Syllabus for AAT Level 4 Diploma in Professional Accounting

LEVEL 4: Mandatory Subjects

• Understand and implement the organisational planning process
• Use internal processes to enhance operational control
• Use techniques to aid short-term and long-term decision making
• Analyse and report business Performance

• Understand the reporting frameworks that underpin financial reporting
• Draft statutory financial statements for limited companies
• Draft consolidated financial statements
• Interpret financial statements using ratio analysis

• Understand the role and responsibilities of the accounting function within an organisation
• Evaluate internal control systems
• Evaluate an organisation’s accounting system and underpinning procedures
• Understand the impact of technology on accounting systems
• Recommend improvements to an organisations accounting systems

LEVEL 4: Optional Subjects (select two as your study progresses)

• Prepare tax computations for sole traders and partnerships
• Prepare tax computations for limited companies
• Prepare tax computations for the sale of capital assets by limited companies
• Understand administrative requirements of the UK’s tax regime
• Understand the tax implications of business disposals
• Understand tax relief, tax planning opportunities and agent’s responsibilities in reporting to HMRC

• Understand the principles and rules that underpin taxation systems
• Calculate UK taxpayers’ total income
• Calculate Income Tax and national Insurance (NICs) payable by UK taxpayers
• Calculate capital Gains Tax payable by UK taxpayers
• Understand the principles of Inheritance tax

• Prepare forecasts for cash receipts and payments
• Prepare cash budgets and monitor cash flows
• Understand the importance of managing finance and liquidity
• Understand the way of raising finances and investing funds
• Understand regulations and organisational policies that influence decisions in managing cash and finance