AS Accounting Welcome Booklet
Department Members:
Mr McClurg
Ms Jagot
ALPS Target Grade:
Expected Grade:
Welcome:
Hello and welcome to Heathcote Sixth Form’s Accounting and Economics department. You
have embarked upon a fascinating course that teaches both theoretical and vocational skills.
You have chosen to study A-Level Accounting. The course is rigorous and fast-pacing. You
learn a lot in your units and it is vital you keep up with the work. Accounting starts with the
basics and works up to more advanced work; with each new element being taught depending
upon the last element. You must master each week’s learning and not leave it to the last
minute.
You will be tested regularly. From early on in your course you will be assigned an ALPS
Grade and an Expected Grade. ALPS Grades are school target grades which represent the
minimal level of achievement that we expect from you. Expected Grades are what we use to
determine your actual progress. These will be challenging and change depending upon your
homework/test results. Any test result that falls below the ALPS Grade will result in a resit
being done and we communicate regularly with parents on your progress (both outstanding
and fail).
A-Level Accounting is formally assessed at the end of the year, with Units 1 and 2 examined
in May 2015. There is no coursework. However Accounting has the highest fail rate of any
AS Qualification, reflecting the difficulty of the test and the stringent work needed to pass.
The responsibility of your success is on you. After each test, you will be required to review
your feedback and set specific targets to improve. You will then be required to meet those
targets and evidence will be sought to ensure you are improving.
Finally on behalf of the department, I hope that you enjoy this subject and that you find it
engaging and challenging enough. You only get out of this what you put in.
Mr McClurg
(Lead Teacher of Accounting & Economics)
Expectations on this course
From the teacher:
All students can achieve the best grade possible
All students will enjoy what they learn
Subject knowledge is up-to-date as well as current resources available for all students
Homework is given weekly. This will be assessed weekly, with appropriate feedback
(including guidance on how to improve your work)
Tests/Summative Assessment every 3-4 weeks, with individual teacher time to discuss results
and personalised feedback for each student. Feedback will be given in the next lesson
Dedicated student time after school for any questions/queries
All resources are placed on the Central Resource Library, so students can access their work
during absence
From the student:
All students are to uphold a respectful and courteous manner to each other and to the teacher
at all times, inside and outside of school (e.g. on school trips)
Attendance and punctuality is crucial. If you are likely to be absent for a few days, it is your
responsibility to get all materials and catch up with all work missed, including doing any
assigned homework. Persistent lateness to, and absence from, class will result in disciplinary
procedures, in accordance to sixth form policy
A minimum of 3 hours of study per week (outside of class) is required to properly do all the
assigned reading and work for the class. If you want to do well, a recommended 5 hours
per week should be spent on independent study
Maintain an organised work folder. We will look through your folder and books every 3-4
weeks. All work should be brought to class, including all past papers and stationery
(calculator, pens etc.)
Homework to be submitted on time with your name placed at the front of your work. Not
doing so, without a valid reason, will result in detention. Persistent lateness of homework
will result in contact with parents/guardians and referral to the Lead Teacher
Attendance at revision sessions held is voluntary, but it is in your best interest to attend.
Those that have attended revision sessions previously have done better in their overall grade
outcomes
If you have any problems during this course please contact us as soon as possible. Our door
is always open.
What you will learn (useful as revision aid)
Unit 1: ACCN1 – Introduction to Financial Accounting
Written examination: 1 hour 30 minutes
Unit 2: ACCN2 – Financial and Management Accounting
Written examination: 1 hour 30 minutes
Unit 1: ACCN1 – Introduction to Financial Accounting
Introduction to financial accounting
• A business / organisation and what its purpose is
• Presentation of a business / organisation’s financial information
• The fundamental accounting concepts which govern financial reporting
• Identification of a series of stakeholders to a company
Recording financial data
• Business transactions and the duel effect of these transactions
• Recording entries in the Books of Prime Entry and the Memorandum ledgers
• Using this information to monitor trade receivables and trade payables
• Double Entry accounting and the "T-Account"
• Introduction to the accounting equation
Checking accounting records
• Preparing a trial balance and ensuring it balances
• Reasons why a trial balance would not balance (summary of the various errors)
• The impact errors make on the profit/ (loss) and how these can be corrected
• Suspense account (neither balance sheet nor income statement)
Balance Sheet and Income Statement
• Familiarisation with income statement and balance sheet proformas
• Adjustments to trial balance (depreciation, bad debts, accruals and prepayments)
• Case study to prepare financial statements
Unit 2: ACCN2 – Financial and Management Accounting
Business entity concept
• Types of business entities
• Advantages and disadvantages of these organisational structures
Accounting concepts
• Background to accounting concepts and the IASB’s framework
• Qualitative characteristics of financial information
• Cover the concepts relating to the qualitative characteristics (historic cost, going concern, accruals,
consistency, prudence, materiality, realisation, business entity and objectivity)
Further aspects of preparing primary accounts
• Advanced look at balance sheet and income statements and adjustments.
• Specifically for bad debts and allowances for doubtful debts, income due and received in advance
• Depreciation of non-current assets; Reasons why a business needs to depreciate
• Introduction to new depreciation method – reducing balance – and comparison of the two methods
• Accounting for the disposal of non-current assets, incorporating accumulated depreciation account
entries
• Capital vs. Revenue expenditure
Limited Company accounts
• Assess Loan capital vs. Share capital as a source of finance - advantages and disadvantages
• Updating income statement and balance sheet with interim and final dividends; corporation tax
liability; share premium; revaluation of fixed assets
• Understand what bonus issues / rights issues are and clearly identify the differences between them
• Preparation of Statement of Changes in Equity
• Make the necessary entries to the accounts for bonus and rights issues
Ratio analysis and business performance
• Interpreting financial statements of sole traders and limited companies
• Comparing ratio analysis across competitors, across accounting periods and with other businesses
• Consider how various transactions effect ratios consider also the limitations of these ratios
• Understand that cash does not equal profits
Introduction to budgeting
• Budgeting within business
• Importance of budgeting within an organisation
• Assumptions made in budgets and their weakness
• Preparing cash budgets
ICT within accounting
• Learn how ICT helps with regard to double entry book keeping; maintaining and managing stock
levels; monitoring trade receivables; preparing budgets
• Advantages / Disadvantages with ICT tool
Additional resources
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Textbook for the course: AS Accounting for AQA (Cox and Fardon, Osborne Books)
– required reading. Books must be purchased from the department
Department Website – advise you to bookmark this for twitter/competition info:
http://www.heathcoteschool.com/accounting_and_economics.php
Twitter: @HSEcon (Accounting/Economics resources/exam tips/news)
Pre course tasks
Before you begin this course, I want you to research online, and answer, the questions that
follow. You must bring this work with you on the first day of your course.
1. What is accounting?
2. Why do you want to study accounting? (e.g. interesting? 4th A-Level?)
3. Why do firms keep accounting records?
Future studies
With an AS or A Level in Accounting, you can study for a degree in Accounting or a similar subject
such as Business, Law or Mathematics. You can also choose to enter further accounting training via a
professional body such as CIMA or ACCA. During the course, you will develop skills in reason,
planning and strategic thinking that will be valued by employers in any industry. However, if numbers
are your thing, then you may want to consider a career as an Accounting Technician, Investment
Banker, Financial Risk Analyst or Treasurer. An A Level in Accounting can lead to careers in areas
such as business, marketing, management and accountancy as well as into higher education.