This article explains the planned updates to the ACCA Qualification syllabuses taking place as part of the process of continuous syllabus refreshment and improvement.
The exam year runs from the 1 September to 31 August the following year, for all papers except tax*. Therefore the next syllabus changes will be effective from 1 September 2015 and will include any changes to examinable documents issued up until 1 September 2014.
| *The exam year for most tax papers is 1 April 2015 to 31 March 2016 (extended for the UK tax papers to 30 June 2016 due to the uncertainty over the timing of Finance Acts in 2015), with Malaysia and Czech Republic being exceptions. You should refer to the study guide and examinable documents for details of what legislation is examinable in the tax papers. |
For paper-based exams the updated syllabus will be examined for the first time in the September exam session and for exams available by on-demand CBE (F1, F2, F3 and F4 ENG and GLO) the updated syllabus will be examined from 23 September 2015.
Also be aware that from September 2015 ACCA will be offering four exams a year at the Fundamentals and Professional level. This is being phased in. The September 2015 session will be limited to particular markets but will take effect in all of our markets from March 2016. Exams which can be taken via on demand CBE (FIA, F1–F3, F4 ENG and GLO) and some variant exams for the F4–P7 will not be available during the March/September exam sessions.
There are no new structural changes to the ACCA Qualification in 2015–16. The most recent significant changes were made to the Fundamental level syllabuses in February and December 2014 which were carefully detailed in last year’s article as part of ACCA’s policy of rolling out of more objective testing at the Fundamentals level to the F5–F9 exams. Please note that the structural changes to most F6, Taxation exams will be implemented in June 2015*. (The annual syllabus update to reflect the UK Finance Act 2014 also takes place at this time.)
| *Structural changes to F6 Malaysia and Czech Republic will be effective from December 2015 to coincide with the next annual syllabus update for those exams, also effective from December 2015. |
There are some syllabus changes to the ACCA Qualification in 2015–16. Apart from the two tax papers (F6 and P6) where syllabus changes relating to the new tax year for these exams will take effect from June 2015, these are all planned for September 2015.
For information about changes relating to content in each exam, please access the specific syllabus and study guide links on the website.
With regard to the ACCA Qualification Skills module (F4, F5, F7, F8 and F9) there are some syllabus updates from September 2015 to announce. These changes are needed to ensure that the ACCA Qualification continues to comply with the appropriate regulatory standards, to improve the articulation between related syllabuses and to reflect the views of our key stakeholders. This will be described in the relevant F4–F9 syllabus changes (see detailed changes below). At the Professional level there are also some syllabus changes to announce. Therefore, the content of the ACCA syllabuses at all levels is being continually refreshed and updated to adapt to the latest business and accounting sector needs. Because it falls in line with the tax year, P6, Advanced Taxation* will be updated as usual in June 2015.
In all cases, please refer to the relevant study guides at the appropriate time for full details of changes for the papers you are particularly interested in. The summary of syllabus updates and changes for each examination is also included at the back of each study guide.
The last structural and syllabus changes to the Foundations level and Certified Accounting Technicians (CAT) took place in February 2014, relating to the Foundations level syllabuses. F4 (ENG) and (GLO) exams changed structure and were made available by on-demand CBE from November 2014. A new structure for all versions of F4 was introduced in December 2014.
All the detailed changes to the ACCA Advanced Diploma and Professional level syllabuses are summarised below.
There are no syllabus changes planned for the new F4 exam in 2015 since the introduction of the on-demand CBE and new paper-based structure in November/December 2014.
There are no changes planned for the F5 syllabus from September 2015.
Some of the syllabus areas have been reordered as shown in Table 1 below:
Section and subject area | Syllabus content |
|---|---|
Reordering of syllabus areas | The syllabus areas have been reordered so that syllabus area A covers the UK tax system and its administration, B covers income tax and NIC liabilities, C covers chargeable gains for individuals, D covers inheritance tax, E covers corporation tax (including chargeable gains) and F covers VAT. |
Enlarged syllabus area A | Syllabus area H (the obligations of the taxpayer and/or their agents) has been combined with syllabus area A to create an enlarged syllabus area A (the UK tax system and its administration). |
National insurance | National insurance has been moved and is now included in syllabus area B (Income tax and NIC liabilities) |
E3 Chargeable gains for companies | Chargeable gains have been split between individuals (syllabus area C) and companies (syllabus area E3 Corporation tax) |
The main areas that have been added to the syllabus are shown in Table 2 below:
Table 2 – Additions to F6 (UK)
Section and subject area | Syllabus content |
|---|---|
A2c Principal sources of revenue law and practice | New part c on the organisation HMRC and its terms of reference added |
B2 Income from employment – Excluded topics | The exemption where an employer pays for medical treatment. Real time reporting late filing penalties. |
B3 Income from self-employment – Excluded topics | The loss relief restriction that applies to the partners of a limited liability partnership. |
B3 iv Income from self-employment | New part v on the factors that will influence the choice of loss relief claim added for clarity |
B4 Property and investment income – Excluded topics | The ISA investment rules and limits that applied prior to 1 July 2014. |
B6b National insurance contributions for employed and self-employed persons | New part b on the annual employment allowance. |
E5 The effect of a group corporate structure for corporation tax purposes – Excluded topics | Relief for trading losses incurred by an overseas subsidiary |
The main areas that have been deleted from the syllabus are shown in Table 3 below:
Table 3 – Deletions from F6 (UK)
Section and subject area | Syllabus content |
|---|---|
B3 Income from self-employment | Part B3j v on the loss relief restriction that applies to the partners of a limited liability partnership deleted. |
The main areas to be added or deleted from the syllabus from that date are shown in Table 1 and 2 below:
Table 1 – Additions to F7
A2c | Explain and compute amounts using the following measures: i historical cost ii current cost iii net realisable value iv present value of future cash flows v fair value | The principles of IFRS 13, Fair Value Measurement. have been made more explicit in the F7 syllabus |
B5d | Indicate for the following categories of financial instruments how they should be measured and how any gains and losses from subsequent measurement should be treated in the financial statements: i amortised cost ii fair value through other comprehensive income (including where an irrevocable election has been made for equity instruments that are not held for trading) iii fair value through profit or loss | This change has been made to reflect the measurement classifications of IFRS 9, Financial Instruments. |
B10 | a Explain and apply the principles of recognition of revenue: b Explain and apply the criteria for recognising revenue generated from contracts where performance obligations are satisfied over time or at a point in time. c Describe the acceptable methods for measuring progress towards complete satisfaction of a performance obligation. d Explain and apply the criteria for the recognition of contract costs. e Apply the principles of recognition of revenue, and specifically account for the following types of transaction: i principal versus agent f Prepare financial statement extracts for contracts where performance obligations are satisfied over time. | These changes have been made to reflect the principles of IFRS 15, Revenue from contracts with customers. |
Table 2 – Deletions to F7
There have been no deletions to the study guide for the exam year commencing 1 September 2015.
Table 1 – Amendments to F8
Section and subject area | Syllabus content |
|---|---|
D4b Amended wording of outcome to refer to cut-off testing rather than the | D4b Inventory: i inventory counting procedures in relation to year-end and continuous inventory systems ii cut-off testing
|
C4a Outcome regarding reporting internal control deficiencies now redefined as two clearer outcomes in relation to discussing the mechanism for reporting deficiencies and preparing example recommendations for inclusion in a management letter. | C4a Discuss the requirements and methods of reporting significant deficiencies in internal control are provided to management and those charged with governance. b Explain, in a format suitable for inclusion in a management letter, significant deficiencies within an internal control system and provide recommendations for overcoming these deficiencies to management.
|
There are changes to the syllabus to reflect the latest business and educational developments affecting this paper. These are summarised in the table below.
Amendments/additions
Section and subject area | Syllabus content |
|---|---|
B3a i | Wording amended to clarify the syllabus content in this area |
D4b | Wording amended to clarify the syllabus content in this area |
E5d | Wording amended to clarify the syllabus content in this area and also for the addition of newer sources of finance for SMEs |
The changes are introduced to the syllabus to reflect the latest business and educational developments affecting this paper. These are summarised in the table below:
Section and subject area | Syllabus content |
|---|---|
A1c amended to include private sector | c Analyse the purposes and objectives of corporate governance in the public and private sectors. |
A7b amended to include the Mendelow matrix | A7b Discuss and critically assess the concept of stakeholder power and interest using the Mendelow model and how this can affect strategy and corporate governance. |
New A9e added to include examination of the three Es and public value in public sector governance | A9e Discuss obligations of the public sector organisations to meet the economy, effectiveness, efficiency (three Es) criteria and promote public value |
B1c amended to make more explicit reference to fraud and error in respect of internal control | B1c Describe the objectives of internal control systems and how they can help prevent fraud and error. |
Table 1 – Additions to P2 (INT)
There have not been any additions to the study guide for the exam year commencing 1 September 2015. However, there have been minor amendments to the wording of some of the study guide outcomes mainly corresponding to changes within examinable documents.
Section and subject area | Syllabus content |
|---|---|
C1b and c | Discuss and apply the criteria that must be met before an entity can apply the revenue recognition model to that contract.
|
C3d | Apply and discuss the treatment of the expected loss impairment model. |
H3a | Discuss current issues in corporate reporting, including: i recent IFRSs
|
Table 2 – Deletions to P2 INT
There have not been no specific deletions from the study guide for the exam year commencing 1 September 2015. A number of outcomes have been combined or removed as detailed in the table below.
Section and subject area (in prior year study guide) | Syllabus content |
|---|---|
C6a and b | Outline the principal considerations in developing a set of accounting standards for SMEs |
C8a and b | Discuss the reasons why the IFRS for SMEs does not address certain topics. |
The syllabus must be read in conjunction with the Examinable Documents list. The main changes for the year from 1 September 2015 are the inclusion of IFRS 15 Revenue from Contracts with Customers and IFRS 9 Financial Instruments (July 2014), as well as changes in the list of exposure drafts and discussion papers that are examinable.
The changes are introduced to the syllabus to reflect the latest business and educational developments affecting this paper. These are summarised in the table below.
Summary of changes to P3:
Section and subject area | Syllabus content |
|---|---|
New C1e added | Discuss how big data can be used to inform and implement business strategy. |
New G1b added | Discuss how the finance function has transformed to enabling an accountant to have a key role in the decision making process from strategy formulation and implementation to its impact on business performance |
G1 heading amended | Finance |
G2a and b clarified | Evaluate budgeting, standard costing and variance analysis in support of strategic planning and decision making |
G2c clarified | Evaluate strategic and operational decisions taking into account risk and uncertainty. (Including using decision trees). |
There are no changes to the syllabus.
Amendments:
Section and subject area | Syllabus content |
|---|---|
| A1 Strategic planning and control | A1g amended to; Apply and evaluate the methods of benchmarking performance
|
C1 Performance management information systems
| C1b amended to; Evaluate the compatibility of management accounting objectives and the management accounting information systems |
C3d | Wording amended to clarify the syllabus content in this area |
E1 Alternative views of performance measurement and management
| E1a amended to; Apply and evaluate the ‘balanced scorecard’ approach as a way in which to improve the range and linkage between performance measures E1b amended to; Apply and evaluate the ‘performance pyramid’ as a way in which to link strategy, operations and performance
E1c amended to; Apply and evaluate the work of Fitzgerald and Moon that considers performance measurement in business services using building blocks for dimensions, standards and rewards |
E2 Strategic performance issues in complex business structures
| E2a; Ansoff has been deleted |
Some of the syllabus areas have been reordered as shown below:
Reordering within P6 (UK)
Section and subject area | Amendment |
|---|---|
Reordering of syllabus area A | The syllabus areas have been reordered so that syllabus area A1 covers income tax and national insurance, A2 covers chargeable gains, A3 covers inheritance tax, A4 covers corporation tax, A5 covers stamp taxes and A6 covers value added tax, tax administration and the UK tax system |
National insurance | National insurance has been moved to syllabus area A1 |
The main areas that have been added to the syllabus are shown in below:
Additions to P6 (UK)
Section and subject area | Amendment |
|---|---|
A1 Income tax | Employee shareholder shares added to section A1c i |
A2 Chargeable gains | Seed enterprise investment scheme reinvestment relief has been removed from excluded topics and is now included in section A2g ii |
A3 Inheritance tax – Excluded topics | The computation of inheritance tax payable by trustees of an immediate post-death interest trust added to excluded topics |
The main areas that have been deleted from the syllabus are shown below:
Deletions from P6 (UK)
Section and subject area | Amendment |
|---|---|
A1d – Income from self-employment | Recognise the tax treatment of the investment income of a partnership |
A1e – Property and investment income | Assess the tax implications of pre-owned assets |
A1g – The use of exemptions and reliefs in deferring and minimising income tax liabilities | Explain the conditions that need to be satisfied for pension schemes to be registered by HM Revenue and Customs |
A2e – Gains and losses on the disposal of movable and immovable property | Explain the tax effect of appropriations to and from trading stock (inventory) |
The main areas that have been amended or clarified in the syllabus are shown below:
Amendments to P6 (UK)
Section and subject area | Amendment |
|---|---|
A2b vi – Identify the occasions when a capital gain would arise on a partner in a partnership | Clarified as Identify the occasions when a capital gain would arise on a partner in a partnership on the disposal of a partnership asset. |
A2b – The scope of the taxation of capital gains | Deemed disposals on a change in the profit sharing ratio (PSR) of a partnership moved to excluded topics |
A2 Chargeable gains – Excluded topics | Amended to clarify that whilst the detailed calculations for chattels where cost or proceeds are under £6,000 are excluded from the syllabus, knowledge of the exemption where both cost and proceeds are less than £6,000 continues to be examinable. |
The changes are introduced to the syllabus to reflect the latest business and educational developments affecting this paper. These are summarised in the table below:
Section and subject area | Syllabus content |
|---|---|
| Heading E6 amended to reference pre-determined objectives | 6 The audit of performance information (pre-determined objectives) in the public sector |
E6a Amended to add reference to | a Describe the audit of performance information (pre-determined objectives) and differentiate from performance auditing |
E6b Amended to add reference to | b Plan the audit of performance information (pre-determined objectives) and describe examination procedures to be used in the audit of this type of information. |
E6c Amended heading to better reflect audit criteria in relation to performance information. | c Discuss the audit criteria of reported performance information, namely compliance with reporting requirements, usefulness, measurability and reliability. |
There are very few changes to the Foundations Level syllabuses. These are detailed below.
There are no planned changes to either of the FA1 or MA1 syllabuses for September 2015.
FA2
The planned changes for FA2 are shown below:
Amendments
Section and subject area | Syllabus content |
|---|---|
H2 and H3 | Headings of areas amended to better reflect content of study guide outcomes |
D6g, F1f | Minor wording alterations |
Deletions
Section and subject area | Syllabus content |
|---|---|
E2b | Outcome deleted as it was a duplication of other study guide outcomes |
MA2:
There are no planned changes to MA2.
F1/FAB:
There is only one change to the F1/FAB syllabus to make explicit that the Mintzberg organisational model is examinable.
This is highlighted below.
Section and subject area | Syllabus content |
|---|---|
B2a amended | a Describe Mintzberg’s components of the organisation and explain the different ways in which formal organisations may be structured: i Entrepreneurial |
F2/FMA
There are no planned changes to F2/FMA:
F3/FFA
The detailed changes to the FFA/F3 syllabus are summarised below.
Section and subject area | Syllabus content |
|---|---|
Section D3g has been reworded to clarify that average cost includes both periodic weighted average and continuous weighted average. | g Calculate the value of closing inventory using FIFO (first in, first out) and AVCO (average cost) – both periodic weighted average and continuous weighted average. |
Section D5e terminology has been revised. | The term revaluation reserve has been replaced with revaluation surplus. |
Terminology has been revised in Section G. This affects G1c iii, G1c iv, G1e i and G1e ii. | The term inter-company trading has been replaced with intra-group trading. |
The main areas that have been changed in the Foundations in Audit (FAU) syllabus are shown below:
Amendments to FAU
Section and subject area | Syllabus content |
|---|---|
E3c Identify significant internal control deficiencies and communicate to management and those charged with governance. | Deleted |
C4a Identify and define significant internal control deficiencies and explain the requirements and methods for communicating significant deficiencies to management and those charged with governance. | Combined outcome of old E3c and existing C4a. |
The main areas that have been changed in the Foundations in Tax (FTX) syllabus are shown below:
Amendments to FTX (UK)
Section and subject area | Syllabus content |
|---|---|
B3 Income from property, savings and investments – Excluded topics | Detailed knowledge of the rules and limits for the new individual savings accounts (NISA) other than that income from such accounts is exempt from tax. |
C2 Income from employment and class 1 National Insurance Contributions | New outcome C2j Understand the annual employment allowance |
C2 Income from employment and class 1 National Insurance Contributions – Excluded topics | The exemption where an employer pays for medical treatment |
C2 Income from employment and class 1 National Insurance Contributions – Excluded topics | Real time reporting late filing penalties |
D3 Gains and losses on the disposal of shares and securities | D3d Sale of rights – awareness of basic treatment (partial vs. small disposal) only removed from syllabus |
D4d Gains and losses on the disposal of movable and immovable property
| Clarified as ‘Calculate gains where compensation or insurance proceeds are received for assets lost or destroyed.’ |
There are no changes to the Foundations in Financial Management (FFM) syllabus.