REVISED CERTIFIED ACCOUNTING TECHNICIAN (CAT) QUALIFICATION
ACCA is pleased to announce its new entry-level suite of awards - Foundations in Accountancy - which will be first examined in December 2011.
Foundations in Accountancy consists of a suite of awards, including certificates, diplomas and a revised Certified Accounting Technician (CAT) Qualification.
These flexible awards focus on the core skills of financial accounting and management accounting; and the wider role of the accountant in business at higher levels. The range of awards means employers can pick the level of qualification which most appropriately meets their business needs. In addition, it provides students with flexible entry points with certification awarded at each level, allowing students to tailor the awards, making them an attractive and relevant choice for employers.
Foundations in Accountancy contains the following qualifications:
• Introductory Certificate in Financial and Management Accounting – awarded on the completion of exams FA1 and MA1; and Foundations in Professionalism
• Intermediate Certificate in Financial and Management Accounting – awarded on the completion of exams FA2 and MA2; and Foundations in Professionalism
• Diploma in Accounting and Business – awarded on the completion of exams FAB, FMA and FFA; and Foundations in Professionalism
• Certified Accounting Technician (CAT) Qualification.
OBTAINING THE CERTIFIED ACCOUNTING
TECHNICIAN (CAT) QUALIFICATION
ACCA has retained the CAT Qualification as part of the suite of awards within Foundations in Accountancy. In order to obtain the CAT Qualification, students will need to complete the following:
• FA1, MA1, FA2, MA2, FAB, FFA and FMA
• two of the three options papers
• a practical experience requirement
• Foundations in Professionalism.
There is no requirement for students to complete the exams in the Introductory Certificate in Financial and Management Accounting (FA1 and MA1) and/or the Intermediate Certificate in Financial and Management Accounting (FA2 and MA2) if they do not wish to complete the CAT Qualification. However, completion of these certificates will enable students to gain additional qualifications and validation of knowledge acquired. In addition, it will lay the foundations for other exams in the suite of awards, providing students with knowledge and experience of sitting relevant exams which may assist with exam performance within the Diploma in Accounting and Business and ACCA Qualification.
ENTRY REQUIREMENTS
Foundations in Accountancy offers various entry points, allowing maximum flexibility for prospective students to select the most appropriate entry route and progression to additional qualifications, based on their previous qualifications, experience and future career aspirations.
It is important to note exams FAB, FMA and FFA within Foundations in Accountancy are exactly the same as exams F1, F2 and F3 of the ACCA Qualification and share identical syllabuses, study guides and assessment methods. F1, F2 and F3 of the ACCA Qualification will be updated and also first examined in December 2011. Students who complete F1, F2 and F3 of the ACCA Qualification and Foundations in Professionalism will also be awarded the Diploma in Accounting and Business.
Route 1:No formal academic qualifications
Students with no formal academic qualifications can register to take exams at any level within Foundations in Accountancy. There is no requirement to complete the Introductory Certificate in Financial and Management Accounting or the Intermediate Certificate in Financial and Management Accounting prior to completing the Diploma in Accounting and Business, although students are strongly recommended to do so. As Foundations in Accountancy offers so much flexibility, there is no longer a need to provide the mature student entry route (MSER) as part of the ACCA Qualification. With the introduction of Foundations in Accountancy, students who do not meet the minimum entry requirements for the ACCA Qualification can register for Foundations in Accountancy and can start studying at any level, including the Diploma in Accounting and Business. There are no requirements to complete these papers within a given timescale in order to progress onto the ACCA Qualification.
Students currently registered under the MSER on the ACCA Qualification will be notified of the changes and transition arrangements.
Route 2: Meeting the minimum entry requirements for the ACCA Qualification
For students who meet the minimum entry requirements to commence the ACCA Qualification i.e. have a minimum of 2 A Levels and 3 GCSEs or equivalent, they can either register for the ACCA Qualification and commence their studies at the Knowledge module with F1, F2 and F3; or register on the Foundations in Accountancy and complete the Introductory and Intermediate Certificates in Financial and Management Accounting if they prefer to take this route first.
ACCA recommends students register directly onto the ACCA Qualification if they meet the minimum entry requirements for the qualification instead of entering the ACCA Qualification via Foundations in Accountancy. However, the option is available to those students who wish to obtain additional certificates at introductory and intermediate levels before commencing their studies on the ACCA Qualification.
OPTIONAL ENGLISH and MATHS SELF-CHECK MODULES
ACCA will continue to retain its open entry policy via Foundations in Accountancy. However, to assist prospective students in gauging their general level of ability in English and maths, ACCA has developed optional self-check modules in English and maths. Included within the self-check modules are learning materials and links to other materials to help students improve their English language and maths skills which they may wish to complete before embarking on any of ACCA’s qualifications. The self-check modules and recommended tutorial support are optional to complete, the self-check modules are free of charge and can be accessed from the ACCA website.
PROGRESSION ONTO THE ACCA QUALIFICATION
Students who successfully complete the Diploma in Accounting and Business via Foundations in Accountancy can either:
• transfer to the ACCA Qualification and commence their studies at F4 onwards of the ACCA Qualification
OR
• continue to study for the Certified Accounting Technician (CAT) Qualification. On completion of the CAT Qualification, students may then progress onto the ACCA Qualification if they wish to do so, from F4 onwards. They can also count the three performance objectives and one year’s work experience gained to achieve the CAT Qualification towards the three years’ work experience required for the ACCA Qualification.
ADVANCED DIPLOMA IN ACCOUNTING AND BUSINESS
To ensure greater articulation between Foundations in Accountancy and the ACCA Qualification, ACCA is also introducing an Advanced Diploma in Accounting and Business which will form part of the ACCA Qualification. The Advanced Diploma in Accounting and Business will be awarded when students have completed or are exempt from the Fundamentals level exams of the ACCA Qualification. Students will also need to complete the Professional Ethics module in order to receive certification for the award of Advanced Diploma in Accounting and Business. Please note students will need to have taken and passed at least two of the six Skills module papers in order to qualify for the Advanced Diploma. The Advanced Diploma in Accounting and Business will be awarded to students who complete the Fundamentals level exams from the December 2011 exam session.
FOUNDATIONS IN PROFESSIONALISM
In line with current best practice, and to meet IFAC’s (International Federation of Accountants) recommendations for technical accountants, a professionalism and ethics module will be introduced as part of Foundations in Accountancy.
Completion of Foundations in Professionalism is compulsory for students who wish to be awarded the Introductory and Intermediate certificates in Financial and Management Accounting, the Diploma in Accounting and Business and the CAT Qualification. Please note Foundations in Professionalism only needs to be completed once by students who choose to complete one or more of these awards.
Foundations in Professionalism is free of charge and when available, can be accessed from the ACCA website.
Foundations in Professionalism will not contribute towards the Professional Ethics module which is part of the ACCA Qualification as they are distinct and separate modules.
EXPERIENCE
Students who wish to complete the CAT Qualification will be required to complete a practical experience requirement. Four of the CAT Qualification performance objectives will be the same as the performance objectives which form part of the ACCA Qualification, and will be introduced alongside the current elements of technical competence.
If these four performance objectives are completed as part of the CAT Qualification practical experience requirements, they can count towards four of the 13 performance objectives required to achieve the ACCA Qualification.
Students will be required to update and maintain paper records of progress towards performance objectives and technical competences.
EXEMPTIONS
Students with relevant qualifications from a recognised institution may be eligible to claim exemption from papers within Foundations in Accountancy.
Students who choose to complete the CAT Qualification may be eligible to claim exemptions from some or all of the papers within the Introductory Certificate in Financial and Management Accounting and Intermediate Certificate in Financial and Management Accounting based on relevant practical experience.
CONVERSION ARRANGEMENTS FOR EXISTING CAT STUDENTS
Conversion of students from the existing CAT Qualification to Foundations in Accountancy will be awarded on a paper-for-paper basis. The conversion arrangements will ensure no student is disadvantaged in the transition from the current to the revised syllabus.
Students who have not completed the current CAT exams by June 2011 will be automatically transferred to Foundations in Accountancy and awarded converted exemptions or passes for all papers they have previously been given exemption from or passed.
EXAMS
An outline of the exam syllabus is listed below. The detailed syllabuses will be available by August 2010 and sample exams by January 2011.
Recording Financial Transactions (FA1)
To introduce the basic accounting systems and documentation that will be encountered in the workplace. To develop knowledge and understanding of the operational aspects of maintaining accounting records and procedures and to learn how to record these transactions in the books of prime entry, including introduction to the principles of double entry and understanding how a computerised and a manual accounting system work.
Management Information (MA1)
To introduce the student to the knowledge of basic cost information required for management accounting. To develop the knowledge and ability to recognise, collect and record basic cost and revenue information for planning and control including an introduction to full absorption cost and marginal cost.
Maintaining Financial Records (FA2)
To introduce the fundamental principles of accounting and to develop the knowledge and understanding of the techniques used to maintain accounting records. To produce accounting records including ledger accounts, sales tax records (where applicable), control accounts, reconciliations, and extract and correct an initial trial balance also making the adjustments necessary to produce an extended trial balance. The syllabus also covers accounting for the business transactions of sole traders and partnerships.
Managing Costs and Finances (MA2)
To develop the knowledge and understanding of the principles and techniques used in recording, analysing and reporting costs and revenues for internal management purposes. To demonstrate and develop applicable cost concepts in making short term decisions.
Financial Accounting (FFA)
To develop knowledge and understanding of the underlying principles and concepts relating to financial accounting and to demonstrate technical proficiency in the use of double entry techniques, including the preparation and interpretation of basic financial statements for sole traders, companies and simple groups of companies.
Management Accounting (FMA)
To develop the knowledge and ability to apply appropriate management accounting concepts and techniques for decision making, planning and control including forecasting techniques, the preparation of budgets and standard costs and performance measurement.
Accountant in Business (FAB)
To understand business in the context of its environment, including economic, legal, and regulatory influences on such aspects as governance, employment, health and safety, data protection and security. Additionally, to introduce certain aspects of the regulatory framework as they affect auditing and governance, examining the roles of internal and external auditors and introducing the importance of internal control. The syllabus also introduces key management and people issues such as individual and team behaviour, leadership, motivation, personal effectiveness and professional ethics in accounting and business.
Options papers
Foundations in Taxation (FTX)
To develop the core knowledge of the underlying principles and the major technical areas of taxation, as they affect the activities of individuals and businesses, at a level appropriate for someone working at technician level. Having covered the core areas of the basic taxes, candidates should be able to compute tax liabilities, explain the basis of their calculations, complete the tax returns and identify the compliance issues for each major tax through a variety of business and personal scenarios and situations.
Foundations in Financial Management (FFM)
To examine all aspects of cash and working capital management, and to develop an understanding of the sources of short and long-term finance. To develop the knowledge and understanding of the way organisations finance their operations and plan, allocate and control resources to optimise returns.
Foundations in Audit (FAU)
To develop knowledge and understanding of external audit and the techniques used in the conduct of external audits. Additionally to demonstrate knowledge and understanding of internal control systems.
COMPUTER-BASED EXAMS (CBEs)
Computer-based exams will be available for the first seven papers (not the options papers) and paper-based exams will continue to be available for all exams within Foundations in Accountancy. The first computer-based and paper-based exams under the new syllabus will be available in December 2011.
Foundations in Accountancy consists of a suite of awards, including certificates, diplomas and a revised Certified Accounting Technician (CAT) Qualification.
These flexible awards focus on the core skills of financial accounting and management accounting; and the wider role of the accountant in business at higher levels. The range of awards means employers can pick the level of qualification which most appropriately meets their business needs. In addition, it provides students with flexible entry points with certification awarded at each level, allowing students to tailor the awards, making them an attractive and relevant choice for employers.
Foundations in Accountancy contains the following qualifications:
• Introductory Certificate in Financial and Management Accounting – awarded on the completion of exams FA1 and MA1; and Foundations in Professionalism
• Intermediate Certificate in Financial and Management Accounting – awarded on the completion of exams FA2 and MA2; and Foundations in Professionalism
• Diploma in Accounting and Business – awarded on the completion of exams FAB, FMA and FFA; and Foundations in Professionalism
• Certified Accounting Technician (CAT) Qualification.
OBTAINING THE CERTIFIED ACCOUNTING
TECHNICIAN (CAT) QUALIFICATION
ACCA has retained the CAT Qualification as part of the suite of awards within Foundations in Accountancy. In order to obtain the CAT Qualification, students will need to complete the following:
• FA1, MA1, FA2, MA2, FAB, FFA and FMA
• two of the three options papers
• a practical experience requirement
• Foundations in Professionalism.
There is no requirement for students to complete the exams in the Introductory Certificate in Financial and Management Accounting (FA1 and MA1) and/or the Intermediate Certificate in Financial and Management Accounting (FA2 and MA2) if they do not wish to complete the CAT Qualification. However, completion of these certificates will enable students to gain additional qualifications and validation of knowledge acquired. In addition, it will lay the foundations for other exams in the suite of awards, providing students with knowledge and experience of sitting relevant exams which may assist with exam performance within the Diploma in Accounting and Business and ACCA Qualification.
ENTRY REQUIREMENTS
Foundations in Accountancy offers various entry points, allowing maximum flexibility for prospective students to select the most appropriate entry route and progression to additional qualifications, based on their previous qualifications, experience and future career aspirations.
It is important to note exams FAB, FMA and FFA within Foundations in Accountancy are exactly the same as exams F1, F2 and F3 of the ACCA Qualification and share identical syllabuses, study guides and assessment methods. F1, F2 and F3 of the ACCA Qualification will be updated and also first examined in December 2011. Students who complete F1, F2 and F3 of the ACCA Qualification and Foundations in Professionalism will also be awarded the Diploma in Accounting and Business.
Route 1:No formal academic qualifications
Students with no formal academic qualifications can register to take exams at any level within Foundations in Accountancy. There is no requirement to complete the Introductory Certificate in Financial and Management Accounting or the Intermediate Certificate in Financial and Management Accounting prior to completing the Diploma in Accounting and Business, although students are strongly recommended to do so. As Foundations in Accountancy offers so much flexibility, there is no longer a need to provide the mature student entry route (MSER) as part of the ACCA Qualification. With the introduction of Foundations in Accountancy, students who do not meet the minimum entry requirements for the ACCA Qualification can register for Foundations in Accountancy and can start studying at any level, including the Diploma in Accounting and Business. There are no requirements to complete these papers within a given timescale in order to progress onto the ACCA Qualification.
Students currently registered under the MSER on the ACCA Qualification will be notified of the changes and transition arrangements.
Route 2: Meeting the minimum entry requirements for the ACCA Qualification
For students who meet the minimum entry requirements to commence the ACCA Qualification i.e. have a minimum of 2 A Levels and 3 GCSEs or equivalent, they can either register for the ACCA Qualification and commence their studies at the Knowledge module with F1, F2 and F3; or register on the Foundations in Accountancy and complete the Introductory and Intermediate Certificates in Financial and Management Accounting if they prefer to take this route first.
ACCA recommends students register directly onto the ACCA Qualification if they meet the minimum entry requirements for the qualification instead of entering the ACCA Qualification via Foundations in Accountancy. However, the option is available to those students who wish to obtain additional certificates at introductory and intermediate levels before commencing their studies on the ACCA Qualification.
OPTIONAL ENGLISH and MATHS SELF-CHECK MODULES
ACCA will continue to retain its open entry policy via Foundations in Accountancy. However, to assist prospective students in gauging their general level of ability in English and maths, ACCA has developed optional self-check modules in English and maths. Included within the self-check modules are learning materials and links to other materials to help students improve their English language and maths skills which they may wish to complete before embarking on any of ACCA’s qualifications. The self-check modules and recommended tutorial support are optional to complete, the self-check modules are free of charge and can be accessed from the ACCA website.
PROGRESSION ONTO THE ACCA QUALIFICATION
Students who successfully complete the Diploma in Accounting and Business via Foundations in Accountancy can either:
• transfer to the ACCA Qualification and commence their studies at F4 onwards of the ACCA Qualification
OR
• continue to study for the Certified Accounting Technician (CAT) Qualification. On completion of the CAT Qualification, students may then progress onto the ACCA Qualification if they wish to do so, from F4 onwards. They can also count the three performance objectives and one year’s work experience gained to achieve the CAT Qualification towards the three years’ work experience required for the ACCA Qualification.
ADVANCED DIPLOMA IN ACCOUNTING AND BUSINESS
To ensure greater articulation between Foundations in Accountancy and the ACCA Qualification, ACCA is also introducing an Advanced Diploma in Accounting and Business which will form part of the ACCA Qualification. The Advanced Diploma in Accounting and Business will be awarded when students have completed or are exempt from the Fundamentals level exams of the ACCA Qualification. Students will also need to complete the Professional Ethics module in order to receive certification for the award of Advanced Diploma in Accounting and Business. Please note students will need to have taken and passed at least two of the six Skills module papers in order to qualify for the Advanced Diploma. The Advanced Diploma in Accounting and Business will be awarded to students who complete the Fundamentals level exams from the December 2011 exam session.
FOUNDATIONS IN PROFESSIONALISM
In line with current best practice, and to meet IFAC’s (International Federation of Accountants) recommendations for technical accountants, a professionalism and ethics module will be introduced as part of Foundations in Accountancy.
Completion of Foundations in Professionalism is compulsory for students who wish to be awarded the Introductory and Intermediate certificates in Financial and Management Accounting, the Diploma in Accounting and Business and the CAT Qualification. Please note Foundations in Professionalism only needs to be completed once by students who choose to complete one or more of these awards.
Foundations in Professionalism is free of charge and when available, can be accessed from the ACCA website.
Foundations in Professionalism will not contribute towards the Professional Ethics module which is part of the ACCA Qualification as they are distinct and separate modules.
EXPERIENCE
Students who wish to complete the CAT Qualification will be required to complete a practical experience requirement. Four of the CAT Qualification performance objectives will be the same as the performance objectives which form part of the ACCA Qualification, and will be introduced alongside the current elements of technical competence.
If these four performance objectives are completed as part of the CAT Qualification practical experience requirements, they can count towards four of the 13 performance objectives required to achieve the ACCA Qualification.
Students will be required to update and maintain paper records of progress towards performance objectives and technical competences.
EXEMPTIONS
Students with relevant qualifications from a recognised institution may be eligible to claim exemption from papers within Foundations in Accountancy.
Students who choose to complete the CAT Qualification may be eligible to claim exemptions from some or all of the papers within the Introductory Certificate in Financial and Management Accounting and Intermediate Certificate in Financial and Management Accounting based on relevant practical experience.
CONVERSION ARRANGEMENTS FOR EXISTING CAT STUDENTS
Conversion of students from the existing CAT Qualification to Foundations in Accountancy will be awarded on a paper-for-paper basis. The conversion arrangements will ensure no student is disadvantaged in the transition from the current to the revised syllabus.
Students who have not completed the current CAT exams by June 2011 will be automatically transferred to Foundations in Accountancy and awarded converted exemptions or passes for all papers they have previously been given exemption from or passed.
EXAMS
An outline of the exam syllabus is listed below. The detailed syllabuses will be available by August 2010 and sample exams by January 2011.
Recording Financial Transactions (FA1)
To introduce the basic accounting systems and documentation that will be encountered in the workplace. To develop knowledge and understanding of the operational aspects of maintaining accounting records and procedures and to learn how to record these transactions in the books of prime entry, including introduction to the principles of double entry and understanding how a computerised and a manual accounting system work.
Management Information (MA1)
To introduce the student to the knowledge of basic cost information required for management accounting. To develop the knowledge and ability to recognise, collect and record basic cost and revenue information for planning and control including an introduction to full absorption cost and marginal cost.
Maintaining Financial Records (FA2)
To introduce the fundamental principles of accounting and to develop the knowledge and understanding of the techniques used to maintain accounting records. To produce accounting records including ledger accounts, sales tax records (where applicable), control accounts, reconciliations, and extract and correct an initial trial balance also making the adjustments necessary to produce an extended trial balance. The syllabus also covers accounting for the business transactions of sole traders and partnerships.
Managing Costs and Finances (MA2)
To develop the knowledge and understanding of the principles and techniques used in recording, analysing and reporting costs and revenues for internal management purposes. To demonstrate and develop applicable cost concepts in making short term decisions.
Financial Accounting (FFA)
To develop knowledge and understanding of the underlying principles and concepts relating to financial accounting and to demonstrate technical proficiency in the use of double entry techniques, including the preparation and interpretation of basic financial statements for sole traders, companies and simple groups of companies.
Management Accounting (FMA)
To develop the knowledge and ability to apply appropriate management accounting concepts and techniques for decision making, planning and control including forecasting techniques, the preparation of budgets and standard costs and performance measurement.
Accountant in Business (FAB)
To understand business in the context of its environment, including economic, legal, and regulatory influences on such aspects as governance, employment, health and safety, data protection and security. Additionally, to introduce certain aspects of the regulatory framework as they affect auditing and governance, examining the roles of internal and external auditors and introducing the importance of internal control. The syllabus also introduces key management and people issues such as individual and team behaviour, leadership, motivation, personal effectiveness and professional ethics in accounting and business.
Options papers
Foundations in Taxation (FTX)
To develop the core knowledge of the underlying principles and the major technical areas of taxation, as they affect the activities of individuals and businesses, at a level appropriate for someone working at technician level. Having covered the core areas of the basic taxes, candidates should be able to compute tax liabilities, explain the basis of their calculations, complete the tax returns and identify the compliance issues for each major tax through a variety of business and personal scenarios and situations.
Foundations in Financial Management (FFM)
To examine all aspects of cash and working capital management, and to develop an understanding of the sources of short and long-term finance. To develop the knowledge and understanding of the way organisations finance their operations and plan, allocate and control resources to optimise returns.
Foundations in Audit (FAU)
To develop knowledge and understanding of external audit and the techniques used in the conduct of external audits. Additionally to demonstrate knowledge and understanding of internal control systems.
COMPUTER-BASED EXAMS (CBEs)
Computer-based exams will be available for the first seven papers (not the options papers) and paper-based exams will continue to be available for all exams within Foundations in Accountancy. The first computer-based and paper-based exams under the new syllabus will be available in December 2011.
