Financial Accounting

You can start your journey with ACCA if you have:

  • Five secondary school qualifications (two A-Levels and three GCSEs or equivalent) – including English and Math.

To develop knowledge and understanding of the business environment and the influence this has on how organizations and accountants operate, and of the role of the accountant and other key business functions in contributing to an efficient, effective and ethical organization, and to build knowledge and understanding of the basic principles of effective management.


If you have a recognized and relevant finance or accounting degree from an ACCA-accredited university, you may not have to take all of the exams on your journey to membership. We call this “getting exemptions”.

Even if you didn’t study at an accredited university, you may still be eligible for exemptions – depending on what you’ve already studied.


You can still join us – but you’ll start your ACCA journey at our Foundations in Accountancy level. This will give you the base you need to learn more – and you’ll get our Diploma in Accounting and Business when you pass. Then you can start your journey to gaining the ACCA Qualification.

And because of what you’ll learn in your Diploma, you won’t have to take the first three exams – you’ll start at F4.

To develop knowledge and understanding of the underlying principles, concepts and regulations relating to financial accounting and technical proficiency in the use of double-entry accounting techniques.

This includes the preparation of basic financial statements and from December 2011 will also include preparation of basic consolidated financial statements and interpretation of financial statements.


On successful completion of this paper, candidates should be able to:

  • Explain the context and purpose of financial reporting

  • Define the qualitative characteristics of financial information

  • Demonstrate the use of double-entry and accounting systems

  • Record transactions and events

  • Prepare a trial balance (including identifying and correcting errors)

  • Prepare basic financial statements for incorporated and unincorporated entities.

  • Prepare simple consolidated financial statements

  • Interpretation of financial statements

The context and purpose of financial reporting

  • The scope and purpose of financial statements for external reporting

  • Users’ and stakeholders’ needs

  • The main elements of financial reports

  • The regulatory framework (legislation and regulation, reasons and limitations, relevance

  • of accounting standards)

  • Duties and responsibilities of those charged with governance.


The qualitative characteristics of financial information

  • The qualitative characteristics of financial information


The use of double-entry and accounting systems

  • Double-entry book-keeping principles including the maintenance of accounting records and sources of accounting information

  • Ledger accounts, books of prime entry, and journals


Recording transactions and events

  • Sales and purchases

  • Cash

  • Inventory

  • Tangible non-current assets

  • Depreciation

  • Intangible non-current assets and amortisation

  • Accruals and prepayments

  • Receivables and payables

  • Provisions and contingencies

  • Capital structure and finance costs

Preparing a trial balance

  • Trial balance

  • Correction of errors

  • Control accounts and reconciliations

  • Bank reconciliations

  • Suspense accounts

Preparing basic financial statements

  • Statements of financial position

  • Statements of profit or loss and other comprehensive income

  • Disclosure notes

  • Events after the reporting period

  • Statements of cash flows

  • Incomplete records


Preparing simple consolidated financial statements

  • Subsidiaries

  • Associates


Interpretation of financial statements

  • Importance and purpose of analysis of financial statements

  • Ratios

  • Analysis of financial statements

  • ACCA F3 notes

  • ACCA F3 Practice Questions

  • ACCA F3 Revision

  • F3 Revision Mock Exam