ACCA
ACCA
●
Association of Chartered Certified Accountants ●
Founded on 30 November 1904
●
Chief Executive
Helen Brand Helen Brand is chief executive of ACCA, the global body for professional accountants. Since taking up the role
in 2008, Helen has led ACCA through a period of global growth which has seen its membership double to
more than quarter of a million. Qualification Structure
MAFMA_ESSENTIALS_2024.pdf
Study Hub : Click to open. Chapter 1: Management Information
Chapter 2: Materials
Chapter 3: Managing Inventory
Chapter 4: Labour
Chapter 5: Overheads
Chapter 6: Absorption and Marginal Costing
Chapter 7: Process Costing, Joint Products and Further Processing
Chapter 8: Cost Classification
Chapter 9: Job, Batch and Service Costing
Chapter 10: Alternative Cost Accounting Methods
Chapter 11: Sampling Techniques and Expected Values
Chapter 12: Forecasting Costs and Revenues
Chapter 13: Time Series Analysis
Chapter 14: Index Numbers
Chapter 15: Spreadsheets
Chapter 16: Compounding and Discounting
Chapter 17: Investment Appraisal
Chapter 18: Nature and Purpose of Budgeting
Chapter 19: Fixed and Flexible Budgets, Budgetary Control, and Reporting
Chapter 20: Behavioural Aspects of Budgeting
Chapter 21: Presenting Information
Chapter 22: Summarising and Analysing Data
Chapter 23: Standard Costing and Variance Analysis
Chapter 24: Introduction to Performance Management
Chapter 25: Analysing Performance
Chapter 26: Monitoring Performance, Cost Reductions, and Value Enhancement
Block 1
Chapter 1 : Management Information Sep 9, 2025
Types of Accounting 1.
2.
3.
Financial Accounting (FA , FR and SBR)
Management Accounting (MA , PM , FM , AFM and APM)
Cost Accounting (Branch of MA)
Financial Accounting The process of recording , classifying and summarizing financial transactions. Financial Transaction : Monetary Value 1.
2.
3.
4.
5.
Income (Varavu) Tuition fees
Expense (Chilavu) Salary , Rent and Electricity
Asset (Ithu kayyil vekkunnondu bahviyil benefits ondavum) Projector
Liability (Ithu kayyil vechal angottu paisa kodukkennam) Loan
Equity (Owner konduvaranna fund) Manu Kappan
Statements
1.
2.
SOPL (Statement of Profit or Loss) : Performance (Profit or Loss)
Income and Expenditure
SOFP (Statement of Financial Position) : Position
Asset , Liability and Capital (Equity)
Purpose : To communicate performance (SOPL) and position (SOFP) to stakeholders.
Management Accounting Purpose : To meet objectives of shareholders. - Profit Oriented : Profit Maximization
- Not for Profit : Stakeholder Objective
Calculator
1.
Scientific Calculator (New : Casio FX 991 ES Plus 2nd Edition)
Profit Seeking Organization To Maximize Profits
Profits = Revenue - Cost ACCA Chai Wala - You : Owner
- Me : Management Consultant
- Fees : Profit @ 25%
- Quality - Customer Satisfaction - Sales
Revenue
Profits Financial
Profits
- Cost Reduction
- Material Cost (Milk, Tea Powder , Sugar and Water)
- Fidhil (Supplier : Tea Powder)
- Vishnu (Price and Quality )
- Results : Cost
Profit If an organization only focuses on Financial Side
Short Termism If an organization wants to be successful in long term they should focus on
Non Financial Factors
Short Termism : Prioritizing short term result above long term
A management accountant aims to meet their stakeholder objectives by working in both Financial and Non Financial Factors.
Non Financials
- Customers
- Employees
- Innovation
- Quality Management Accountant
1.
Planning : Preparation for the future (Budgeting) Target : Pass
2.
Control
Student X
a. Mark : 95 Marks
Difference = Variance = 45 Marks Favorable
Reason
By implementing the same
Better Future
Student Y
a. Mark : 35 Marks
Difference = Variance = 15 Marks Adverse
Reason
3.
Corrective Actions
Better Future
Decision : Profit Maximizing Decision (Investment Decision(MA and FM))
Comparing Management and Financial Accounting
Aspect
Management Accounting
Financial Accounting
Users of information
Internal management only
(Confidential)
Shareholders, banks, creditors, potential investors, tax authorities,
government (Stakeholder)
Requirement to produce
Voluntary, no requirement to produce.
It is required by law. Presentation and content governed by law and
generally accepted accounting practices.
Presentation regulated by law (e.g. Companies Acts) and the profession
through accounting standards. (IAS , IFRS and GAAP)
Format of information
It can take any form—no legal requirements. Best
practices are developed and used.
Content
Financial and non-financial, predominantly current
with future predictions (e.g. in budgets).
A summary of mainly (past) historical financial information with
supporting notes.
Level of detail
More detailed (e.g. costs and revenues by
department, product).
As prescribed by legislation, etc.
Frequency of preparation
As frequently as needed by management: Quarterly,
monthly, weekly, daily, or on demand
Usually annually (more frequently for certain types of "public interest"
companies).
Purpose of information
Used to plan, control and make decisions.
Stewardship (Supervising or Management) and investment decisions.
Bases of valuation
Standard costs, relevant costs, marginal costs,
absorption costs.
Other bases may also apply.
Historical costs (as modified by the revaluation of certain fixed assets
and fair values as required by financial reporting standards).
iPhone 16 Pro Max
1.
2.
10 nos @ ₹150000
Inventory Count : 10 nos (Number of items)
Inventory Value (Monetary Value)
a. Per Piece = ₹150000
b. Total = 10 nos * ₹150000 = ₹1500000
IASB : Int Acc Standards Board
1.
IAS : International Accounting Standards
2.
IFRS : International Financial Reporting Standards
3.
GAAP : Generally Accepted Accounting Principles Determine whether the statement describes management accounting or financial accounting.
Statement
Management accounting or financial accounting
No legal requirement
MA
Accounts primarily for shareholders
FA
Use of future information and forecasts(Prediction of
future)
MA
Reporting standards determine presentation
FA
Prepared as required by management
MA
Planning
Managers plan a course of action for the future.
●
Setting objectives, such as a sales target for a product
●
Selecting the best method of achieving the objectives.
●
Plans can be financial, like a budget.
Control
Managers use information to check how the organisation performs compared to their plans.
●
Comparing actual results with planned results (variance)
●
Reviewing strategic plans when circumstances change.
Decision-making
Managers use information to help them make decisions about the organisation:
●
Preparing information for investment decisions (such as whether to invest in new plant and equipment)
●
Making decisions on actions to take: how much of the product to make, what price to set, how to reduce costs etc.
Management activities’ relationship with data is illustrated below:
Levels of Management : STO
1.
Strategic Level (TOP) : Long Term Objectives (Whole Organization)
10 lakh students in next 10 years
2.
Tactical Level (MIDDLE) : Middleman b/w strategic and operational Next year 1 lakh students
3.
Operational Level (LOW) : Panni edukkanna allkaaru Daily targets Management Level
Description
Strategic
Senior managers carry out strategic management. It is concerned with making significant strategic decisions for the organisation,
such as setting business objectives and deciding on corporate strategy.
Strategic management decisions often involve long-term planning.
- 10 lakh students in 10 years
Tactical
Tactical management is carried out by middle managers and relates to business control and the allocation of resources. It involves
developing plans, often medium-term, for implementing strategic managers' directions.
It includes tasks such as annual budgeting and other medium-term planning, implementing the plans when approved by senior
management, and monitoring actual performance against them, ensuring that day-to-day operations lead towards achieving longterm strategic goals.
- 1 lakh students for next year Operational
Junior managers or supervisors usually carry out operational management. It is concerned with the implementation of tactical plans
and with the management of short-term, detailed day-to-day operations.
- Day to day target for achievement 1 lakhs
The table below describes how planning activities may apply to Furniture Co:
Planning level
Description
Example
Operational Planning
Day-to-day planning of an organisation, with all managers
involved.
Furniture Co prepares a schedule of weekly meetings three
months in advance to discuss production budgets.
Tactical planning
Making short-term plans that generally cover a year ahead.
The senior and middle managers are involved.
Furniture Co has hired more staff to cope with a planned increase
in production over the next 12-18 months.
Strategic planning
Creating longer-term goals and deciding how they will be
achieved.
This high-level planning, done by senior managers only,
focuses on the next five to 10 years.
Furniture Co is deciding whether to expand into new Asian
markets in the next 10 years.