I have 10 modules to complete for assignment for Level 4 Diploma in
Accounting and Finance

ATHE Level 4 Diploma in
Accounting and Finance
Contents
About ATHE 2
Our Qualifications 2
Support for Centres 3
Qualifications at Level 4 in this specification 4
Programme structure 4
OBS Quality Processes 4
Access and Recruitment 5
Entry Requirements 5
Progression and University Pathways 5
Reasonable Adjustments and Special Considerations 6
ATHE Recognition of Prior Learning (RPL) 6
Definition of Guided Learning Hours (GLH), Total Qualification Time (TQT) and Credit 6
Guidance on Assessment and Grading 9
Methods of Assessment 9
Recording Assessment Judgements 9
Putting an Assessment Strategy in Place 10
Quality Assurance of Centres 10
Malpractice 11
Guidance for Teaching and Learning 11
Top Tips for Delivery 11
Unit Specifications 12
ATHE Level 4 Diploma in Sales and Marketing .................................................................................................. 13
0BBusiness Environment .................................................................................................................................... 14
Managing and Using Finance ............................................................................................................................. 16
2BMaximizing Resources to Achieve Business Success ................................................................................... 18
3BQuantitative Skills ........................................................................................................................................... 20
4BBasic Accounting ............................................................................................................................................ 22
5BBudgetary Control ........................................................................................................................................... 24
6BFinancial Performance .................................................................................................................................... 26
Financial Ratios .................................................................................................................................................. 28
Financial Statements .......................................................................................................................................... 30
Further Ratios ..................................................................................................................................................... 32
About ATHE
Awards for Training and Higher Education (ATHE) is a global awarding organisation regulated by Ofqual and other United Kingdom and international regulators. We provide centres with a wide variety of qualifications including, but not limited to; business and management, administrative management, law, computing, health and social care and religious studies. ATHE has also developed a range of bespoke qualifications for clients.
The ATHE mission is to provide outstanding qualifications, customer service and support, enabling centres to thrive and their learners to achieve and progress. We will support this mission by:
• providing qualifications which enable learners to fulfil their potential and make a positive contribution to society both socially and economically
• delivering the highest standards of customer service
• delivering support and guidance which meet the needs of all centres and enable them to improve performance
• upholding and maintaining the quality and standards of qualifications and assessments
• having a commitment to lifelong learning and development
Our Qualifications
Our qualifications have been created with the involvement of expert input from managers and staff in colleges, industry professionals and our qualification development team. We have also taken into account feedback from learners and consulted with higher education institutions to ensure the qualifications facilitate progression to higher levels. We have taken advantage of the flexibility of the RQF to develop a suite of awards, certificates and diplomas that offer progression from level 3 up to level 7.
Key features of the qualifications include:
• regular reviews of the units and the associated support materials so they are current and meet the needs of learners
• alignment of the programmes of learning to degree and higher degree qualifications in HEIs in the UK and international institutions so there is comparability and smooth progression for learners
• core units that are common to different sectors offering the opportunity for learners to move between sectors or delay decisions on particular specialisms
• optional units offering the opportunity for learners to choose specialist units which best match their job, interests and progression aspirations.
• small qualifications that can be used for professional development for those in employment or for learners who do not have the time to undertake a full time programme
• challenging and relevant learning with flexible methods of assessment allowing tutors to select the most appropriate methods for their learners opportunities for learners to achieve higher grades by unit and overall qualification and reach their maximum potential
• learning that develops knowledge, understanding and skills e.g. problem solving, interpersonal skills needed by effective managers.
Support for Centres
We are committed to supporting our centres and offer a range of training, support and consultancy services including:
• a comprehensive guide for centres on delivering ATHE qualifications
• qualification guidance, assessor guidance, suggested resources and sample assignments for all units which have been written and verified by experienced practitioners
• verification and guidance with internally devised assignments
• guidance on how to deliver, assess and quality assure the qualifications
• an ATHE centre support officer who guides centres through the recognition process, learner registration and learner results submission
• health check visits to highlight areas of good practice and any areas for development
• an allocated member of our team who can work with centres to support further improvements in the quality of teaching, learning and assessment
• the services of a team of experienced external verifiers
• opportunities for training and staff development
• access to free webinars to support delivery, assessment and QA processes • support for business development.
Acknowledgements
This qualification has been developed in collaboration with Online Business School.

Qualifications at Level 4 in this Specification
This document provides key information on the ATHE Level 4 Diploma in Accounting and Finance which has been produced in conjunction with Online Business School. This qualification is on the Ofqual, Regulated Qualifications Framework (RQF).
Regulation Dates
This qualification is regulated from 27 July 2018, and its operational start date in centres was 1 August 2018.
Qualification objective
The objective of this qualification is to enable learners to:
• please insert a bullet point summary of the objective(s) of this qualification;
Qualification Structure
There are 10 units in the ATHE Level 4 Diploma in Accounting and Finance:
The units have been designed to develop knowledge and understanding and a broad range of skills for direct application in the workplace, based on contemporary practices in real world settings. The Online Business School course materials which support this qualification are based on sound pedagogical structures to ensure that the learning is engaging, enjoyable and fun to study.
In addition to the Diploma which is awarded by ATHE in accordance with Ofqual requirements, students will receive OBS unit certification as CPD certificates to demonstrate that they have completed an individual unit.
When taken as individual CPD units, they will not allow students to gain any credit values for Higher Education progression but it will provide them with skills, knowledge and understanding that can be directly applied to the workplace or the enhancement of their career.
Students will be allowed access to apply for University Top-up degree programmes at the relevant level.
Quality Processes
The units are written at Ofqual RQF level 4 and the qualification is regulated by Ofqual. The RQF is a framework which awards credit for qualifications. Each unit within a qualification has a credit value and a level. The credit value specifies the number of credits that will be awarded to a learner who has achieved the learning outcomes of a unit. The level is an indication of relative demand, complexity and depth of achievement and autonomy.
Each credit represents 10 hours of learning time. The learning time is a notional measure which indicates the Total Qualification Time (TQT) the learner is expected to take on average to complete the learning outcomes of the Unit to the standard determined by the assessment criteria. Each Unit equates to 12 credits of 10 hours Learning Time = 120 TQT. Learning time includes activities such as directed study, assessment, tutorials, mentoring and individual private study.
Each unit also contains information on Guided Learning Hours (GLH). GLH are intended to provide guidance for tutors on the amount of resource needed to deliver the programme and support learners, i.e. the time required for face to face delivery, webinars tutorials, workshops and associated assessments. If learners complete all units, the TQT will be 1,200 hours at a unit value of 120 credits.
OBS provide continual progression tests and interactive learning opportunities as teaching and learning methods for the course providing formative assessment, which does not contribute to the qualification. This allows for remote monitoring of student progress and performance and to consolidate and underpin learning. They also contain multiple choice timed tests at the completion of each unit. These tests are randomly populated and all questions are aligned to the learning outcomes for ease of reference.
Access and Recruitment
ATHE and OBS’ policy regarding access is that:
• The qualification is available to everyone who is capable of reaching the required standards
• The qualification is free from any barriers that restrict access and progression
• There should be equal opportunities for all wishing to access the qualification
OBS will review the profile of qualifications and/or experience held by course applicants, considering whether the profile shows an ability to progress to a level 4 qualification. For learners with disabilities and specific needs, the review will need to account for the support to the learner during delivery and assessment of the qualification.
Entry Requirements
This qualification is designed for those who have a high school education, equivalent to A levels (RQF level 3). Learners are typically aged 18 years of age but may exceptionally be younger if they have completed their level 3 education. For learners recently in education or training the profile is likely to be:
• A GCE Advanced level profile with achievement in 2 or more subjects supported by 5 or more GCSEs, ideally including maths and English
• Other related Advanced level qualifications
• An Access to Higher Education Certificate delivered by an approved Further or Higher Education
Institute
• Other equivalent international qualifications
All learners must have an appropriate level of English, typically 4.5 IELTS, and may also have relevant work experience or be employed in the Accounting and Finance sector or other related sectors.
Mature learners may present a more varied profile of achievement that is likely to include work experience (paid or voluntary), part-time or full-time employment, with levels of levels of responsibility, participation and/or achievement of relevant professional qualifications. These may be used for recognition of prior learning (RPL).
OBS will recruit learners with integrity and will carry out robust initial assessment to ensure that learners who undertake this qualification have the necessary background knowledge, understanding and skills to undertake the learning and assessment at Level 4. OBS will review all access and recruitment as part of the monitoring process.
Progression and University Pathways
ATHE is recognised by Ofqual as an awarding organisation. Ofqual is the regulator of qualifications, examinations and assessments in England and vocational qualifications in Northern Ireland.
Learners who pass all 10 Units will be awarded the ATHE Level 4 Diploma in Accounting and Finance with a qualification value of 120 credits.
Learners who pass the ATHE Level 4 Diploma in Accounting and Finance will be able to progress to Level 5 qualifications in Accounting and Finance.
This qualification facilitates university progression to University top-up degrees. For a list of available top-up routes, please go to www.onlinebusinessschool.com/
Each qualification has a Qualification Accreditation Number (QAN), which will appear on the learner’s final certification documentation. The QAN for this qualification is: 603/3483/6.
Reasonable Adjustments and Special Considerations
ATHE’s policy on reasonable adjustments and special consideration aims to enhance access to the qualifications for learners with disabilities and other difficulties (as defined by the Equality Act 2010) without compromising the assessment of skills, knowledge and understanding. Where the learner has been awarded a Reasonable Adjustment or Special Consideration this must be recorded on the assessment sheet and the learner record. External Verifiers will take account of this information at the external verification of learner work. Further details on Reasonable Adjustments and Special Considerations are provided in the policy document, which can be found on our website. Please contact ATHE if you uncertain about adjustments for certain learners.
ATHE Recognition of Prior Learning (RPL)
There will be occasions where learners wish to claim recognition of prior learning that has not been formally assessed and accredited. ATHE has provided detailed guidance on RPL which is available for centres on the ATHE website and centres may also contact ATHE directly to obtain further clarification or discuss the requirements for RPL.
Definition of Guided Learning Hours (GLH), Total Qualification Time (TQT) and Credit
Values for Total Qualification Time, Guided Learning Hours and Credit, are calculated by considering the different activities that a learner would typically complete in order to achieve the learning outcomes of a qualification at the standards provided.
The needs of individual learners and the differing teaching styles used mean there will be variation in the actual time taken to complete a qualification.
Values for Total Qualification Time, Guided Learning Hours and Credit are estimates.
Guided Learning Hours (GLH)
The term Guided Learning Hours (GLH) is an estimate of the amount of time, on average, that a lecturer, supervisor, tutor or other appropriate provider of education or training, will immediately guide or supervise the learner to complete the learning outcomes of a unit to the appropriate standard.
GLH are intended to provide guidance for centres on the amount of time required to deliver the programme and support learners. GLH are made up of activities completed by the learner under immediate guidance or supervision of a lecturer, supervisor, tutor or other appropriate provider of education or training. Whether through actual attendance or via electronic means, the activity must be in real time.
Some examples of activities that can contribute to Guided Learning Hours include:
• Supervised induction sessions
• Learner feedback with a teacher in real time
• Supervised independent learning
• Classroom-based learning supervised by a teacher
• Work-based learning supervised by a teacher
• Live webinar or telephone tutorial with a teacher in real time
• E-learning supervised by a teacher in real time
• All forms of assessment that take place under the immediate guidance or supervision of a lecturer, supervisor, tutor or other appropriate provider of education or training, including where the assessment is competence-based and may be turned into a learning opportunity.
Total Qualification Time (TQT)
Total Qualification Time (TQT) is a guide to the amount of time a learner would take, on average, to complete the different activities to demonstrate achievement of the learning outcomes of a whole qualification at the standards provided.
TQT includes all the activities described under guided learning hours (GLH) plus an estimate of the number of hours a learner will be likely to spend in completing other work, which is directed by the tutor. This could include preparation, study or any form of participation in education or training, including assessment, but unlike Guided Learning this is not under the immediate guidance or supervision of a lecturer, supervisor, tutor or other appropriate provider of education or training.
Some examples of tutor directed activities that can contribute to Total Qualification Time, include:
• Preparation
- Preparation for classes
- Preparation for assignments
• Study
- Independent research/learning
- Background reading
- Compilation of a portfolio of work experience
- E-learning
- Drafting coursework or assignments
- Working in student teams
- Watching a pre-recorded podcast or webinar
- Work-based learning
Credit
The credit value specifies the number of credits that will be awarded to a learner who has achieved the learning outcomes of a unit at the specified standard.
Each credit represents 10 hours of learning time and equates to 10 hours of total qualification time.
Therefore, one 15 credit unit represents 150 hours of total qualification time. Learning time is a notional measure which indicates the amount of time a learner at the level of the unit is expected to take, on average, to complete the learning outcomes of the unit to the standard determined by the assessment criteria.
Learning time includes all the activities described under guided learning hours and additional learning. The credit value of the unit will remain constant in all contexts regardless of the assessment method or the mode of delivery. Learners will only be awarded credits for the successful completion of whole units.
The level is an indication of relative demand, complexity and depth of achievement and autonomy.
Each qualification has agreed rules of combination which indicates the number of credits to be achieved, the units that are mandatory and the choice of optional units. The rules of combination for the unendorsed qualifications and the pathway specific qualifications are given below.
Financial statement terminology
The credit value specifies the number of credits that will be awarded to a learner who has achieved the learning outcomes
Note: Financial statement terminology
This unit uses the conventional terminology for financial statements. However, over recent years, the International Financial Reporting Standards have introduced other terms for the statements. These have been introduced and increasingly used globally, and may be found in a variety of company accounts and annual reports.
The following terms are interchangeable and students should ensure that they are familiar with the alternative versions:
Balance sheet Statement of financial position*
Profit and loss account Statement of income
Cash flow statement Statement of cash flows
(In addition, the Statement of retained earnings is sometimes called the Statement of changes in owners’ equity.)
Similarly, fixed assets are often referred to as non-current assets.
Guidance on Assessment and Grading
The assessment of this Level 4 qualification is completed through the submission of internally assessed learner work. To achieve a pass for a unit, a learner must have successfully achieved the learning outcomes at the pass standard set by the assessment criteria for that unit.
ATHE will provide a sample assignment for each unit which can be used as the assessment for the unit. An assessor should record their judgements on the ATHE template, stating whether the learner has achieved a pass and providing evidence for the judgements. The internal verifier can also use the ATHE IV template but the feedback to the assessor must show whether the assessor has made valid judgements for all the learner work. Assessment judgements always require care to ensure that they are reliable and that there is sufficient and specific feedback to the learner to show whether he or she has demonstrated achievement of the LO at the specified standard.
We would encourage our centres to develop their own assessment strategies so you have the opportunity to put assignments in a context that is appropriate for your learners. Any assignments that you devise independently will need to be submitted to ATHE for approval before delivery of the programme. Centres can submit assignments for approval using the ‘Centre-Devised Assignment’ template documentation available on the ATHE website.
An assignment can relate to a single unit or an integrated assignment, incorporating more than one unit. An integrated assignment must show which learning outcomes and assessment criteria from which units are being covered.
Methods of Assessment
ATHE encourages centres to use a range of assessment vehicles that will engage learners and give them an opportunity to both demonstrate their knowledge and understanding of a topic and to evaluate how they might apply that knowledge in a given context. This should be part of the assessment strategy.
We would recommend avoiding essay writing and that more varied types of assessment are included. This might include assessment through:
• a research activity resulting in the compilation of a report
• an academic paper or article for publication
• the compilation of a case study
• a critical review and evaluation of a chosen company’s policies, procedures and systems • a set project completed for an employer (also known as an ‘employer-engagement’ activity) • the production of a portfolio of evidence relating to a particular unit.
This list is by no means exhaustive but gives examples of some creative assessment methods that could be adopted.
Recording Assessment Judgements
Assessors are required to record assessment judgements for each student by unit. ATHE has provided a template for centres to use to record their judgements and this form should be used. The form enables the centre to record any adjustments due to special considerations or reasonable adjustments. Any adjustments following appeals should also be recorded. These records must be retained as they will be checked at external verification visits. All learner work must be retained for a minimum of 4 years after certification has taken place.
Putting an Assessment Strategy in Place
You will need to demonstrate to your External Verifier that you have a clear assessment strategy supported by robust quality assurance in order to meet the ATHE requirements for registering learners for a qualification. In devising your assessment strategy, you will need to ensure that:
• centre devised assignments are clearly mapped to the unit learning outcomes and assessment criteria they have been designed to meet.
• the command verbs used in the assignment are appropriate for the level of the qualification, e.g. analyse, evaluate, synthesise.
• the assignment gives the learner sufficient opportunity to meet the assessment criteria at the right level, through the work they are asked to complete (The RQF level descriptors will be helpful to you in determining the level of content of the assessment).
• students are well-briefed on the requirements of the unit and what they have to do to meet them.
• assessors are well trained and familiar with the content of the unit/s they are assessing.
• there is an internal verification process in place to ensure consistency and standardisation of assessment across the qualification.
• assessment decisions are clearly explained and justified through the provision of feedback to the learner.
• work submitted can be authenticated as the learner’s own work and that there is clear guidance and implementation of the centre’s Malpractice Policy.
• there is an assessment plan in place identifying dates for summative assessment of each unit and indicating when external verification will be needed.
• Sufficient time is included in the assessment planning to allow the learners time for any necessary remedial work that may be needed prior to certification.
Quality Assurance of Centres
Centres delivering ATHE qualifications must be committed to ensuring the quality of teaching and learning so that the learner experience is assured. Quality assurance will include a range of processes as determined by the centre and this could include, gathering learner feedback, lesson observation, analysis of qualitative and quantitative date etc. There must also be effective standardisation of assessors and verification of assessor decisions. ATHE will rigorously monitor the application of quality assurance processes in centres.
ATHE’s quality assurance processes will involve:
• Centre approval for those centres which are not already recognised to deliver ATHE RQF qualifications
• Monitoring visits to ensure the centre continues to work to the required standards
• External verification of learner work.
Centres will be required to undertake training, internal verification and standardisation activities as agreed with ATHE. Details of ATHE’s quality assurance processes are provided in the ATHE Guide:
“Delivering ATHE Qualifications” which is available on our website.
Malpractice
Centres must have a robust Malpractice Policy in place, with a clear procedure for implementation. Centres must ensure that any work submitted for verification can be authenticated as the learner’s own. Any instance of plagiarism detected by the External Verifier during sampling, will be investigated and could lead to sanctions against the centre.
Centres should refer to the Delivering ATHE Qualifications Guide and the ATHE Malpractice and Maladministration Policy on the ATHE website.
Guidance for Teaching and Learning
Learners learn best when they are actively involved in the learning process. We would encourage practitioners delivering our qualifications to use a range of teaching methods and classroom-based activities to help them get information across and keep learners engaged in the topics they are studying. Learners should be encouraged to take responsibility for their learning and need to be able to demonstrate a high degree of independence in applying the skills of research and evaluation. You can facilitate this by using engaging methods of delivery that involve active learning rather than relying on traditional methods of lecture delivery to impart knowledge.
Your approach to delivery should give the learners sufficient structure and information on which to build without you doing the work for them. In achieving the right balance, you will need to produce well-planned sessions that follow a logical sequence and build on the knowledge, understanding and skills already gained.
Top Tips for Delivery
• Adopt a range of teaching and learning methods, including active learning.
• Plan sessions well to ensure a logical sequence of skills development.
• Include study skills aspects, e.g. how to construct a report or Harvard Referencing. Build time into your Scheme of Work and Session Plans to integrate study skills teaching.
• Set structured additional reading and homework tasks to be discussed in class.
• Elicit feedback from your students. Get them to identify where the work they have done meets the assessment criteria.
• Contextualise your activities, e.g. using real case studies as a theme through the sessions. • Use learner experience from the work place or other personal learning
• Take an integrated approach to teaching topics across units, where appropriate, rather than always taking a unit-by-unit approach. In this way, learners will be able to see the links between the content of the different units.
Unit Specifications
Unit Format
Each unit in ATHE’s suite of level 4 qualifications is presented in a standard format. This format provides guidance on the requirements of the unit for learners, tutors, assessors and external verifiers.
Each unit has the following sections:
Unit Title
The unit title reflects the content of the unit. The title of each unit completed will appear on a learner’s statement of results.
Unit Aims
The unit aims section summarises the content of the unit.
Unit Code
Each unit is assigned a unit code that will appear on the qualification certificate
Level
All units and qualifications have a level assigned to them which represents the level of achievement. The level of each unit is informed by the level descriptors. The level descriptors are available on the ATHE website.
Guided Learning Hours (GLH)
Guided learning hours is an estimate of the amount of time, on average, that a tutor, trainer, workshop facilitator etc., will work with a learner, to enable the learner to complete the learning outcomes of a unit to the appropriate standard.
Credit Value
The credit value specifies the number of credits that will be awarded to a learner who has achieved the learning outcomes of a unit at the specified standard.
Learning Outcomes
The learning outcomes set out what a learner is expected to know, understand or be able to do as the result of the learning process.
Assessment Criteria
The assessment criteria describe the requirements a learner is expected to meet in order to demonstrate that the learning outcome has been achieved. Command verbs reflect the level of the qualification.
ATHE Level 4 Diploma in Accounting and Finance
The Level 4 Diploma in Accounting and Finance is a 120-credit qualification. Learners must achieve 120 credits by completing all mandatory units.
Unit Title Level Credit GLH
Mandatory units
Business Environment 4 12 60
Managing and Using Finance 4 12 60
Maximising Resources to Achieve Business Success 4 12 60
Quantitative Skills 4 12 60
Basic Accounting 4 12 60
Budgetary Control 4 12 60
Financial Performance 4 12 60
Financial Ratios 4 12 60
Financial Statements 4 12 60
Further Ratios 4 12 60
0BBusiness Environment
Unit Aims This unit aims to develop knowledge of the business environment to provide a basis for the finance content of other units in the course. This includes identifying influences on the macro-environment and the micro-environment. It also looks at internal strategies used for globalization.
Unit Level 4
Guided Learning Hours 60
Credit Value 12
Unit Grading Structure Pass
Assessment Guidance Assignments in accordance with awarding organisation
Learning Outcomes – The learner will: Assessment Criteria – The learner can:
1. Understand the macro-environment in which organisations operate 1.1 Describe the factors that impact on the macroenvironment
1.2 Analyse the effect of each of the factors on a specific organisation
2. Understand the micro-environment of an organisation 2.1 Describe the forces that influence the microenvironment of an organisation
2.2 Analyse the effect of each of the forces on a specific organisation
3. Understand how macro- and microenvironment factors can be used to gain competitive advantage 3.1 Explain how macro- and micro-environment factors can be used to gain competitive advantage
3.2 Assess ways in which a specific organisation has used macro- and micro-environment factors to gain competitive advantage
4. Understand organisational strategies for responding to globalization 4.1 Explain the concept of globalization
4.2 Assess the ways in which a specific organisation has responded to globalization
Indicative Content
1. Understand the macro-environment in which organisations operate • Definition of micro-environment • PESTEL analysis:
• Political
• Economic
• Socio-cultural
• Technological
• Environmental
• Legal
• Influences on macro-environment
• Impact of social media
• Pressure groups
• Consumer groups
2. Understand the micro-environment of an organisation
• Definition of micro-environment • Identifying competition
• Porter’s five forces (and extended version):
• Suppliers, buyers, new entrants, substitutes ( globalization, digitization, de-regulation, strategic partners)
3. Understand how macro- and micro-environment factors can be used to gain competitive advantage
• Organisational mission, culture and structure
• Leadership style
• Management power
• Skills and knowledge
• Matching internal and external factors
• Core competences
4. Understand organisational strategies for responding to globalization.
• International scope
• International similarity
• International integration
• Internal responses
• Global marketing
Managing and Using Finance
Unit Aims This unit aims to provide an outline of the use and management of finance within an organisation. This includes an introduction to accounting and financial terminology. Learners are also introduced to the basics of financial reporting.
Unit Level 4
Guided Learning Hours 60
Credit Value 12
Unit Grading Structure Pass
Assessment Guidance Assignments in accordance with awarding organisation.
Learning Outcomes – The learner will: Assessment Criteria – The learner can:
1. Understand basic accounting principles 1.1 Explain the fundamental principles of accounting
1.2 Explain basic accounting rules and standards
2. Understand the principle financial statements and the financial terms used within them 2.1 Discuss the purpose and contents of financial statements
2.2 Explain the concept of the accounting equation
3. Understand the basic principles of costing and different types of cost 3.1 Explain the purpose of management accounting
3.2 Discuss the nature of a range of different costs
4. Understand the principles of budgeting 4.1 Explain the purpose of budgeting in financial control
4.2 Discuss the principles of effective budgeting
Indicative Content
1. Understand basic accounting principles
• Business ownership structures
• Financial accounting vs management accounting
• Users of financial information
• Accounting rules
• SSAP
• FRS
• Accounting cycle
2. Understand the principal financial statements and the financial terms used within them
• Income statement (Trading and Profit and loss account)
• Statement of cash flows (Cash flow statement)
• Statement of financial position (Balance sheet)
• Concept of depreciation
• Calculations methods for depreciation
3. Understand the basic principles of costing and different types of cost
• Costs – materials, labour, expenses
• Direct and indirect costs
• Classification of costs
• Absorption costing
• Marginal costing
• Activity-based costing
• Standard costing
• Breakeven analysis
4. Understand the principles of budgeting
• Budgeting process
• Budget preparation
• Incremental budgeting
• Zero-based budgeting
• Behavioural consequences

2BMaximizing Resources to Achieve Business Success
Unit Aims This unit aims to develop knowledge of the use of resources in organisations. This includes understanding their importance in financial terms and their use. It also explores the use of new technology and the development of best practice.
Unit Level 4
Guided Learning Hours 60
Credit Value 12
Unit Grading Structure Pass
Assessment Guidance Assignments in accordance with awarding organisation
Learning Outcomes – The learner will: Assessment Criteria – The learner can:
1. Understand the importance of resources to business success 1.1 Describe different types of resources used by organisations
1.2 Analyse the importance of different types of resource to different categories of business
1.3 Explain how business success can be related to availability and use of resources
2. Understand how organisations monitor the use of resources 2.1 Evaluate procedures for monitoring the use of different physical resources
2.2 Explain how improved control of resources can lead to better performance
2.3 Compare and contrast procedures for monitoring the use of physical and non-physical resources
3. Understand the role of technology in achieving business success 3.1 Explain how technology can help an organisation to achieve business success
3.2 Analyse how a specific organisation uses technology to achieve business success
4. Understand how organisations work towards ‘best practice’ 4.1 Analyse tools and techniques for identifying best practice
4.2 Discuss the mechanisms for ensuring legal and regulatory compliance
4.3 Describe how quality improvements impact on business success
Indicative Content
1. Understand the importance of resources to business success • Categories of resource:
• Machinery and equipment
• Processes and products
• Finance
• People
• Materials and utilities
• Information
• Reputation
• Time
2. Understand how organisations monitor the use of resources
• Monitoring resources
• Types of inventory control
• Impact on other resources
• Cost reduction
• Quality
• Avoiding problems
• Further actions
• Improved performance
3. Understand the role of technology in achieving business success
• Understanding ICT
• Computer components and systems
• Software functionality
• Virus and malware issues
• Stock inventory control
• CRM systems
4. Understand how organisations work towards ‘best practice’
• Benchmarking
• Performance indicators • Sound policies:
• Discipline and grievance
• Recruitment and selection
• Equal opportunities
• Health and safety
• Employee welfare
• Training and development
• Determining business success
3BQuantitative Skills
Unit Aims This unit aims to develop knowledge of quantitative techniques used in organisations. This includes the use of mathematical models and tools to optimize production and efficiency. Using this knowledge, learners will be able to suggest how cost-cutting improvements can be made.
Unit Level 4
Guided Learning Hours 60
Credit Value 12
Unit Grading Structure Pass
Assessment Guidance Assignments in accordance with awarding organisation
Learning Outcomes – The learner will: Assessment Criteria – The learner can:
1. Know how to use statistical techniques to solve management problems 1.1 Explain the value of different statistical techniques used to solve management problems
1.2 Demonstrate the use of a statistical technique to solve a specific management problem
2. Know how to use statistical data to make short and long-term forecasts 2.1 Demonstrate how statistical techniques can be used to make forecasts
2.2 Explain how predictions made can be used to improve profitability
3. Understand relationships between different variables 3.1 Describe how operational conditions can be changed to improve efficiency
3.2 Discuss how limits can be placed on production volumes to improve profitability
4. Understand the role of scheduling techniques in effective project management 4.1 Discuss the role of scheduling techniques in reducing inefficiencies
4.2 Explain how projects can be managed in more effectively using networks
5. Understand the value of inventory control 5.1 Analyse key processes in inventory control
5.2 Explain how organisations can operate more efficiently using inventory controls
6. Be able to monitor variations over time using appropriate indexes 6.1 Explain how indexation is able to make comparisons over time
6.2 Use indexation to determine financial values at different points in time
Indicative Content
1. Know how to use statistical techniques to solve management problems • Statistical techniques
• Sampling
• Questionnaires
• Frequency distribution
• Statistical location and dispersion
• Standard deviation
2. Know how to use statistical data to solve short and long-term forecasts • Types and uses of forecasts
• Cash flow forecasts
• Correlation
• Time series analysis
• Seasonal trends
• Linear regression
3. Understand relationships between different variables
• Linear programming
• Optimisation of costs
• Objective function
• Feasible region
• Sensitivity to change
4. Understand the role of scheduling techniques in effective project management
• Networks
• Critical path analysis
• Gantt charts
• Fishbone diagrams
• Cost efficiency
• Project time scale
• Project stages
• Critical factors
5. Understand the value of inventory control
• Inventory levels
• Inventory replacement
• Minimum levels
• Just-in-time
• Reorder quantities
• EOQ and EBQ
• Periodic review systems
• Inventory models
6. Be able to monitor variations over time using appropriate indexes
• Indexation concept and principles
• Chain base relatives
• Fixed base relatives
• Changing bases
• RPI
• CPI
4BBasic Accounting
Unit Aims This unit aims to develop an understanding of the basic elements of accounting. This includes collecting and reporting information. It also outline the importance of cash flow and working capital as the fundamental components for funding business activities.
Unit Level 4
Guided Learning Hours 60
Credit Value 12
Unit Grading Structure Pass
Assessment Guidance Assignments in accordance with awarding organisation.
Learning Outcomes – The learner will: Assessment Criteria – The learner can:
1. Understand the techniques used to gather and record financial information 1.1 Compare and contrast financial accounting and management accounting
1.2 Explain the processes involved in bookkeeping
1.3 Discuss the purposes of accountancy for organisations
2. Understand the different methods commonly used to report financial information 2.1 Explain how financial data is used to prepare the financial statements
2.2 Discuss accounting concepts used in financial statements
2.3 Demonstrate the value of financial ratios for making comparisons
3. Understand the importance of cash flow and working capital 3.1 Analyse the importance of sound cash flow management
3.2 Assess the role played by working capital in securing financial stability for an organisation
4. Understand common business categories 4.1 Describe the main ownership categories of organisations
4.2 Discuss the financial reporting needs of different categories of organisations
Indicative Content
1. Understand the techniques used to gather and record financial information
• Bookkeeping vs accounting
• Bookkeeping principles
• Purposes
• Preventing financial damage through theft, fraud, embezzlement and disruption to operation
2. Understand the different methods commonly used to report financial information • Financial recording
• Accounting methods
• Profitability
• Trial balance
• Debits and credits
3. Understand the importance of cash flow and working capital
• Permanent capital and working capital
• Working capital flow/cycle
• Business motives
• Creditors and debtors
• Current ratio and acid test ratio
• Inventory management
• Just-in-time
• Cash flow control
4. Understand common business categories
• Types of business entity
• Financial reporting needs of different organisations
• Standard formats and conventions
5BBudgetary Control
Unit Aims This unit aims to explain methods of financial control using budgets. This includes development and implementation of departmental budgets, which are combined to form a master budget.
Unit Level 4
Guided Learning Hours 60
Credit Value 12
Unit Grading Structure Pass
Assessment Guidance Assignments in accordance with awarding organisation.
Learning Outcomes – The learner will: Assessment Criteria – The learner can:
1. Understand the concept of financial control 1.1 Explain how budgetary control can be used as a financial control mechanism
1.2 Describe the relationship between financial control and organisational strategy
1.3 Discuss the benefits of financial control
2. Understand the use of budgets in managing finance 2.1 Explain the budget cycle
2.2 Evaluate different approaches to preparing a budget
3. Understand the principles of costing 3.1 Describe the principles of costing used for effective price setting
3.2 Explain how breakeven analysis can be used to confirm appropriate pricing levels
Indicative Content
1. Understand the concept of financial control
• Budgeting as a control mechanism
• Relationship between strategy and management control
• Content of budgets
• Types of budgets – flexible, zero-based
• Benefits of budgets
• Accounting variances
2. Understand the use of budgets in managing finance
• Budget cycle
• Role of company directors
• Sequence for preparation
• Planning and control systems
• Departmental budgets
• Master budget
• Behavioural aspects
3. Understand the principles of costing
• Management accounting vs cost accounting • Planning and control • Cost categories:
• Fixed, variable
• Direct, indirect
• Opportunity cost
• Marginal and average costing
• Activity based costing
• Standard cost
• Costing materials, labour and overheads
• Breakeven analysis
•
Profit/volume chart
6BFinancial Performance
Unit Aims This unit aims to demonstrate how financial performance can be assessed in organisations. This includes the use of financial statements, and accounting standards. It also examines ways for raising finance over different periods of time.
Unit Level 4
Guided Learning Hours 60
Credit Value 12
Unit Grading Structure Pass
Assessment Guidance Assignments in accordance with awarding organisation
Learning Outcomes – The learner will: Assessment Criteria – The learner can:
1. Understand the importance of measuring financial performance 1.1 Explain the purpose and importance of accounting
1.2 Discuss the key uses of financial information
1.3 Describe the importance of financial statements
2. Understand the importance of cash flow for ensuring business continuity 2.1 Discuss the importance of cash flow
2.2 Explain the concept of liquidity in working capital
3. Understand the role played by international accounting standards 3.1 Discuss the use of internationally accepted accounting standards
3.2 Explain how a consistent approach to presenting financial information helps users to understand financial position
4. Be able to identify appropriate methods for raising finance 4.1 Discuss a range of appropriate methods of raising funds for different business types
4.2 Explain the link between business needs and fund raising method
5. Understand the role played by corporate governance 5.1 Explain how corporate governance is used to ensure legal financial activity
5.2 Analyse the responsibilities of directors in corporate governance
Indicative Content
1. Understand the importance of measuring financial performance
• Accounting activities
• Using financial statements
• Users of financial statements
• Income statement (Trading and Profit and loss account)
• Statement of cash flows (Cash flow statement)
• Statement of financial position (Balance sheet)
2. Understand the importance of cash flow for ensuring business continuity
• Cash flow
• Statement of cash flows (Cash flow statement)
• Forecasts
• Liquidity
• ‘What if’ calculations
• Interpretation and limitations of statements
• Working capital
• Overtrading
3. Understand the role played by international accounting standards
• International Financial Reporting Standards
• International Accounting Standards
• Comparability, verifiability, timeliness, understandability
• UK standards
• GAAP/SSAP/FRS
4. Be able to identify appropriate methods for raising finance
• Assessing business needs
• Time period: short-term, medium-term, long-term
• Overdraft
• Debentures
• Government sources of finance
5. Understand the role played by corporate governance
• Corporate governance actions and requirements
• Systems
• Processes
• Board of directors
• Business objectives
• Environmental influences
Financial Ratios
Unit Aims This unit aims to demonstrate the application and meaning of the commonly used financial ratio. This includes examining liquidity, solvency, gearing and profitability.
Unit Level 4
Guided Learning Hours 60
Credit Value 12
Unit Grading Structure Pass
Assessment Guidance Assignments in accordance with awarding organisation.
Learning Outcomes – The learner will: Assessment Criteria – The learner can:
1. Understand financial ratios 1.1 Discuss the key ratio concepts that identify the financial performance of an organisation
1.2 Explain how ratios are used to analyse financial statements
1.3 Discuss the classification of financial ratios
2. Understand the concept of the cost of capital 2.1 Describe the implications for an organisation of the cost of capital
2.2 Discuss the nature of the costs associated with different types of capital
2.3 Explain the relationship between profitability and efficiency
3. Be able to evaluate the financial stability and performance of an organisation 3.1 Demonstrate how ratios can be used to assess financial performance
3.2 Evaluate liquidity, solvency, gearing and profitability from financial statements
3.3 Explain the meaning of the ratio values obtained
3.4 Identify the limitations of ratio analysis
Indicative Content
1. Understand financial ratios
• Users of financial statements
• Inventory
• Non-current assets and current assets
• Wealth
• Using spreadsheets
2. Understand the concept of the cost of capital
• Liquidity
• Gearing – operational, financial
• Solvency
• Profitability
3. Be able to evaluate the financial stability and performance of an organisation • Liquidity ratios – current and acid test ratios
• Gearing ratio
• Solvency calculations
• Profitability – gross profit margin, operating profit
•
Working capital ratio

Financial Statements
Unit Aims This unit aims to provide learners with the understanding of the preparation and presentation of financial statements. This includes the accounting concepts used.
Unit Level 4
Guided Learning Hours 60
Credit Value 12
Unit Grading Structure Pass
Assessment Guidance Assignments in accordance with awarding organisation
Learning Outcomes – The learner will: Assessment Criteria – The learner can:
1. Understand the concepts of going concern and accruals 1.1 Demonstrate how the concepts of going concern and accruals are used as a basis for financial statements
1.2 Explain the standard criteria used in the preparation of financial statements
2. Understand the preparation of simple financial statements in appropriate formats 2.1 Describe generally accepted formats for each statement
2.2 Assess the role of accounting standards for preparation of statements
3. Understand how to investigate the use of each of the key financial statements for decision making 3.1 Identify the key users of each type of financial statement
3.2 Explain the importance of considering depreciation within the statements
4. Understand the limitations of financial statements 4.1 Explain the main legal requirements of financial statements
4.2 Discuss limitations of each type of statement
5. Understand the different methods commonly used to report financial information 5.1 Explain asset structure and capital structure
5.2 Discuss different ways in which financial information is reported to users
Indicative Content
1. Understand the concepts of going concern and accruals
• Going concern
• Accruals
• Standard criteria: • Relevant
• Understandable
• Timely
• Consistent
• Accurate
2. Understand the preparation of simple financial statements in appropriate formats
• Income statement (Trading and Profit and loss account) o Statement of cash flows (Cash flow statement)
o Statement of financial position (Balance sheet)
o Elements of each statement o Costs – fixed, variable o Flows of money o Accounting equation o Note to accounts o Directors report o Chairman’s report o Audit
3. Understand how to investigate the use of each of the key financial statements for decision making
• Key stakeholders
• Interested parties
• Legal requirements
• Limitations of statements
4. Understand the limitations of financial statements
• Balance sheet:
• Snapshot of position at single time • Assets and liabilities • Profit and loss account:
• No information about future performance
• Profits can be concealed
5. Understand the different methods commonly used to report financial information
• Asset structure
• Capital structure
• Links between statements
• Legal requirements
9BFurther Ratios
Unit Aims This unit aims to demonstrate how to determine financial efficiency. This includes understanding debt repayment capacity and investment appraisal. Using this knowledge, learners will be able to assess the likely of future financial success.
Unit Level 4
Guided Learning Hours 60
Credit Value 12
Unit Grading Structure Pass
Assessment Guidance Assignments in accordance with awarding organisation
Learning Outcomes – The learner will: Assessment Criteria – The learner can:
1.Know how to evaluate the financial efficiency of an organisation 1.1 Explain the use of ratios to determine financial efficiency
1.2 Describe accounting concepts relating to financial efficiency
1.3 Explain how appropriate financial ratios can be used to evaluate efficiency
2. Be able to determine repayment capacity using appropriate financial ratio calculations 2.1 Discuss the ability of an organisation to repay its debts
2.2 Explain the use of ratios to determine repayment capacity
3. Know how to assess alternative investment appraisal techniques 3.1 Explain how investment appraisal can be used to predict future performance
3.2 Describe the techniques used to appraise investment
3.3 Explain why it is necessary to appraise investment
3.4 Evaluate the strengths and weaknesses of alternative investment appraisal techniques
Indicative Content
1. Know how to evaluate the financial efficiency of an organisation
• Use of assets
• Average inventory turnover period
• Trade receivables turnover period
• Trade payables turnover period
• Gross profit margin
• Profit margin
• Gross profit mark up
• Return on capital employed (ROCE)
• Return on Shareholder’s funds (ROSF)
2. Be able to determine repayment capacity using appropriate financial ratio calculations
• Debt categories
• Ability of a business to repay debt
• Variations for business type
• Need for calculation of debt repayment capacity
3. Know how to assess alternative investment appraisal techniques
• Types of investment
• Investment decisions
• Investment risk
• Earnings per share
• Earnings yield
• Profit/earnings ratio
• Dividend cover
• Economic added value
• Payback
• Accounting rate of return
• Net present value
• Discounted cash flow
• Internal rate of return