CPA Fondation Level - Financial Accounting (KASNEB)

About Course

This Financial Accounting course unit is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to prepare financial statements for different entities.

Financial Accounting course is offered as a unit under KASNEB, Certified Public Accountant (CPA), Section I course.

Benefits of Certified Public Accountant course in Kenya

CPA Kenya – Certified Public Accountant in Kenya certification opens doors to a wide variety of accounting career options. Some major areas in financial accounting CPA course include International Accounting.

CPA in Kenya is the most sought after Professionals amongst the Accounting industry in the world. With global recognition, a CPA Kenya can always find the best place to work anywhere in world and with high remuneration compared to other Accounting Professionals.

CPA Kenya Certification holder earns at-least 30% to 40% more than their non-credentialed counterparts

Starnet Online Colleges in Kenya offers KASNEB Online studies using kasneb online videos, kasneb notes, kasneb questions and answers amongst others.

A candidate who passes KASNEB Financial Accounting paper should be able to:
Prepare books of original entry and basic ledger accounts under double entry system
Prepare basic financial statements of sole traders, partnerships, companies, manufacturing entities and not for profit organisations
Comply with the regulatory framework in the accounting field
Account for assets and liabilities
Analyse financial statements by use of ratios and statement of cash flows

Course Content

Introduction to Accounting
Introduction to accounting

The nature and purpose of accounting

06:05
Objectives of Accounting

04:56
Users of Accounting Information and Their Respective Needs

08:50
The accounting equation

34:26
Regulatory framework of accounting (regulatory bodies such as ICPAK, IFAC, IASB, IPSASB, IAESB)

06:43
Accounting standards (IASs/IFRSs) (importance and limitations)

06:19
Professional ethics

03:32
Accounting concepts/principles

16:56
Qualities of useful accounting information

07:28

Recording Transactions
Recording Transactions

Accounting for Assets
Accounting for Assets

Property, plant and equipment – recognition, capital and revenue expenditure, measurement (depreciation and revaluation), disposal and disclosures, property, plant and equipment schedule
Intangible assets – recognition, measurement (amortisation, impairment and revaluation), disposals and disclosures
Financial assets – examples and risks only
Inventory – recognition, measurement and valuation using specific cost method, FIFO and weighted average cost only
Trade receivables – bad debts and allowance for doubtful debts and receivables control accounts
Accrued income and prepaid expenses
Cash at bank – cash book and bank reconciliation statement
Cash in hand – cash book and petty cash books

CPA Fondation Level – Financial Accounting (KASNEB)

About Course

Benefits of Certified Public Accountant course in Kenya

What Will You Learn?

Course Content

Introduction to Accounting Introduction to accounting

The nature and purpose of accounting

Objectives of Accounting

Users of Accounting Information and Their Respective Needs

The accounting equation

Regulatory framework of accounting (regulatory bodies such as ICPAK, IFAC, IASB, IPSASB, IAESB)

Accounting standards (IASs/IFRSs) (importance and limitations)

Professional ethics

Accounting concepts/principles

Qualities of useful accounting information

Recording Transactions Recording Transactions

Source documents: quotations, purchase orders, statement of account, remittance advice, receipts, petty cash vouchers, sales and purchase invoice, credit notes and debit notes, bank statements

Books of original entry: sales journal, purchases journal, returns inwards journal, returns outward journal, cash book, petty cash book and general journal

Double entry and the ledger; use of T- accounts and double entry aspects (debit and credit), sales ledger and purchases ledger

The trial balance

Computerised accounting systems – role of computers, application and accounting softwares in the accounting process, benefits and challenges of operating computerised accounting systems

Accounting for Assets Accounting for Assets

Property, plant and equipment – recognition, capital and revenue expenditure, measurement (depreciation and revaluation), disposal and disclosures, property, plant and equipment schedule

Intangible assets – recognition, measurement (amortisation, impairment and revaluation), disposals and disclosures

Financial assets – examples and risks only

Inventory – recognition, measurement and valuation using specific cost method, FIFO and weighted average cost only

Trade receivables – bad debts and allowance for doubtful debts and receivables control accounts

Accrued income and prepaid expenses

Cash at bank – cash book and bank reconciliation statement

Cash in hand – cash book and petty cash books

Accounting for Liabilities Accounting for Liabilities

Bank overdraft – cash book and bank reconciliation statement

Trade payables – control accounts

Loans – accounting treatment of repayment of principal and interest

Prepaid incomes and accrued expenses

Correction of Errors and Suspense Account Correction of errors and suspense account

Correction of Errors and Suspense Account

Financial Statements of a Sole Trader Financial statements of a sole trader

Statement of financial position

Income statement

Financial Statements of a Partnership Financial statements of a partnership

Partnership agreement

Introduction to partnership accounts

Distinction between current and fixed capital

Income statement

Statement of financial position

Changes in partnership – admission of a new partner, retirement, death and change in profit sharing ratio

Financial Statements of a Company Financial statements of a company

Types of share capital – ordinary shares and preference shares

Issue of shares (exclude issue by instalment and forfeiture)

Types of reserves – share premium, revaluation reserve, general reserves and retained profits

Income tax – accounting treatment and presentation (exclude computation)

Financial statements – income statement and statement of financial position

Published financial statements (describe a complete set of published financial statements but not preparation)

Financial Statements of a Manufacturing Entity Financial statements of a manufacturing entity

Features of a manufacturing entity

Classification and apportioning costs between manufacturing, selling and administration

Financial statements – manufacturing account, income statement and statement of financial position

Accounts from Incomplete Records Accounts from incomplete records

Features of incomplete records

Types of incomplete records(pure single entry, simple single entry, quasi single entry)

Ascertainment of profit by capital comparison

Preparation of statement of affairs and profit determination

Techniques of obtaining complete accounting information

Financial Statements of a Not for Profit Organisation Financial statements of a not for profit organisation

Distinction between not for profit making organisation and profit making organisation

Nature of receipts and payments account

Accounting treatment of some special items

Income and expenditure account

Statement of financial position

Analysing Financial Statements Analysing financial statements

Statement of cash flows (categories of cash, methods of preparing statement of cash flows and the importance)

Financial ratios – definition, categories, analysis and interpretation, application and limitations

Introduction to Public Sector Accounting Introduction to Public Sector Accounting

Features of public sector entities (as compared to private sector)

Structure of the public sector (National and county governments, state corporations and other agencies)

Regulatory structures and oversight [IPSASB, PSASB (establishment, mandate and functions), Director of Accounting Services, National Treasury, Parliamentary Committees, Accounting Officers at national and county levels]

Objectives of public sector financial statements

Objectives of IPSAS

Accounting techniques in public sector (budgeting, cash, accrual, commitment and fund) (Preparation of financial statements excluded)

Introduction to Accounting
Introduction to accounting

Recording Transactions
Recording Transactions

Accounting for Assets
Accounting for Assets

Accounting for Liabilities
Accounting for Liabilities

Correction of Errors and Suspense Account
Correction of errors and suspense account

Financial Statements of a Sole Trader
Financial statements of a sole trader

Financial Statements of a Partnership
Financial statements of a partnership

Financial Statements of a Company
Financial statements of a company

Financial Statements of a Manufacturing Entity
Financial statements of a manufacturing entity

Accounts from Incomplete Records
Accounts from incomplete records

Financial Statements of a Not for Profit Organisation
Financial statements of a not for profit organisation

Analysing Financial Statements
Analysing financial statements

Introduction to Public Sector Accounting
Introduction to Public Sector Accounting

Emerging issues and trends
Emerging issues and trends

Learning Outcomes
Learning Outcomes