Accounting Intermediate level

The study area IM (Intermediate) Accounting is informed by the National Curriculum Framework (NCF).

Accounting provides information to business organisations and in particular to the providers of capital to assist them in their investment decisions. Business organisations maintain accounting records to facilitate the preparation of financial statements that report on the profitability and the financial position of the business. The financial reports assist management, owners, prospective investors and lenders in making informed decisions. Moreover, accounting is a tool for personal finance and it will enhance the students’ financial literacy skills which will prepare them better for the future.

The fast growing business environment has led to an increased awareness of the role of accounting and its importance in the financial sector and the community. Accounting provides a framework upon which financial statements are prepared to ensure a true and fair view of business performance and financial position. The understanding of the fundamental accounting principles will guide students in their journey of discovering accounting. The benefits of accounting are not limited to business and its management. Accounting knowledge complements other essential skills for lifelong learning. Its relevance is not solely to undertake a profession in accountancy or to an alternative career path in the financial sector. It will assist citizens in their financial decisions and in their day-to-day financial needs. Accounting encourages students to think critically, analyse situations and evaluate different courses of action in reaching a decision. An extensive baggage of skills will ensure the success of the individual and the society.

At the end of the programme, the student will be able to: 

• discuss the role of accounting in the business environment and evaluate the contribution of accounting to the financial sector, and understand how it can be of value for one’s personal financial needs
• list and distinguish between the main types of business transactions, record them in an accounting system and prepare the statement of profit or loss and the statement of financial position of a sole proprietor from a trial balance
• prepare the main business documents for the different business transactions, maintain books of prime entry and record double entry in the respective ledger
• prepare a two-column cash book, reconcile the bank account in the cash book with the bank statement and process payroll transactions within the accounting system
• apply the accounting concepts to accruals and prepayments, depreciation and allowances for receivables and record the end of period adjustments when preparing the relevant accounts and the financial statements
• prepare the statement of profit or loss and the statement of financial position of a sole proprietor from a trial balance and the end of period adjustments
• classify costs as direct or indirect costs and prepare a manufacturing account to calculate the cost of production
• classify costs by behaviour into variable and fixed costs in order to calculate the break-even activity level and the contribution and profit for different levels of activity
• locate and correct errors in the accounting system
• prepare the financial statements of a sole proprietor from incomplete information, and calculate the net profit of a business from a statement of affairs using the accounting equation
• evaluate the business performance and financial position for the various users of financial statements, and prepare departmental profit statements
• understand costings concepts, such as, inventory (stock) valuation (FIFO, AVCO, inventory control), labour, overheads, marginal costing, and budgeting