A

Ethics Codes and Standards
ETHICS CODES AND STANDARDS LEVEL MODULES
IESBA International Code of Ethics for Professional Certificate Level

Accountants (2021) C/D Accounting
(parts 1, 2 and 3 and Glossary)
B Assurance
ICAEW Code of Ethics C/D Business, Technology and Finance
D Law
C Management Information
C Principles of Taxation
Professional Level
A Audit and Assurance
B Business Strategy and Technology
B Financial Accounting and Reporting
B/C Financial Management
B Tax Compliance
B Business Planning
Advanced Level
A Corporate Reporting
A Strategic Business Management
A Case Study
FRC Revised Ethical Standard (December 2019) and B Assurance

Erratum (January 2020) and Glossary of Terms – Ethics A Audit and Assurance
and Auditing (Updated December 2019)
Advanced Level
A Corporate Reporting
A Strategic Business Management
A Case Study
© ICAEW 2023 41
Financial Reporting – IFRS® Standards
CERTIFICATE AND ADVANCED
PROFESSIONAL LEVEL LEVEL
TOPIC FINANCIAL
ACCOUNTING CORPORATE
ACCOUNTING
AND REPORTING
REPORTING
Preface to International Financial Reporting Standards A A

Conceptual Framework for Financial Reporting B A A
IAS 1, Presentation of Financial Statements A A A
IAS 2, Inventories B A A
IAS 7, Statement of Cash Flows B A A
IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors B B A
IAS 10, Events after the Reporting Period A A
IAS 12, Income Taxes C A
IAS 16, Property, Plant and Equipment B A A
IAS 19, Employee Benefits - A
IAS 20, Accounting for Government Grants and Disclosure of
A A
Government Assistance
IAS 21, The Effects of Changes in Foreign Exchange Rates C A
IAS 23, Borrowing Costs A A
IAS 24, Related Party Disclosures B A
IAS 26, Accounting and Reporting by Retirement Benefit Plans - D
IAS 27, Separate Financial Statements B A
IAS 28, Investments in Associates and Joint Ventures B A
IAS 29, Financial Reporting in Hyperinflationary Economics - D
IAS 32, Financial Instruments: Presentation B A
IAS 33, Earnings Per Share C A
IAS 34, Interim Financial Reporting - A
IAS 36, Impairment of Assets B A
IAS 37, Provisions, Contingent Liabilities and Contingent Assets C A A
IAS 38, Intangible Assets C A A
IAS 39, Financial Instruments: Recognition and Measurement (Hedging
- A
only) (Note 1)
IAS 40, Investment Property (Note 1) - A
IAS 41, Agriculture - D
IFRS 1, First-time Adoption of IFRS - C
IFRS 2, Share-based Payment - A
IFRS 3, Business Combinations B A
IFRS 4, Insurance Contracts (Note 1) - D
IFRS 5, Non-current Assets Held for Sale and Discontinued Operations B A
IFRS 6, Exploration for and Evaluation of Mineral Resources - D
IFRS 7, Financial Instruments: Disclosures C A
IFRS 8, Operating Segments - A
IFRS 9, Financial Instruments (Note 1) C A
IFRS 10, Consolidated Financial Statements B A
IFRS 11, Joint Arrangements B A
IFRS 12, Disclosure of Interests in Other Entities B A
IFRS 13, Fair Value Measurement C A
IFRS 14, Regulatory Deferral Accounts - C

CERTIFICATE AND ADVANCED
PROFESSIONAL LEVEL LEVEL
TOPIC FINANCIAL
ACCOUNTING CORPORATE
ACCOUNTING
AND REPORTING
REPORTING
IFRS 15, Revenue from Contracts with Customers C B A

IFRS 16, Leases B A
IFRS 17, Insurance Contracts (Note 1) - C
IFRS for SMEs - A
Note 1: Business Planning Banking and Business Planning: Insurance cover IAS 39 and IFRS 9 in more detail than in the
Financial Accounting and Reporting syllabus at Professional Level. Business Planning: Insurance also covers IFRS 4, IFRS 17
and IAS 40 which are not part of the Financial Accounting and Reporting syllabus at Professional Level.
© ICAEW 2023 43
Taxation
CERTIFICATE AND PROFESSIONAL LEVEL
TOPIC
PRINCIPLES TAX BUSINESS PLANNING:
OF TAXATION COMPLIANCE TAXATION
LEGAL AND ETHICAL FRAMEWORK

Anti-money laundering guidance C B A
Base erosion and profit-shifting (BEPS) project C
Devolution of taxes C C
Disclosure of tax avoidance schemes (DOTAS) A
General anti-abuse rule (GAAR) A
HMRC B → →
Objectives of taxation C → →
Professional Conduct in Relation to Taxation (PCRT) C B
Tax planning, evasion and avoidance C B A
ADMINISTRATION
Administration B → →
Appeals C → →
Apprenticeship levy C →
Digital accounts and digital record keeping B → →
PAYE/NIC B → →
Payments B A →
Penalties and interest B → →
Self-assessment B A →
CAPITAL GAINS TAX
Chargeable gains
Annual exempt amount B A →
Capital gains tax for trusts C
Chargeable assets C B →
Chargeable disposals C B →
Chargeable persons C B →
Chattels: wasting and non-wasting B → →
Connected persons A →
Converted trading losses B →
Costs of acquisition and disposal C B →
Nil gain/nil loss transfers A →
Part disposals B →
Qualifying corporate bonds B →
Rate of tax B A →
Relief for capital losses A A
Reorganisations and reconstructions A
Shares and securities (including bonus and rights issues) B →
Chargeable gains reliefs
Business asset disposal relief B A
Gift relief B A
Incorporation relief A
Investors’ relief B A

TOPIC
Letting relief A →
Private residence relief A B
Reinvestment relief under EIS/SEIS B
Roll-over relief B A
Overseas aspects of capital gains tax
Arising basis B A
Deemed domicile B A
Domicile B A
Double tax relief A →
Gains on foreign assets B A
Remittance basis B A
Residence C A
Temporary absence A
UK taxation of non-domiciled individuals B A
INCOME TAX
Trading profits
Adjustments to profits B A →
Badges of trade B A →
Capital allowances B A →
Cash basis of accounting A →
Foreign currency transactions A
Pension contributions A →
Pre-trading expenditure A →
Patent royalties B
Unincorporated businesses
Basis of assessment B A →
Partnerships B A →
Trading losses A →
Treatment of terminal losses A →
Employment income
Allowable deductions against employment income A →
Employment income B A →
Share schemes A
Statutory Mileage Rates Scheme A →
Taxable and exempt benefits B A →
Termination payments B
Other income/expenditure
Dividends from UK companies B A →
Enterprise Investment Scheme B
Investment income B A →
ISAs B → →
Miscellaneous income A →
Property income C B A
Savings income B A →
Seed Enterprise Investment Scheme B
Venture Capital Trusts B
© ICAEW 2023 45
TOPIC
Overseas aspects of income tax

Arising basis B A
Deemed domicile B A
Domicile B A
Income on foreign assets and income from foreign employment B A
Remittance basis B A
Residence B A
UK taxation of non-domiciled individuals B A
Income tax computation
Exempt income B A →
Gifts of assets and cash to charity B A →
Income tax liability and income tax payable B A →
Income tax charge on child benefit B →
Independent taxation and jointly owned assets B A
Income tax for trusts C
Limit on income tax reliefs A →
Marriage allowance B A →
Pension contributions – provisions for retirement B A
Pension contributions – tax reliefs B A
Personal allowances B A →
Qualifying interest payments B →
Rates of taxation B A →
Taxable persons C A →
INHERITANCE TAX
Fundamental principles of inheritance tax
Chargeable persons A →
Chargeable property A →
Excluded property B →
Inter-spouse transfers A →
Rates of taxation A →
Related property B →
Seven-year accumulation period A →
Transfers of value A →
Trusts C →
Valuation A →
Inheritance tax on lifetime transfers
Relevant property trusts A →
Potentially exempt transfers A →
Inheritance tax on death
Death estate A →
Deeds of variation B
Lifetime transfers A →
Overseas aspects of inheritance tax
Deemed domicile C A
Domicile C A

TOPIC

Lex-situs rules A →
Reliefs and exemptions from inheritance tax
Annual exemption A →
Business property relief B A
Fall in value relief A →
Gifts to charities and political parties A →
Gifts with reservation of benefit A
Pre-owned assets tax charge A
Inter-spouse transfers A →
Marriage/civil partnership exemption A →
Normal expenditure out of income A →
Quick succession relief B →
Small gifts exemption A →
Taper relief A →
NATIONAL INSURANCE CONTRIBUTIONS
Class 1
– calculation A → →
– directors B →
– earnings C B →
– employment allowance A → →
Class 1A
Class 1B B →
Class 2 A → →
Class 4
Maximum contributions C →
CORPORATION TAX
Chargeable gains
Chargeable assets C B →
Chargeable disposals C B →
Chargeable persons C B →
Chattels: wasting and non-wasting B → →
Costs of acquisition and disposal C B →
Indexation A →
Leases A
Nil gain/nil loss transfers A →
Part disposals B →
Purchase of own shares A
Qualifying corporate bonds B →
Relief for capital losses A →
Reorganisations and reconstructions A
Rollover relief B A
© ICAEW 2023 47
TOPIC
Shares and securities (including bonus and rights issues) B →

Substantial shareholding exemption C A
Trading profits
Adjustments to profits B A →
Badges of trade B A →
Capital allowances – plant and machinery B A →
Capital allowances – structures and buildings A →
Foreign currency transactions A
Long periods of account C A →
Pension contributions B →
Patent royalties B
Taxable total profits
Chargeable gains B A →
Intangible fixed assets - B
Loan relationships B B A
Loan relationships – corporate interest restriction A
Miscellaneous income B A →
Property income (excluding lease premiums) B A
Qualifying donations B A →
Research and development expenditure A →
Research and development expenditure credits (RDEC) A →
Trading losses – post April 2017 B A
Trading profits B A →
Use of deficit on non-trading loan relationships – post April 2017 B A
Corporation tax computation
Accounting periods C B A
Close companies A
Corporation tax liability B A →
Distributions B →
Diverted profits tax B
Double tax relief (including underlying tax and withholding tax) B →
Liquidation A
Provision of services through a company A
Rates of taxation B A →
Residence C B →
Tax treaties and the OECD Model Tax Convention C
Groups
Capital gains groups B A
Change in group structure A
Change in ownership A
Consortium relief B
Controlled foreign companies A
Degrouping charges B A
Group loss relief B A
Group relationships A →
Non-coterminous accounting periods A

TOPIC
Overseas companies and branches B

Pre-acquisition gains and losses A
Related 51% group companies B A
Roll-over relief B A
Transfer of assets B A
Transfer pricing A
STAMP TAXES
Basic principles B →
Chargeable occasions B →
Exemptions B →
Stamp taxes for groups B →
Annual tax on enveloped dwellings (ATED) C
VAT
Capitals goods scheme B →
Classification of supplies B →
Distinction between goods and services C →
Overseas aspects A →
Group aspects A →
Input VAT A → →
Output VAT A → →
Partial exemption B →
Payments A → →
Penalties and interest A → →
Property transactions B A
Registration and deregistration A → →
Single and multiple supplies B →
Small business reliefs A → →
Taxable person A → →
Taxable supplies A → →
Transfer of a business as a going concern A
VAT records, accounts and digital reporting A → →
© ICAEW 2023 49

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ACA Syllabus and

Technical Knowledge Grids

Skills progression through the ACA exams  9

Assurance and Audit 34

THE ACA QUALIFICATION AND SUSTAINABILITY

4 ACA OVERVIEW © ICAEW 2023

6 ACA OVERVIEW © ICAEW 2023

Financial Accounting Business Strategy

Accounting Management Information Principles of Taxation

CERTIFICATE LEVEL day-to-day work. The Business Planning and

8 ACA OVERVIEW © ICAEW 2023

Skills progression through the ACA exams

Understand a business or accounting situation, prioritise by

Apply professional scepticism and critical thinking to identify faults,

Concluding, Apply technical knowledge, skills and experience to support

Assimilating and using information

Understanding Objective Objective Scenarios Complex scenarios Unstructured

Identifying and Information as provided Single Several Multiple information Multiple

Structuring problems and solutions

Structuring data Specified techniques Specified Techniques Techniques inferred Unspecified

Developing Highly Specified Specified problems Specified and Defined output

Applying Objective testing Specified Specified Specified Underlying

Concluding, recommending and communicating

Communicating Prescribed exam format Exam requirements, Professional Professional report

10 ACA OVERVIEW © ICAEW 2023

ASSIMILATING AND USING INFORMATION

• Demonstrate understanding • Interpret information • Identify business and

STRUCTURING PROBLEMS AND SOLUTIONS

Structure data Develop solutions

Apply professional scepticism

CONCLUDING, RECOMMENDING AND COMMUNICATING

Conclusions Recommendations Communication

• Apply technical knowledge • Present recommendations in • Present a basic or routine

12 ACA OVERVIEW © ICAEW 2023

UNDERSTANDING THE SYLLABUS FOR EACH MODULE

Each module aim creates a syllabus area of technical and skills-based

The Technical Knowledge Grids show the technical knowledge in the

SYLLABUS AREA WEIGHTING

1 Maintaining financial records 30%

2 ADJUSTMENTS TO ACCOUNTING RECORDS

3 PREPARING FINANCIAL STATEMENTS

16 CERTIFICATE LEVEL © ICAEW 2023

SYLLABUS AREA WEIGHTING

1 The concept, process and need for assurance 20%

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20 CERTIFICATE LEVEL © ICAEW 2023

SYLLABUS AREA WEIGHTING

1 Business objectives and functions 10%

1 BUSINESS OBJECTIVES AND FUNCTIONS 2 BUSINESS AND ORGANISATIONAL

22 CERTIFICATE LEVEL © ICAEW 2023

6 TECHNOLOGY AND DATA ANALYSIS

SYLLABUS AREA WEIGHTING

1 The impact of civil law on business and professional services 35%

24 CERTIFICATE LEVEL © ICAEW 2023

4 THE IMPACT OF LAW IN THE PROFESSIONAL

26 CERTIFICATE LEVEL © ICAEW 2023

SYLLABUS AREA WEIGHTING

1 Costing and pricing; 5 Ethics 25%

28 CERTIFICATE LEVEL © ICAEW 2023

SYLLABUS AREA WEIGHTING

Skills progression through the ACA exams 9

Assurance and Audit 34