ICB Level 4 Certificate – DFS + CTAX (combined package)
ICB Level 4 Certificate - Financial Statements and Corporation Tax
Course Fee Details
You can pay the full price or pay a deposit of £110.00 (0% APR), followed by 8 monthly payments of £46.50
Advantages of studying with IDEAL:
10% package saving available
This course package covers two of the four Level 4 Certificate units that make up the Level 4 Diploma in Advanced Bookkeeping and Accounting. There is little argument that these two units provide ICB Bookkeepers the GREATEST opportunity to maximise their earning potential, to become a one-stop-shop for Micro and Small businesses. Covering the preparation of financial statements for Micro Entities and Small Business under Financial Reporting Standards FRS105 and FRS102 (Section 1A). Upon completion of this qualification you will be enabled to work in an employed or self-employed situation, preparing financial statements and Corporation Tax Returns in line with FRS105 and FRS102 (Section 1A)
Ideal Schools will provide:
Entry Requirements: Full Full Membership of ICB
One of the Level 4 Certificate units, designed to provide you with a fuller appreciation of the creation and submission of financial statements for limited companies. Other Level 4 units to consider are:
ICB Course Sample – you can view the first 25 pages of this, and other ICB courses, via THIS LINK.
2 x home based examination
Approx 140-160 hours
30+ hours structured & unstructured, meeting ICB annual suggested target
ADD EXAM FEES TO YOUR ENROLMENT:
Total exam fees for this course option are £210 (2 @ £105). When it comes to paying for your exams you have two options:
Monthly Payment Notice
We do not charge interest for monthly payments. To cover costs of additional security measures recently implemented in the banking system, there is a £1.50 charge added to each monthly payments to cover the cost of applying these measures in our systems.
DRAFTING FINANCIAL STATEMENTS (dfs):
Explain the purpose of financial statements, the legal framework that govern these and the role of accounting standards.
Define the purpose of financial statements; explain the need to comply with the Companies Act; outline the role of the Financial reporting Council (FRC).
EXPLAIN THE STATUTORY RETURNS THAT NEED TO BE MADE FOR AN INCORPORATED ENTITY
The company Confirmatory Report; Annual accounts to Companies House; Corporation tax return to HMRC
EXPLAIN THE OBJECTIVES OF FINANCIAL STATEMENTS AND THEIR USE AND USERS.
Outline the elements of the conceptual framework for financial reporting; Identify the elements of financial statements; Understand and apply the qualitative characteristics of financial statements; Understand and apply the accounting concepts; Identify the user groups and state clearly the way in which they use financial statements
EXPLAIN THE ELEMENTS OF COMPANY FINANCE
Define the terms: Share capital, Reserves & Equity; Distinguish between ordinary shares and preference shares; Explain the process of a share issue; Explain what is meant by issuing shares at a premium; Define the term loan notes
LIMITED COMPANY FINANCIAL STATEMENTS
PREPARE FINANCIAL STATEMENTS FOR A LIMITED COMPANY AND/OR A LIMITED LIABILITY PARTNERSHIP TO ENSURE THEY COMPLY WITH THE RELEVANT ACCOUNTING STANDARDS AND COMPANY LEGISLATION
Produce a set of internal management accounts to include all year-end adjustments; Post relevant entries to the accounts for the provision and payment of corporation tax; Complete details for the fixed assets register; Understand and apply the accounting concepts that are contained in FRS105 Sections 2 and 3and FRS102 Section 1A; Prepare a Statement of Financial Position with the relevant minimum accompanying notes under any of the formats in FRS 105 (Section 4) and FRS102 Section 1A (Appendix A); Prepare a Statement of Incomes per the format in FRS 105(Section 5) and FRS102 Section 1A (Appendix B); Prepare a set of notes to the accounts as per the format in FRS 105(Section 6) and FRS102 Section 1A (Appendix C); Understand the nature of voluntary disclosures
AN INTRODUCTION TO CONSOLIDATED (GROUP ACCOUNTS)
EXPLAIN THE GENERAL PRINCIPLES OF CONSOLIDATION AND PREPARE A SET OF GROUP ACCOUNTS TO INCLUDE BOTH A SUBSIDIARY AND AN ASSOCIATE UNDER FRS102 SECTION 9 – NOTE: THIS IS A VOLUNTARY DISCLOSURE UNDER FRS 102 SECTION 1 (A)
Explain what is meant by the single entity concept; Establish the group structure: Apply what is meant by fair value adjustments and fair value consideration, Determine the net assets of the subsidiary, Calculate the goodwill on acquisition, Calculate the non-controlling interest, Determine the retained earnings of the group, Draft a Consolidated Statement of Financial Position; Define the term Control; Explain the treatment of pre and post-acquisition reserves and acquisition of a subsidiary part way through the year; Explain the treatment of inter-company trading; Prepare a Consolidated Income Statement; Explain what is meant by the terms Associate and significant influence; Explain the principle equity accounting; Identify an Associate in a group structure.
THE STATEMENT OF CASH FLOWS
EXPLAIN THE PURPOSE OF THE STATEMENT OF CASH FLOWS AND PREPARE THE STATEMENT BASED ON FRS102 SECTION 7 – NOTE: THIS IS A VOLUNTARY DISCLOSURE UNDER FRS 102 SECTION 1 (A)
Explain the need and purpose of The Statement of Cash Flows; Outline the elements of The Statement of Cash Flows as detailed in FRS102 Section 7; Prepare a Statement of Cash Flows showing clearly cash flow from: Operating Activities, Investing Activities, Financing Activities, The subsequent increase/decrease in cash or cash equivalent; Interpret and prepare a set of notes on a company’s cash position as outlined in The Statement of Cash Flows
INTERPRETATION OF FINANCIAL STATEMENTS
ANALYSE AND INTERPRET LIMITED COMPANY FINANCIAL STATEMENTS USING PERFORMANCE INDICATORS AND RATIO ANALYSIS.
Calculate Profitability Ratios: Return on Capital Employed (profits before interest and tax divided by capital employed (total assets less current liabilities), Gross Profit % of Sales, Net Profit % of Sales; Calculate Liquidity Ratios and Asset utilisation: Current Ratio, Acid Test, Receivables Collection Period, Payables Payment Period, Inventory Turnover, Asset Turnover; Calculate the following financial structure ratios: Gearing, Interest Cover, Analyse and interpret a set of performance indicators for a limited company over a series of years and comment on the financial performance; Compare a set of figures with other organisations and industry figures
CORPORATION TAX (CTAX):
Identify the duties and responsibilities of a tax agent:
Understand that ICB expects its members to maintain a high ethical standard; Understand the requirements needed to act as a tax agent online with HMRC
Identify the elements of a Corporation Tax Computation:
Explain the principle of a chargeable accounting period
Calculate Adjusted Trading Profits
Outline the purpose of adjusted trading profits and identify disallowable expenditure:
Explain how profits are adjusted; Identify expenditure considered disallowable; Explain the treatment of dividends; Identify bad debts as an allowable deduction; Explain the treatment of interest payable on trading loans; Explain treatment of hire and lease charges; Identify income in the accounts but not taxable as trading profit.
Compute adjusted trading profit for the period:
Correctly compute adjusted trading profit for accounting periods of longer or shorter than twelve months.
Capital Allowances – Plant and Machinery
Explain the nature and purpose of capital allowances:
Distinguish between depreciation and capital allowances; Identify qualifying expenditure; Identify the main types of capital expenditure and the capital allowances available.
Prepare a computation for capital allowances:
Prepare a computation for the following capital allowances (Expenditure not pooled, General or main pool, FYA – First Year Allowance, AIA – Annual Investment Allowance, WDA – Writing Down Allowances, Balancing Charges, Motor Vehicles v Motor Cars, Expensive Cars, Short Life Assets); Apply cessation rules for capital allowances in the closing years of business.
Calculation of Profits Chargeable to Corporation Tax
Determine profits chargeable to corporation tax:
Identify adjusted profit and capital allowances; Explain the treatment of dividends paid; Explain the treatment of interest received and interest paid; Explain the treatment of (Royalties, Dividend Income, Property Income).
Determine the Corporation Tax Liability:
Calculate profits chargeable to corporation tax; Apply relevant tax rates.
Complete a CT return:
Complete elements of a CT return.
Gains, losses and reliefs
Explain the procedure for determining gains and losses:
Apply Indexation allowance; Explain the following special rules (Enhancement expenditure, Part- disposals,Non-wasting chattels).
Distinguish between Trading and Non-Trading Losses:
Determine adjusted trading losses; Apply types of loss relief (Current year relief, Carry back relief, Carry forward relief, Terminal Loss Relief), Calculate Non-Trading and Capital Losses.
Apply reliefs, deferrals and exemptions:
Explain the principle of Entrepreneurs’ relief; Identify qualifying business disposals qualifying; Ownership period; and apply the relief; Apply the principle of Rollover relief (Conditions for relief, Partial reinvestment); Identify the principles of, and conditions for, gift relief.
Payment and Administration
Explain the process of payment and administration:
Explain the process of Corporation Tax Self-Assessment; Understand how to (File the return, Amend the return, Deal with errors, Identify interest on late payment, Identify interest on tax overpaid); Explain the penalty process; Explain HMRC powers of enquiry, Identify the payment date and when payment by instalments is appropriate; Explain the records which companies must keep and the timescales for keeping them.