AAT Level 4 Higher Apprenticeships

Transcription

1 AAT Level 4 Higher Apprenticeships Level 4 Diploma in Business Skills and Level 4 Diploma in Accounting Qualifications briefing pack Qualification numbers: 601/0457/0 and 600/6892/9 Version 2.0 published March

2 Contents Introduction to the AAT Level 4 Higher Apprenticeship... 3 Qualifications at a glance... 3 Aims of the qualification... 4 Target audience... 4 Training provider approval process... 4 Student registration process... 5 Training provider benefits... 5 Student benefits... 5 Employer benefits... 5 Operational detail/timing... 6 Further information... 7 Standards for the Level 4 Diploma in Business Skills... 8 Standards for the Level 4 Diploma in Accounting

3 Introduction to the AAT Level 4 Higher Apprenticeship The Level 4 Apprenticeship will now be made up of two qualifications: AAT Level 4 Diploma in accounting, and AAT Level 4 Diploma in Business Skills. The Level 4 Diploma in Accounting is the AQ2013 update on the existing Diploma, and the Level 4 Business Skills Diploma has been developed and will draw on existing QCF business skills units. In line with the SASE requirements implemented in April 2013, these two qualifications will now meet the 90 credit requirement for Higher Apprenticeships. Qualifications at a glance AAT Level 4 Diploma in Business Skills Qualification number: 601/0457/0 Level: 4 Unit title Unit reference number GLH QCF credit Assessment method Working in teams F/504/ WPE/RPL* Planning and delivering business communication D/504/ WPE/RPL* activities Evaluate and improve own performance in a business environment R/601/ WPE/RPL* SpreadSheet software (Level 3)** J/502/ WPE/RPL* Presentation software (Level 3) T/502/ WPE/RPL* Deliver a presentation (Level 3) T/601/ WPE/RPL* Organising and facilitating meetings and workshops A/504/ WPE/RPL* Developing commercial awareness T/504/ WPE/RPL* Managing project finances L/504/ WPE/RPL* Total Please note that students are required to complete all mandatory units (1-9). *The method of assessment chosen for each unit is the gathering of Work Place Evidence (WPE) and Recognition of Prior Learning (RPL) in the form of a Portfolio. Training providersm/504/3350 will be required to schedule the collection and assessment of WPE/RPL evidence through LearnPlus (AAT s e-portfolio system). **The SpreadSheet software unit is identical to the unit students may have achieved as part of the Level 3 Diploma in Accounting. Students who have already achieved this unit with AAT will have their achievement recognised when they register for the Level 4 Diploma in Business Skills. AAT Level 4 Diploma in Accounting Qualification number: 600/6892/9 Level: 4 Unit title*** Unit reference number GLH QCF credit Assessment method Financial Statements M/504/ CBT Budgeting T/504/ CBT Financial Performance A/504/ CBT Internal Control and Accounting Systems F/504/ CBP Total Business Tax L/504/ CBT Personal Tax J/504/ CBT External Auditing R/504/ CBT Cash Management Y/504/ CBT Credit Control D/504/ CBT Total ***Students are required to complete all mandatory units (1-4) and two of the optional units (6-10). 3

4 Aims of the qualification The AAT Level 4 Higher Apprenticeship provides a student an advanced level of accountancy and finance knowledge. The Level 4 Diploma in Business Skills provides the additional skills to support students in the workplace and becoming a professional accountant. Target audience The Level 4 Higher Apprenticeship is suitable for students who want to develop as a professional accountant. The target audiences for this qualification are: the primary audience is those that have completed the Level 3 Diploma as part of the AAT apprenticeship and would like to progress on to an advanced level of study students who want to develop all round business skills to improve their performance in the workplace those who are looking to progress on to further study opportunities, such as a Foundation Degree or chartered accountancy qualifications. Training provider approval process Current training providers approved to offer the AAT Accounting Qualification Current training providers must also be approved to offer the Level 4 Diploma in Business Skills. The application process is free; however, you will be required to complete a supplementary application form. This will enable us to update our systems to facilitate student registration. Paper based application form for training provider approval can be downloaded here Please note: Training providers can be approved to offer the additional qualification for this scheme by applying for approval in the usual way to aatstandards@aat.org.uk. What do I need to be approved to run the Level 4 Diploma in Business Skills? In addition to the usual assessor and verification awards, assessors and verifiers must hold one of the following: A relevant professional qualification. A degree with substantial business, business administration skills or management content. Other business, management, or other relevant coaching qualification at Level 4 or above. They also must: have the role of assessor or verifier identified within their job role be occupationally knowledgeable/competent in the units they are assessing be familiar with the units that relate to the qualification and be able to interpret and make judgements on current working practices and technologies within the area of work understand and apply AAT recording requirements. 4

5 Student registration process Current AAT Accounting Qualification students Students already registered on the AAT Accounting Qualification will be able to finish their apprenticeship under the old scheme however they will be required to finish all assessments by December Students that are already registered on the AAT Accounting Qualification will still be required to complete a stand-alone registration form; however they will not be required to pay a registration fee. New students All new students will be required to complete a stand-alone registration form and pay a 39 registration fee for each qualification. Paper based student registration form can be downloaded here Training provider benefits Our enhanced apprenticeship programme will: add value within the apprenticeship framework which can be incorporated into training providers current offering attract increased government funding give students skills that contribute to their development support employers in the success of their business. Student benefits QCF accredited qualification. Enhanced apprenticeship offering. Developed business skills to support their career progression. Skills-focused and practical qualification. Units can be achieved through work placed evidence. On completion, students can go onto a Foundation Degree in Accounting. Will gain exemptions from chartered accounting examinations after completing the higher apprenticeship. Employer benefits Apprenticeships are becoming more widely adopted by UK employers and this training route is widely recognised, combining both development of technical knowledge and on-the-job skills. Our enhanced apprenticeship programme will: help to develop well rounded individuals with the practical skills an organisation needs provide staff with the key business skills to apply their technical accounting skills in the workplace offers practical work-based assessments. 5

6 Operational detail/timing Operational start date 01 September 2013 Countries of operation England, Northern Ireland and Wales Training provider approval Paper based approval form available Student registration Paper based form available Student fees Students already registered on the Accounting qualification will NOT be required to pay any fee. Assessment fees: - Level 4 Diploma in Business Skills 25 per unit* - Level 4 Diploma in Accounting 40 per unit Assessor requirements Internal Verifiers Study guidance Assessors should hold the A1 Assessor Award, D32.D33, the AAT Assessor Award or the Level 3 Award in Assessing Vocationally Related Achievement (QCF) and have appropriate qualifications/experience in the units they will be assessing IVs should hold the V1 qualification, D34, the AAT Internal Quality Assurance Moderator Award (IQAM award) or the Level 4 Certificate in Leading the Internal Quality Assurance of Assessment Processes and Practice (QCF) and have appropriate qualifications/experience in the units they are verifying. Available here Mapping toolkit Available here E-learning resources AAT have developed a resources page for the Level 4 Diploma in Business Skills for training providers. This includes e- learning modules and ideas on how students can collect evidence. Level 4 Diploma in Business Skills resource page AAT contact apprenticeships@aat.org.uk *We are charging assessment fees as we will need to cover the costs for recruiting new External Verifiers as well as the development costs for this new qualification. 6

7 Further information Frequently asked questions We have developed a FAQ s document to answer some of common questions on the Level 4 Higher Apprenticeship which can be found on this page here. Locating the current framework documents The current frameworks documents can be found on the Apprenticeship Framework website Who do training providers need to register with for certification? Training providers have to register on Apprenticeship Certificates England (ACE). The certification system is administered for the Financial Skills Partnership (FSP) by Skills for Justice in Sheffield. Does the change have any impact on Employment Rights and Responsibilities (ERR) and Functional Skills (FS) or Personal Learning and Thinking Skills (PLTS) where relevant? There are no changes to the ERR, PLTS and FS at Levels 2 and 3, but these elements will be removed at Level 4 from 1 September Given the change in SASE requirements, are there any changes to key dates in terms of registrations or certification? Yes, the new Level 2 and 3 AAT Accounting Qualifications will be in the framework and on the Skills Funding Agency (SFA) and Learning Aims Reference Application (LARA) system in mid-august The new AAT Level 4 Higher Apprenticeship will be in the framework and on the SFA and LARA system on 1 September

8 Standards for the Level 4 Diploma in Business Skills Qualification number: 601/0457/0 Title Level 4 GLH 62 Credit value 7 Unit reference number Learning outcomes The learner will: 1 Understand the importance of teams to individual team members and to the team itself. 2 Understand leadership attributes and skills. 3 Be able to contribute effectively to team work. 4 Understand how to manage potential conflicts within a team. Unit aim(s) Working in teams F/504/1277 Assessment criteria The learner can: 1.1 Explain the advantages and disadvantages of team working. 1.2 Identify the factors that can contribute to a team s success. 1.3 Identify the different roles and responsibilities within a team. 1.4 Explain the stages of team development. 1.5 Explain the personal skills and behaviours required of individuals in a team for effective team working 1.6 Describe the working relationships in teams 2.1 Explain the difference between leadership and management. 2.2 Evaluate the impact of different leadership styles on performance of individuals and a team. 2.3 Explain skills and behaviour of team leaders required for successful leadership. 3.1 Use appropriate skills and behaviour when working as part of a team. 3.2 Assess own contribution to achieving team goals. 4.1 Explain how to identify and manage potential conflicts within a team. By completing this unit the learner will understand the principles of working in a team, leadership attributes and skills, and develop the skills to be able to work effectively in a team. 8

9 Title Level 4 GLH 55 Credit value 6 Unit reference number Learning outcomes The learner will: 1 Understand how to plan business communication activities. 2 Be able to produce written business communications. 3 Understand how to communicate verbally in a business environment. 4 Be able to communicate information verbally to the business environment. Planning and delivering business communication activities D/504/1285 Assessment criteria The learner can: 1.1 Identify the purpose, the intended audience and desired outcomes of a communication activity. 1.2 Assess the effectiveness of business communications in achieving their purpose and desired outcomes. 1.3 Explain the purpose of and when to keep a file copy of what information has been communicated. 1.4 Explain the importance of reviewing written communications for errors and mistakes. 2.1 Prepare written communication using language as appropriate for the purpose, audience and desired outcomes including accurate grammar, spelling and punctuation, and plain English. 2.2 Present written information in a structure and style as appropriate for the purpose, audience and desired outcomes. 3.1 Explain how to adapt own verbal contributions to professional discussions as appropriate to the audience, purpose of discussion, and the situation. 3.2 Explain what body language and tone of voice to adopt for a specific audience and the situation. 4.1 Present information and ideas verbally so that they are clear, accurate, convincing and/or persuasive. 4.2 Lead professional discussions to achieve pre-defined objectives. 4.3 Adopt appropriate active listening techniques to gain information from others. 4.4 Deliver well-argued responses to questions appropriate to the situation and audience. Unit aim(s) By completing this unit the learner will understand how to plan business communication activities and be able to communicate information verbally and in writing in a business environment. The unit will prepare learners to contribute and lead discussions with senior colleagues, peers and clients in a professional business context. 9

10 Title Level 4 GLH 14 Credit value 47 Unit reference number Learning outcomes The learner will: 1 Understand how to evaluate and improve own performance. 2 Be able to evaluate and improve own performance using feedback from others. 3 Be able to use evaluation and feedback to develop and use a learning plan. Unit aim(s) Evaluate and improve own performance in a business environment R/601/2554 Assessment criteria The learner can: 1.1 Analyse the purpose and benefits of continuously improving work. 1.2 Evaluate the purpose and benefits of encouraging and accepting feedback from others. 1.3 Analyse ways of evaluating own work. 1.4 Evaluate the purpose and benefits of trying out possible improvements to own work. 1.4 Analyse how learning and development can improve own work, benefit organisations, and further own career. 1.5 Evaluate possible career progression routes and the opportunities they offer. 1.6 Analyse possible development opportunities and the benefits they offer. 1.6 Evaluate the advantages and disadvantages of a learning plan. 2.1 Encourage and accept feedback from other people. 2.2 Make recommendations to improve work performance. 2.3 Complete work tasks, consistently using recommended new ways of working. 2.4 Evaluate work completed for improvements and effectiveness. 2.5 Evaluate changes made for improvements and effectiveness. 3.1 Evaluate own performance, using feedback from others, and identify where further learning and development will improve own work. 3.2 Make recommendations and develop a learning plan to improve own work performance, that meets own needs. 3.3 Implement a learning plan for improvement to own work. 3.4 Review and evaluate progress against learning plan and make updates for improving own work and further learning. By completing this unit the learner will be able to take responsibility for evaluating their own performance in work tasks, then take responsibility for making and evaluating changes that make sure they will be able to work effectively and efficiently in a business environment alongside other people. 10

11 Title Level 3 GLH 45 Credit value 6 Unit reference number Learning outcomes The learner will: 1 Use a spreadsheet to enter, edit and organise numerical and other data. 2 Select and use appropriate formulas and data analysis tools and techniques to meet requirements. 3 Use tools and techniques to present, and format and publish spreadsheet information. Unit aim(s) Spreadsheet software J/502/4626 Assessment criteria The learner can: 1.1 Use a spreadsheet to enter, edit and organise numerical and other data. 1.2 Enter and edit numerical and other data accurately. 1.3 Combine and link data from different sources. 1.4 Store and retrieve spreadsheet files effectively, in line with local guidelines and conventions where available. 2.1 Explain what methods can be used to summarise, analyse and interpret spreadsheet data and when to use them. 2.2 Select and use a wide range of appropriate functions and formulas to meet calculation requirements. 2.3 Select and use a range of tools and techniques to analyse and interpret data to meet requirements. 2.4 Select and use forecasting tools and techniques. 3.1 Explain how to present and format spreadsheet information effectively to meet needs. 3.2 Select and use appropriate tools and techniques to format spreadsheet cells, rows, columns and worksheets effectively. 3.3 Select and use appropriate tools and techniques to generate, develop and format charts and graphs. 3.4 Select and use appropriate page layout to present, print and publish spreadsheet information. 3.5 Explain how to find and sort out any errors in formulas. 3.6 Check spreadsheet information meets needs, using IT tools and making corrections as necessary. 3.7 Use auditing tools to identify and respond appropriately to any problems with spreadsheets. This unit is about is the ability to use a software application designed to record data in rows and columns, perform calculations with numerical data and present information using charts and graphs. It covers the skills and knowledge required by an IT user to select and use a wide range of advanced spreadsheet software tools and techniques to produce, present and check complex and non-routine spreadsheets. 11

12 Title Level 3 GLH 45 Credit value 6 Unit reference number Learning outcomes The learner will: 1 Input and combine text and other information within presentation slides. 2 Use presentation software tools to structure, edit and format presentations. 3 Prepare interactive slideshow for presentation. Unit aim(s) Presentation software T/502/4623 Assessment criteria The learner can: 1.1 Explain what types of information are required for the presentation. 1.2 Enter text and other information using layouts appropriate to type of information. 1.3 Insert charts and tables and link to source data. 1.4 Insert images, video or sound to enhance the presentation. 1.5 Identify any constraints which may affect the presentation. 1.6 Organise and combine information for presentations in line with any constraints. 1.7 Store and retrieve presentation files effectively, in line with local guidelines and conventions where available. 2.1 Explain when and how to use and change slide structure and themes to enhance presentations. 2.2 Create, amend and use appropriate templates and themes for slides. 2.3 Explain how interactive and presentation effects can be used to aid meaning or impact. 2.4 Select and use appropriate techniques to edit and format presentations to meet needs. 2.5 Create and use interactive elements to enhance presentations. 2.6 Select and use animation and transition techniques appropriately to enhance presentations. 3.1 Explain how to present slides to communicate effectively for different contexts. 3.2 Prepare interactive slideshow and associated products for presentation. 3.3 Check presentation meets needs, using IT tools and making corrections as necessary. 3.4 Evaluate presentations, identify any quality problems and discuss how to respond to them. 3.5 Respond appropriately to quality problems to ensure that presentations meet needs and are fit for purpose. This unit is about the ability to use software applications to produce effective presentations which include a combination of media (e.g. images, animation and sound) for education, entertainment or information sharing. This unit is about the skills and knowledge required by an IT user to select and use a wide range of advanced presentation software tools and techniques effectively to produce presentations that are complex or non-routine. 12

13 Title Level 3 GLH 15 Credit value 3 Unit reference number Learning outcomes The learner will: 1 Understand the purpose of preparing for and evaluating a presentation. 2 Understand the techniques used in enhancing a presentation. 3 Be able to prepare for delivery of a presentation. 4 Be able to deliver a presentation. 5 Be able to evaluate a presentation. Deliver a presentation T/601/2529 Assessment criteria The learner can: 1.1 Explain the purpose of using different types of presentation and equipment. 1.2 Explain different ways of delivering presentations and their features. 1.3 Explain the procedures to be followed when preparing a presentation. 1.4 Explain the benefits of preparing for giving a presentation. 1.5 Describe the types of problems that may occur with equipment and how to deal with them. 1.6 Explain the purpose and benefits of contingency planning. 1.7 Explain the purpose and benefits of collecting feedback from the audience on the presentation. 1.8 Explain the purpose and benefits of evaluating presentations and own performance. 2.1 Explain and illustrate how presentations may be enhanced by materials and equipment. 2.2 Explain and illustrate how presentations may be enhanced by use of communication and interpersonal skills. 2.3 Describe how to gauge audience reaction to the presentation. 2.4 Explain the purpose and benefits of summarising important features of the presentation. 2.5 Describe the purpose and benefits of giving the audience opportunities to ask questions. 3.1 Select any equipment needed and plan how to use it to best effect 3.2 Make contingency plans in case of equipment failure or other problems, if required. 3.3 Practise the presentation and its timing. 3.4 Obtain feedback on planned presentation and make adjustments, if required 4.1 Check equipment and resources. 4.2 Circulate presentation materials. 4.3 Introduce self to audience and state aims of the presentation. 4.4 Address the audience, speaking clearly and confidently, using language to suit the topic and audience. 4.5 Vary tone, pace and volume to emphasise key points. 4.6 Gauge audience reaction during the presentation and adapt if required. 4.7 Summarise throughout the presentation to emphasise key points and help to maintain audience interest. 4.8 Use body language in a way that reinforces presented information. 4.9 Use equipment, where appropriate, to enhance the presentation, and deal with any problems that may occur Provide the audience with opportunities to ask questions Listen carefully to questions and respond in a way that meets the audience s needs. 5.1 Collect feedback on the presentation. 5.2 Reflect on own performance and identify learning points. 13

14 Unit aim(s) 5.3 Evaluate the presentation and own performance and identify changes that will improve future presentations. This unit covers the skills, knowledge and understanding learners need to prepare for, deliver and evaluate a presentation for an audience. 14

15 Title Level 4 GLH 33 Credit value 4 Unit reference number Learning outcomes The learner will: 1 Be able to take responsibility for meeting and workshop arrangements. 2 Understand how to facilitate meetings and workshops. 3 Be able to facilitate meetings and workshops. Unit aims Organising and facilitating meetings and workshops A/504/1309 Assessment criteria The learner can: 1.1 Set up meetings and workshops using calendar / scheduling software. 1.2 Manage the communications regarding meeting and workshop arrangements with: intended audience venue, technology and catering providers, as necessary. 1.3 Assess the needs of the context and audience for meetings and workshops to determine requirements, including venue, audio/visual technology and catering. 2.1 Assess how to structure meetings and workshops appropriate to the context, objectives and audience of meetings and workshops. 2.2 Assess different methods of communicating information in meetings and workshops. 2.3 Assess what questions are relevant to the meeting situation and audience. 2.4 Assess when it is appropriate to give others opportunity to verbally contribute ideas and opinions. 3.1 Establish ground rules, purpose and objectives for meetings and workshops. 3.2 Lead a meeting and workshop to achieve objectives. 3.3 Communicate information clearly at appropriate points during meetings and workshops. 3.4 Summarise discussions and decisions during meetings and workshops to the appropriate level of detail. 3.5 Record meeting actions and decisions. 3.6 Review progress against actions as appropriate. By completing this unit the learner will be able to take responsibility for organising, preparing for and facilitating meetings and workshops. The unit will prepare learners for leading meetings where attendees are of similar level of seniority. 15

16 Title Level 4 GLH 37 Credit value 4 Unit reference number Learning outcomes The learner will: 1 Understand own employer s business. 2 Understand how relationships are managed between own employer and its clients. Developing commercial awareness T/504/1311 Assessment criteria The learner can: 1.1 Explain own employer s objectives and strategy and its position in the market. 1.2 Explain own employer s organisational structure and that of its senior leadership team. 1.3 Analyse the services and/ or products own employer provides and how it makes money. 1.4 Explain how own employer adds value to its clients through the services and/or products it provides. 2.1 Evaluate own employer s and client s role and responsibilities on a project. 2.2 Explain the contractual obligations that apply between own employer and client. 2.3 Evaluate the impact on individuals and own employer of not fulfilling agreements made with colleagues, clients and stakeholders. 3 Understand a client s business. 3.1 Analyse a client s organisational structure and that of its senior management team. 3.2 Explain what services and/ or products a client provides and how it makes money. 3.3 Analyse the objectives and strategy of a clients business and its position in the market. 4 Understand the implications of operating ethically. Unit aim(s) 4.1 Explain what operating ethically means in a business context. 4.2 Explain the implications for a business and its stakeholders of operating ethically. By completing this unit the learner will develop an understanding of their own employers business, the business of its clients and how relationships are managed between their own employer and its clients, and the implications of a business operating ethically. 16

17 Title Level 4 GLH 50 Credit value 10 Unit reference number Learning outcomes The learner will: 1 Be able to develop a budget for a project. 2 Be able to manage costs against a budget. 3 Be able to complete financial transactions and evaluate project costs. 4 Be able to comply with standards of financial management. Unit aim(s) Managing project finances L/504/1377 Assessment criteria The learner can: 1.1 Estimate the costs of different project options, in parallel with other planning processes (including scope, schedule and resource management). 1.2 Recommend a budget (including cost estimate, contingency and management reserve). 2.1 Review actual expenditure against planned expenditure using cost control mechanisms. 2.2 Manage base costs for the project using cost control mechanisms. 2.3 Forecast when funds will need to be released for project activities using cost control mechanisms. 2.4 Anticipate where expenditure may exceed tolerances, and take the necessary steps to address the issue. 2.5 Analyse and report financial performance at the required intervals. 3.1 Confirm that all financial liabilities relating to the project are accounted for on project completion. 3.2 Analyse the financial performance of the project at completion. 3.3 Report the financial performance of the project to stakeholders at completion. 4.1 Identify relevant standards applying to financial procedures within the project (including legal, organisational and professional standards). 4.2 Operate the financial procedures in compliance with the relevant standards (including the legal, organisational and professional standards). By completing this unit the learner will develop the skills of budget development and management of costs against a budget, and will be able to complete financial transactions and evaluate project costs. The learner will understand the requirements of compliance. 17

18 Standards for the Level 4 Diploma in Accounting Qualification number: (Level 8 in Scotland) Title (and reference number) Level Credit value Learning outcomes The learner will 1 Understand the regulatory framework that underpins financial reporting Financial statements 4 (Level 8 in Scotland) 10 (4 knowledge and 6 skills) Assessment criteria The learner can 1.1 K 1.2 K Explain the scope, elements and purpose, for different users, when preparing financial statements for external reporting Describe legislation and regulation which must be complied with in the preparation of the financial statements 1.3 K Explain the reasons for governance by legislation and regulation 1.4 K Explain the purpose of accounting standards (GAAP and IFRS) 2 Understand the key features of a published set of financial statements 3 Draft statutory financial statements for a limited company 1.5 K 2.1 K 2.2 K 2.3 K 2.4 K Explain the duties and responsibilities of the directors of a corporate organisation Describe the purpose, including key components, of a statement of financial position Describe the purpose, including key components, of a statement of profit or loss and other comprehensive income Describe the purpose, including key components of a statement of cash flows Explain the purpose, including content, of disclosure notes to the financial statements 2.5 K Identify accounting standards and their effect on the preparation of financial statements 3.1 S 3.2 S 3.3 S 3.4 S Apply accounting standards and relevant legislation to correctly identify, and accurately adjust, accounting information Use appropriate information to draft a statement of profit or loss and other comprehensive income Use appropriate information to draft a statement of financial position Prepare notes to the financial statements which satisfy current statutory disclosure requirements, in respect of accounting policies, non-current assets, current and non-current liabilities and equity 3.5 S Draft a statement of cash flows 4 Draft consolidated financial statements 4.1 K 4.2 K Describe the key components of a set of consolidated financial statements parent, subsidiary, non-controlling interest, goodwill, fair values, pre and post-acquisition profits and equity Explain the basic consolidation process for a parent and subsidiary 4.3 K Describe the effect of consolidation on each of the key elements - parent, subsidiary, non-controlling interest, goodwill, fair values, pre and post-acquisition profits and equity 4.4 K Discuss the key features of a parent / associate relationship 4.5 S Draft a consolidated statement of profit or loss for a parent company with one partly owned subsidiary in accordance with current accounting standards 18

19 5 Interpret financial statements using ratio analysis Unit aim(s) 4.6 S 5.1 K 5.2 K 5.3 S 5.4 S 5.5 S Draft a consolidated statement of financial position for a parent company with one partly owned subsidiary in accordance with accounting standards Explain the relationship between elements of the financial statements assets, liabilities, equity, income, expenses, contributions from owners and distributions to owners Discuss the purpose of interpreting ratios in a business environment Use accounting ratios to calculate and interpret the relationship between elements of the financial statements with regard to profitability, liquidity, efficient use of resources and financial position Draw valid conclusions from the information contained within the financial statements Present clearly and concisely issues, analysis and conclusions to the appropriate people This unit is about the learner having the skills and knowledge to prepare financial statements for limited companies, and prepare consolidated financial statements for simple groups. Learners will also be able to use ratio analysis to analyse financial statements and gain a good understanding of current accounting standards. 19

20 Title (and reference number) Level Credit value Learning outcomes The learner will 1 Prepare forecasts of income and expenditure 2 Prepare budgets 3 Assess the impact of internal and external factors on budgets Budgeting 4 (Level 8 in Scotland) 7 (3 knowledge and 4 skills) Assessment criteria The learner can 1.1 K 1.2 S 1.3 K 1.4 K 1.5 K 1.6 K 1.7 S 1.8 K 2.1 K 2.2 S 2.3 S 2.4 S 2.5 S 3.1 K Explain responsibility centres and the relationships between departments and functions Code, classify and allocate cost and revenue data to responsibility centres Identify internal and external sources of information on costs, prices, demand, availability of resources and cost of finance which can be used to forecast income and expenditure Demonstrate the use of these techniques to forecast income and expenditure: Indexing Sampling Moving averages Linear regression Seasonal trends Describe the internal charges made to attribute indirect costs to production Explain the principles and application of standard costing within the context of a budgetary control system Describe the purpose of income and expenditure forecasts and their link to budgets Forecast income and expenditure, using internal and external information Identify the sources of data and planning assumptions used in budget proposals Calculate these different types of costs: Direct or indirect Fixed, variable, semi-variable or stepped Capital or revenue Schedule materials, labour and production resources to meet forecasts Prepare relevant draft budgets for consecutive time periods from forecast data Prepare cash flow forecasts to facilitate the achievement of organisational objectives Describe the impact of the external environment and any specific external costs on budgets 3.2 S Analyse critical factors affecting costs and revenues, drawing conclusions 3.3 S 3.4 S Calculate the effect that variations in production and sales constraints will have on budgeted costs and revenues Review and revise the validity of budgets in light of any anticipated changes 20

21 4 Use budgetary control to improve organisational performance 4.1 K 4.2 K Explain the relationship between budgetary control, product lifecycles and forecasts and planning Justify the uses of budgetary control for: Planning Co-ordinating Authorising Cost control 4.3 K Explain the behavioural aspects of budgeting 4.4 S Set clear targets and performance indicators to enable the budgets to be monitored 5 Report budgetary information to management in a clear and appropriate format Unit aim(s) 4.5 S Prepare a flexed budget 4.6 S Check and reconcile budget figures 4.7 S Calculate variances between budget and actual income and expenditure 5.1 S Plan and agree draft budgets with all parties involved 5.2 S 5.3 S 5.4 S 5.5 S Analyse the variances explaining the impact that these will have on the organisation Inform management of any significant issues arising from budgetary control Present any recommendations with a clear rationale to appropriate people Identify and evaluate options and solutions to increase profitability or reduce financial losses or exposure to risk This unit is about forecasting and preparing budgets. The learner will develop the necessary skills and knowledge to allow them to prepare a range of budgets, analyse variances and make recommendations for improving organisational performance. They will be able to inform managers of financial forecasts to aid organisational planning and control. 21

22 Title (and reference number) Level Credit value Learning outcomes The learner will 1 Collate and analyse cost information from various sources Financial performance 4 (Level 8 in Scotland) 7 (3 knowledge and 4 skills) Assessment criteria The learner can 1.1 K 1.2 K 1.3 S Explain the purpose and structure of reporting systems within the organisation Explain the impact of the external environment and related costs on an organisation Obtain income and expenditure information from different departments within an organisation and consolidate in an appropriate form 1.4 S Identify other valid information from internal and external sources 1.5 K Explain types of cost centre, profit centre and investment centre 1.6 S 1.7 K Identify costs of materials, labour and expenses and the sources of information about these costs Identify fixed, variable, semi-variable and stepped costs and explain their use in cost recording, cost reporting and cost analysis 1.8 S Reconcile income and expenditure information 2 Be able to use standard costing to analyse performance 1.9 S Account for transactions between the departments of an organisation 2.1 K Describe the use of standard units of inputs and outputs 2.2 K Recognise the differences between standard, marginal and absorption costing in terms of cost recording, cost reporting and cost behaviour 2.3 S Calculate materials, labour and overhead variances 3 Be able to use appropriate techniques to measure performance and manage costs 2.4 S 3.1 K 3.2 K 3.3 S 3.4 S Analyse routine cost reports and compare with budget and standard costs to identify any differences and their implications Identify relevant performance and quality measures for monitoring financial performance Identify appropriate key business indicators to use for: Efficiency Productivity Cost per unit Balanced scorecard Benchmarking Control ratios (efficiency, capacity and activity) Scenario planning ( what-if analysis) Calculate ratios, performance indicators and measures of value added in accordance with the organisation s procedures Use these cost management techniques: Life cycle costing Target costing Activity-based costing 3.5 S Prepare estimates of capital investment projects using 22

23 4 Make suggestions for improving financial performance by monitoring and analysing information 4.1 K 4.2 S 4.3 S 4.4 S 4.5 S 4.6 S discounted cash flow techniques Explain the use and purpose of these techniques: Indexing Sampling Time series Compare results over time using methods that allow for changing price levels Analyse trends in prices and market conditions on a regular basis Compare trends with previous data and identify potential implications Consult relevant staff in the organisation about the analysis of trends and variances Interpret the results of performance indicators, identifying potential improvements and estimating the value of such improvements 5 Prepare performance reports for management Unit aim(s) 4.7 S Identify ways to reduce costs and enhance values 5.1 S 5.2 S 5.3 S Prepare reports in an appropriate format and within the required timescales Prepare exception reports to identify matters which require further investigation Make specific recommendations to management in a clear and appropriate format This unit is about monitoring and managing financial performance. Learners will have the skills and knowledge to be able to analyse information on income and expenditure. They will then be able to use this to make reasoned judgements to support the decision making process. 23

24 Title (and reference number) Level Credit value Learning outcomes The learner will 1 Understand the role of accounting within an organisation 2 Understand the importance and use of internal control systems 3 Evaluate the accounting system and identify areas for improvement 4 Conduct an ethical evaluation of the accounting systems Internal control and accounting systems 4 (Level 8 in Scotland) 8 (4 knowledge and 4 skills) Assessment criteria The learner can 1.1 K Describe the purpose, structure and organisation of the accounting function and its relationships with other functions within the organisation 1.2 K Explain the various business purposes for which the following financial information is required: Statement of profit or loss Statement of cash flows Statement of financial position 1.3 K Give an overview of the organisation s business and its critical external relationships with stakeholders 1.4 K Explain how the accounting systems are affected by the organisational structure, systems, procedures and business transactions 1.5 K Explain the effect on users of changes to accounting systems caused by: External regulations Organisational policies and procedures 2.1 K Identify the external regulations that affect accounting practice 2.2 K Describe the causes of, and common types of, fraud and their impact of this on an organisation 2.3 K Explain methods that can be used to detect fraud within an accounting system 2.4 K Explain the types of controls that can be put in place to ensure compliance with statutory or organisational requirements 2.5 K Explain how an internal control system can support the accounting function 3.1 S Identify an organisation s accounting system requirements including hardware and software packages 3.2 S Review record keeping systems to confirm whether they meet an organisation s requirements 3.3 S Identify weaknesses in and the potential for improvements to, the accounting system and consider the impact on the operation of an organisation 3.4 S Identify potential areas of fraud arising from lack of control within the accounting system evaluating the risk 3.5 S Review methods of operating for cost effectiveness, reliability and speed 4.1 S Evaluate the accounting system against ethical principles 4.2 S Identify actual or possible breaches of professional ethics 5 Conduct a 5.1 Evaluate the accounting system against sustainable principles 24

25 sustainability evaluation of the accounting system 5.2 Identify where improvements could be made to improve sustainability 25

26 6 Make recommendations to improve the accounting system Unit aim(s) 6.1 S Make recommendations for changes to the accounting system, including ethical and sustainability considerations, with a clear rationale and an explanation of any assumptions made 6.2 S Identify the effects that any recommended changes would have on the users of the system 6.3 K Enable individuals to understand how to use the accounting system by use of: Training Manuals Written information Help menus 6.4 S Identify the implications of recommended changes in terms of time, financial costs, benefits and operating procedures The aim of this unit is to ensure that the learner will be able to make a considered evaluation of an accounting system, with particular reference to internal controls, ethical considerations and the prevention of fraud. They will be able to make recommendations for improvements supported by a clear rationale of the impact upon the organisation and a cost benefit analysis. 26

27 Title (and reference number) Level Credit value Learning outcomes The learner will 1 Prepare the relevant pages of a tax return for an unincorporated business and produce the computations to support this Business tax 4 (Level 8 in Scotland) 6 (3 knowledge and 3 skills) Assessment criteria The learner can 1.1 S Adjust trading profits and losses for tax purposes 1.2 S 1.3 S Apply the basis of assessment for unincorporated businesses, including opening and closing years and overlap profits Classify expenditure on capital assets in accordance with the statutory distinction between capital and revenue expenditure 1.4 S Prepare computations of capital allowances 1.5 S Make adjustments for private use of assets by owners 1.6 S Divide profits and losses of partnerships amongst partners 1.7 S 1.8 S 1.9 S 1.10 S Prepare computations to show the changes in partnership structure for new partners and departing partners Calculate national insurance contributions payable by selfemployed persons Identify and value any chargeable assets that have been disposed of; calculate the chargeable gain/or allowable loss and relevant reliefs as applicable under current tax law; and calculate any tax liability Complete the self-employed or partnership supplementary pages of the tax return for individuals, and submit them within statutory time limits 2 Complete corporation tax returns and supporting computations for incorporated businesses 2.1 S Adjust trading profits and losses for tax purposes 2.2 S Classify expenditure on capital assets in accordance with the statutory distinction between capital and revenue expenditure 2.3 Prepare computations of capital allowances 2.4 S 2.5 S 2.6 S 2.7 S 2.8 S Enter adjusted trading profits and losses, capital allowances, investment income and capital gains in the corporation tax computation Calculate taxable total profits, and other relevant figures, as it applies to companies with periods longer than, shorter than and equal to 12 months Calculate corporation tax payable, taking account of marginal relief and associated companies Complete corporation tax returns and submit them within statutory time limits Identify and value any chargeable assets that have been disposed of and calculate the chargeable gain/or allowable loss and relevant reliefs as applicable under current tax law 3 Understand the impact 3.1 K Identify relevant tax authority legislation and guidance 27

28 of legislation and legislative changes 4 Understand tax law and its implications for unincorporated businesses 5 Understand tax law and its implications for incorporated businesses 6 Understand how to treat capital assets Unit aim(s) 3.2 K 3.3 K 4.1 K Explain the system of penalties and interest as it applies to income tax, corporation tax and capital gains tax Apply any changes that occur to taxation codes of practice, regulation or legislation Describe the main regulations relating to disallowed expenditure 4.2 K Explain the basis of assessment for unincorporated businesses 4.3 K Explain the availability and types of capital allowances 4.4 K Identify alternative loss reliefs, demonstrating how best to utilise that relief 4.5 K Explain the basic allocation of trading profits between partners 4.6 K Explain the self-assessment process including payment of tax and filing of returns for unincorporated businesses 4.7 K Identify due dates of payments, including payments on account 5.1 K 5.2 K 5.3 K Explain the calculation of corporation tax payable by different sizes of companies including those with associated companies Identify alternative loss reliefs for trading losses, describing how best to utilise that relief Identify corporation tax payable and the due dates of payment, including instalments 6.1 K Identify capital gains exemptions and reliefs on assets 6.2 K 6.3 K Identify methods by which chargeable assets can be disposed of Identify the rate of tax payable on gains on capital assets disposed of by individuals and entitlement to relevant reliefs This unit is about the learner being able to prepare tax returns for sole traders, partnerships and incorporated businesses, and understand all relevant regulations and guidance for this. The learner will be able to recognise trading profits, make adjustments and apply current relevant legislation to accurately prepare the required computations to support the completion of the tax returns to the statutory authorities. 28

29 Title (and reference number) Level Credit value Learning outcomes The learner will 1 Understand legislation and procedures relating to personal tax 2 Calculate income from all sources and identify taxable and non-taxable items Personal Tax 4 (Level 8 in Scotland) 5 (2 knowledge and 3 skills) Assessment criteria The learner can 1.1 K Explain the main current legislation relating to personal taxation 1.2 K 1.3 K 1.4 K Explain the main legislative features relating to income from employment and savings, including exempt savings income Explain the responsibilities that individuals have for disclosure of income and payment of tax to the relevant tax authorities Explain the main features of the self-assessment system of taxation 1.5 K Describe the duties and responsibilities of a tax practitioner 1.6 K Identify sources of taxation information for individuals 1.7 K 1.8 K 1.9 K Explain the tax authority s filing and payment process in relation to all personal income Identify the main legislative features relating to dividend income from UK registered companies Identify the main legislative features relating to property income from furnished and unfurnished rented property, rent a room scheme, holiday lets and buy-to-let investments 2.1 S Prepare computations of emoluments, including benefits in kind 2.2 S 2.3 S List non-savings, savings and dividend income checking for completeness Prepare schedules of income from land and property determining profits and losses 2.4 K Describe taxable and non taxable sources of income from employment, including benefits in kind 3 Apply current legislation to calculate the tax payable on income 2.5 K Describe taxable and non-taxable savings income 3.1 S Apply allowances that can be set against non savings income 3.2 S Apply deductions and reliefs and claim loss set-offs 3.3 S Account for personal allowances 3.4 S Calculate income tax payable 3.5 S 3.6 S Describe taxation relief which can be given on income from employment including deductible (allowable) expenses, pension s relief and charitable donations Describe types of relief which are available on property income including allowable expenses, wear and tear allowance, renewals allowance, loss relief and the circumstances in which each apply 29