Within the qualification, candidates have the opportunity to gain knowledge of the processes necessary to prepare financial statements for sole traders, partnerships and limited liability businesses and complete the necessary calculations associated with Cash Flow Statements and consolidated financial statements. Candidates will also be able to develop the skills necessary to complete analysis of the organisations financial situation using pre-determined ratios.
The qualification requires candidates to understand the legal structure of a limited liability company and the preparation of the Trading Account, Profit and Loss Account and Balance Sheet, which form the Financial Statements, using UK Accounting Concepts and International Accounting Standards. Various scenarios are covered including the preparation of financial statements for those businesses who operate as a parent company incorporating one subsidiary company.
Accuracy, integrity and security of data should always be uppermost in the candidates mind.
Candidates may use this qualification as the basis of further study of manual systems at Level 5 of the National Occupational Standards, and use it as underpinning knowledge for the study of a Foundation degree in a relevant subject area.
To be awarded the qualification, candidates are required to successfully demonstrate their competence by means of an external examination. It will also provide progression to the NVQ in Accounting at Level 4. Candidates will receive acknowledgement of successful completion of the qualification.
Who is this qualification for?
This Level 4 qualification is primarily designed for the following candidates:
1. Those who already have a degree of senior bookkeeping experience and who wish to acquire further skills and knowledge required of Accounting Administrators.
2. Those candidates who already hold the IAB Level 3.
3. Those who are already employed as Senior Bookkeepers or Accounting Technicians or allied roles and who wish to enhance there firm foundation and the knowledge and skills to perform some advanced routine and non-routine tasks.
4. Those preparing for or undertaking an NVQ in Accounting at Level 4 who wish to underpin this with a thorough grounding in the fundamental technical knowledge, understanding and skills associated with producing and processing accounting functions at that level.
5. Those who may wish to continue to a higher level of study in Accounting and related subjects and qualifications.
What you’ll study
1. Assess their competence and understanding in the legal structure of accounting for limited companies in the UK and preparing published accounts to a the recognised standards in both the UK and to International Accounting Standards
2. To assess their understanding of the importance of maintaining accuracy, security and integrity in performing any accounting function using a manual accounting system.
3. Upon completion, progress in their learning to further develop their knowledge, understanding and skills by:
– Further studies of accounting routines and procedures at this Level (Level 4) and Level 5 of the National Occupational Standards.
– Progressing to qualifications offered by professional Accounting bodies.