Different Types of Foundation Certifications in ACCA
12/6/2018 12:00:00 AM
Interested in obtaining the ACCA certification, but do not meet the eligibility criteria? Well, you can still earn the qualifications thanks to ACCA’s foundation certifications. These certifications will allow you to work in the field of accounting and eventually will enable you to obtain the ACCA qualification as well.
Read the following blog to learn more about these foundation certifications.
What is foundation in accountancy?
The Association of Chartered Certified Accountants (ACCA) is an accountancy organization in the UK. The ACCA certification is recognized and accepted, with over 200,000 members and 500,000 students across the world. ACCA’s Foundation in Accountancy (FIA) is an entry-level suite comprising of diplomas and certificates.
These FIA certifications can act as a strong foundation for those people who wish to begin their careers in the field of accountancy but do not possess the necessary requirements to proceed with the ACCA qualification. There are several more reasons to opt for the FIA, such as:
- Providing you with a professional qualification and allowing you to work in the accounting field;
- Allowing you to set the pace for completing this qualification;
- Acting as an entry point to the ACCA qualification for those people who do not have a background in accountancy;
- Exempt from taking the first three papers in the ACCA qualification.
Eligibility criteria for the FIA certifications
There are no such entry requirements for the FIA certifications. It can be taken by people who wish to work in the accounting field or those people who already work in the field but have no qualifications. However, it would be better for you to begin with the Introductory Certificate if you have no prior accounting qualifications.
What are the different types of FIA certifications?
ACCA’s Foundation in Accountancy certificates consist of multiple exams and qualifications including:
- ACCA Diploma in Financial and Management Accounting (RQF Level 2)
- ACCA Diploma in Financial and Management Accounting (RQF Level 3);
- ACCA Diploma in Accounting and Business (RQF Level 4).
ACCA Foundation Diploma in Financial and Management Accounting (RQF Level 2)
This foundation level diploma is meant for those people who already are or wish to work in roles like junior accounts clerk, junior bookkeeper or any accounting administration role. On completion of this diploma, you will be equipped with professional skills such as:
- Professional values;
- Performance effectiveness;
- Compliance with legal requirements.
You will be awarded this diploma only if you score 50% and above in the following components:
- Examination – Recording Financial Transaction (FA1): upon completion of this exam, you will gain an in-depth understanding of the types of business transactions and documentation and how they are stored in an accounting system. The syllabus for this examination includes:
- Types of business transactions and documentation;
- The duality of transactions and the double entry system;
- Banking system and transactions;
- Ledger accounts;
- Cash and bank;
- Sales and credit transactions;
- Purchases and credit transactions;
- Preparing the trial balance.
- Examination – Management Information (MA1): This examination aims to provide the students with an understanding of how management information in an organization helps the organization in decision-making and planning. The syllabus for this examination comprises of:
- Explaining the nature and purpose of cost and management accounting;
- Identifying source documents in a costing system and correctly code data;
- Classifying costs by nature, behaviour and purpose;
- Recording costs for material, labour and expenses.
- Online module – Foundations in Professionalism: this is an online interactive module, which informs the students on how to behave professionally and ethically in the workplace. It consists of various topics, such as:
- Introduction to ethics and professionalism;
- Law and regulation;
- Professional ethics;
- Personal effectiveness at work;
- Personal values;
- Case study;
- Objective test.
ACCA Foundation Diploma in Financial and Management Accounting (RQF Level 3)
When you complete this diploma you will be able to process cost and financial accounting information into management and financial documentation like cash management. This diploma also consists of three components, including the Foundations in Professionalism module (this module has already been explained above). Similar to the RQF Level 2 diploma, you need to score at least 50% in each of the components. The other two components of this diploma are:
- Examination – Maintaining Financial Records (FA2): the objective of this module is to provide you with an understanding of the concepts involved in the maintenance of financial records and double-entry accounting techniques. The syllabus in this examination comprises:
- Explaining the generally accepted accounting principles;
- Outlining the principles and process of basic bookkeeping
- Preparing journals and ledger accounts;
- Recording transactions and events;
- Preparing trial balance;
- Reconciling the control accounts and cashbook;
- Extending the trial balance, year-end adjustments and final accounts.
- Examination – Managing Costs and Finance (MA2): upon completion of this module, you will be able to prepare and present cost information that will be useful to the management during the planning and decision-making process. The syllabus involved in this examination includes:
- Understanding the role of costing in an organization;
- Classifying costs;
- Explaining the concepts involved in cost accounting;
- Explaining the principles of cash management.
ACCA Foundation Diploma in Accounting and Business (RQF Level 4)
This diploma is meant for those people who are:
- Working in supervisory financial reporting roles in large organizations;
- Working as a financial manager in any type of organization;
- Working as an accounting technician in a commercial organization.
This diploma consists of three examinations and an online module. The online module has already been explained earlier.
Take a look at the three examinations that are a part of this diploma:
- Examination – Accountant in Business (FAB/F1): this examination aims to provide students with an understanding of business and its environment, the structuring of an organization and the role of accounting and other important business functions in an organization. The syllabus of this examination includes:
- Understanding various types of businesses and how they behave with the external environment and key stakeholders;
- Understanding the structure of an organization and the role of corporate governance;
- Recognizing the function of accountancy in financial compliance and control;
- Understanding the principles of leadership and authority;
- Understanding the importance of personal effectiveness in the overall organizational
- Examination – Management Accounting (FMA/F2): upon completion of this module, you will be able to understand and implement the various types of management accounting techniques. Take a look at its syllabus:
- Explaining the nature and importance of management information;
- Understanding and implementing cost accounting techniques;
- Preparing budgets for control and planning;
- Implementing performance measurements to analyze business performance.
- Examination – Financial Accounting (FFA/F3): once you have successfully completed this topic, you will be able to grasp the principles involved in financial accounting. The syllabus for this module comprises of:
- Explaining the purpose of financial accounting;
- Describing the characteristics of financial information;
- Demonstrating the implementation of the double-entry accounting system;
- Recording transactions;
- Preparing trial balance;
- Preparing financial statements.
If you are interested in earning these foundation level certifications, the Toronto School of Management (TSoM) offers a Preparatory Course for the ACCA Examination.