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This two course combination is for those who are already proficient in bookkeeping & accounting, are looking to improve their skill set, aiming to provide a lucrative additional service to potential clients or employers, covering tax computations and submissions for Micro and Small Limited Companies. If you only have a requirement for one of the courses included in this package, please call our support team on 0141 248 5200 or email

This course is CPD Certified and upon completion of all assignment work you will be awarded Certification for each individual subject, via the CPD Service.

This course is also suitable for those who have a bookkeeping & accounting background, or qualifications through any of the main awarding bodies. Originally, this course was written to prepare students for an exam with the Institute of Certified Bookkeepers (ICB). If you do not have this affiliation and would like to consider applying for membership with them, possibly via exemption, you can contact ICB on 0207 856 2567

ICB Members should follow THIS LINK (same course, different exam provision)

Entry Requirements: Intermediate level of Bookkeeping & Accounting knowledge, including the completion of draft Final Accounts of Limited Companies.

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Syllabus for CPD - L4 Certificate - Financial Statements & Corporation Tax

Financial Statements

Underpinning Knowledge

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)

Underpinning Knowledge

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.
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If you DO NOT pass an exam we'll share responsibility and will pay 50% of one re-sit cost per exam. (T's & C's Apply)
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