Study Resources: Professional Level 1 (Student)

Financial accounting and reporting together represent one of the principal areas of activity for the professional accountant. The paper develops the candidate’s understanding of the theoretical framework of financial accounting and reporting and their ability to apply that financial knowledge in practice by preparing and integrating accounting statements.

Learning outcomes:

1. Discuss the content and underlying rationale of the IASB Conceptual Framework and of its contribution to a ‘regulatory framework’ and apply the accounting principles of the Conceptual Framework to transactions and other events
2. Apply International Financial Reporting Standards (IFRS) or other relevant standards to transactions and other events and discuss the application of specific international accounting standards
3. Prepare financial statements for limited companies, including consolidated financial statements, in accordance with IFRS or other relevant standards
4. Analyse financial statements of limited companies
5. Discuss reports that include non-financial data, including sustainability reports, strategic reports and integrated reports

It is important for professionally qualified accountants to have awareness of the governance contexts of business. Audit and assurance are a key part of governance and audit is an essential area of professional practice. This paper builds on Corporate Governance and Audit component included in the Foundation Unit and develops the student’s detailed knowledge of audit processes which is imperative to the work of the professional accountant.

Learning outcomes:

1. Justify the need for good governance within companies and other organisations and relate that to the assurance provided by the auditor.
2. Present the components of a modern external audit from acceptance of a new client to drafting the audit opinion.
3. Determine business risks and audit risks associated with specific audit assignments.
4. Apply audit principles and theory to develop a detailed audit plan for items within the financial statements.
5. Apply audit principles and theory in the preparation of reports to management, shareholders and those charged with governance.

This paper addresses the application of skills required by accounting providing information to inform management decision making in commercial and other enterprises. It builds on the Foundation level. and. in particular, provides the opportunity for professional level students to develop a critical understanding of the issues relating to cost management, cost control and strategic decision making.

Learning outcomes:

1. Explain the role of the management accountant in the commercial and economic environment and the effective use of accounting information within organisations
2. Explain the need for strategic and business analysis and evaluate strategic options and make appropriate recommendations towards practical implementation
3. Prepare information for financial control, decision support and strategic aspects of management accounting and analyse complex problems in an accounting and business context

An accountant must possess, and be able to demonstrate, both knowledge of the fundamental legal principles and rules encountered in professional practice, and an ability to apply those principles and rules to the real-world scenarios experienced in professional life.

The paper test whether students possess, and are able to demonstrate, this knowledge, as well as the ability as described. The paper covers relevant aspects of law of contract and tort, legal relationships, including agency, partnerships and employment relationships, company law, and insolvency.

Learning outcomes:

1. Explain and discuss the law regulating contracts, actions in tort, and the key relationships which impact on those engaged in business and demonstrate the ability to apply that knowledge to practical scenarios
2. Explain and discuss the law regulating companies, including relevant insolvency procedures, and demonstrate the ability to apply that knowledge to practical scenarios

The professional accountant frequently encounters issues which require an understanding of taxation, not only in order to provide specific taxation related services but also to evaluate the taxation implications of an alternative course of action. A professional accountant must therefore appreciate the liability of individuals and companies to the main UK taxes and the impact of those taxes for a newly-qualified accountant, with a focus on practical scenarios.

Learning outcomes:

1. Use specified tax publications, including selecting the information which applies to a particular entity for given dates
2. Prepare, or critically assess, direct and indirect tax computations for natural persons, unincorporated entities and artificial legal persons
3. Advise on the practical aspects of tax, both commercially (tax as a cost and a cash outflow) and regarding dealing with the relevant authorities (reporting, payment, and consequences of non-compliance)
4. Recognise the ethical and regulatory issues facing an accountant working in taxation and apply the IESBA International Code of Ethics for Professional Accountants

The professional accountant frequently encounters issues which require an understanding of taxation not only in order to provide specific taxation related services but to evaluate the taxation implications of an alternative course of action. A professional accountant must therefore appreciate the liability of individuals and companies to the main Hong Kong taxes and the impact those taxes on their situations and decisions. This paper provides a grounding in a variety of Hong Kong taxes for a newly-qualified accountant, with a focus on practical scenarios.

The aim of this paper is to develop and examine the candidate’s:

1. Understanding of the responsibilities of an accountant working in taxation
2. Knowledge of tax legislation across a breadth of taxation topics
3. Ability to apply their knowledge of various Hong Kong taxes in practical situations and their recognition of the cash and other practical implications thereof
4. Understanding of ethics and professional responsibilities relating to taxation across a range of scenarios, including interactions with clients and with the Inland Revenue

The professional accountant frequently encounters issues which require an understanding of taxation not only in order to provide specific taxation related services but to evaluate the taxation implications of an alternative course of action. A professional accountant must therefore appreciate the liability of individuals and companies to the main China taxes and the impact those taxes on their situations and decisions. This paper provides a grounding in a variety of China taxes for a newly-qualified accountant, with a focus on practical scenarios.

The aim of this paper is to develop and examine the candidate’s:

1. Understanding of the responsibilities of an accountant working in taxation
2. Knowledge of tax legislation across a breadth of taxation topics
3. Ability to apply their knowledge of various China taxes in practical situations and their recognition of the cash and other practical implications thereof
4. Understanding of ethics and professional responsibilities relating to taxation across a range of scenarios, including interactions with clients and with the Tax Authority.

Each subject is tested by a 3 hour online exam.

Once you have passed all papers in Professional Level 1 you will be awarded the AIA Diploma in Accountancy.

This Diploma is attainable in approximately 12 months depending on prior learning.