ACCA FA/FFA Financial Accounting | Complete Course (2026)

Accounting is a broad process of providing business information to stakeholders, helping owners, government, managers, suppliers, customers, banks, and future investors make informed decisions.

Provide information for users to make decisions; sub-objectives include income, expenses, profits and losses, assets, liabilities, equity, cash flows, planning, controls, and legal requirements.

Explore the users of accounts by distinguishing internal and external stakeholders, including board of directors, managers, employees, internal auditors, owners, external auditors, and external parties like customers.

Explain the differences between financial accounting and management accounting, including past versus future focus, internal versus external users, and financial only versus financial and non-financial information.

Discover the functions of financial accounting, from collecting and recording past transactions to classifying, summarizing, interpreting, and producing financial statements for decision makers.

Identify the sole trader as a one-owner business where the owner provides capital and bears all profits and losses, with unlimited liability and no separate legal identity.

Explore the features of partnership business: 2-20 partners, capital contributions, pre-agreed profit and loss ratios, and a partnership deed detailing unlimited liability and no continued existence.

Explore the advantages and disadvantages of a sole trader business, including easy start, you can keep all the profits, and privacy, contrasted with unlimited liability, limited capital, and heavy workload.

Explore the advantages and disadvantages of a partnership business, including shared capital, workload, and diverse skills, along with unlimited liability, disputes, profit sharing, and lack of automatic continuity.

Private sector businesses are owned by individuals or groups and aim to profit for owners, while public sector businesses are government controlled and provide services to the public.

Contrast sole traders and partnerships with limited liability companies by highlighting separate legal identity, owners' personal liability, and how audits and disclosures differ for public versus private firms.

Explains the nature, principles and scope of financial reporting, including relevance, reliability, comparability, understandability and consistency, and outlines the applicable statements and entities for decision makers.

Understand how internal and external users—employees, directors, investors, customers, suppliers, lenders, government, and public—need financial information for profitability, financial health, planning, budgeting, and decision making.

Explore the five financial statements: statement of profit or loss and other comprehensive income; statement of financial position; statement of changes in equity; statement of cash flows; and notes.

Explains the five elements of accounts and defines assets as present economic resources controlled by the business, categorized into long-term and current assets with examples.

Define liabilities as present obligations to transfer an economic resource in the future arising from past transactions or events, and distinguish long-term (non-current) from short-term (current) liabilities.

learn how equity represents the owner's residual interest in business assets after liabilities; explore how assets minus liabilities determine equity, and how additional capital and drawings affect the owner's portion.

Income is the amount earned by the business in a period, not just cash received; it increases assets and equity, decreases the liability, and differs from owner capital and drawings.

Explore expenses, how they decrease assets, increase liabilities, and decrease equity, and classify them into distribution, admin, other, and finance with examples like bad debts and interest expenses.

Follow IFRS international financial reporting standards to achieve consistency and comparability for investors across borders. National regulatory frameworks tailor IFRS with laws, market rules, and national reporting standards.

Identify who is charged with governance (board of directors, audit committee) and who are the responsible parties (CFO, finance team), and how they oversee proper, timely, true and fair reporting.

Explore core accounting concepts, including going concern, accrual, materiality, and consistency, and understand duality, business entity, historical cost, current value, and substance over form in financial statements.

Learn how the conceptual framework guides financial statement preparation, outlining objectives, scope, the five elements, and qualitative characteristics such as relevance, faithful representation, verifiability, comparability, and timeliness, with going concern.

Learn how to recognize and measure financial statement items using three criteria and bases like historical cost, current cost, fair value, value in use, and realizable value.

Learn how source documents—purchase invoices, receipts, debit note, credit note, and sales invoices—support purchases and sales in accounting records.

Explore the end-to-end flow of business documents between customers and suppliers, from quotations and purchase orders to delivery notes, grn (good receipt note), invoices, payments, and returns.

Technology has transformed accounting from manual ledgers to automated calculations, cloud accounting, and real-time inventory updates via barcode and RFID, with AI-driven insights.

Explore how technology boosts accounting: fast, accurate calculations; reduced human errors; secure data storage; and easy reporting with Excel or Google Sheets.

Explore the advantages and disadvantages of accounting software, including speed, accuracy, and easy reporting, alongside costs, training, hacking risks, internet dependence, and cloud versus computer-installed solutions.

Explore data security challenges in accounting technology, including data loss from hacking, system crashes, and accidental deletion, unauthorized access, and confidentiality risks, and safeguard information through effective management.

Discover hardware and software data protection methods, including external drives, firewalls, and biometric server access, alongside passwords, antivirus, encryption, software firewalls, and regular updates to safeguard information.

Record transactions in bookkeeping, then apply accounting to classify and summarize data to produce financial statements like the income statement, statement of financial position, and cash flow statements.

Calculate profit or loss by comparing income and expenses with practical year-long examples, and learn to record the full year's expenses in the income statement even if payments are delayed.

Master the basic accounting equation: assets equal equity plus liabilities, and see how owner investments, loans, and asset purchases balance the business's books.

Explore the expanded accounting equation by tracing how assets balance with equity, liabilities, income, expenses, and drawings through practical transactions.

Explore the expanded accounting equation with 15 transactions, balancing assets, equity, liabilities, income, expenses, and drawings in a sole trader example.

Master the double entry system where every transaction has dual effects debited on assets and expenses and credited on equity, liabilities, and income, using T accounts.

Learn the accounting process from recording transactions in prime entry books with source documents through ledgers, trial balance, and five financial statements to an annual report for stakeholders.

Record first entries of transactions in prime entry books using source documents, then transfer debits and credits to ledgers across eight journals.

Learn to use the cash receipt journal, the first prime entry book, to record cash sales, trade receivables, other income, and discounts, and transfer totals to ledgers.

Explains recording cash payments in the cash payment journal, including the 10-column format, cash purchases, trade payables, other expenses and payments, discounts, and ledger transfers.

Learn how to record small cash payments in the petty cash journal, classify expenditures by cleaning, traveling, and stationary, and track vouchers and ledger impacts through the impress system.

Learn how to record credit purchases of trading goods in the purchase journal, understand its format, and transfer entries to the purchase ledger with double-entry considerations.

Learn how credit sales are recorded in the sales journal, including format details (date, customer, invoice, folio, amount) and the double-entry for trade receivable and sales.

Record trading-item returns in the purchase return journal, or return outward journal, using debit notes, supplier details, and folio references to post to the general ledger.

Explore how to record sales returns in the sales return journal, including credit notes, folio tracking, and transferring totals to the ledger through double-entry.

Explore how the general journal records transactions not covered by the seven prime entry books, including non-current asset changes, depreciation, bad debts, and drawings, with proper narration.

Learn how ledgers organize accounting data from source documents and prime entry books to T accounts, with three ledgers (purchase, sales, general), memorandum accounts, and the trial balance.

Enhance understanding of ledgers in part 2 of the ACCA FA/FFA financial accounting course, focusing on ledger practices within financial accounting.

Explore trade and cash discounts, including how trade discounts reduce list price and aren’t recorded, while cash discounts are recorded as discount allowed or discount received.

Master profit markup and profit margin through six practical questions, using cost-based and selling price-based calculations and the 100x approach.

Understand how value added tax (vat) works for registered and not registered businesses, including input and output tax, and how to record purchases, sales, and vat accounts.

Explore inventories under IAS 2 in the ACCA FA/FFA financial accounting course, a part 1 lecture.

Explain continuous (perpetual) and periodic inventory systems, highlighting real-time updates with barcode scans versus end-of-period checks and the higher accuracy of continuous systems.

this lecture covers the periodic weighted average cost method under IAS 02 inventories, deriving a 13.82 per unit average from inflows and applying it to 4500 units sold.

This lecture explains capital expenditure vs revenue expenditure. Capital expenditure allocates purchase costs and improvements to non-current assets for more than one financial year. Revenue expenditure covers short-term operating costs.

Discover IAS 16 property, plant and equipment, defining tangible non-current assets and their recognition criteria, and learn depreciation fundamentals, including depreciable value and scrap value calculations.

Explore IAS 16 PPE depreciation, focusing on straight-line method: compute depreciation as cost minus residual value over useful life and determine net carrying value from cost minus accumulated depreciation.

Learn how to revalue property, plant and equipment to current market prices, apply a full-class revaluation, and adjust depreciation and net carrying value after recognizing a revaluation surplus.

Master reducing balance depreciation under IAS 16 to compute annual depreciation and net book value, and compare it with straight-line methods using a shortcut formula.

Learn how to account for depreciation under IAS 16 using the reducing balance method with a three-year example, including journal entries, accumulated depreciation, and net book value calculations.

Explain PPE disposal under IAS 16 with straight-line and reducing balance depreciation; cover accumulated depreciation, net book value, disposal accounts, and gain or loss on disposal via examples.

Compare full year depreciation and proportionate depreciation under IAS 16, with examples showing depreciation per annum and per month across accounting periods and asset disposal.

Calculate depreciation under IAS 16 using the usage method by allocating the depreciable value of 100,000 across expected production of 100,000 units, yielding 10,000, 20,000, 20,000, and 50,000 per year.

Learn IAS 16 PPE exchange entries, including depreciation up to the exchange date, removing old asset costs and depreciation, recording exchange value and cash paid, and recognizing gains or losses.

Understand the fixed asset register as a detailed non-current asset record for internal control, tracking asset code, purchase data, depreciation, and accountability, and contrast it with the nominal ledger.

Learn accruals and prepayments in financial accounting as presented in the ACCA FA/FFA course, clarifying key concepts for accurate period reporting.

Explore irrecoverable debt and the allowance for receivables, and learn how these concepts affect calculation, recognition, and reporting in financial accounting.

Compute net pay from gross wages, including NIC, payee tax, saving scheme, and charity contributions, and determine the company's total wage cost with journal entries.

Learn IAS 38 on intangible assets, including differences from tangible assets, initial recognition for purchased and developed intangibles, amortization, impairment, and capitalization criteria.

Explore IAS 37 provisions, contingent liabilities, and contingent assets by analyzing present obligations arising from past events and the uncertain outflow of resources.

Offset a party's receivable against its payable to reveal a net payable, and post the contra entry across the general ledger, receivable ledger, and payable ledger.

Explore supplier statements, including credit and debit notes, purchase and purchase returns, and payments, and learn to reconcile creditor control accounts with supplier statements for discrepancies.

Explore how a business finances operations through equity and debt capital. Clarify returns, dividends, interest, and the roles of ordinary and preference shares, plus loan notes, debentures, and bonds.

Track ordinary shares as equity and record share issuance, including nominal price, issue price, and share premium. Demonstrate journal entries for cash, share capital, and share premium.

Learn how a right issue raises funds by offering existing shareholders proportionate to their holdings new shares at a price below market, recording entries to share capital and share premium.

Learn how a bonus issue distributes free shares to existing holders in proportion to their holdings, capitalizing reserves into share capital with no cash received.

Explain how dividends are paid from retained earnings, affect equity, and how interim and final dividends are proposed, approved at AGM, with journal entries debiting retained earnings and crediting cash.

Learn how loan notes, debentures, and bonds raise finance, define nominal price, and record journal entries for issuance and interest payments, including current and non-current liabilities.

Explore how reserves in equity (revaluation reserve, retained earnings, share premium, and general reserve) are created and used, including revaluation surplus, asset revaluation, dividend funding, and planning for future needs.

Explore how the statement of changes in equity records profit, revaluation surplus, dividends, issued shares, and capitalization of reserves to show impact on equity and how to prepare year-end balances.

Learn how income tax is recorded for different business forms, from sole traders and partnerships to limited liability companies, including estimation, tax payable, and under or over provisions.

Analyze capital structure and finance cost, detailing equity components—ordinary shares, share premium, reserves, and retained earnings—and the treatment of redeemable vs irreedeemable shares, tax, and revaluation reserve.

Please provide the lecture caption to generate a precise, seo-friendly summary for the ACCA FA/FFA financial accounting course module on bank reconciliation.

Learn to reconcile supplier statements with the payable ledger, identify discrepancies, and resolve them with proper entries. Explore common causes like unrecorded invoices, returns, and arithmetic errors.

This lecture covers bank and supplier reconciliations, adjusting internal records to match bank and supplier statements, including outstanding, unpresented checks, goods in transit, disputes, discounts, and cash in transit.

Explore the trial balance, a date-specific report of all ledger balances, showing assets, liabilities, equity, income, and expenses, and confirm that debits equal credits.

Master identifying and correcting common accounting errors—from omissions and misentries to errors of commission, original entry, and principle—across prime entry, ledgers, and trial balance, including compensating and duplication errors.

Learn to identify and correct common trial balance errors using suspense accounts, partial omissions, transposition errors, duplications, and proper correction entries.

Identify and correct trial balance errors with journal entries, transfer misposted items to the correct accounts, and clear suspense balances.

Learn corrected profit by applying credit entries to income and expenses that increase profit, and debit entries that decrease profit, with practical error corrections and suspense account guidance under prudence.

Explains 10 adjustments in financial statements, including closing inventory, depreciation, accrued and prepaid expenses, accrued income, income in advance, irrecoverable debts, allowance for receivable, tax estimation, overprovision and underprovision.

Discover how sole traders prepare the income statement and balance sheet, including net sales, cost of sales, gross profit, and net profit.

Learn to prepare sole trader financial statements for year ended 31 December 20XX, including cost of sales, closing stock, accruals, depreciation, and related balance sheet items.

Record trial balance items, apply closing stock and accrual adjustments, depreciate non-current assets, apply hidden adjustments to bank loan and fixed deposit, and finalize gross profit and balance sheet.

Learn the extended accounting equation and six key equations for sole traders, including net assets, net current assets (working capital), and the relationships between assets, liabilities, and equity.

Prepare statement of profit or loss and other comprehensive income and statement of financial position by applying trial balance items and adjustments such as inventory, depreciation, revaluation, and tax provisions.

Learn to prepare the statement of profit or loss, the statement of financial position, and the statement of changes in equity, including cost of sales, taxes, and revaluation entries.

Identify adjusting and non-adjusting events after the reporting period under IAS 10, before and after authorization, and learn when to disclose material matters in notes.

Apply IFRS 15 to recognize revenue from contracts with customers using the COPAR five steps model, allocating transaction prices and recognizing revenue as obligations are fulfilled, sales tax handling.

Learn to handle incomplete records in financial accounting by applying the accounting equation, t accounts, cash records, and markup or margin methods to estimate missing figures.

Learn how the statement of cash flows tracks a business’s cash inflows and outflows, organized into operating, investing, and financing activities, with cash and cash equivalents.

Explore how to prepare the cash flow statement by comparing the direct and indirect methods, and classify cash flows into operating, investing, and financing activities.

Learn to prepare the statement of cash flows using the direct method, including cash receipts from receivables, payments for payables, and salaries and wages, with depreciation treated as non-cash.

Master the indirect method to prepare the statement of cash flows, starting from profit before tax and adjusting for tax, interest, depreciation, and loss on disposal, plus working capital.

Explore the statement of cash flows with practice on loss on disposal treatment and non-cash item adjustments. Learn how receivables, payables, and other working capital changes affect cash from operations.

Explore how to prepare consolidated financial statements by defining group, parent, and subsidiary, applying control criteria, handling non-controlling interest, and calculating goodwill under IFRS3.

Follow five steps to prepare the consolidated statement of financial position, including identifying group structure, net assets, goodwill, and non-controlling interest, with practical 100% ownership examples.

Identify the parent and subsidiary, determine the subsidiary's net assets at acquisition and at reporting date, calculate goodwill, recognize the non-controlling interest, and prepare the consolidated statement of financial position.

convert assets to fair value for accurate goodwill calculation and prepare a consolidated statement of financial position by applying fair value adjustments, determining nci, and reporting post-acquisition earnings.

Learn how a parent can acquire a subsidiary using cash, parent shares, or liability settlement, including contingent consideration, and calculate fair value and journal entries for 75% acquisition.

Eliminate intragroup receivables and payables and unrealized profits in consolidation. Apply fair value adjustments, compute goodwill and non-controlling interest, and prepare the consolidated statement of financial position.

Learn how to eliminate intra-group unrealized profits in intercompany inventory to ensure accurate consolidated financial statements, by removing profits from closing inventory and from retained earnings (including NCI).

Demonstrates preparing a consolidated statement of financial position after a 60% acquisition, addressing post-acquisition seven-month profits, unrealized intra-group profits, fair value of assets, goodwill, and non-controlling interest.

Learn to prepare the consolidated statement of profit or loss by line-by-line aggregation of parent and subsidiary figures, and apply key adjustments for non-controlling interest, intra-group trading, and mid-year acquisitions.

Learn to adjust intra-group trading in consolidation by removing parent–subsidiary sales and purchases and unrealized profits, updating cost of sales, retained earnings, and subsidiary closing inventory.

Apply post-acquisition figures using 4/12 to prepare the consolidated statement of profit or loss after a mid-year subsidiary acquisition, including group NCI and parent share.

Explore associates in group accounts, distinguishing control from high influence, apply the equity accounting method, and present investments, share of profits, impairment, and intra-group eliminations.

Explore profitability, liquidity, and efficiency ratios, focusing on ROCE, operating profit margin, asset turnover, and gross profit margin, tied to income statement and balance sheet concepts, including capital employed.

Compute the cash cycle, also called the operating or working capital cycle, by adding inventory days and receivable days and subtracting payable days to improve efficiency.

Explore working capital turnover ratios—inventory turnover, receivable turnover, and payable days—with practical examples, cash cycle implications, and the balance between delaying payments and supplier relationships.

Assess profitability, liquidity, and efficiency by comparing 2004 and 2005 Navel company ratios, noting revenue up 20% but margins and liquidity decline due to price cuts and extended credit.