BAIBF 08001 Economic Environment for Business

A. Macroeconomic and Institutional Context of Business - 30%

Learning outcomes
Lead

Component

1. Explain the principal factors that affect

the level of a countrys national income
and the impact of changing economic
growth rates and prices on business.

(a) Explain determination of macroeconomic

phenomena, including equilibrium national
income, growth in national income, price
inflation, unemployment, and trade deficits
and surpluses
(b) Explain the stages of the trade cycle and the
consequences of each stage for the policy
choices of government
(c) Explain the main principles of public finance
(i.e. deficit financing, forms of taxation) and
macroeconomic policy
(d) Describe the impacts on business of
potential policy responses of government,
to each stage of the trade cycle
(e) Calculate indices for price inflation and
national income growth using either base or
current weights and use indices to deflate a
series

2. Explain the factors affecting the trade

of a country with the rest of the World
and its impact on business.

(a) Explain the concept of the balance of

payments and its implications for
government policy
(b) Identify the main elements of national policy
with respect to trade
(c) Explain the impacts of exchange rate policies
on business

3. Explain the influences on economic

development of countries and the
effects of globalisation on business.

(a) Explain the concept of globalisation and the

consequences for businesses and national
economies
(b) Explain the role of major institutions
promoting global trade and development
(c) Identify the impacts of economic and
institutional factors using the PESTEL
framework

B. Microeconomic and Organizational Context of Business - 30%

Learning outcomes
Lead

Component

1. Distinguish between the economic goals

of various stakeholders and
organisations.

(a) Distinguish between the goals of profit

seeking organisations, not-forprofit
organisations and governmental
organisations
(b) Explain shareholder wealth, the variables
affecting shareholder wealth, and its
application in management decision making
(c) Distinguish between the potential objectives
of management, shareholders, and other
stakeholders and the effects of these on the
behaviour of the firm

2. Demonstrate the determination of

prices by market forces and the impact
of price changes on revenue from sales.

(a) Identify the equilibrium price in product or

factor markets
(b) Calculate the price elasticity of demand and
the price elasticity of supply

(c) Explain the determinants of the price

elasticities of demand and supply
(d) Calculate the effects of price elasticity of
demand on a firms total revenue curve
3. Explain the influence of economic and
(a) Identify the influence of costs on the size
social considerations on the structure of
and structure of the organisation
the organisation and the regulation of
(b)
Explain the sources of market failures
markets.
and the policies available to deal with them

C. Financial Context of Business - 25%

Learning Outcomes
Lead
1.

Explain the functions of the main

nancial markets and institutions in
facilitating commerce and
development.

Component
(a) Explain the role of various financial assets,
markets and institutions in assisting
organisations to manage their liquidity
position and to provide an economic
return to providers of liquidity
(b) Explain the role of commercial banks in the
process of credit creation and in
determining the structure of interest rates
and the roles of the central bank in
ensuring liquidity
(c) Explain the role of the foreign exchange
market in facilitating trade and in setting
exchange rates

2.

Apply nancial mathematical

techniques in a business decisionmaking context.

(a) Calculate future values of an investment

using both simple and compound interest
(b) Calculate the present value of a future cash
sum, an annuity and a perpetuity

3.

Demonstrate the impact of changes in

interest and exchange rates on
controlling and measuring business
performance.

(a) Describe the impact of interest rate

changes on market demand and the costs of
finance
(b) Calculate the impact of exchange rate
changes on export and import prices and
the value of the assets and liabilities of the
business
(c) Explain the role of hedging and derivative
contracts in managing the impact of
changes in interest and exchange rates

D. The Business Organisation its Stakeholders and environment- 15%

Learning outcomes
Lead

Component

1. The purpose and types of business

organisation

(a) Define business organisations and explain

why they are formed
(b) Identify the different types of business
organisation and their main
characteristics
(c) Define internal, connected and external
stakeholders and explain their impact on
the organisation
(d) Explain how the political system and
government policy affect the organisation

BAIBF 08002 Fundamentals of Financial Accounting

A. Accounting Principles, Concepts and Regulations 15%
Learning outcomes
Lead

1. Explain the principles and concepts of

nancial accounting.

Component

(a) Explain the need for accounting

records
(b) Identify the needs of different user
groups
(c) Distinguish between the purposes of
financial and management accounts
(d) Explain capital and revenue, cash and
profit, income and expenditure, assets
and liabilities
(e) Explain the underlying assumptions,
policies and accounting estimates
(f) Identify the need for and information
to be included in an integrated report;
(g) Describe the accounting equation
(h) Explain the need for accounting code

2. Explain the impact of the regulatory

framework on nancial accounting.

(a) Explain the influence of legislation and

accounting standards on published
accounting information

B. Recording Accounting Transactions 35%

Learning outcomes
Lead
1.

Prepare accounting records.

Component
(a) Prepare the books of prime entry
(b) Apply the principles of double- entry
bookkeeping

2. Prepare accounting reconciliations

(a) Prepare bank reconciliation

statements
(b) Prepare petty cash statements under
an imprest system
(c) Prepare sales and purchase ledger
control account reconciliations

3. Prepare accounting entries for specic

transactions

(a) Calculate sales tax

(b) Prepare accounting entries for sales
tax
(c) Prepare accounting entries for payroll
(d) Prepare accounting entries for the
issue of shares

C. Preparation of Trial Balance and correction of errors 15%

Lead
1. Prepare the trial balance and journal
entries for the correction of errors

Component
(a) Prepare nominal ledger accounts
(b) Prepare the trial balance
(c) Explain the nature of accounting
errors
(d) Prepare accounting entries for the
correction of errors

(e) Prepare accounting

noncurrent assets

entries

for

(f) Prepare a non-current asset register

D. Preparation of Accounts for Single Entities 35%

Learning Outcomes
Lead
1. Prepare accounting adjustments

Component
(a) Prepare accounting entries
accruals and prepayments

for

(b) Prepare accounting entries for

irrecoverable debts and allowances
for receivables
(g) Prepare accounting
inventories
basic

entries

for

2. Prepare manufacturing accounts

(a) Prepare
accounts

manufacturing

3. Prepare nancial statements for a

single entity

(a) Prepare financial statements from a

trial balance
(b) Prepare financial statements from
incomplete records
(c) Prepare a statement of cash flows

BAIBF 08003 Fundamentals of Management Accounting

A. The Context of Management Accounting - 10%

Learning outcomes
Lead

1. Explain the purpose of management

accounting and the role of the
Management Accountant.

Component

(a) Explain the need for management

accounting

(b) Explain the characteristics of financial

information
for
operational,
managerial and strategic levels within
organisations
(c) Explain the role of the management
accountant
(d) Explain the relationships between the
management accountant and the
organisations managers
2. Explain the role of CIMA as a
professional body for Management
Accountants.

(a) Explain the role of CIMA in developing

the
practice
of
management
accounting

B. Costing - 25%

Learning outcomes
Lead
1. Demonstrate cost identication and
classication

Component
(a) Explain the classification of costs in
relation to output

(b) Explain the classification of costs in

relation to activity level
(c) Calculate appropriate costs having
identified cost behaviour
(d) Explain the classification of costs in
relation to decisions
2. Apply absorption costing and marginal
costing.

(a) Prepare overhead cost statements

(b) Calculate the full cost of products,

services and activities

(c) Calculate the marginal cost

products, services and activities

of

(d) Reconcile the differences between

profits calculated using absorption
costing and those calculated using
marginal costing
(e) Apply cost information in pricing
decisions

C. Planning and Control - 30%

Learning Outcomes
Lead
1.

Prepare budgets for planning and

control.

Component
(a) Explain why organisations prepare
forecasts and plans

(b) Prepare functional budgets

(c) Explain budget statements

(d) Identify the impact of budgeted cash

surpluses and shortfalls on business
operations

(e) Prepare a flexible budget

(f) Calculate budget variances

2. Apply variance analysis to reconcile

budgeted and actual prots in a
marginal format.

(a) Explain why planned standard costs,

prices and volumes are useful

(b) Calculate variances for materials,

labour, variable overheads, sales
prices and sales volumes

(c) Prepare a statement that reconciles

budgeted profit with actual profit
calculated using marginal costing

(d) Explain why variances could have

arisen and the inter-relationships
between variances

3. Calculate appropriate nancial and

non-nancial performance measures.

(a) Explain the need for appropriate

performance measures
(b) Calculate appropriate financial and
non- financial performance measures
in a variety of contexts

4. Prepare accounts and reports for

managers.

(a) Explain the integration of the cost

accounts
with
the
financial
accounting system
(b) Prepare a set of integrated accounts,
showing standard cost variances
(c) Prepare appropriate accounts for job
and batch costing
(d) Prepare reports in a range of
organisations

D. Decision Making - 35%

Learning outcomes
Lead
1. Demonstrate the impact of risk.

Component
(a) Explain the concepts of risk and
uncertainty
(b) Demonstrate the use of expected
values and joint probabilities in
decision making

(c) Calculate summary measures of

central tendency and dispersion for
both grouped and ungrouped data
(b) Demonstrate the use of the normal
distribution
2. Demonstrate the use of appropriate
techniques for short-term decision
making.

(a) Apply breakeven analysis

(b) Demonstrate make or buy decisions

(c) Calculate the profit maximising sales

mix after using limiting factor analysis

3. Demonstrate the use of appropriate

techniques for long-term decision
making.

(a) Explain the time value of money

(b) Apply financial mathematics

(c) Calculate the net present value,

internal rate of return and payback
for an investment or project

BAIBF 08004 Business Environment

A. Informational Context of Business - 25%
Learning outcomes
Lead

Component

1. Apply techniques to communicate

business data as information to
business stakeholders.

(a) Explain the difference between data

and information and the characteristics
of good information

(b) Identify relevant data from graphs,

charts and diagrams
2. Demonstrate the uses of big data and
analytics for understanding the
business context.

(a) Describe the principal business

applications of big data and analytics
(b) Demonstrate the relationship between
data variables
(c) Demonstrate trends and patterns using
an appropriate technique
(d) Prepare a trend equation using either
graphical means or regression analysis
(e) Identify the limitations of forecasting
models

B. Personal Effectiveness and Business Communication - 40%

Learning outcomes
Lead
1. Explain personal
techniques.

Component
effectiveness

(a) Explain the importance of effective

time management

(b) Describe the barriers to effective time

management and how they may be
overcome
(c) Describe the role of information
technology in improving personal
effectiveness
2. Describe the consequences of
ineffectiveness at work

(a) Identify the main ways in which

people and teams can be ineffective
at work
(b) Explain how individual or team
ineffectiveness
can
affect
organisational performance

3. Understand the competence

frameworks and personal
development

(a) Describe
the
features
competence framework
(b) Explain how the
framework underpins
development needs

of

competence
professional

(c) Explain how personal and continuous

professional development
can
increase personal effectiveness at
work
(d) Explain the purpose and benefits of
coaching mentoring and counselling
in promoting employee effectiveness
(e) Describe
how
a
personal
development plan should be
formulated, implemented, monitored
and reviewed by the individual
4. Distinguish between sources of conflict
and techniques for conflict resolution

(a) Identify situations where conflict at

work can arise

and referral

(b) Describe how conflict can affect

personal
and
organisational
performance
(c) Identify ways in which conflict can be
managed

5. Describe communicating in business

(a) Describe methods of communication

used in the organisation and how
they are used
(b) Explain how the type of information
differs and the purposes for which it
is applied at different levels of the
organisation: strategic, tactical and
operational
(c) List the attributes of good quality
information
(d) Explain a simple communication
model: sender, message, receiver,
feedback, noise
(e) Explain
formal
and
informal
communication and their significance
in the workplace
(f) Identify the consequences
ineffective communication

of

(g) Describe the attributes of effective

communication
(h) Describe the barriers to effective
communication and identify practical
steps that may be taken to overcome
them
(i) Identify the main patterns
communication

of

C. Leading and Managing individual teams - 35%

Learning Outcomes
Lead
1.

Discuss Leadership, management and

supervision.

Component
(a) Define leadership, management and
supervision
and
explain
the
distinction between these terms
(b) Explain the nature of management

(c) Explain the areas of managerial

authority and responsibility
(d) Explain the situational, functional
and contingency approaches to
leadership with reference to the
theories of Adair, Fiedler, Bennis,
Kotter and Heifetz
(e) Describe leadership
styles and
contexts: using the models of
Ashridge, and Blake and Mouton
2.

Discuss the recruitment and selection

of employees

(a) Explain the importance of effective

recruitment and selection to the
organisation
(b) Describe the recruitment
and
selection process and explain the
stages in this process
(c) Describe the roles of those involved
in the recruitment and selection
processes
(d) Describe the methods
through
which organisations seek to meet
their recruitment needs

(e) Explain
the
advantages
and
disadvantages
of
different
recruitment and selection methods
(f) Explain the practical steps that an
organisation may take to ensure the
effectiveness of its diversity and
equal opportunities policy
3.

Explain individual and group behaviour

in business organisations

(a) Describe the main characteristics of

individual and group behaviour
(b) Outline the contributions
individuals and teams
organisational success
(c) Identify individual
approaches to work

4.

Team formation, development and

management

and

of
to

team

(a) Team formation, development and

management
(b) List the characteristics of effective
and ineffective teams
(c) Describe tools and techniques that
can be used to build the team and
improve team effectiveness

5.

Motivating individuals and groups

(a) Define motivation and explain its

importance to the organisation,
teams and individuals
(b) Explain content and process theories
of motivation: Maslow, Herzberg,
McGregor, and Vroom
(c) Explain how reward systems can be
designed and implemented to
motivate teams and individuals

6.

Learning and training at work

(a) Explain the importance of learning

and development in the workplace
(b) Describe the role of the human
resources department and individual
managers in the learning process
(c) Describe
the
training
and
development process: identifying
needs,
setting
objectives,
programme design, delivery and
validation
(d) List the benefits of effective training
and development in the workplace

7.

Review and appraisal of individual

performance

(a) Explain the importance

performance assessment

of

(b) Define performance appraisal and

describe its purposes
(c) Describe the performance appraisal
process
(d) Identify the barriers to effective
appraisal and how these may be
overcome

BAIBF 08005 Business Law

A. Essential Elements of the Legal System
Learning outcomes
Lead
1. Law and the legal system

Component
(a) Define law and distinguish types of law

(b) Explain the structure and operation of the courts.

(c) Explain what is meant by case law and precedent
(d) Illustrate the rules and presumptions used by the
courts in interpreting statutes

B. The Law of Obligations

Learning outcomes
Lead
1. Formation of contract

Component
(a) Explain the meaning of an offer and
distinguish it from an invitation to treat

(b) Explain the meaning and consequence of

acceptance

(c) Explain adequacy and sufficiency of

consideration

2. Content of contracts

(a) Define the various contractual terms

(b) Breach of contract and remedies

(c) Explain the rules relating to the award of

damages

(d) Analyse the equitable remedies for breach

of contract

3. The law of torts and professional

negligence

(a) Explain the meaning of tort

(b) Explain the tort of negligence including the

duty of care and its breach

(c) Discuss defences to actions in negligence

C. Employment Law
Learning outcomes
Lead
1. Contract of employment

Component
(a) Distinguish between employees and the selfemployed

Explain the nature of the contract of

employment and common law and
statutory

(b) duties placed on the employer and employee

2. Dismissal and redundancy

(a) Explain termination of employment by notice

(b) Distinguish between summary and constructive

dismissal

(c) Explain unfair dismissal, including the procedure,

and fair and unfair reasons for dismissal

D. Formation of Business Organisations

Learning outcomes
Lead
1. Agency law

Component
(a) Explain the formation of the agency
relationship

(b) Explain the potential liability of both

principal and agent
2. Partnerships

3. The formation and constitution of a

company

(a) Demonstrate a knowledge of the

legislation governing the partnership, both
unlimited and limited
(b) Analyse the liability of various partners for
partnership debts
(c) Explain the termination of a partnership,
and partners subsequent rights and
liabilities
(a) Explain the role and duties of company
promoters, and the breach of those duties
and remedies available to the company
(b) Explain the meaning of, and the rules
relating to, pre-incorporation contracts
(c) Analyse the effect of a companys
constitutional documents

(d) Describe the contents of model articles of

association

E. Capital and Financing of Companies

Learning outcomes
Lead
1. Share capital

Component
(a) Illustrate the difference between various
classes of shares, including treasury
shares, and the procedure for altering
class rights
(b) Explain allotment of shares, and
distinguish between rights issue and
bonus issue of shares

2. Loan capital

(a) Distinguish loan capital from share capital,

and explain the different rights held by
shareholders and debenture holders.
(b) Explain the concept of a company charge
and distinguish between fixed and floating
charges
(c) Explain the rules governing the distribution
of dividends in both private and public
companies

F. Management, Administration and Regulation of Companies

Learning outcomes
Lead
1. Company directors

Component
(a) Explain the role of directors in the
operation of a company, and the different
types of directors, such as executive/ nonexecutive directors or de jure and de facto
directors

Distinguish between the powers of the

board of directors, the managing
director/chief executive and individual
directors to bind their company
(a) Discuss the appointment procedure
relating to, and the duties and powers
of, a company secretary
(b)

2. Other company officers

3. Company meetings and resolutions

(b) Discuss the appointment procedure

relating to, and the duties and rights of a
company auditor, and their subsequent
removal or resignation
(a) Distinguish between types of meetings:
general meetings and annual general
meetings
(b) Distinguish between types of resolutions:
ordinary, special, and written

G. Insolvency Law
Learning outcomes
Lead
1. Insolvency and administration

Component
(a) Explain the meaning of and procedure
involved in voluntary liquidation, including
members and creditors voluntary
liquidation
(b) Explain the way in which of an
administrator may be appointed, the
effects of such appointment, and the
powers and duties an
administrator

BAIBF 08006 Organisational Behaviour and Analysis

A. Introduction to organisations (30%)
Learning outcomes
Lead
1. discuss the different types of structure
that an organisation may adopt.

Component
(a) discuss the different purposes of
organisations
(b) explain the different structures
organisations may adopt
(c) explain the various forms and functional
boundaries of the organisation including
externalisation, shared service centers(SSC)
and business process outsourcing (BPO).

2. discuss relationships between internal

and external sources of governance,
regulation and professional behaviour

(a) discuss the purpose and principles of good

corporate governance, the ethical
responsibilities of the organization and
individuals, and ways of achieving corporate
social responsibility

B. Business Organisational Structures and Governance (30%)

Learning outcomes
Lead
1. The formal and informal business
organisation.

Component
(a) Explain the informal organisation and its
relationship with the formal organisation

(b) Describe the impact of the informal

organisation on the business

2. Business organisation structure and

design

(a) Describe Mintzbergs components of the

organization and explain the different
ways in which formal organisations may
be structured

3. Organisational culture in business

(b) Explain the characteristics of the

strategic, tactical and operational levels in
the organisation in the context of the
Anthony hierarchy.
(c) Explain centralisation and decentralisation
and list their advantages and
disadvantages
(a) Describe the factors that shape the
culture of the organisation
(b) Explain the contribution made by writers
on culture

C. Corporate Social Responsibility (10%)

Learning outcomes

1. Governance and social responsibility

in business

(c) Define corporate governance and social

responsibility and explain their importance
in contemporary organisations
(d) Explain the responsibility of organisations
to maintain appropriate standards of
corporate governance and corporate
social responsibility

D. Managing the finance function (30%)

Learning outcomes
Lead
Component
3. discuss the purpose of the finance
(a) demonstrate the contribution the finance
function and its relationships with other
function makes to the sustainable delivery
parts of the organisation.
of the organisations strategies in a range of
contexts
(b) analyse the components of the finance
function (financial and management
accounting, treasury, company secretarial
and internal audit)
(c) discuss the potential for conflict within the
role of the finance function.

4. explain how the finance function

supports the organisations strategies
and operations.

(a) Explain the activities fundamental to the

role of the finance function (accounting
operations, analysis, planning, decision
making and control)
(b) Explain the contemporary transformation of
the finance function.

BAIBF 08007 Financial Accounting

A. Qualitative Characteristics of Financial Information 10%
Learning outcomes
Lead
1. The qualitative characteristics of
financial information.

Component
(a) Define, understand and
qualitative characteristics
(b) Define, understand
accounting concepts

and

apply

apply

B. Recording Accounting Transactions 30%

Learning outcomes
Lead
1.

Tangible non-current assets

Component
(a) Explain the difference
capital and revenue items

between

(b) Calculate and record profits or losses

on disposal of non-current assets in
the statement of profit or loss
including part exchange transactions
(c) Record the revaluation of a noncurrent asset in ledger accounts, the
statement of profit or loss and other
comprehensive income and in the
statement of financial position
2. Intangible non-current assets and
amortisation

(a) Identify the definition and treatment

of research costs and
development costs in accordance
with International Financial
Reporting Standards

(b) Calculate amounts to be capitalised

as development expenditure or to
be expensed from given information
(c) Calculate and account for the charge
for amortisation
3. Provisions and contingencies

(a) Distinguish between

and classify
items as provisions, contingent
liabilities or contingent assets
(b) Calculate provisions and changes in
provisions
(c) Report provisions
accounts

4. Capital structure and finance costs

in

the

final

(a) Understand the capital structure of

a limited liability company
(b) Identify and record the other
reserves which may appear in the
company statement of financial
position
(c) Record and show the effects of a
bonus (capitalisation) issue and a
rights issue in the statement of
financial position

C. Preparation of Accounts for Single Entities 20%

Learning Outcomes
Lead
1. Disclosure notes

Component
(a) Explain the purpose of disclosure
notes
(b) Draft disclosure notes for tangible
non-current assets, provisions and

inventory

2. Events after the reporting period

(a) Distinguish between how adjusting

and non- adjusting events are
reported in the financial statements

3. Statements of cash flows

(a) Calculate the figures needed for the

statement of cash flows
(b) Calculate the cash flow from
operating activities using the
indirect and direct method
(c) Prepare statements of cash flows
and extracts from statements of
cash flows from given information

4. Incomplete records

(a) Understand and apply techniques

used in incomplete record situations

D. Preparation of Consolidated Financial Statements 20%

Learning Outcomes
Lead
1. Subsidiaries

Component
(a) Identify subsidiaries within a group
structure
(b) Describe the components of and
prepare a consolidated statement
of financial position and statement of
profit or loss
(c) Calculate goodwill

2. Associates

(a) Describe the key features of a parentassociate relationship and be able to

identify an associate within a group
structure
(b) Describe the principle of equity
accounting

E. Analysis of Financial Statements 20%

Learning outcomes
Lead
1. Identify information
accounting ratios

Component
provided

by

(a) Identify the information provided by

the calculation of accounting ratios
(b) Identify reasons for the changes in
accounting ratios

2. Calculate basic accounting ratios

(a) Calculation of profitability ratios

(b) Calculation of liquidity ratios
(c) Calculation of risk ratios

BAIBF 08008 Ethics, responsibility and corporate governance

A. Business Ethics and Ethical Conflict - 40%
Learning outcomes
Lead

1. Demonstrate an understanding of the

importance of ethics to society,
business and the professional
accountant.

Component

(a) Explain the nature of ethics and its

application to society, business and
the accountancy profession

(b) Apply the values and attitudes that

provide professional accountants with
a commitment to act in the public
interest and with social responsibility

(c) Explain the need for a framework of

laws, regulations and standards in
business and their application and
why CIMA and IFAC each have ethical
codes

(d) Distinguish between detailed rulesbased

and
framework/principles
approaches to ethics

(e) Identify the ethical issues significant

to organisations and how CIMA
partners with strategic bodies to assist
its
members
with
ethical
tensions/synergies

(f) Describe
how
personal
and
organizational policies and values
promote behaviour

2. Explain the need and requirements

for CIMA students and members in
adopting the highest standards of
ethical behaviour.

(a) Explain the need to develop the

virtues of reliability, responsibility,
timeliness, courtesy and respect
(b) Explain the
principles

fundamental

ethical

(c) Identify concepts of independence,

scepticism, accountability and social
responsibility
(d) Illustrate the threats and safeguards
to the fundamental ethical principles
3. Explain the various means of
regulating
ethical
behaviour,
recognising
different
parties
perspectives
towards
ethical
dilemmas.

(a) Explain the relationship between the

CIMA Code of Ethics and the law
(b) Describe the consequences of ethical
behaviour to society, business, the
profession and the professional
accountant
(c) Identify conflicting perspectives of
interest
when
dealing
with
stakeholders in society, business and
the values of professional accountants

4. Identify ethical dilemmas and how

they may be resolved.

(a) Identify situations where ethical

dilemmas and conflicts of interest
occur, based on CIMAs ethical
checklist

B. Corporate Governance, Controls and Corporate Social Responsibility - 60%

Learning outcomes
Lead
1. Explain

the

role

Component
of

corporate

(a) Describe corporate governance

governance in meeting the concerns

of society and investors over the
management of corporations.

(b) Explain the interaction of corporate

governance with business ethics and
company law
(c) Explain the purpose, definition of the
Organisation for Economic Cooperation and Development (OECD)
principles of Corporate Governance
(d) Describe IFACs main drivers
sustainable corporate success

of

(e) Illustrate CIMAs practical proposals

for better corporate governance
(f) Distinguish between detailed rulesbased
and
principles-based
approaches to governance
2. Explain the impact of corporate
governance on the directors and
management
structures
of
corporations.

(a) Describe the role of the board and

different board structures
(b) Explain the effects of corporate
governance on directors powers and
duties
(c) Describe the types of policies and
procedures that constitute best
practice
(d) Describe the respective committees
and their roles and responsibilities
with
regards
monitoring
and
controlling the actions of the
Executive

3. Explain the role of external and

internal audit.

(a) Identify
external

the requirements for

audit and the basic

processes undertaken
(b) Explain the
presentation

meaning

of

fair

(c) Distinguish between external and

internal audit
(d) Explain the purpose and basic
procedures of internal audit; the need
for financial controls and the purpose
of audit checks and audit trails
(e) Explain the role of internal audit in
non- financial monitoring and control
activities
(f) Illustrate the added value internal
audit provides to both the board and
management of the corporation
4. Explain the nature of errors and frauds.

(a) Explain the nature of errors

(b) Explain the nature of fraud
(c) Describe the different methods of
fraud prevention and detection

5. Explain Corporate Social Responsibility

(CSR) - a political and corporate
perspective

(a) Describe the OECD general policies

(b) Explain the role of national and
international laws and regulations
(c) Describe conflicting
stakeholders

demands

of

(d) Identify issues with CSR and the

supply chain

6. Explain the role of CSR within

company reporting

(a) Describe the guidelines of reporting

CSR within annual reports
(b) Identify synergies and tensions with
CSR and brand management

BAIBF 09009 Management Accounting

A. Cost Accounting systems (30%)
Learning outcomes
Lead
1. discuss costing methods and their
results.

Component
(a) apply marginal (or variable) throughput
absorption accounting methods in respect
of profit reporting and inventory valuation
(b) compare and contrast activity-based costing
with traditional marginal and absorption
costing methods
(c) apply standard costing methods including
the reconciliation of budgeted and actual
profit margins, distinguishing between
planning and operational variances
(d) interpret material, labour, variable
overhead, fixed overhead and sales
variances
(e) explain the advantages and disadvantages
of standard costing in various sectors and its
appropriateness in the contemporary
business environment
(f) explain the impact of JIT manufacturing
methods on cost accounting methods.

2. discuss the role of quality costing.

3. explain the role of environmental

costing.

B. Budgeting (25%)
Learning outcomes

(a) discuss the role of quality costing as part

of a total quality management (TQM)
system.
(a) explain the role of environmental costing as
part of an environmental management
system.

Lead
1. explain the purposes of forecasts, plans
and budgets.

Component
(a) explain the purpose of budgets, including
planning, communication, coordination,
motivation, authorization, control and
evaluation, and hoe these may conflict.

2. prepare forecasts of financial results.

(a) calculate projected product/service

volumes, revenue and costs employing
appropriate forecasting techniques and
taking account of cost structures.

3. discuss budgets based on forecasts.

(a) prepare a budget for any account in the

master budget, based on
projections/forecasts and managerial
targets

4. discuss the principles that underlie the

use of budgets for control.

(a) discuss the concept of the budget as a

control system and the use of responsibility
accounting and its importance in the
construction of functional budgets that
support the overall master budget.

5. analyse performance using budgets,

recognizing alternative approaches and
sensitivity to variable factors.

(a) analyse the consequences of what if

scenarios.

C. Short-term decision making (30%)

Learning outcomes
Lead
1. explain concepts of cost and revenue
relevant to pricing and product
decisions..

Component
(a) explain the principles of decision making,
including the identification and use of
relevant cash flows and qualitative factors
(b) explain the conflicts between cost
accounting for profit reporting and
inventory valuation, and information
required for decision making

(c) explain the issues that arise in pricing

decisions and the conflict between
marginal cost principles, and the need for
full recovery of all costs incurred.
2. discuss relationships between internal
and external sources of governance,
regulation and professional behaviour

(a) apply relevant cost analysis to various types

of short-term decisions
(b) Apply break-even analysis in multiple
product contexts
(c) Analyse product mix decisions, including
circumstances where linear programming
methods are needed to identify optimal
solutions
(d) Explain why joint costs must be allocated to
final products for financial reporting
purposes but why this is unhelpful when
decisions concerning process and product
viability have to be taken.

D. Dealing with risk and uncertainty (15%)

Learning outcomes
Lead
1. analyse information to assess risk and
its impact on short-term decisions.

Component
(a) discuss the nature of risk and uncertainty
and the attitudes to risk by decision makers
(b) analyse risk using sensitivity analysis,
expected values, standard deviations and
probability tables
(c) apply decisions models to deal with
uncertainty in decision making.

BAIBF 9010 International Financial Reporting

A. Regulatory environment for financial reporting and corporate governance (15%)
Learning outcomes
Lead
1. explain the need for and the process of
regulating the financial reporting
information of incorporated entities..

Component
(a) explain the need for the regulation of the
financial reporting information of
incorporated entities and the key elements
of an ethical regulatory environment for
such information
(b) explain the roles and structures of the key
bodies involved in the regulation of financial
reporting information
(c) explain the scope of IFRS and how they are
developed

2. discuss the need for and key principles

of corporate governance regulation.

(a) discuss the need for and scope of corporate

governance regulation
(b) compare and contrast the approach to
corporate governance in different markets.

B. Financial accounting and reporting (60%)

Learning outcomes
Lead
1. explain the main elements of and
key principles underpinning
financial statements prepared in
accordance with international
financial reporting standards..

Component
(a) describe the main elements of financial
statements prepared in accordance with IFRS

2. produce the primary financial

statements of an individual entry
incorporating accounting

(a) produce the primary financial statements from

trial balance for an individual entity in accordance
with IFRS

(b) explain the key principles contained within the

IASBs Conceptual Framework for Financial
Reporting.

transactions and adjustments, in

accordance with relevant
international financial reporting
standards, in an ethical manner.

(b) apply the rules contained in IFRS to generate

appropriate accounting entries in respect of
reporting performance, accounting for taxation,
employee benefits, non-current assets,
accounting for government grants, impairment,
inventories and events after the reporting period
(c) discuss the ethical selection and adoption of
relevant accounting policies and accounting
estimates.

3. produce the consolidated

statement of financial position
and consolidated statement of
comprehensive income in
accordance with relevant
international financial reporting
standards, in an ethical manner.

(a) explain whether an investment in another entity

constitutes a subsidiary or an associate
relationship in accordance with relevant
international financial reporting standards
(b) explain situations where a parent entity is exempt
from preparing consolidated financial statements
(c) Produce the consolidated statement of financial
position and statement of comprehensive income
in accordance with relevant IFRS for a group
comprising of one or more subsidiaries (being
either wholly or partially directly owned) or
associates, including interests acquired part way
through an accounting period.

Indicative syllabus content

Content of financial statements as specified in:
Preface to IFRS
IAS 1 Presentation of Financial Reporting
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
IAS 34 Interim Financial Reporting
IFRS 8 Operating Segments.

Key principles of the Conceptual Framework for Financial Reporting.

Board principles of accounting for fair values (contained in IFRS13 Fair Value
Measurement).

Production of the:

Statement of financial position

Statement of comprehensive income
Statement of changes in equity
Statement of cash flows
For a single incorporated entity in accordance with IAS 1 Presentation of
Financial Reporting and IAS7 Statement of Cash Flows.

Reporting performance IFRS 5 Non-current Assets Held for Sale and

Discontinued Operations and IAS21 The Effects of Changes in Foreign
Exchange Rates (individual transactions only)
Accounting for taxation IAS 12 Income Taxes (not deferred tax).
Employee benefits IAS 19 Employee Benefits.
Non-current assets IAS 16 Property, Plant and Equipment, IAS 23 Borrowing
Costs, IAS 38 Intangible Assets, IAS 40 Investment Property, and IFRS 5 Noncurrent Assets Held for Sales and Discontinued Operations.
Accounting for government grants IAS 20 Accounting for Government
Grants and Disclosure of Government Assistance.
Impairment IAS 36 Impairment of Assets.
Leases IAS 17
Inventories IAS 2 Inventories.
Events after the reporting period IAS 10 Events after the Reporting Period.

Ethics in financial reporting in respect of selection and adoption of

accounting policies and estimates.

Provisions of IFRS 10 Consolidated Financial Statement and IAS 28

Investments in Associates in respect of power to control and significant
influence.

Exemptions from preparing consolidated financial statements, in accordance

with IFRS 10 Consolidated Financial Statements and the requirements of IAS
27 Separate Financial Statements.

Principles of full consolidation and equity accounting in accordance with IFRS

3 Business Combinations and IAS 28 Investments in Associates.
Production of:
Consolidated statement of financial position
Consolidated statement of comprehensive income.

C. Management of working capital, cash and sources of short-term finance (25%)

Learning outcomes
Lead
1. describe the sources of short-term
finance and cash investment..

Component
(a) describe the sources of short-term finance
and methods of short-term cash investment
available to an entity.

2. evaluate the working capital position of

an entity

(a) analyse trade receivables, trade payables

and inventory ratios
(b) discuss policies for the management of the
total level of investment in working capital
and for the individual elements of working
capital
(c) evaluate working capital policies
(d) discuss approaches to the financing of
working capital investment levels.

3. analyse the short-term cash position of

an entity

(a) discuss measures to manage the short-term

cash position of an entity

BAIBF 09011 Business Taxation

A. UK Taxation system and administration
Learning outcomes
Lead
1. The overall function and purpose of
taxation in a modern economy.

Component
(a) Describe the purpose (economic, social
etc) of taxation in a modern economy

(b) Explain the difference between direct and

indirect taxation
(c) Identify the different types of capital and
revenue tax.
2. Principal sources of revenue law and
practice.

(a) Describe the overall structure of the UK tax

system
(b) Explain the difference between tax
avoidance and tax evasion, and the
purposes of the General Anti-Abuse Rule
(GAAR).
(c) Appreciate the interaction of the UK tax
system with that of other tax jurisdictions.
(d) Appreciate the need for double taxation
agreements.
(e) Explain the need for an ethical and
professional approach.
(f) Compute taxable total profits

3. The systems for self-assessment and

the making of returns

(a) Explain and apply the features of the selfassessment system as it applies to
individuals

(b) Explain and apply the features of the selfassessment system as it applies to
companies, including the use of iXBRL
4. The time limits for the submission of
information, claims and payment of
tax, including payments on account

5. The procedures relating to compliance

checks, appeals and disputes

6. Penalties for non-compliance

(a) Recognise the due dates for the payment

of tax under the self-assessment system
and compute payments on account and
balancing payments/repayments for
individuals
(b) Explain how large companies are required
to account for corporation tax on a
quarterly basis and compute the quarterly
instalment payments
(a) Explain the circumstances in which HM
Revenue & Customs can make a
compliance check into a self-assessment
tax return
(b) Explain the procedures for dealing with
appeals and First and Upper Tier Tribunals
(a) Calculate late payment interest and state
the penalties that can be charged

B. Income Tax and NIC Liabilities

Learning outcomes
Lead
1. The scope of income tax.

Component
(a) Explain how the residence of an individual
is determined

2. Income from employment.

(a) Recognise the factors that determine

whether an engagement is treated as
employment or self-employment
(b) Recognise the income assessable and
allowable deductions

(c) Explain the PAYE system

(d) Explain and compute the amount of

benefits assessable

3. Income from self-employment

(a) Recognise the basis of assessment for

self- employment income and apply the
badges of trade
(b) Recognise the relief which can be obtained
for pre-trading expenditure

(c) Compute the assessable profits on

commencement and on cessation

(d) Explain and compute capital allowances

and relief for trading losses

(e) Explain and compute how partnership is

assessed for tax

4. Property and investment income

(a) Compute property business profits

(b) Understand how relief for a property

business loss is given

(c) Recognise the treatment of new individual

savings accounts (NISAs) and other tax
exempt investments

5. The comprehensive computation of

taxable income and income tax
liability

(a) Prepare a basic income tax computation

involving different types of income

(b) Compute the amount of income tax

payable

(c) Understand the treatment of interest paid

for a qualifying purpose, gift aid
donations and charitable givings.
(d) Understand the treatment of property
owned jointly by a married couple, or by a
couple in a civil partnership
7. National insurance contributions for
employed and self-employed persons

(a) Explain and compute national insurance

contributions payable

8. The use of exemptions and reliefs in

deferring and minimising income tax
liabilities

(a) Explain and compute the relief given for

contributions to personal pension schemes,
and to occupational pension schemes

C. Chargeable Gains for individuals

Learning outcomes
Lead
1. The scope of the taxation of capital
gains.

Component
(a) Describe the scope of capital gains tax

(b) Recognise those assets which are exempt

2. The basic principles of computing

gains and losses

(a) Compute and explain the treatment of

capital gains and losses

(b) Understand the amount of allowable

expenditure for a part disposal

3. Gains and losses on the disposal of

movable and immovable property

(c) Recognise the treatment where an asset

is damaged, lost or destroyed, and the
implications of receiving insurance
proceeds and reinvesting such proceeds
(a) Compute the chargeable gain when a
chattel or a wasting asset is disposed of

(b) Calculate the chargeable gain when a

principal private residence is disposed of

4. Gains and losses on the disposal of

shares and securities

5. The computation of capital gains tax

(a) Recognise the value of quoted shares

where they are disposed of by way of a gift

(b) Explain and apply the pooling provisions

and identify the exemption available for
gilt-edged securities and qualifying
corporate bonds
(a) Compute the amount of capital gains tax
payable

(b) Explain and apply capital gains tax reliefs,

rollover relief and holdover relief.

D. Inheritance Tax
Learning outcomes
Lead
1. The basic principles of computing
transfers of value

Component
(a) Identify the persons chargeable and
responsible for the payment of
inheritance taxes

(b) Understand and apply the meaning of

transfer of value, chargeable transfer and
potentially exempt transfer
2. The liabilities arising on chargeable
(a) Understand the tax implications of lifetime
lifetime transfers and on the death of
transfers and compute the relevant
an individual
liabilities
(b) Understand and apply the transfer of any
unused nil rate band between spouses
(c) Understand and apply exemptions to the
calculation of inheritance tax

E. Corporation Tax Liabilities

Learning outcomes
Lead
1. The scope of corporation tax

Component
(a) Recognise when an accounting period
starts and when an accounting period
finishes
(b) Recognise the expenditure that is
allowable in calculating the tax-adjusted
trading profit
(c) Recognise the relief which can be obtained
for pre-trading expenditure

(d) Understand how trading losses can be

claimed against income of the current or
previous accounting periods

(e) Compute taxable total profits

2. Chargeable gains for companies

(a) Compute and explain the treatment of

chargeable gains.

(b) Explain and compute the treatment of

capital losses

(c) Understand the treatment of disposals of

shares by companies and apply the
identification rules including the same day
and nine day matching rules.
(d) Explain and apply rollover relief

3. The comprehensive computation of

corporation tax liability

(a) Compute the corporation tax liability and

apply marginal relief

(b) Define an associated company and

recognise the effect of having associated
companies for corporation tax purposes
(c) Define a 75% chargeable gains group, and
recognise the reliefs that are available to
members of such a group

F. Value Added Tax

Learning outcomes
Lead

Component

1. The VAT registration requirements

(a) Recognise the circumstances in which a

person must register or deregister for VAT

(b) Explain the conditions that must be

met for two or more companies to be
treated as a group for VAT purposes,
2. The computation of VAT liabilities

(a) Understand how VAT is accounted for

and administered

(b) Recognise the circumstances in which

input VAT is non-deductible

(c) Recognise the principal zero rated and

exempt supplies

(d) Understand the treatment of imports,

exports and trade within the European
Union.
(e) Understand the operation of, and when it
will be advantageous to use, the VAT
special schemes

BAIBF 09012 Supply Chain Management & International Marketing

A. Managing technology and information (25%)
Learning outcomes
Lead
1. demonstrate the purpose of the
technology and information function
and its relationships with other parts of
the organisation.

Component
(a) demonstrate the value of information
systems in organisations

2. explain how information systems

supports the organisations strategies
and operations.

(a) explain the technical components and

options for information technology system
design

(b) demonstrate ways of organizing and

managing information systems in the
context of the wider organization.

(b) explain the role of emerging technologies

e.g. Big Data, digitization and their uses.

B. Operations management (25%)

Learning outcomes
Lead
1. demonstrate the purpose of the
operations function and its
relationships with other parts of the
organisation.

Component
(a) demonstrate the contribution of operations
management to the efficient production
and delivery of fit-for-purpose goods and
services
(b) demonstrate how supply chains can be
established and managed.

2. apply tools and techniques of

operations management.

(a) apply the tools and concepts of operations

management to deliver sustainable
performance
(b) explain how relationships within the supply
chain can be managed.

C. Marketing (25%)
Learning outcomes
Lead
1. demonstrate the purpose of the
marketing function and its relationships
with other parts of the organisation.

Component
(a) apply the marketing concept and principles
in a range of organizational contexts
(b) apply the elements of the marketing mix.

2. apply tools and techniques to formulate (a) apply the main techniques of marketing
the organisations marketing strategies,
(b) explain the role of emerging technologies
including the collection, analysis and
and media in marketing.
application of Big Data.

D. Managing human resources (25%)

Learning outcomes
Lead
Component
1. demonstrate the purpose of the HR
(a) explain the contribution of HR to the
function and its relationships with other
sustainable delivery of the organisations
parts of the organisation.
strategies
(b) apply the elements of the HR cycle.
2. apply the tools and techniques of HRM.

(a) demonstrate the HR activities associated

with developing employees
(b) demonstrate the role of the line manager in
the implementation of HR practices.

BAIBF 09013 Advanced Performance Management

A. Cost planning and analysis for competitive advantage (25%)
Learning outcomes
Lead
1. evaluate techniques for analyzing and
managing costs for competitive
advantage.

Component
(a) evaluate activity-based management
(b) evaluate total quality management (TQM)
techniques
(c) discuss techniques for enhancing long-term
profits
(d) apply learning curves to estimate time and
cost for activities, products and services.

Indicative syllabus content

Activity-based costing to derive long-run costs appropriate for use in

decision making.
Activity-based management and its use in improving the efficiency of
repetitive overhead activities.

The impacts of just-in-time (JIT) production, the theory of constraints and

total quality management on efficiency, inventory and cost.
The benefits of JIT production, total quality management and theory of
constraints and the implications of these methods for decision making in the
contemporary manufacturing environment.

Target costing and the determination of target costs from target prices.
Value analysis and quality function deployment

Learning curves and their use in predicting product/service cost, including

derivation of the learning rate and the learning index.

Direct and activity-based cost methods in tracing costs to cost objects, such
as customers or distribution channels, and the comparison of such cost with

appropriate revenues to establish tiered contribution levels, as in the

activity-based cost hierarchy.
Direct customer profitability and distribution channel profitability.

Kaizen costing, continuous improvement and cost of quality reporting.

Process re-engineering and the elimination of non-value adding activities and
reduction of activity costs.

The Value Chain and the management of contribution/ profit generated

throughout the chain.
Life cycle costing and its implications for marketing strategies.

B. Control and performance management of responsibility centres (25%)

Learning outcomes
Lead
Component
1. discuss decision making in responsibility (a) discuss the information needed for decision
centres.
making in different organizational
structures
(b) prepare reports to inform decisions.
2. discuss issues arising from the use of
performance measures and budgets for
control.

(a) prepare performance reports for the

evaluation of projected and actual
performance
(b) discuss traditional and non-traditional
approaches to performance measurement
(c) discuss the criticisms and behavioural
aspects of budgeting in responsibility
centres.

3. evaluate issues arising from the division

of the organisation into responsibility
centres.

(a) discuss the likely behavioural consequences

of performance measurement within an
organisation
(b) discuss transfer pricing systems

(c) evaluate the effects of transfer prices.

Indicative syllabus content

Relevant cost information for cost centre managers: controllable and

uncontrollable costs and budget flexing.
Relevant revenue and cost information for profit and investment centre
managers: cost variability, attributable costs, controllable costs and
identification of appropriate measures of profit centre contribution.
Alternative measures of performance for responsibility centres.

Performance reports: recognizing issues of controllable/uncontrollable costs,

variable/fixed costs and tracking revenues and costs to particular cost
objects.

Key metrics for the assessment of financial consequences including

profitability, liquidity and asset turnover ratios, return on investment,
residual income and economic value.
Benchmarking.
Analysis of reporting by dimension (e.g. segment, product, channel).

Non-financial performance indicators.

Balanced Scorecards (BSC).

Behavioural issues in budgeting: participation in budgeting and its possible

beneficial consequences for ownership and motivation: participation in
budgeting and its possible adverse consequences for budget padding and
manipulation; setting budget targets for motivation; implication of setting
standard costs etc.
Criticism of budgeting and the arguments for and against beyond
budgeting.

The behavioural consequences of performance management and control in

responsibility centres.
The behavioural consequences arising from divisional structure: internal
competition and internal trading.

The theory of transfer pricing, including perfect, imperfect and no market for
the intermediate good.
Negotiated, market, cost-plus and variable cost-based transfer prices. Dual
transfer prices and lump sum payments as means of addressing some of the
issues that arise.

The motivation of divisional management.

Divisional and group profitability.
The autonomy of individual divisions.

C. Long-term decision making (30%)

Learning outcomes
Lead
1. evaluate information to support project
appraisal.

Component
(a) analyse information for use in long-term
decision making (including consideration of
tax, inflation and other factors)
(b) discuss the financial consequences of
dealing with long-run projects, in particular
the importance of accounting for the time
value of money
(c) evaluate investment appraisal techniques
and explain their results.

2. discuss pricing strategies and their

consequences.

(a) discuss pricing strategies and their

consequences.

Indicative syllabus content

Relevant cash flows taking account of tax, inflation and other factors, and the
use of perpetuities to derive final project value where appropriate.
The identification and integration of non-financial factors in long-term
decisions.

The process of investment decision making, including origination of

proposals, creation of capital budgets, go/no go decisions on individual
projects (where judgements on qualitative issues interact with financial
analysis).
Discounting, including the use of annuities in comparing projects with
unequal lives and the profitability index in capital rationing situations.
Capital investment real options (i.e. to make follow-on investment, abandon
or wait).

The strengths and weaknesses of: payback, discounted payback, accounting

rate of return (ARR), net present value (NPV), internal rate of return (IRR) and
modified internal rate of return (based on a projects terminal value).
Prioritisation of projects that are mutually exclusive, and/ or are subject to
single-period capital rationing, and/or have unequal lives.
Pricing decisions for profit maximizing in imperfect markets. Note: tabular
methods of solution are acceptable.
Pricing strategies and the financial consequences of market skimming,
premium pricing, penetration pricing, loss leaders, product bundling/optional
extras and product differentiation to appeal to different market segments.

D. Management control and risk (20%)

Learning outcomes
Lead
1. analyse information to assess its impact
on long-term decisions.

Component
(a) apply sensitivity analysis
(b) analyse risk and uncertainty.

2. discuss managements responsibilities

with regard to risk.

(a) discuss risk management

(b) discuss the risk associated with the
collection and use of information.

3. Discuss interest rate and foreign

currency risk and hedging techniques

(a) Describe and discuss different types of

foreign currency risk and interest rate risk

(b) Discuss and apply traditional and basic

methods of interest rate a n d
f o r e i g n c u r r e n c y risk
management
Indicative syllabus content
Sensitivity analysis to identify the input variables that most affect the chosen
measure of project worth (payback, ARR, NPV, or IRR).

Quantification of risk
Probabilistic models and interpretation of distribution of project outcomes.
Decision trees.
Bayes Theorem.
Decision making in conditions of uncertainty.

Upside and downside risk.

The TARA framework transfer, avoid, reduce, accept.
Business risks.
Ethical implications and the public interest.

Costs and benefits associated with investing in information systems.

Big Data.

BAIBF 09014 Audit and Assurance

A. The concept of audit and other assurance engagements
Learning outcomes
Lead
1. The concept of audit and other
assurance engagements

Component
(a) Identify and describe the objective and
general principles of external audit
engagements
(b) Discuss the concepts of accountability,
stewardship and agency
(c) Describe the types of assurance
engagement

2. External audits

(a) Discuss the reasons and mechanisms for

the regulation of auditors.
(b) Explain the statutory regulations governing
the appointment, rights, removal and
resignation of auditors
(c) Explain the development and status of
International Standards on Auditing (ISAs).
(d) Explain the relationship between
International Standards on Auditing and
national standards

3. Corporate governance

(a) Discuss the objectives, relevance and

importance of corporate governance
(b) Describe good corporate governance
requirements relating to directors
responsibilities (e.g. for risk management
and internal control) and the reporting
responsibilities of auditors
(c) Explain the importance of internal control
and risk management

4. Internal audit and governance, and

the differences between external
audit and internal audit

(a) Discuss the factors to be taken into

account when assessing the need for
internal audit.
(b) Compare and contrast the role of external
and internal audit

5. The scope of the internal audit

function, outsourcing and internal
audit assignments

(a) Discuss the scope of internal audit and

the limitations of the internal audit
function
(b) Discuss the nature and purpose of
internal audit assignments including value
for money, IT, financial, regulatory
compliance, fraud investigations and
customer experience
(c) Describe the format and content of audit
review reports and make appropriate
recommendations to management and
those charged with governance

B. Planning and Risk Assessment

Learning outcomes
Lead
1. Obtaining and accepting audit engagements

Component
(a) Discuss the requirements of professional ethics in
relation to the acceptance of new audit
engagements

(b) Explain the process by which an auditor obtains an

audit engagement

2. Objective and general principles

(a) Identify the overall objectives of the

auditor and the need to conduct an audit
in accordance with ISAs
(b) Explain the need to plan and perform
audits with an attitude of professional
scepticism, and to exercise professional
judgment

3. Assessing audit risks

(a) Explain the audit risks in the financial statements

and explain the auditors response to each risk

(b) Explain and calculate materiality levels from

financial information

4. Fraud, laws and regulations

(a) Discuss the responsibilities of internal and external

auditors for the prevention and detection of fraud
and error

(b) Explain the auditors responsibility to consider laws

and regulations

5. Audit planning and documentation

(a) Identify and describe the contents of the

overall audit strategy and audit plan

(b) Explain and describe the relationship

between the overall audit strategy and
the audit plan
(c) Describe the purpose of an interim audit,
and the procedures likely to be adopted
at this stage in the audit
(d) Explain the procedures to ensure safe
custody and retention of working papers

C. Internal Control
Learning outcomes
Lead

Component

1. Internal control systems

(a) Explain why an auditor needs to obtain an

understanding of internal control relevant
to the audit
(b) Describe and explain the five components
of internal control

2. The use and evaluation of internal

control systems by auditors

(a) Explain how auditors record internal

control systems including the use of,
narrative notes, flowcharts, internal
control questionnaires and internal
control evaluation questionnaires
(b) Discuss the limitations of internal control
components

3. Tests of control

(a) Describe computer systems controls

including general IT controls and
application controls
(b) Describe control objectives, control
procedures, activities and tests of control

4. Communication on internal control

(a) Discuss the requirements and methods of

reporting significant deficiencies in internal
control are provided to management and
those charged with governance
(b) Explain, in a format suitable for inclusion in
a management letter, significant
deficiencies within an internal control
system and provide recommendations for
overcoming these deficiencies to
management

D. Audit Evidence
Learning outcomes
Lead
1. Financial statement assertions and
audit evidence

Component
(a) Explain the assertions contained in the
financial statements.

(b) Discuss the quality and quantity of audit

evidence
(c) Discuss the relevance and reliability of
audit evidence
2. Audit procedures

3. Audit sampling and other means of

testing

4. Computer-assisted audit techniques

5. The work of others

(a) Discuss and provide examples of how

analytical procedures are used as
substantive procedures
(b) Discuss the problems associated with the
audit and review of accounting estimates
(c) Describe why smaller entities may have
different control environments and
describe the types of evidence likely to be
available in smaller entities
(a) Identify and discuss the differences
between statistical and non-statistical
sampling
(b) Discuss and provide relevant examples of,
the application of the basic principles of
statistical sampling and other selective
testing procedures.
(a) Explain the use of computer-assisted audit
techniques in the context of an audit
(a)

Discuss the extent to which external

are
able to rely on the work of experts,
auditors
including the work of internal audit.

E. Review and Reporting

Learning outcomes
Lead

Component

1. Subsequent events

(a) Explain the responsibilities of auditors

regarding subsequent reviews

(b) Discuss the procedures to be followed in

performing subsequent events review

2. Written representations

(a) Explain the purpose of and procedure for

obtaining written representations

(b) Discuss the quality and reliability of

written representations as audit evidence

3. Audit finalisation and audit reports

(a) Describe procedures an auditor should

perform in conducting their overall review
of financial statements.
(b) Evaluate the effect of dealing with
uncorrected misstatements

(c) Explain unmodified audit opinions in the

auditors report

(d) Explain modified audit opinions in the

audit report.

BAIBF 09015 Project and Relationship Management

A. Introduction to strategic management and assessing the global environment (30%)
Learning outcomes
Lead
1. discuss development in strategic
management.

Component
(a) discuss the concept of strategy and the
rational/format approach to strategy
development
(b) compare and contrast alternative
approaches to strategy development
(c) explain the approaches to achieving
sustainable competitive advantage.

2. analyse the relationship between

different aspects of the global business
environment.

(a) distinguish between different aspects of the

global business environment, including the
competitive environment
(b) discuss the approaches to competitor
analysis including the collection and
interpretation of trend data.

B. The human aspects of the organization (20%)

Learning outcomes
Lead
1. discuss the concepts associated with
managing through people.

Component
(a) discuss the concepts of leadership and
management
(b) discuss HRM approaches for managing and
controlling individuals performance.

2. discuss the hard and soft aspects of

(a) discuss behavioural aspects of management
people and organizational performance.
control
(b) explain the importance of organizational
culture.

C. Managing relationships (20%)

Learning outcomes
Lead
1. discuss the effectiveness of
organizational relationships.

Component
(c) evaluate the issues associates with building,
leading and managing effective teams
(d) discuss the effectiveness of handling
relationships between the finance function
and other parts of the organization and the
supply chain
(e) discuss the effectiveness of handling
relationships between the finance function
and external experts and stakeholders.

2. discuss management tools and

techniques in managing organizational
relationships.

(a) discuss the roles of communication,

negotiation, influence and persuasion in the
management process
(b) discuss approaches to managing conflict.

D. Managing change through projects (30%)

Learning outcomes
Lead
1. advise on important elements in the
change process.

Component
(a) discuss the concepts of organizational
change
(b) recommend techniques to manage
resistance to change.

2. discuss the concepts involved in

managing projects.

(a) discuss the characteristics of the different

phases of a project
(b) apply tools and techniques for project
managers
(c) discuss management and leadership issues
associated with projects, including the roles
of key players in projects.

BAIBF 09016 Advanced Corporate Financial Reporting and Finance

A. Sources of long-term finance (30%)
Learning outcomes
Lead
1. Financial objectives and the
relationship with corporate
strategy

2. discuss types and sources of longterm finance for an incorporated

entity.

Component
(a) Discuss the relationship between financial
objectives, corporate objectives and
corporate strategy and the conflicts between
stakeholder objectives
(b) Discuss the nature and importance of Value
for Money as an objective in not-for-profit
organisations
(a) discuss the characteristics of different types of
long-term debt and equity finance
(b) discuss the markets for and methods of raising
long-term finance including Islamic finance.

3. calculate a weighted average cost of

capital (WACC) for an incorporated
entity.

(c) Identify the nature and role of money and

capital markets, both nationally and
internationally
(d) Explain the role of banks and other financial
institutions in the operation of the money
markets
(a) Calculate the cost of equity for an incorporated
entity using the dividend valuation model
(b) Calculate the post-tax cost of dept for an
incorporated entity
(c) Calculate the weighted average cost of capital
(WACC) for an incorporated entity.
(d) Impact of cost of capital on investments
including

4. Nature and purpose of the

valuation of business and financial
assets

(e) Describe the views of Miller and Modigliani on

capital structure, both without and with
corporate taxation, and their assumptions
(a) Identify and discuss reasons for valuing
businesses and financial assets

(b) Determining the value of businesses using

suitable methods.

B. Financial reporting (50%)

Learning outcomes
Lead
1. produce consolidated primary financial
statements, incorporating accounting
transactions and adjustments, in
accordance with relevant international
accounting standards, in an ethical
manner.

Component
(c) produce primary financial statements for a
group of entities in accordance with
relevant international accounting standards
(d) discuss the need for and nature of
disclosure of interests in other entities
(e) discuss the provisions of relevant
international accounting standards in
respect of the recognition and
measurement of revenue, leases, financial
instruments, provisions, share-based
payments and deferred taxation
(f) produce the accounting entries, in
accordance with relevant international
accounting standards
(g) discuss the ethical selection and adoption of
relevant accounting policies and accounting
estimates.

2. demonstrate the impact on the

preparation of the consolidated
financial statements of certain complex
group scenarios.

(a) demonstrate the impact on the group

financial statements of:
i. acquiring additional shareholdings in
the period
ii. disposing of all or part of a shareholding
in the period
(b) demonstrate the impact on the group
financial statements of consolidating a
foreign subsidiary

(c) demonstrate the impact on the group

financial statements of acquiring indirect
control of a subsidiary
3. discuss the need for and nature of
disclosure of transactions between
related parties.

(a) discuss the need for and nature of

disclosure of transactions between related
parties.

4. produce the disclosures for earnings

per share.

(a) Produce the disclosure for earning per

share.

Production of:
consolidated statement of comprehensive income
consolidated statement of financial position
consolidated statement of changes in equity
consolidated statement of cash flows
Including the adoption of both full consolidation and the principles of equity
accounting, in accordance with the provisions of IAS 1, IAS 27, IAS 28, IFRS 3,
IFRS 10 and IFRS 11.

The need for and nature of disclosure of interests in other entities, in

accordance with IFRS 12.

The need for and nature of disclosures of contingent assets and liabilities, in
accordance with IAS 37.
Recognition and measurement of:
revenue in accordance with IAS 18 and the provisions of the framework.
financial instruments, in accordance with IAS 32 and IAS 39 and IFRS 9
(excluding hedge accounting)
provisions, in accordance with IAS 37
share-based payments, in accordance with IFRS 2
provision for deferred taxation, in accordance with IAS 12.

Ethics in financial reporting.

Additional acquisition in the period resulting in a simple investment

becoming a controlling interest, in accordance with the provisions of IFRS 3.

Calculation of the gain/loss on the disposal of a controlling interest in a

subsidiary in the year, in accordance with the provisions of IFRS 3.
Adjustment to parents equity resulting form acquiring or disposing of shares
in a subsidiary, in accordance with the provisions of IFRS 3.

Provisions of IAS 21 in respect of consolidating a foreign subsidiary and the

calculation of the foreign exchange gains and losses in the period.

Impact of indirect effective holdings on the preparation of group financial

statements.

The need for ad nature of disclosure of related party transactions, in

accordance with IAS 2.

Calculate basic and diluted earnings per share, in accordance with IAS 33.

C. Analysis of financial performance and position (20%)

Learning outcomes
Lead
1. evaluate the financial performance,
financial position and financial
adaptability of an incorporated entity.

Component
(a) calculate ratios relevant for the assessment
of an entitys profitability, financial
performance, financial position and
financial adaptability
(b) evaluate the financial performance,
financial position and financial adaptability
of an entity based on the information
contained in the financial statements
provided
(c) advise on action that could be taken to
improve an entitys financial performance
and financial position.

2. discuss the limitations of ratio analysis.

(a) discuss the limitations of ratio analysis

based on financial statements that can be
caused by internal and external factors.