PRC- SYLLABUS
The Institute of Chartered Accountants of Pakistan
TABLE OF CONTENTS
Syllabus Page No.
PREREQUISITE COMPETENCIES
PRC-1 BUSINESS WRITING AND COMPREHENSION SKILLS 6
PRC-2 QUANTITATIVE METHODS 8
PRC-3 PRINCIPLES OF ECONOMICS 11
PRC-4 INTRODUCTION TO ACCOUNTING 14
PRC-5 INTRODUCTION TO BUSINESS 16
PRC SYLLABUS 2
The Institute of Chartered Accountants of Pakistan
SYLLABUS FOR PREREQUISITE COMPETENCIES
Proficiency and testing levels are mentioned against each learning outcome within the syllabus and
are explained below:
Proficiency levels
The proficiency level is the description of the pitch of the performance expected from the person
taking action. The levels are as follows:
Level of
Description
Proficiency
Typically, learning outcomes in a competence area focus on:
• Defining, explaining, summarizing, and interpreting the underlying principles and
theories of relevant areas of technical competence to complete tasks while
working under appropriate supervision;
• Performing assigned tasks by using the appropriate professional skills;
• Recognizing the importance of professional values, ethics, and attitudes in
P1 performing assigned tasks;
• Solving simple problems, and referring complex tasks or problems to supervisors
or those with specialized expertise; and
• Providing information and explaining ideas in a clear manner, using oral and
written communications.
Learning outcomes at the foundation level relate to work environments that are
characterized by low levels of ambiguity, complexity and uncertainty.
Typically, learning outcomes in a competence area focus on:
• Independently applying, comparing, and analysing underlying principles and
theories from relevant areas of technical competence to complete work
assignments and make decisions;
• Combining technical competence and professional skills to complete work
P2 assignments;
• Applying professional values, ethics, and attitudes to work assignments; and
• Presenting information and explaining ideas in a clear manner, using oral and
written communication, to accounting and non-accounting stakeholders.
Learning outcomes at the intermediate level relate to work environments that are
characterized by moderate levels of ambiguity, complexity, and uncertainty.
Typically, learning outcomes in a competence area focus on:
• Selecting and integrating principles and theories from different areas of
technical competence to manage and lead projects and work assignments, and
P3
to make recommendations appropriate to stakeholder needs;
• Integrating technical competence and professional skills to manage and lead
projects and work assignments;
PRC- SYLLABUS 3
The Institute of Chartered Accountants of Pakistan
Level of
Description
Proficiency
• Making judgments on appropriate courses of action drawing on professional
values, ethics, and attitudes;
• Assessing, researching, and resolving complex problems with limited
supervision;
• Anticipating, consulting appropriately, and developing solutions to complex
problems and issues; and
• Consistently presenting and explaining relevant information in a persuasive
manner to a wide-range of stakeholders.
Learning outcomes at the advanced level relate to work environments that are
characterized by high levels of ambiguity, complexity, and uncertainty.
PRC SYLLABUS 4
The Institute of Chartered Accountants of Pakistan
Testing Levels
Testing levels are the maximum marks assigned to a topic for examination purposes. The levels are as
follows:
Testing Levels Description
T1 The maximum limit per topic of this level is 8 marks
T2 The maximum limit per topic of this level is 20 marks
T3 The maximum limit per topic of this level is 25 marks
PRC- SYLLABUS 5
The Institute of Chartered Accountants of Pakistan
PRC-1: BUSINESS WRITING AND COMPREHENSION SKILLS
Competency
Draft simple business communications and information.
Syllabus
Grid Hours Weightage
Ref.
A Comprehension 15-20 20-30
B Idea Generation and Arguments 15-20 20-30
C Business Correspondence 30-35 40-60
Total 60-75 100
Key Examinable Technical Competencies
Syllabus Proficiency Testing
Learning Outcome
Ref. Level Level
A. Comprehension
1 Apply skimming and scanning reading techniques. P1 T1
2 Summarize a given text. P2 T2
3 List down essential points briefly. P1 T1
B. Idea Generation and Arguments
1 Apply brainstorming and thinking techniques. P1 T1
2 Identify facts, assumptions, and opinions. P1 T2
3 Prepare argument for and against a subject matter. P2 T2
C. Business Correspondence
1 Apply specified vocabulary and phrases. P1 T3
2 Draft business reports, letters, memo and email messages. P2 T3
Key Examinable Professional Skills
1 Collect and summarize data and information from a variety of sources and perspectives
2 Apply critical thinking skills to generate ideas
3 Apply intellectual agility
4 Communicate clearly and concisely when reporting in formal and informal situations
PRC SYLLABUS 6
The Institute of Chartered Accountants of Pakistan
Key Examinable Professional Values, Ethics and Attitude
1 Use critical thinking in determining appropriate course of action.
Specific Examinable Knowledge Reference
1 Mind Maps, Fishbone Diagrams and Affinity Diagrams
2 Vocabulary and phrases specified by the Institute
PRC- SYLLABUS 7
The Institute of Chartered Accountants of Pakistan
PRC-2: QUANTITATIVE METHODS
Competency
Apply quantitative methods relevant to the managerial analysis.
Syllabus
Grid Hours Weightage
Ref.
A Basic Mathematics 12-15 10-20
B Financial Mathematics 15-18 15-25
C Data Analysis 18-24 20-30
D Probability and Probability Distribution 10-15 15-20
E Sampling and Decision making 15-18 20-25
Total 70-90 100
Key Examinable Technical Competencies
Syllabus Proficiency Testing
Learning Outcomes
Ref. Level Level
A. Basic Mathematics
Solve two-variable simultaneous equations and quadratic
1 P1 T1
equations.
2 Prepare graphs of linear equation. P1 T1
Apply arithmetic and geometric progression in business
problems to calculate monthly instalments, first instalment,
3 P1 T1
total amount paid and total time required for settlement of
a loan etc.
Formulate a system of linear programming for a business
4 P1 T1
problem.
Identify constraints, feasible region, cost minimization or
5 profit maximization functions, no feasible solution using P1 T1
linear programming.
Prepare a graphical solution of a linear programming
6 P1 T1
problem.
B. Financial Mathematics
Apply simple and compound interest rate on single or series
1 P1 T1
of amounts to find out interest amount and future values.
Apply discount rate on single or series of amounts including
2 P1 T1
perpetuity to find out present values.
3 Calculate the net present value (NPV) of future cash flows. P1 T1
4 Calculate internal rate of return on a project. P1 T1
PRC SYLLABUS 8
The Institute of Chartered Accountants of Pakistan
Syllabus Proficiency Testing
Learning Outcomes
Ref. Level Level
C. Data Analysis
1 Classify different types of data. P1 T1
2 Explain data collection through various methods. P1 T1
3 Summarize and present data. P1 T1
4 Calculate various measures of central tendency. P1 T1
5 Identify the characteristics and measures of dispersion. P1 T1
Compute the degree of variation or variability in a
6 P1 T1
distribution.
7 Discuss the index number and its types. P1 T1
Calculate index number and discuss the practical application
8 P1 T1
of index no.
9 Construct deflated or inflated series using index numbers. P1 T1
Explain scatter diagrams their construction, uses and
10 P1 T1
limitations.
Explain the concept of regression lines and their uses and
11 P1 T1
limitations.
Calculate a linear regression line (line of best fit) using least
12 P1 T1
squares.
13 Calculate and discuss correlation coefficients, rank
P1 T1
correlation coefficients and determination.
D. Probability and Probability Distribution
Calculate the total number of possible outcomes and
1 P1 T1
selections from a set of data using counting techniques.
2 Discuss and compute probability using different techniques. P1 T1
Discuss and estimate the probability distribution using
3 P1 T1
different techniques.
E. Sampling and Decision making
Explain the term population, sample, sample distribution
1 P1 T1
and sampling distribution.
2 Explain methods for selecting a sample. P1 T1
3 Explain a sampling distribution of the sample means. P1 T1
Calculate the mean and standard error of a sampling
4 P1 T1
distribution of sample and proportion means.
Apply hypothesis test of proportions and difference
5 P1 T1
between proportions.
Apply hypothesis test of population means based on small
6 P1 T1
and large samples.
PRC- SYLLABUS 9
The Institute of Chartered Accountants of Pakistan
Syllabus Proficiency Testing
Learning Outcomes
Ref. Level Level
Apply hypothesis tests of the difference between two
7 P1 T1
population means.
Apply the Chi-square distribution to perform tests of
8 P1 T1
goodness of fit and independence.
Key Examinable Professional Skills
1 Evaluate given information through integration and analysis.
2 Apply critical thinking skills to solve problems.
3 Apply intellectual agility.
Key Examinable Professional Values, Ethics and Attitude
1 Apply an inquiring mind when collecting and assessing data and information
2 Use critical thinking in determining appropriate course of action.
Specific Examinable Knowledge Reference
1 Array, Frequency distribution, Tally, Class boundaries
2 Bar and pie chart
3 Histograms, frequency polygons, Ogives, graphs, stem and leaf displays, Box and
whisker plots
4 Mode, median, arithmetic, geometric and harmonic means
5 Standard deviation
6 Variance
7 Laspeyre, Paasche and Fisher index
8 Scatter diagrams
9 mn counting rule and factorials
10 Permutations and combination
11 Addition and multiplication law for probability
12 Conditional and complementary probabilities
13 Binomial, Hyper-Geometric, Poisson, Normal distribution
14 Normal approximation
15 Random, systematic, stratified, multi-stage, cluster and quota sampling
PRC SYLLABUS 10
The Institute of Chartered Accountants of Pakistan
PRC-3: PRINCIPLES OF ECONOMICS
Competency
Discuss fundamental principles of economics relevant to the managerial analysis.
Syllabus
Grid Hours Weightage
Ref
A Economic Principles and Micro Economics 25-30 30-45
B Macroeconomics – Basic Concepts 10-15 20-30
C Economic Policies and Trends 25-30 30-45
Total 60-75 100
Key Examinable Technical Competencies
Syllabus Proficiency Testing
Contents Level Level
Ref
A Economics Principles and Micro Economics
1 Define basic economic concepts. P1 T1
Discuss the production possibility frontier and its relevance to
2 the concept of opportunity cost for different economic P1 T1
analysis.
Discuss features of planned, mixed, market economy and
3 P1 T1
Islamic economic system.
4 Discuss law of demand. P1 T1
5 Discuss law of supply. P1 T1
6 Discuss market equilibrium and its dynamics. P1 T1
7 Discuss elasticity of demand and supply. P1 T1
8 Describe basic concepts of firm’s costs and revenue. P1 T1
Discuss short and long-run equilibrium of firms under perfect
9 competition, imperfect competition, monopoly, monopolistic P1 T1
competition and oligopoly.
B Macroeconomics – Basic Concepts
Discuss measurement of national income, nominal and real
gross domestic product, gross national product, net national
1 P1 T1
product, personal income and disposable personal income
per capita.
Explain the functions of consumption, saving and
2 P1 T1
investment.
3 Explain multiplier and accelerator principle. P1 T1
PRC- SYLLABUS 11
The Institute of Chartered Accountants of Pakistan
Syllabus Proficiency Testing
Contents Level Level
Ref
Discuss the different phases of the business cycle and the
4 P1 T1
indicators.
C Economic Policy and Trends
1 Discuss nature and objectives of taxation. P1 T1
2 Discuss kinds and objectives of fiscal policy. P1 T1
3 State key features of Pakistan’s prevailing fiscal budget. P1 T1
4 Discuss the concepts associated with money and banking. P1 T1
Define the functions of a central bank and the role of the State
5 P1 T1
Bank of Pakistan.
6 Define monetary policy and its objectives. P1 T1
7 Discuss inflation, its causes, measurement and impact. P1 T1
8 State unemployment and its types. P1 T1
9 Discuss interest rate determination and its trends in Pakistan. P1 T1
10 Discuss the balance of payment and trade and their trends in
P1 T1
Pakistan.
11 Discuss exchange rate determination and its impact on the
P1 T1
balance of payments of a country.
Key Examinable Professional Skills
1 Evaluate data and information from a variety of sources and perspective through
integration and analysis.
Key Examinable Professional Values, Ethics and Attitude
1 Apply critical thinking when identifying and evaluating alternatives to determine an
appropriate course of action.
Specific Examinable Knowledge Reference
1 Properties of Production possibility frontier
2 Demand and supply
3 Buffer Stock
4 Cobweb theory
5 Accounting and economic profit
6 Keynesian theory of consumption
PRC SYLLABUS 12
The Institute of Chartered Accountants of Pakistan
7 Keynesian two-sector economy
8 Keynesian Aggregate Demand and Supply
9 Output gaps
10 Keynes Multiplier and Accelerator principles
11 Keynesian Liquidity preference Model
12 The Quantity theory of money (Irving Fisher)
13 Short-run and long-run Philips Curve
14 J-Curve (Currency devaluation and balance of payments)
PRC- SYLLABUS 13
The Institute of Chartered Accountants of Pakistan
PRC-4: INTRODUCTION TO ACCOUNTING
Competency
Account for financial transactions and prepare basic components of financial statements.
Syllabus
Grid Hours Weightage
Ref.
A Accounting and Book keeping 30-35 40-60
B Financial Statements 20-25 25-35
C Depreciation and Inventories 10-15 15-25
Total 60-75 100
Key Examinable Technical Competencies
Syllabus Proficiency Testing
Learning Outcomes
Ref. Level Level
A. Accounting and Book Keeping
1 Describe accounting and book keeping. P1 T1
2 Discuss elements of financial statements. P1 T1
3 Account for financial transactions in books of prime entry, P1 T1
factory ledger and general ledger.
4 Compute and account for adjustments for bad debts and P1 T1
doubtful, accrued expenses and prepayment.
5 Prepare trial balance. P1 T1
6 Prepare bank reconciliation statements and make P1 T1
corrections in books of accounts.
B. Financial Statements
1 Prepare manufacturing account. P1 T2
2 Prepare a statement of comprehensive income. P1 T2
3 Prepare a statement of financial position P1 T2
C. Depreciation and Inventories
1 Calculate cost and net realizable value of inventory. P1 T1
2 Compute depreciation. P1 T1
3 Account for the given amount of depreciation. P1 T1
PRC SYLLABUS 14
The Institute of Chartered Accountants of Pakistan
Key Examinable Professional Skills
1 Evaluate data and information from a variety of sources and perspectives through
research, integration, and analysis.
Key Examinable Professional Values, Ethics and Attitude
1 Apply an inquiring mind when collecting and assessing data and information.
2 Apply critical thinking when identifying and evaluating alternatives to determine an
appropriate course of action.
Specific Examinable Knowledge Reference
1 IAS 1 - Presentation of Financial Statements
2 IAS 2 – Inventories
3 IAS 16 - Property, plant and equipment
PRC- SYLLABUS 15
The Institute of Chartered Accountants of Pakistan
PRC-5 INTRODUCTION TO BUSINESS
Competency
Discuss fundamentals of business organizations, their operations and finance.
Syllabus
Grid Hours Weightage
Ref
1 Business Organizations 18-21 25-35
2 Business Operations 24-30 35-50
3 Business Finance 12-15 15-25
4 Business Ethics 06-09 05-10
Total 60-75 100
Key Examinable Technical Competencies
Syllabus Ref Proficiency Testing
Learning Outcomes
Level Level
A. Business Organizations
1 Discuss business and its long term vision and P1 T1
objectives.
2 Explain the concept of sole proprietorship, P1 T1
partnerships, private, public limited and public
sector companies.
3 Describe key features of general laws that govern P1 T1
partnership and limited companies.
4 Explain businesses of exploration, power supply, P1 T1
manufacturing, trading, service rendering, public
utility, infrastructure development and construction.
B. Business Operations
1 Discuss the role of directors, management and P1 T1
shareholders in the governance of a limited
company.
2 Explain functional, divisional, matrix and virtual P1 T1
organizational structure.
3 Prepare an operational structure of a P1 T1
manufacturing company.
4 Explain the interest of different stakeholders of a P1 T1
limited company.
5 Discuss the fundamentals of recruitment, P1 T1
development, retention of human resource.
PRC SYLLABUS 16
The Institute of Chartered Accountants of Pakistan
Syllabus Ref Proficiency Testing
Learning Outcomes
Level Level
6 Elaborate on the level, role and types of P1 T1
information systems in business organizations.
7 Discuss concepts of branding, marketing and P1 T1
selling.
C. Business Finance
1 Identify various sources of financing available to a P1 T1
limited company along with their advantages and
disadvantages.
2 Apply the concept of financial leverage on business P1 T1
scenarios.
D. Business Ethics
1 Explain the nature of ethics for business decisions. P1 T1
2 Discuss the importance of core values for a business P1 T1
organization.
Key Examinable Professional Skills
1 Evaluate data and information from a variety of sources and perspectives through
research, integration, and analysis.
Key Examinable Professional Values, Ethics and Attitude
1 Apply critical thinking when identifying and evaluating alternatives to determine an
appropriate course of action.
2 Explain nature of Ethics
Specific Examinable Knowledge Reference
1 Companies Act 2017
Section 2 (49, 52, 54)
2 Partnership Act 1932
Section 4
PRC- SYLLABUS 17
