Award in Financial Accounting – Part 1 – Bundle Offer

Enrolment OPEN for Cohort prospected to commence on 07.10.2024

Kindly note that all applicants are required to create a Classter account via their E-ID and register for their attendance.

Applicants who do not qualify for a Maltese ID need to contact us on [email protected] 

Failure to comply will suggest that no certification will be issued.

Bundle Consists of:

Award in Book-keeping – Fundamentals

Module 1 of Accounting Bundle Part 1

Generic Unit description

This unit is designed for learners to understand what the main purpose of accounting is and learn the basic principles of the double-entry bookkeeping systems.

Learners will learn how to create fiscal invoices and credit notes that are in compliance with the local legislation, using the applicable VAT rate. In addition, learners will develop an understanding of how these various business documents, used by companies, are entered in their respective daybooks. In this unit learners will gain knowledge of how to transfer the totals from the books of prime entry to the general ledger, sales ledger, and purchases ledger.

Through this unit learners will also acquire skills to prepare the first draft of the trial balance following which is the balancing off process of the accounts.

Learning Outcomes

LO1 Analyse the use of accounting in business organisations.

LO2 Explain the purpose of business documentation for accounting purposes.

LO3 Compile the books of prime entry and memorandum ledgers.

LO4 Apply the basic principles of the double-entry bookkeeping system.

LO5 Process business transactions into a double-entry system and balance off the general ledger accounts at period end.

LO6 Extract a preliminary trial balance at period end.

COMPETENCES KNOWLEDGE AND SKILLS 

Competences – At the end of the unit the learner will have acquired the responsibility and autonomy to:

1. Present the correct information to users of the accounting information according to their specific needs.
2. Apply the principles of the double-entry process to various business transactions using the relevant source documents.
3. Balance off period end ledger accounts to extract a trial balance using the correct financial accounting terminology and format.

Knowledge – At the end of the unit the learner will:

1. Know the importance of accounting information for business entities.
2. Be familiar with the main users of accounting information and which information is relevant to them.
3. Be familiar with the content and use of business documents used by business entities.
4. Know the different discounts an organisation may receive or allow.
5. Comprehend the effect of discounts on the VAT calculation.
6. Comprehend the double-entry bookkeeping system.
7. Be familiar with the coding systems used in an accounting environment.
8. Comprehend the sales ledger and purchases ledger accounts.
9. Be familiar with the process followed at period end in transferring balances from the books of prime entry into the double-entry system.
10. Know how ledger accounts are balanced off.
11. Comprehend how a trial balance is extracted at the end of the accounting period.

Skills – At the end of the unit the learner will have mastered the following skills:

Applying Knowledge and Understanding

1. Apply the basic bookkeeping principles of the double-entry bookkeeping system.
2. Compose a taxable customer invoice/credit note that is in conformity to local requirements.
3. Practise simple transactions into the books of prime entry and memorandum ledgers from source documents using an appropriate coding system.
4. Show how VAT is calculated and accounted for in accordance to Maltese Law.
5. Use an analysed cash book to process related receipts and payments and balance it off at the end of the accounting period.
6. Use an analysed petty cash book to process related receipts and payments and balance it off at the end of the accounting period.
7. Show how balances are transferred from the books of prime entry to the general ledger accounts at the end of the accounting period.
8. Prepare the sales ledger and purchases ledger control accounts.
9. Practise the balance off of the ledger accounts.
10. Show how a trial balance is extracted at the end of an accounting period.

Communication Skills

1. Explain the principles of the double-entry system.
2. Present the accounting information using the correct accounting terminology and principles.
3. Present the results in the appropriate format.

Judgmental Skills and Critical Abilities 

1. Identify the information needed by the different types of stakeholders.
2. Analyse the principles of the double-entry system.
3. Select the most appropriate coding systems for processing and filing of business documents.

Learning Skills

1. Evaluate own learning with regards to how business transactions are recorded in a double-entry accounting system and a trial balance is extracted.
2. Proceed with study and time management plans to aid coherent progression through the learning outcomes.
3. Evaluate own learning in order to achieve higher-end learning criteria.

Award in Book-keeping – Intermediate

Module 2 of Accounting Bundle Part 1

The aim of this part-time diploma course is to provide learners with the training and competence needed to be able to join the Bachelor of Engineering program. Thorough the specialised unit design, knowledge, skills and competencies in mathematics and physics, is enhanced. This is meant to raise the student’s knowledge and understanding of the subjects to the required rigorous level.

In addition, the programme will include study-units specific in the various fields of engineering such as electrical engineering, mechanical engineering, material science and programming. This will include extensive hands on approaches.

Apart from acting as foundation year to access the B.Eng., this program has also been designed to provide the learners with engineering training at a highly professional level 5 program. This program can therefore also act as an exit point and provide the learner with the possibility of achieving middle management engineering positions.

Programme Learning Outcomes

At the end of the programme the learner will be able to:

• Understand physics relating to Engineering Technology.
• Use mechanical and electrical engineering principals to perform engineering functions.
• Select the best materials for specific tasks, based on their chemical and physical properties.
• Use mathematical principles to solve engineering problems.

Overall Learning Outcomes

LO1 Record the bookkeeping entries for non-current assets.

LO2 Calculate period end adjustments.

LO3 Carry out accounting procedures at the end of the accounting period as a control mechanism of the double-entry bookkeeping system.

LO4 Process journal entries to record bookkeeping transactions and correction of errors.

LO5 Complete an extended trial balance incorporating adjustments.

LO6 Prepare the final accounts of a sole trader.

Unit Content LO1 Record the bookkeeping entries for non-current assets

• The classification of capital and revenue expenditure.
• The importance of prior authorisation for non-current assets acquisitions.
• The importance of keeping an up-to-date non-current asset register.
• Recording of the acquisitions and disposals of non-current assets in the general ledger.
• The application of the accounting policy to calculate depreciation of non-current assets bought and sold during the year, using: o Straight-line method o Reducing balance method.
• The recording of depreciation in the general ledger.
• The reconciliation of the non-current asset register and the relevant general ledger balances.

LO2 Calculate period end adjustments

• The preparation of period end adjustments:
  • Closing inventories.
  • Irrecoverable debts and allowance for doubtful debts.
  • Depreciation for the year.
  • Accruals and prepayments for both income and expenses.

LO3 Carry out accounting procedures at the end of the accounting period as a control mechanism of the double-entry bookkeeping system

• Control accounts.
  • Usefulness of control accounts.
  • The preparation of the sales ledger and purchases ledger control accounts.
  • The preparation of the VAT control account.
  • The reconciliation of the totals of the control accounts with their respective ledger accounts.
• Financial period end routines.
  • The importance of the verification process of the general ledger by using relevant sources of information and performing reconciliation:
  • Physical checks
  • Inventory records
  • Supplier statements
  • Bank statements
  • Sales ledger and purchases ledger
  • Non-current asset register
    • Assuring that transactions are genuine and valid for inclusion in the business entity’s records.
  • Bank reconciliations
    • The purpose of preparing bank reconciliations.
    • Identifying which items can cause differences between the bank statements and the cash book:
    • Opening balances
    • Bank interest received / paid.
    • Bank charges
    • Automated receipts / payments
    • Timed differences
      • The preparation of a bank reconciliation to reconcile the cash book balances with the bank statements.
      • Updating of the cash book for any unrecorded and duplicated transactions.

LO4 Process journal entries to record bookkeeping transactions and correction of errors

• The purpose and use of the journal as a book of prime entry.
• The preparation of the journal to record:
  • Opening entries. o Irrecoverable debts written off.
  • Payroll transactions.
• Correction of errors.
  • Identification of the different errors that do not affect the agreement of the total of the trial balance:
  • Reversal of entries
  • Error of omission
  • Error of commission
  • Error of principle
  • Error of original entry
  • Compensating errors o Correction of errors using the journal.
    • Identification of the different errors that affect the agreement of the total of the trial balance:
  • The use of a suspense account.
  • Correcting errors and clearing the suspense account.

LO5 Complete an extended trial balance incorporating adjustments

• The purpose of a fully extended trial balance.
• The preparation of an extended trial balance showing clearly the period end adjustments and correction of error adjustments in their relevant columns.
• Balance off the extended trial balance by calculating the profit and loss figure.

LO6 Prepare the final accounts of a sole trader

• The purpose of the final accounts.
• The nature and structure of the final accounts.
• The preparation of the income statement and the balance sheet of a sole trader for an accounting period from a trial balance.

Award in Financial Reporting – Introduction

Module 3 of Accounting Bundle Part 1

Generic Unit description

The main objective of this unit is to provide learners with all the knowledge and skills required to prepare a set of financial statements for both partnerships and limited liability companies. This unit builds on the knowledge and skills acquired from studying Fundamentals of Intermediate Bookkeeping. Through this unit, learners will further develop their understanding of the preparation of the financial statements for other entities. This unit will enable learners to become familiar with the legal aspects of partnerships as outlined in the Companies Act, 1995. In addition, the learners will acquire skills to prepare an appropriation account as part of the final accounts as well as the partners’ capital and current accounts. Furthermore, learners will also develop the necessary skills to apply the fundamental accounting concepts and principles for the preparation and presentation of the period end financial statements of limited liability companies in according with the General Accounting Principles for Small and Medium Sized Entities (GAPSME) regulations and the Companies Act, 1995. The GAPSME is the default accounting framework for SMEs in relation to financial reporting. It should be noted that most business in Malta are small to medium and therefore adopt the GAPSME as their reporting framework. This unit will help learners get familiar with the accounting terminology as per the GAPSME. Learners will also be introduced to the elements of the financial statements including the Income Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and statutory notes to the accounts.

Overall Learning Outcomes

LO1 Prepare the financial statements for a partnership.

LO2 Review the regulatory framework to produce the financial statements suitable for publication.

LO3 Comprehend the capital structure of limited liability companies and finance costs.

LO4 Prepare the financial statements for a limited liability company.

Unit Content

LO1 Prepare the financial statements for a partnership

• Define the different types of partnership as set out by the Companies Act 1995:
  • Partnership en nom collectif
  • Partnership en commandite
  • A company:
    • Public company
    • Private company
    • Exempt private company
  • Explain what a partnership deed is and what the agreement contains.
  • The preparation of the Partners’ income statement, clearly showing the appropriation of profits and losses amongst partners taking into consideration: o Interest on capital o Partnership salaries
    • Interest on drawings
  • Recording the entries in the partners’ capital and current accounts.
  • The preparation of the statement of financial position clearly showing the partners’ capital section.

LO2 Review the regulatory framework to produce the financial statements suitable for publication

• Outlining the main important sections of the GAPSME as the local’s regulatory framework
  • The objective of the GAPSME. o The applicability of the GAPSME.
  • The concepts and the pervasive principles of accounting in accordance to section 3 of the GAPSME.
• The qualitative characteristics of information in financial statements:
• Understandability
• Relevance
• Reliability
• Substance over form
• Completeness
• Comparability
• Timeliness
• Balance between benefit and cost

LO3 Comprehend the capital structure of limited liability companies and finance costs

• Identifying the differences that exist between the accounts of sole traders, partnerships and limited liability companies.
• Capital structures: o Ordinary shares. BCACC-406-2112 Page 5 MCAST Controlled and Approved Document Unauthorised copying or communication is strictly prohibited
  • Preference shares (redeemable and irredeemable)
  • Debentures (loan notes)
• Company reserves:
  • Share capital
  • Share premium
  • Revaluation reserves
  • Other reserves
  • Retained earnings
• The recording of dividends in the ledger accounts and the financial statements.
• The calculation and recording of finance costs in the ledger accounts and the financial statements.

LO4 Prepare the financial statements of a limited liability company

• The main objective of preparing the financial statements.
• The underlying assumptions used in the preparation of the financial statements according to Section 3 of the GAPSME.
• The duties and responsibilities of the company’s directors in the preparation of the financial statements.
• The main elements of the financial statements according to GAPSME.
• Financial statement preparation according to section 4 of the GAPSME:
  • Balance sheet
  • Income statement
  • Statement of changes in equity
  • Statement of cashflows (Direct Method)
  • Main disclosure requirements to be included in the financial statements

Award in Elements of Maltese Taxation

Module 4 of Accounting Bundle Part 1

The purpose of this unit is to provide the learner with a basic understanding of the Maltese VAT legislation. Throughout this unit, the learner will develop the necessary skills to prepare and submit accurate VAT returns and VAT declarations to the Office of the Commissioner for Revenue and to ensure that taxable persons are compliant with the tax legislation.

The unit will provide learners with the knowledge of the VAT laws and their implications and how such laws and knowledge can be translated into specific actions and procedures within organisations. Learners will understand the rights and obligations of both taxpayers and the Malta Tax Authority (Commissioner for Revenue) and the implications of an organisation not adhering to the VAT laws and tax regulations.

The unit will guide the learner on sourcing VAT material which can be used when guidance is required on technical VAT matters and for keeping up to date with changes in practice or with relevant legislation.

Overall Learning Outcomes 

• LO1 Explain the concept and role of VAT in the tax system.
• LO2 Apply ‘the scope of VAT’ principle to determine tax liability.
• LO3 Recognise the VAT registration and de-registration processes.
• LO4 Record VAT in the books of a business.
• LO5 Prepare VAT returns / declarations according to Maltese legal requirements.
• LO6 Communicate VAT information to the relevant parties.

COMPETENCES KNOWLEDGE AND SKILLS 

Competences – At the end of the unit the learner will have acquired the responsibility and autonomy to:

1. Comply with the Value Added Tax Act and relevant subsidiary legislation.
2. Complete the main sections of a VAT return in accordance with the Value Added Tax Act (Article 10).
3. Complete a VAT declaration in accordance with the Value added Tax Act (Article 11).
4. Prepare accurate VAT returns / declarations within the permitted timescales as requested by the Office of the Commissioner for Revenue.

Knowledge – At the end of the unit the learner will:

1. Be familiar with the VAT system and the role of the Office of the Commissioner for Revenue.
2. Understand the process by which VAT is collected through the VAT supply chain.
3. Be familiar with the different rates of VAT which are applied locally and the categories to which they are applied.
4. Know the implications of the five (5) conditions which must be observed for VAT to become due and payable on a supply in Malta.
5. Be familiar with the VAT registration and de-registration process under Article 10 and Article 11.
6. Know the implications of registering for VAT, particularly, with regard to compliance and deadlines.
7. Be familiar with the way in which the ‘taxable value of a supply’ is ascertained.
8. Be familiar with the books and records which a registered person must maintain for VAT purposes.
9. Understand the effect of an invoice and a credit note in computing the input VAT and / or output VAT.
10. Be familiar with communication with the Office of the Commissioner for Revenue on VAT matters. 11. Know the procedure to be followed in those instances when a registered person receives a ‘provisional assessment’ with which one does not agree.

Skills – At the end of the unit the learner will have mastered the following skills:

Applying Knowledge and Understanding

1. Calculate the input and output VAT figures for standard-rated, reduced-rated, zerorated and exempt supplies from information supplied.
2. Practice the meaning of ‘taxable person’ and ‘economic activity’ under different scenarios.
3. Apply the ‘scope of VAT’ principle to a potential taxable person.
4. Apply the entry and exit thresholds in the registration / de-registration process.
5. Prepare a diagram showing how VAT is collected along the VAT supply chain at different stages of the production process.
6. Practice the effect of an invoice, credit note and bad debt relief on the resulting VAT liability.
7. Prepare and submit a valid VAT return under Article 10 based on a given scenario.
8. Prepare and submit a valid VAT declaration under Article 11 based on a given scenario.
9. Reconcile the outstanding VAT balance to the VAT control account.
10. Prepare an information checklist which allows employees to check VAT rules on common forms of business income and expenditure.

Communication Skills

1. Inform managers by email or memo that a payment or refund of VAT is due to or from the Commissioner and explain its effect.
2. Explain to managers the VAT rules on bad debt relief.
3. Communicate the changes required to a taxable person’s financial system as a result of an increase or decrease in the standard rate of VAT.
4. Interact with the Office of the Commissioner for Revenue to ‘request a review’ (appeal) in those instances where a taxable person is in disagreement with a ‘provisional assessment’.

Judgmental Skills and Critical Abilities

1. Identify the difference between input VAT and output VAT.
2. Assess whether a business should voluntarily register for VAT.
3. Evaluate whether a business which makes exclusively zero-rated supplies should register for VAT.
4. Distinguish between ‘exempt with credit supplies’ and ‘exempt without credit supplies’.
5. Assess whether a person is liable to pay VAT in Malta by applying ‘the scope of VAT’ principle.
6. Identify whether a business should register under Article 10 or Article 11.
7. Distinguish between a ‘tax invoice’ and a ‘fiscal receipt’.