Accounting Technicians Diploma (ATD) Examination Syllabus

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enya.comwww.someakAccounting Technicians Diploma(ATD)Examination SyllabusAdvance Copy - July 2018

TABLE OF CONTENTSPageLEVEL IPaper No. 1Introduction to Financial Accounting1Paper No. 2Principles of Business Law3Paper No. 3Entrepreneurship and Communication6Paper No. 4Information Communication Technology9Paper No. 5Financial Accounting11Paper No. 6Principles of Management13Paper No. 7Business Mathematics and Statistics15Paper No. 8Fundamentals of Finance17ww.someakenya.comLEVEL IIwLEVEL IIIPaper No. 9Principles of Economics19Paper No. 10Fundamentals of Management Accounting23Paper No. 11Principles of Public Finance and Taxation25Paper No. 12Auditing28

LEVEL IPAPER NO.1: INTRODUCTION TO FINANCIAL ACCOUNTINGGENERAL OBJECTIVEThis paper is intended to equip the candidate with knowledge, skills and attitudes that willenable him/her to account for various basic financial transactions and prepare financialstatements.LEARNING OUTCOMESA candidate who passes this paper should be able to: Apply accounting concepts in preparation of financial statements Apply the double entry aspects of accounting Account for assets and liabilities Prepare financial statements of a sole trader, partnership and company.comCONTENT1.1 Introduction to accountingNature and purpose of accountingObjectives of accountingUsers of accounting information and their information needsQualities of useful accounting informationAccounting concepts/principlesAccounting standards and their importanceThe accounting equationDouble entry bookkeeping and books of original entry including manual andcomputerised systemsSource documentsBooks of original entryThe double entry system and the ledgerThe trial balance and basic financial statementsComputerised accounting systems - Role of computers, application and accountingsoftwares in the accounting process, benefits and challenges of operatingcomputerised accounting systems1.3Accounting for assets and liabilitiesAccrued expenses and prepaid expensesAccounting for revenue including accrued income and prepaid incomeAccounting for account receivables, bad debts and allowance for doubtful debtsProperty plant and equipment including capital revenue and expenditure,depreciation, acquisition and disposalInventory – recognition, measurement and valuation using specific cost method(FIFO and weighted average cost only)Accounting for cash and cash equivalents, bank reconciliationAccounting for accounts payable including control account1.4Correction of accounting errors and the suspense account1.5Financial statements of a sole traderIncome statementA c c ou n t i n g T e c h n i c i a n s D i p l om a ( A T D ) E x a m i n a t i on S y l l a b u s – J u l y 2 0 1 8www.someak1.2enya1.0-1-

-Statement of financial positionPartnership accountsContents of a partnership agreementDistinction between current and capital accountsAppropriation statement and partners current and capital accountsStatement of financial position and income statement(excluding changes in partnerships)1.7Company accountsTypes of share capital – ordinary shares and preference sharesTypes of reserves – share premium, revaluation reserve, general reserves andretained profitsIssue of shares (exclude issue by installment and forfeiture)Rights issues and bonusIncome tax -Accounting treatment and presentation (exclude computation)Income statementStatement of financial position1.8Emerging issues and trendswww.someakenya.com1.6A c c ou n t i n g T e c h n i c i a n s D i p l om a ( A T D ) E x a m i n a t i on S y l l a b u s – J u l y 2 0 1 8-2-

PAPER NO. 2 PRINCIPLES OF BUSINESS LAWGENERAL OBJECTIVEThis paper is intended to equip the candidate with knowledge, skills and attitudes that willenable him/her to apply the principles of legal system and business law in various businessenvironments.2.0LEARNING OUTCOMESA candidate who passes this paper should be able to: Demonstrate knowledge of essential elements of the legal system Demonstrate knowledge of legal personality Apply law of contract and tort in various scenarios Apply general principles of business law in practice.CONTENTAdministrative lawMeaning of administrative lawFunctions of administrative lawsDoctrine of separation of powersPrinciples of natural justiceJudicial control of the Executive2.1.4The court systemEstablishment ,structure, composition and jurisdiction of courtsSupreme CourtCourt of AppealHigh CourtEmployment and Labour Relations CourtMagistrates CourtCourt MartialKadhi’s Courtenya2.1.3eakSources of lawThe ConstitutionLegislationSubstance of common law and doctrine of equityAfrican customary lawIslamic lawJudicial precedentGeneral rules of international law and ratified treaties.som2.1.2wNature, purpose and classification of lawMeaning of lawNature of lawPurpose of lawClassification of lawLaw and moralityw2.1.1.comElements of the legal systemw2.1A c c ou n t i n g T e c h n i c i a n s D i p l om a ( A T D ) E x a m i n a t i on S y l l a b u s – J u l y 2 0 1 8-3-

2.1.5Alternative dispute resolutionsNature of alternative disputeGeneral principles of ADRMediationNegotiationConciliationLaw of personsNatural personsNationality, citizenship and domicileArtificial personUnincorporated associationsIncorporated associationsCo-operative societies2.3Law of tortNature of tortGeneral defences of tortNegligenceVicarious liabilityStrict LiabilityDefamationLimitation of actions2.4Law of contractDefinition of contractClassification of contractsEssentials of a valid contractTerms of a contractVitiating factorsIllegal contractsDischarge of contractRemedies for breach of a contractLimitation of actions2.5Sale of goodsNature of the contractFormalities of the contractTerms of the contractImplied terms by statuteRights and duties of the partiesAuction salesInternational contracts of sale: FAS, FOB, CIF, FCA, CPT, CIP, DAT, DAP, DDP,CFR, DAF,DDU, Ex-works and Ex-ship2.6Hire purchase contractsNature of the hire purchase contractDifference between hire purchase and conditional sale/credit saleFormalities of the hire purchase contractImplied Terms of the hire purchase contractRights and duties of the partiesTermination and completion of the hire purchase contractwww.someakenya.com2.2A c c ou n t i n g T e c h n i c i a n s D i p l om a ( A T D ) E x a m i n a t i on S y l l a b u s – J u l y 2 0 1 8-4-

AgencyMeaning and nature of the agency contractTypes of agentsCreation of agencyAuthority of an agentRights and duties of the partiesTermination of agency2.8PartnershipNature of partnershipTypes of partnershipsRights, duties and liabilities of existing, incoming and minor partnersManagement of partnershipsDissolution of a partnership and its consequences2.9Indemnity and GuaranteesNature of the contractsRights and duties of the partiesTermination of the contractRemedies for breach of contract2.10InsuranceNature of the contractFormalities of the contractPrinciples of insuranceTypes of insuranceTermination of the contract2.11Negotiable instrumentsNature and characteristicsNegotiability of the instrumentTypes: cheques, promissory notes, bills of exchangeObligations of the parties2.12The law of propertyDefinition of propertyClassification of property (real and personal, movable and immovable, tangibleand intangible)Property in land: private, public and community landInterests in land: estates, servitudes and encumbrancesIntellectual property: plant breeder’s patents, trademarks, copyrights andindustrial designswww.someakenya.com2.72.13Emerging issues and trendsA c c ou n t i n g T e c h n i c i a n s D i p l om a ( A T D ) E x a m i n a t i on S y l l a b u s – J u l y 2 0 1 8-5-

PAPER NO.3 ENTREPRENEURSHIP AND COMMUNICATIONGENERAL OBJECTIVEThis paper is intended to equip the candidate with knowledge, skills and attitudes that willenable him/her to apply entrepreneurship knowledge in business and other environments.3.0LEARNING OUTCOMESA candidate who passes this paper should be able to: Identify viable business opportunities Prepare a business plan Demonstrate entrepreneurial orientation skills Communicate effectively in a business environment Apply entrepreneurship knowledge in response to emerging business trends.enyaEntrepreneurs and market researchAssessing the feasibility of business ideasBusiness plan overview - formatResearch purpose and objectives for entrepreneursSecondary and primary sources of dataMarketing planMarketing researchSales researchPricing strategieseak3.4.somAssessing entrepreneurial opportunitiesProblems encountered in selecting new venturesFactors considered in setting up a new ventureFactors that determine success of a new ventureReasons why new ventures failImportance of business incubatorsw3.3wDeveloping individual innovationRole of creativityThe creative processAreas in which people are creativeApproaches to creative problem solvingThe innovation processTypes of innovationSources of innovationPrinciples of innovationw3.2.comCONTENT3.1IntroductionDefinition of entrepreneurship, entrepreneurs and sustainable entrepreneurshipHistorical development of entrepreneurshipCharacteristics of entrepreneursImportance of entrepreneurshipChallenges of entrepreneurshipEntrepreneur’s contribution to developmentA c c ou n t i n g T e c h n i c i a n s D i p l om a ( A T D ) E x a m i n a t i on S y l l a b u s – J u l y 2 0 1 8-6-

Creating a new ventureForms of business ownershipBuying an existing businessFranchisingSources of finance for a new ventureThe venture capital market3.6Entrepreneurial growth and technologyLife-cycle of an enterpriseThe success and failure factors at every stage of growthDecision making and growthBusiness networkingUse of internet and E-commerceElectronic and mobile money transfers3.7Business communication basicsMeaning of communicationBenefits of effective communicationInternal and external communicationChoosing the channel of communicationStages in the communication cycleBarriers to effective communicationSteps to effective communication3.8Written communicationRules of effective writingWriting business lettersApplication lettersMemorandumReportsElectronic mail3.9Oral and visual presentationMeaning of a presentationKnowing the audienceLocation and size of audienceDesigning the presentationUse of visual aidsMethods of presentation3.10MeetingsTypes of meetingsAttending meetingsNotice and AgendaRole of the chairpersonRole of the secretaryRole of participantsConduct of meetingsMinutes of meeting3.11Ethics and integrity in business communicationConcept of ethics and integritySignificance of ethical communicationA c c ou n t i n g T e c h n i c i a n s D i p l om a ( A T D ) E x a m i n a t i on S y l l a b u s – J u l y 2 0 1 8www.someakenya.com3.5-7-

-ww.someakenya.comEmerging issues and trendsw3.12Factors influencing ethical communicationEthical dilemmas in communicationGuidelines to handle communication ethics dilemmasBusiness ethics in communicationA c c ou n t i n g T e c h n i c i a n s D i p l om a ( A T D ) E x a m i n a t i on S y l l a b u s – J u l y 2 0 1 8-8-

PAPER NO. 4 INFORMATION COMMUNICATION TECHNOLOGYGENERAL OBJECTIVEThis paper is intended to equip the candidate with knowledge, skills and attitudes that willenable him/her to apply fundamental information communication technology (ICT) skills inbusiness.4.0LEARNING OUTCOMESA candidate who passes this paper should be able to: Demonstrate knowledge of computer systems Select appropriate computer hardware and software Use various computer application packages Select various types of information systems Use computer networks and the Internet.CONTENT4.1Introduction to ICTICT overviewTypes of ICTsInformation centresUses of ICT in businessImpact of ICT in societyComputer systemsOverview of a computer systemEvolution of computersElements of a computer system4.3Computer hardwareOverviewInput devicesMain memoryProcessing devicesOutput devicesStorage devicesCommunication devicesFactors that determine the processing power of a computerSelection and acquisition of computer hardware4.4Computer softwareOverview of computer softwareSystem softwareUtility softwareApplication softwareProprietary versus open source softwareComputer programming languagesSelection and acquisition of computer software4.5Introduction to operating systemsOverview of an operating systemFunctions of an operating systemTypes of operating systemsComputer bootingA c c ou n t i n g T e c h n i c i a n s D i p l om a ( A T D ) E x a m i n a t i on S y l l a b u s – J u l y 2 0 1 8-9-www.someakenya.com4.2

Computer filesElements of a computer fileTypes of computer filesBasic file design and storageFile organisationFile access methodsFile security4.7Overview of application packagesWord processing Features of word processor Formatting and editing text Creating and formatting tables-Spreadsheets Features of a spreadsheet program Formatting and editing spreadsheet Formulas and functions Charts and graphs-Presentation software Features of presentation program Typing and formatting text in slide Slide show-Computerised accounting software Features of accounting software Capturing dataenya4.6.comSelection and acquisition of operating systemseak-Overview of information systemsSystems overviewInformation systemsComponents of an information systemRole of information systems in an organisationClassification of information systemsTypes of information systemsOverview of information systems security and controls4.9Computer networksComputer networks conceptsComputer network hardware and softwareData transmission mediaTypes of computer networksBenefits and challenges of networking4.10The InternetIntroduction to the InternetInternet services – emails, www, instant messagingInternet connectivitySearching for information on the InternetImpact of internet on society4.11Emerging issues and trendsA c c ou n t i n g T e c h n i c i a n s D i p l om a ( A T D ) E x a m i n a t i on S y l l a b u s – J u l y 2 0 1 8-10-www.som4.8

LEVEL IIPAPER NO. 5 FINANCIAL ACCOUNTINGGENERAL OBJECTIVESThis paper is intended to equip the candidate with knowledge, skills and attitudes that willenable him/her to prepare financial statements for different entities.5.0LEARNING OUTCOMESA candidate who passes this paper should be able to: Prepare books of original entry and basic ledger accounts under double entrysystem Prepare basic financial statements of sole traders, partnerships, companies andmanufacturing entities and not for profit organisations Comply with the regulatory framework in the accounting field Account for assets and liabilities Analyse financial statements by use of ratios and statement of cash flows.enyaAccounting for assets and liabilities5.2.1 AssetsProperty, plant and equipment – recognition, capital and revenueexpenditure, measurement (depreciation and revaluation), disposal anddisclosures – property, plant and equipment scheduleIntangible assets – recognition, measurement (amortisation, impairmentand revaluation), disposals and disclosuresFinancial assets – examples and risks onlywww.someak5.2.comCONTENT5.1Introduction to accountingThe accounting frameworkSources of regulations at national and global levels; the law (Companies Act),professional bodies, global regulatory bodiesAccounting standards (IASs/IFRSs) (their importance and limitations)Professional ethics5.2.2LiabilitiesLoans – Accounting treatment of repayment of principal and interest5.3Financial statements of a sole traderIncome statementStatement of financial position5.4Financial statements of a partnershipIncome statementStatement of financial positionChanges in partnership – admission of a new partner, retirement and change inprofit sharing ratio5.5Financial statements of a companyFinancial statements – income statement and statement of financial positionPublished financial statements (describe a complete set of published financialstatements but not preparation)A c c ou n t i n g T e c h n i c i a n s D i p l om a ( A T D ) E x a m i n a t i on S y l l a b u s – J u l y 2 0 1 8-11-

Accounts from incomplete recordsFeaturesTypes of incomplete records (pure single entry, simple single entry, quasi singleentry)Ascertainment of profit by capital comparisonPreparation of statement of affairs and profit determinationTechniques of obtaining complete accounting information5.8Financial statements of a not-for-profit making organisationFeaturesTypes of funds and their accounting treatmentIncome and expenditure accountStatement of financial position5.9Analysing financial statementsStatement of cash flows (categories of cash, methods of preparing statement ofcash flows and the importance)Financial ratios – definition, categories, analysis and interpretation, applicationand limitations5.10Introduction to Public Sector AccountingFeatures of public sector entities (as compared to private sector)Structure of the public sector (National and county governments, statecorporations and other agencies)Regulatory structures and oversight [IPSASB, PSASB (establishment, mandateand functions), Director of Accounting Services, National Treasury, ParliamentaryCommittees, Accounting Officers at national and county levels]Objectives of public sector financial statementsObjectives of IPSASAccounting techniques in public sector (budgeting, cash, accrual, commitmentand fund)(Preparation of financial statements excluded)5.11Emerging issues and trends.com5.7enyaFinancial statements of a manufacturing entityFeatures of a manufacturing entityClassification and apportioning costs between manufacturing and selling andadministrationFinancial statements – manufacturing account, income statement and statementof financial positionwww.someak5.6A c c ou n t i n g T e c h n i c i a n s D i p l om a ( A T D ) E x a m i n a t i on S y l l a b u s – J u l y 2 0 1 8-12-

PAPER NO. 6 PRINCIPLES OF MANAGEMENTGENERAL OBJECTIVEThis paper is intended to equip the candidate with the knowledge, skills and attitudes that willenable him/her to apply the principles of management in practice.6.0LEARNING OUTCOMESA candidate who passes this paper should be able to: Demonstrate understanding of management principles and techniques Apply knowledge of management theories in organisations Demonstrate knowledge of other types of management Apply management competencies in response to emerging trends inmanagement.6.4Organising functionMeaning and importance of organisingProcess of organisingPrinciples of organisingFoundations of organisational structuresAuthority, responsibility and powerDelegation, centralisation and decentralisation6.5Directing functionMeaning and importance of directingElements of directingCharacteristics of directingPrinciples of directingSupervision and directingQualities of an effective supervisorenyaPlanning functionMeaning and importance of planningTypes of plansPlanning processLimitations of planningEffective planningDecision making and planningeak6.3.somApproaches to management thoughtScientific approachGeneral administrative approachBehavioural approachBureaucratic approachw6.2wIntroduction to managementMeaning and importance of managementFeatures of managementLevels and skills of managementManagerial rolesQualities of an effective managerw6.1.comCONTENTA c c ou n t i n g T e c h n i c i a n s D i p l om a ( A T D ) E x a m i n a t i on S y l l a b u s – J u l y 2 0 1 8-13-

Staffing functionMeaning and importance of staffingRole of human resource managerRecruitment and selectionTraining and developmentPerformance appraisalReward and compensationSeparationLabour relations6.7Control functionMeaning and importance of controlThe control processTypes of control systemsEffective control systemsContemporary control techniques6.8Emerging issues and current trendswww.someakenya.com6.6A c c ou n t i n g T e c h n i c i a n s D i p l om a ( A T D ) E x a m i n a t i on S y l l a b u s – J u l y 2 0 1 8-14-

PAPER NO. 7 BUSINESS MATHEMATICS AND STATISTICSGENERAL OBJECTIVEThis paper is intended to equip the candi

Apply law of contract and tort in various scenarios Apply general principles of business law in practice. CONTENT 2.1 Elements of the legal system 2.1.1 Nature, purpose and classification of law - Meaning of law - Nature of law - Purpose of law - Classification of law - Law and morality 2.1.2 Sources of law - The Constitution