AAT Level 3 Diploma in Accounting - Jordan

Management Accounting Techniques Course Outline

Guided Learning Hours: 120

Module 1: Understand the Purpose and Use of Management Accounting Within Organisations

• Internal Reporting Calculations
  • Purpose of Costing Budgeting and Internal Reporting
  • Importance of Providing Accurate Information to Management for Planning Control and Decision Making
  • Calculate Revenue Costs Contribution and Reported Profits for an Organisation
  • Calculate Segmented Revenue Costs Contribution and Reported Profits by Product
• Differences Between Marginal and Absorption Costing
  • Difference Between Product and Period Costs
  • Differences Between Costing Techniques Marginal Costing Absorption Costing
  • Impact on Reported Performance of Marginal Versus Full Absorption Costing in Both Short Run and Long Run
  • Calculate Prime Cost Marginal Cost Full Absorption Cost

Module 2: Use Techniques Required for Dealing with Costs

• Record and Calculate Materials Labour and Overhead Costs
  • Use Appropriate Data and Information from Both Manual Records and Software
• Prepare Cost Accounting Journals
  • Principles of Cost Accounting Journal Entries
  • Prepare Cost Accounting Journals
• Apply Inventory Control Methods
  • Calculate Inventory Control and Valuation Measures
  • Account for Inventories Using FIFO and AVCO Methods
  • Analyse Closing Inventory Balances
• Cost Behaviours
  • Implications of Different Cost Behaviours for Cost Analysis Decision Making and Reporting
  • Use High Low Method to Separate Fixed and Variable Cost Elements of Semi Variable Costs
• Differences Between Costing Systems
  • Account for Under or Over Recovered Overhead Costs in Accordance with Procedures
  • Make Under or Over Absorption Calculations
  • Interpret Significance of Under or Over Recoveries of Overhead Costs on Unit Costs and Total Profit
• Differences Between Costing Systems
  • Appropriate Choice of Costing System for Different Business Sectors and Individual Organisations
  • Effect of Waste on Costing Inputs and Outputs
  • Record Cost Information Using Different Costing Systems

Module 3: Attribute Costs According to Organisational Requirements

• Calculate and Attribute Overhead Costs Using Traditional Methods
  • Different Methods of Indirect Cost Recovery
  • Attribute Overhead Costs to Production and Service Cost Centres
• Calculate Overhead Recovery Rates Using Traditional Methods
  • Calculate Overhead Recovery Rates in Accordance with Suitable Bases of Absorption
• Calculate Overhead Recovery Rates Using Activity-Based Costing
  • Concept of Activity-Based Costing
  • Calculate Overhead Recovery Rates Using Appropriate Cost Drivers
• Under or Over-Recovery of Overheads
  • Account for Under or Over-Recovered Overhead Costs in Accordance with Established Procedures

Module 4: Investigate Deviations from Budgets

• Principles of Standard Prices Costs and Budgeting
  • Product Standard Price and Standard Cost
  • How Standard Prices and Costs Can Be Used to Develop Budgets
  • Different Types of Budget Fixed Flexed Rolling
  • How Operating Statements Are Used to Compare Budgeted Versus Actual Performance
  • Prepare Budgets for Multi Product Organisations Revenue Materials Labour Variable Overheads Fixed Overheads Non-Manufacturing Overheads
  • Flex Fixed Budgets for Actual Volume
• Calculate Variances
  • Recognise Variances as Favourable or Adverse
  • Calculate Variances Using Flexed Budgets
  • Compare Flexed Budget Versus Actual Costs and Revenues to Calculate
• Analyse and Investigate Variances
  • Determine Cause and Effects of Revenue and Cost Variances
  • Recognise Significant Variances for Investigation
  • Report on Remedial Action to Address Adverse Variances

Module 5: Use Spreadsheet Techniques to Provide Management Accounting Information

• Organise Record and Format Data
  • Design Spreadsheets to Support
  • Ensure Data is Valid and Reliable
  • Format Data
• Use Tools to Manipulate Analyse and Verify Data
  • Use Formulas and Functions
  • Use Tools to Support Analysis of Data
  • Edit and Update Data
  • Verify Accuracy of Data Using Formula Auditing Tools
• Use Tools to Prepare Protect and Present Accounting Information
  • Protect Integrity of Data Validation Restrict Editing Protect Ranges of Cells
  • Enhance Visual Presentation of Data

Module 6: Use Management Accounting Techniques to Support Short Term Decision Making

• Estimate and Use Short Term Future Revenue and Costs
  • Concept of Contribution Revenue Minus Variable Costs
  • Use Estimates of Relevant Future Revenue and Costs
  • Use CVP Analysis to Calculate
  • Interpret and Report on CVP Analysis
• Examine the Effects of Changing Activity Levels
  • Effect of Changing Activity Levels on Unit Revenue Costs and Profits
  • Calculate Changes in Forecast Unit Revenue Costs and Profits

Module 7: Understand Principles of Cash Management

• Principles of Cash Budgeting
  • Key Differences Between Cash and Profit
  • Principles of Forecasting Cash Receipts and Payments
  • Funding Methods Available for Acquisition of Non-Current Assets
  • Suitability of Each Funding Method for Acquisition of Non-Current Assets
  • Importance of Liquidity and Use of Resources Ratios
  • Working Capital Cycle
  • Produce Cash Budgets
  • Calculate Working Capital Using Resources Ratios:
• Improving Cash Flow
  • Importance of Liquidity for Businesses’ Survival
  • Actions That Can Be Taken if Insufficient Liquidity
  • Methods of Improving Cash Flow
  • How Accounting Software and Use of Automation and Visualisation Can Aid Cash Flow Planning

Tax Processes for Businesses Course Outline

Guided Learning Hours: 60

Module 1: Understand Legislation Requirements Relating To VAT

• UK Tax Law Principles Relating To VAT
  • That HMRC Is the Relevant Tax Authority for VAT In UK
  • That VAT Is A Tax on Consumer Spending Charged on Taxable Supplies by Taxable Persons
  • Definitions
  • HMRC’s Rules About
  • HMRC’s Rights in Respect of Inspection of Records and Visits to Registered Businesses
• VAT Registration and Deregistration Requirements
  • Registration and Deregistration Thresholds for Normal VAT Scheme and How to Apply Them
  • What Is Meant by Historic Turnover Method Historic Test and Future Turnover Method
  • Circumstances
• Filing and Payment of VAT Returns
  • Timing and Frequency
  • Circumstances in Which Monthly Accounting May Be Beneficial to a Business
  • How Statutory Time Limits for Making Payment Differ Depending on Payment Method Used
  • That Compatible Software Must Be Used and Authorised for Submitting VAT Returns Under Making Tax Digital MTD
• Special Schemes
  • Thresholds Qualification Criteria and Operation of Special VAT Schemes
  • Timing and Frequency
  • Circumstances for Voluntary and Compulsory Withdrawal from Special Schemes
• Implications for Non-Compliance with VAT Regulations
  • Powers of HMRC To Penalise A Business That Has Failed to Register For VAT
  • Details of Penalty Regime Applicable to Non-Registration or Late Registration
  • How Penalty Regime Applies to Late Submission or Non-Submission of VAT Returns Excluding Changes in Filing Frequency
  • Powers of Assessment That HMRC Has in Respect of Failure to Submit VAT Returns
  • Details of Penalty and Interest Regime Applicable to Late or Non-Payment of VAT Due
  • Consequences of Failing To
  • Operational and Legal Consequences of Incorrect Recovery Of VAT

Module 2: Calculate VAT

• Extracting Relevant Data from Accounting Records
  • Relevant Sources of VAT Information Needed by A Business
  • How to Identify Relevant Accounting Records That Cover Required Period of Each VAT Return
  • How to Identify and Extract Relevant Revenue Expenditure and VAT Figures from Accounting Records
  • How to Validate Data and Determine That Figures Extracted Have Come from Original and Verified Source Documents
  • Benefits of Accounting Software in Identifying Errors Eg Incorrect VAT Rate
• VAT Invoices
  • Contents and Form of A VAT Invoice
  • How to Determine the Tax Point of An Invoice Both Basic and Actual When There Are
  • Significance of Correct Tax Point For
  • Time Limits for Issuing VAT Invoices
  • Rules Relating to Electronic Invoicing
• VAT Calculations
  • Difference Between Inputs and Outputs and Between Input Tax and Output Tax
  • Automation of Calculations Through Use of Accounting Software
  • Rounding Rules on VAT Calculations
  • Rules for VAT When Prompt Payment Discounts PPD Are Offered to Customers
  • Different Implications of Exempt Supplies and Of Zero-Rated Supplies and The Effect on Recovery of Input Tax
  • How Partial Exemption Works the De Minimis Limit and How This Affects the Recovery of Input Tax
  • Identification of What Cannot Be Claimed as Input Tax
  • VAT Rules on Fuel Scale Charges How to Apply Them and Their Effect on VAT Payable or Reclaimable
  • How to Apply Bad Debt Relief When This Is Available and What Time Limits Apply
  • How to Account for Postponed Import VAT
  • Learners Need to Be Able To
  • Calculate VAT On
  • Calculate VAT When Given Net or Gross Amount of Supply
  • Calculate VAT Payable Repayable for A VAT Period from Information Such As
  • Calculate the Impact on VAT Of
  • Calculate VAT for International Trade

Module 3: Review and Verify VAT Returns

• Adjust for Errors or Omissions in VAT Returns
  • If Previous Period Errors or Omissions Can Be Corrected by Amendments on Current VAT Returns
  • Thresholds and Deadlines Where Previous Period Errors or Omissions Must Be Declared
  • When Previous Period Errors or Omissions Must Be Separately Reported Rather Than Corrected on Current VAT Returns
  • When to Report Given Previous Period Errors or Omissions That Cannot Be Corrected on Current VAT Returns
  • Calculate and Process Appropriate Adjustments for Given Previous Errors
  • Recognise Impact That Adjustments for Previous Errors Will Have On VAT
• Verify Information Contained Within VAT Returns
  • What Is Included in All Relevant Boxes of VAT Return Excluding Box 2 8 And 9
  • How Imports and Exports Are Treated on A VAT Return
  • Importance of Checking VAT Return Before Submission
  • How to Identify Reasons for Any Given Differences Between VAT Return and Accounting Records
  • Review VAT Returns from Accounting Information
  • Reconcile VAT Return to Accounting Records

Module 4: Understand Principles of Payroll

• Employer Responsibilities of Payroll
  • That Payroll Is Operated by Businesses or Individuals Who Employ Staff
  • That HMRC Is the Relevant Tax Authority for Payroll
  • HMRC’s Powers to Require Businesses to Comply With
  • HMRC’s Rights in Respect of Inspection of Records and Visits
  • HMRC’s Rules About
  • Difference Between Gross Pay Taxable Pay Taxable Gross Pay and Net Pay
  • That Businesses Are Required to Make Statutory Deductions from Gross Pay
  • Businesses May Be Required to Make Non-Statutory Deductions from Gross Pay
  • When Businesses or Individuals Are Required to Register as An Employer
  • Employers Are Entitled to Deduct Statutory and Other Deductions from Employees’ Pay
  • Data Protection Principles Specifically Related to The Personal Data of Employees
  • Calculate the Following
  • Reconcile Gross Pay to Net Pay and Or Taxable Gross Pay
• Operating Payroll
  • This Content of Forms Produced for Payroll
  • That Employers Must Produce and Distribute Forms to Employees Within Required Time Period
  • That Payroll Reports Must Be Submitted to HMRC By Employers Using Real Time Information RTI
  • Content of Full Payment Submissions FPS and Employer Payment Summary EPS Reports Submitted Under RTI
  • That Employers Must Report to HMRC Employee Payments and Employee Changes Within Required Timescale
  • Statutory Time Limits for Submitting Payroll Returns and Making Payment To HMRC
  • Consequences of Late Filing and Or Payment

Module 5: Report Information Within Organisation

• Communicating Information on VAT and Payroll Related Matters
  • Who to Report Relevant Information To
  • When A Query Is Beyond Current Experience or Expertise and So Should Be Referred to A Line Manager
  • Significant Effect on Cash Flows and Cash Budgeting of Requirements to Make Payments on Time To HMRC
  • Communicate Appropriate Time Limits for Submitting Returns and Making Payments to Appropriate Persons
  • Communicate Effects of New Legislation to Appropriate Person
  • Provide Appropriate Information For VAT
  • Provide Appropriate Information for Payroll
• Legislation Regulation Guidance and Codes of Practice
  • Where to Find Information Regarding Changes to VAT and Payroll Law and Practice
  • Importance of Seeking Authorisation Before Returns Are Submitted
  • Relevance of Data Protection Information Security and Confidentiality to VAT and Payroll Practice
  • Importance of Maintaining Up to Date and Relevant Knowledge
  • Importance of Ethical Behaviour in Relation to VAT and Payroll
  • Importance of Updating Accounting Software Regarding Changes to VAT and Payroll Legislation
  • Importance of Acting in Good Faith and Exercising Care When Dealing with HMRC According to AAT Code of Professional Ethics

Business Awareness Course Outline

Guided Learning Hours: 70

Module 1: Understand Business Types, Structures and Governance, and the Legal Framework in Which They Operate

• Types of Businesses
  • Standard Organisation Types and Their Key Characteristics
  • Impact of Business Type on the Organisation’s Governance
  • Types of Funding Used by Businesses
  • Common Features of Business Organisations
  • Differences Between Manufacturing and Service Businesses
• Legal Framework for Companies and Partnerships
  • Key Elements of Companies Legislation
  • Key Elements of Unlimited Liability Partnerships
• Business Stakeholders’ Interactions and Needs
  • Different Business Stakeholders
  • Stakeholders’ Objectives and Requirements from the Business
  • Stakeholders’ Contributions to and Impact on the Business
  • Relative Significance of Stakeholders to the Business
• Organisational Structure and Governance
  • Organisational Structure
  • Importance of Governance in Different Organisation Types
  • Role of Operational, Managerial and Corporate/Strategic Levels within an Organisation
  • Role of the Finance Function in Contributing Towards the Operation of the Other Business Functions and the Organisation’s Plans and Decision Making
  • Concept of Risk and Risk Management

Module 2: Understand the Impact of the External and Internal Environment on Businesses, Their Performance and Decisions

• Use of the PESTLE Model for Analysing the External Environment
  • Use of PESTLE to Analyse the Impact of the Business’s Macro Environment
  • Political Factors Affecting a Business
  • Economic Factors Affecting a Business
  • Social Factors Affecting a Business
  • Technological Factors Affecting a Business
  • Legal Factors Affecting a Business
  • Environmental Factors Affecting a Business
  • Identify PESTLE Factors Affecting a Business
  • Recognise the Impact of PESTLE Factors on the Business
• Micro-Economic Environment
  • Concept of Supply and Demand
  • How Prices Are Determined by the Price Mechanism, Market Forces, and the Impact of Different Goods
  • Impact of Price Changes on Volumes, Revenues, Costs and Profitability
  • How the Levels of Competition in the Micro-Economic Environment are Influenced
• Importance of Sustainability
  • Meaning of Sustainability
  • Three Aspects of Sustainable Performance
  • Importance of Sustainability in Accounting

Module 3: Understand How Businesses and Accountants Comply with Principles of Professional Ethics

• Relevance of the Ethical Code for Professional Accountants
  • Principle of Integrity
  • Principle of Objectivity
  • Principle of Professional Behaviour
  • Principle of Professional Competence and Acting with Due Care
  • Identify Discrepancies That May be Found
  • Principle of Confidentiality
  • Professional Scepticism
  • Difference Between a Principles-Based Approach and a Rules-Based Approach
  • How Documented Organisational Policies Can Safeguard Against Threats and Ethical Conflicts
  • Types of Safeguard That May Be Applied
  • What an Accountant Should Do When a Threat Cannot Be Eliminated or Reduced to an Acceptable Level
  • Recognise Threats to Integrity in Financial Accounting
  • Recognise Threats to Objectivity
  • Recognise Professional Competence and Due Care Threats
  • Recognise Critical Areas Where Up-to-Date Technical Knowledge Is Essential and the Consequences of Not Maintaining CPD
  • Recognise When Confidential Information
  • Recognise Situations When Professional Scepticism Should Be Applied and the Action to Be Taken
  • Recognise Which Safeguards May Be Appropriate
• Ethical Conflicts and Reporting Unethical Behaviour
  • How Ethical Conflicts Arise
  • How to Determine Whether Behaviour Is Ethical or Unethical
  • Key Organisational Values and Compliance with Regulations
  • Stages in Resolving Ethical Conflicts When Applying Fundamental Principles
  • What Happens When a Course of Action Is Unethical
  • Link Between Lack of Professional Competence and Due Care and Claims for Breach of Contract and Professional Negligence
  • Requirement for Professional Indemnity Insurance
  • When and How to Report Unethical Behaviour to Responsible Persons at Work
• Money Laundering
  • Money Laundering Law and Regulations
  • Importance of Reporting Suspected Money Laundering in Accordance with Regulations

Module 4: Understand the Impact of New Technologies in Accounting and the Risks Associated with Data Security

• Technology
  • Impact of Emerging and Developing Technologies on Accounting Systems
  • How Technological Developments Have Increased Outsourcing and Offshoring, Which Has Impacted Business Development
  • Effect of Automation and AI in Accounting Systems on the Role of the Accountant and the Finance Function
  • Key Features of Cloud Accounting
  • Benefits and Limitations of Cloud Accounting for an Organisation
  • Make Entries in the Cash Book
• Data Protection, Information-Security and Cybersecurity
  • Principles of Data Protection
  • Impact of Data Protection Breaches on the Individual and Business
  • Importance of Maintaining Information Security
  • Importance of Cybersecurity to Address Cyber Risks
  • Risks to Data and Operations Posed by Cyberattacks

Module 5: Communicate Information to Stakeholders

• Information Requirements in a Business Organisation
  • Attributes of Good Quality Information
  • Type, Purpose, and Characteristics of Information at Operational, Managerial, and Strategic Levels
  • Characteristics of Big Data
  • Benefits and Limitations of the Use of Big Data
  • Sources of Internal and External Big Data
  • Need to Apply Professional Scepticism in Relation to Big Data
  • Use of Data Analytics from External Sources
• Visualising Information
  • Importance of Being Able to Visualise Information in Different Formats
  • Patterns or Significant Anomalies Within Data
  • Importance of Selecting Appropriate Data Visualisation for Communication
  • Accounting Software Uses Dashboards to Communicate with Non-Technical Stakeholders
  • Interpret Visual Information to Indicate Relationships and Trends
• Communicating Information
  • Principles Used to Determine the Appropriate Method of Communication to Use Both Internally and Externally by the Business
  • Characteristics of Professional Communication