Certificate in business accounting

BA1 focuses on the economic and operating context of business and how the factors of competition, the behaviour of financial markets and government economic policy can influence an organisation. It also deals with the information available to assist management in evaluating and forecasting the behaviour of consumers, markets and the economy in general.

The focus of this syllabus is on providing candidates with an understanding of the areas of economic activity relevant to an organisation’s decisions and, within this context, the numerical techniques to support such decisions.

Syllabus structure

Each subject is divided into a number of broad syllabus topics, and it is essential that all topics in the syllabus are studied, because the exams will cover all topics. The syllabus comprises the following topics and weightings:

• A. Macroeconomic and institutional context of business (25%)
  

• B. Microeconomics and organisational context of business (30%)
  

• C. Informational context of business (20%)
  

• D. Financial context of business (25%)

BA2 teaches students fundamental knowledge and techniques that underpin management accounting. It identifies the position of the management accountant within organisations and the role of CIMA. The subject portrays the role of management accounting in the contexts of commercial and public-sector bodies and its wider role in society.

Identification and classification of costs and their behaviours provides the basis for understanding and applying the tools and techniques needed to plan, control and make decisions. Budgetary control requires the setting of targets and standards that allow the performance of organisations to be reported and analysed by the calculation of variances. Investment appraisal, break-even analysis and profit maximisation are used to inform both long- and short-term decision-making.

Syllabus structure

Each subject is divided into a number of broad syllabus topics, and it is essential that all topics in the syllabus are studied, because the exams will cover all topics. The syllabus comprises the following topics and weightings:

• A. Context of management accounting (10%)
  

• B. Costing (25%)
  

• C. Planning and control (30%)
  

• D. Decision-making (35%)

The main objective of this subject is to obtain a practical understanding of financial accounting and the process behind the preparation of financial statements for single entities.

These statements are prepared within a conceptual and regulatory framework requiring an understanding of the role of legislation and of accounting standards. The need to understand and apply necessary controls for accounting systems, and the nature of errors, are also covered. There is an introduction to measuring financial performance with the calculation of basic ratios.

Syllabus structure

Each subject is divided into a number of broad syllabus topics, and it is essential that all topics in the syllabus are studied, because the exams will cover all topics. The syllabus comprises the following topics and weightings:

• A. Accounting principles, concepts and regulations (10%)

• B. Recording accounting transactions (50%)
  

• C. Preparation of accounts for single entities (30%)
  

• D. Analysis of financial statements (10%)

In BA4 students will gain an understanding of the professional standards to be demonstrated for the benefit of all stakeholders. The place of ethics and ethical conflict is an essential underpinning for commercial activity. Ethics is more than just knowing the rules around confidentiality, integrity and objectivity. It’s about identifying ethical dilemmas, understanding the implications and behaving appropriately. It includes the role of corporate governance, corporate social responsibility and audit and their increasing impact in the management of organisations.

Wherever business is conducted, the legal and administrative framework underpins commercial activity. With this in mind, the areas of contract law, employment law, administration and management of companies is considered.

Syllabus structure

Each subject is divided into a number of broad syllabus topics, and it is essential that all topics in the syllabus are studied, because the exams will cover all topics. The syllabus comprises the following topics and weightings:

A. Business ethics and ethical conflict (30%)

B. Corporate governance, controls and corporate social responsibility (45%)

C. General principles of the legal system, contract and employment law (15%)

D. Company administration (10%)