LCCI Level 4:
Financial Accounting

Aims

The aims of this qualification are to enable candidates to develop:

• the ability to prepare accounting statements and data in accordance with accounting standards and the accounting framework
• the ability to use and interpret accounting statements and data
• the ability to account for groups and changes in capital structure
• an understanding of the conceptual aspects of financial accounts
• an understanding of the differing needs of user of accounts and the audit function.

Syllabus Topics

Section 1: Conceptual Aspects of Financial Accounts

1. Accounting concepts and principles
2. The regulatory framework
3. Accounting for changing prices
4. Statutory accounts of limited companies

Section 2: Financial Accounting Standards

5. Taxation
6. Accounting for Government grants
7. Stocks and long term contracts
8. Accounting for Research and Development
9. Accounting for post balance sheet events
10. Accounting for Contingencies

Section 3: Complex Issues in Company Accounting

11. Accounting for a group of companies
12. Company Amalgamations
13. Capital Reconstructions, including capital reductions

Section 4: The Auditing Framework

14. Users of accounts
15. Auditing

Coverage of Syllabus Topics in Examinations

• The compulsory question will be drawn from Syllabus Sections 1, 2 or 3.
• In every examination paper there will be a minimum of one question from each of the 4 sections.

Examination Format

• The time allowance for the examination is 3 hours.
• Question 1 is compulsory and must be answered by all candidates.
• Candidates will then be required to answer any 3 from the remaining 4 questions.
• The compulsory question is worth 40 marks.
• Each of the remaining questions are worth 20 marks each.