This unit is the first of two Advanced financial accounting units. It develops Foundation skills, incorporating advanced bookkeeping and managing records for non-current assets, in preparation for producing final accounts for unincorporated organisations.

The purpose of this unit is to build on skills and knowledge learned in the Foundation level accounting units and to develop bookkeeping skills, taken to an initial trial balance. This is valuable progress for the student, both in terms of moving towards preparing final accounts and also in terms of offering employers more technical skills at this stage. The bookkeeping skills that students have acquired at an earlier stage will be reinforced and developed.

Learning outcomes

• Apply the principles of advanced double-entry bookkeeping.
• Implement procedures for the acquisition and disposal of non-current assets.
• Prepare and record depreciation calculations.
• Record period end adjustments.
• Produce and extend the trial balance.

This Advanced level unit is about preparing final accounts for sole traders and partnerships, and helping students to become aware of alternative business organisation structures. This purpose is to provide the background knowledge and skills that a student needs to be capable of drafting accounts for sole traders and partnerships, and it provides the background knowledge of the regulations governing company accounts.

A successful student will be able to complete tasks while being aware of potential ethical issues and know how to report information effectively. The student should become an accomplished member of the accounting team who is able to work with little supervision and who can see a financial picture of the organisation as a whole.

Learning outcomes

• Distinguish between the financial recording and reporting requirements of different types of organisation.
• Explain the need for final accounts and the accounting and ethical principles underlying their preparation.
• Prepare accounting records from incomplete information.
• Produce accounts for sole traders.
• Produce accounts for partnerships.
• Recognise the key differences between preparing accounts for a limited company and a sole trader.

This Advanced level unit is about indirect tax: specifically, the tax that is referred to in the UK and throughout this unit as value added tax (VAT). The unit is designed to develop students’ skills in preparing and submitting returns to the relevant tax authority in situations where the transactions that have to be included are relatively routine. However, some non-routine issues are also included.

Learning outcomes

• Understand and apply VAT legislation requirements.
• Accurately complete VAT returns and submit them in a timely manner.
• Understand the implications for the business of errors, omissions and late filing and payment.
• Report VAT-related information within the organisation in accordance with regulatory and organisational requirement.