cima lecturers conference 2006the same as at present – 5, with each having it’s own assessment...

CIMA Future

CIMA Certificate in Business Accounting 2006

CIMA LECTURERS’CONFERENCE 2006 Review | Learning | Future

Facilitator: Graham Eaton

Workshop Programme

1. Introduction - an overview of the new CIMA Certificate in Business Accounting Qualification 2006

Robert Jelly2. The Syllabus for the new Certificate

Robert Jelly3. Assessment of the new Certificate

Graham Eaton4. Study support for new Certificate

Mike Cash, Elsevier

Introduction – an overview

Robert JellyDirector of Education, CIMA

How many papers are there in the new Certificate in Business Accounting?The same as at present – 5, with each having it’s own assessment


How is assessment undertaken?CIMA will assess students using objective test questions, delivered within a computer based assessment (CBA) package and offered at CIMA approved centres – as with the current certificate

When will the new Certificate in Business Accounting Qualification be introduced?Officially in September 2006


When will the first assessments (CBAs) for the new Certificate be available for students to sit?As from 2 October 2006

When will be the last date that students can sit Assessments (CBAs) based on the current Certificate in Business Accounting Qualification?1 March 2007


Is there an overlap period when both old and new Certificate assessments (CBAs) are available?Yes – from the 2 October 2006 to 1 March 2007

The Syllabus

The new syllabus comprises:

Paper C01 – Fundamentals of Management Accounting

Paper C02 – Fundamentals of Financial Accounting

Paper C03 – Fundamentals of Business Mathematics

Paper C04 – Fundamentals of Business Economics

Paper C05 – Fundamentals of Ethics, Corporate Governance and Business Law

Paper C01 - Fundamentals of Management Accounting

Explain and use concepts and processes to determine product and service costsExplain direct, marginal and absorption costs and their use in pricingApply C-V-P analysis and interpret the resultsApply a range of costing and accounting systems

The Learning Aims

Explain the role of budgets and standard costing within organisationsPrepare and interpret budgets, standard costs and variance statements

Note: The aims are almost identical to those seen in the existing syllabus. However, the use of costing methods and their use in the pricing of goods and services is specifically identified in the second aim

The Learning Aims


20%E Financial Planning and Control

30%D Costing and Accounting Systems

15%C Standard Costing

10%B Cost Behaviour and Breakeven Analysis

25%A Cost Determination


Topic and Study weighting

Cost Determination is reduced from 30% currently to 25%.

The accounting for material, labour and overheads is seen in the Costing and Accounting Systems section. Also a comparison of marginal with absorption costing has been removed (this appears at the Managerial level).


Cost Accounting Systems rises from 20% to 30% and contains material on managerial reports for a range of organisations (for example, charities and public sector bodies).

It also identifies financial statements that inform management and items that may be highlighted in management reporting. These include value-added, contribution, marketing and administration expenses.Interlocking ledger systems have been removed.


Cost Behaviour and Break-even analysis reduces from 15% to 10% with the exclusion of relevant costs/revenues(seen at the later level).Standard Costing no longer requires fixed overhead variances to be dealt with. They are included at the Managerial Level.Financial Planning and Control no longer has reference to the use of IT in the budget process. There is also a greater emphasis in the interpretation of both budget statements and budget variances.


Paper C02 - Fundamentals of Financial Accounting

Explain the conceptual regulatory framework of accounting

Explain the nature of accounting systems and understand the control of such systems

Prepare and interpret accounts for a single entity

Interpret simple ratios

The Learning Aims

While the first two aims of the existing syllabus are unchanged, the subsequent aims identify the preparation and interpretation of accounts and the interpretation of simple ratios. Students will be expected to demonstrate their understanding of financial statements and the significance of simple performance measures.

The Learning Aims


The syllabus deals with the recording of transactions and the preparation of accounts for single entities.The terminology used is that seen in International Reporting Standards (including International Accounting Standards)No knowledge of any specific reporting / accounting standard is required except that the formats seen in IAS 1 and IAS 7 will form the basis of the presentation of financial statements



45%D Preparation of Accounts for Single Entities

15%C Control of Accounting Systems

20%B Accounting Systems

20%A Conceptual and Regulatory Framework


The topics and study weightings remain the same but there are some additions to the detailSection A - introduces a clear reference to the difference between tangible and intangible assetsSection D - impairment is identified so that intangible assets can be correctly valued in financial statementsSection D - A Statement of Changes in Equityis required as part of financial statements


C03 - Fundamentals of Business Mathematics

Demonstrate the use of basic mathematics, including formulae and ratiosIdentify reasonableness in the calculation of answersDemonstrate the use of probability where risk and uncertainty existApply techniques for summarising and analysing data

The Learning Aims

Calculate correlation coefficients for bivariate data and apply the technique of simple regression analysisDemonstrate techniques used for forecastingApply financial mathematical techniquesUse spreadsheets to facilitate the presentation of data, analysis of univariate and bivariate data and use of formulae.


The Learning Aims

The are two specific aims not seen in the existing syllabusCorrelation coefficients and simple regression analysis were previously included under forecastingUse of spreadsheets is new in recognition of their importance in quantitative analysis


The Learning Aims

10%G Spreadsheets

15%F Financial Mathematics

15%E Forecasting

15%D Inter-relationships between Variables

15%C Summarising and Analysing Data

15%B Probability

15%A Basic Mathematics



Basic Mathematics rises from 10% to 15% with the inclusion of inequalities and the reference to the learning curve.Probability falls from 20% to 15% but concentrates on probability and expected values. The normal distribution is dealt with elsewhere.Summarising and analysing data falls from 25% to 15% and now focuses on the analysis and presentation of univariate data. It excludes primary v secondary data and sampling.


Forecasting falls from 25% to 15% but previously contained correlation and regression, now in a new section.Financial mathematics falls from 20% to 15% with the reduction in requirements for investment appraisal. This is covered in depth at Managerial level.


Paper C04 - Fundamentals of Business Economics

Distinguish the differing goals of organisations and identify how these differing goals affect the decisions by managers.Illustrate how market economies function and identify the reasons for and impacts of government involvement in economic activities.

The Learning Aims

Identify the role of financial institutions and markets in the provision of short and long term finance to individuals, businesses and government organisations.Identify how macroeconomic variables and government economic policies affect the organisation.


The Learning Aims

The major difference with the existing syllabus aims is the identification of financial institutions and markets to provide finance for organisations. This may cover some of the basic material previously seen in the Finance paper and provide an understanding to the importance of their role to business.

The Learning Aims


Topic and study weighting

30%D The macroeconomic context of business

20%C The financial system

30%B The market system and competitive

process

20%A The goals and decisions of organisations


Section A provides a more specific orientation towards understanding the role and nature of business activity than seen beforeSection C - the Financial System- has a good deal of detailed material not previously identifiedSections B and D - the Market system and the Competitive process and the Macroeconomic Context - are similar to the existing syllabus sections 4(ii) and (iii). However Section B is now 30% and not 40% as before


Paper C05 - Fundamentals of Ethics Corporate Governance and Law

Explain the framework of professional values, ethics and attitudes for exercising professional judgement and acting in an ethical manner, that is in the best interests of society and the profession.Explain the need to comply with the CIMA and IFAC “Codes of Ethics for Professional Accountants”.

The Learning Aims

Explain the importance of good corporate governance and the evolution of good practiceExplain fundamental aspects of the organisation and operation of the English legal system and compare with other legal systemsExplain the essential elements of the tort of negligence and the manner in which the tort impacts upon professional advisers


The Learning Aims

Explain the essential elements of a simple contract, what is regarded as adequate performance of the simple contract, and the remedies available to the innocent party in the event of a breachExplain the essential differences between sole traderships, partnerships and companies limited by shares


The Learning Aims

Explain the way in which companies are administered, financed and managedApply legal knowledge to solve business problems

Note: This is clearly very different from the current Business Law paper


The Learning Aims

25%G Company Administration and Finance

10%F The Law of Employment

20%E The Law of Contract

10%D Comparison of English Law with Alternative Legal Systems

10%C Corporate Governance

10%B Ethical Conflict

15%A Ethics and Business



Sections A-C are new covering the elements of ethics (25%) and corporate governance (10%).Law, in sections D-G, therefore carries some 65% compared to the 100% in the current Business Law paperThe material in the law sections remains largely unchanged but the assessment time is now 2 hours compared to the one hour currently for Business Law. As a result comparisons in study weightings for Law between the current and the new paper needs to reflect that


Ethics is contained in two sections (25% in total) covering the need for business to act in an ethical manner and the areas of ethical conflict and their resolution.Governance (10%) covers the fundamentals of why good governance is necessary and the regulatory framework for companies.


Law topic and study weightingComparison of English Law with alternative legal systems (10%). This has the same weighting as the comparable section in the current syllabus but has the additional comparative contentThe Law of contract (20%) incorporates the three sections of the current syllabus, Establishing contractual obligations (10%),Performing the contract (10%) and Contractual breakdown (10%)


Law topic and study weightingLaw of Employment (10%) has the same weighting as the current syllabusCompany Administration and Finance (25%) incorporates material from Company Formation (15%), Corporate Administration (10%), Corporate Finance (10%) and Corporate Management (15%).


Study routes

The number, sequence and grouping of papers studied is completely flexible - students may choose any combinations of papers to suit their own study requirementsHowever we recommend students should study Paper C03 Fundamentals of Business Mathematics, either with or before:

Paper C01 Fundamentals of Management Accounting or Paper C02 Fundamentals of Financial Accounting.

Study routes

For some students it may be advantageous if they firstly study Paper C04 Fundamentals of Business Economics - it provides a valuable overview of business that may assist understanding of the core technical accounting papers C01 and C02.

Study support guides

Available for all subjects on the CIMA

web site in April

Transition arrangements

Registered CIMA students who have passed examinations (or been awarded exemptions from examinations) before the 2 March 2007, based upon the CIMA Certificate in Business Accounting 2000 Syllabus, will be given credits for subjects within the CIMA Certificate in Business Accounting 2006 Syllabus

Paper C05 Fundamentals of Ethics, Corporate Governance and Business Law

Paper C5 Business Law

Paper C04 Fundamentals of Business Economics

Paper C4 Economics for Business

Paper C03 Fundamentals of Business Mathematics

Paper C3 Business Mathematics

Paper C02 Fundamentals of Financial Accounting

Paper C2 Financial Accounting Fundamentals

Paper C01 Fundamentals of Management Accounting

Paper C1 Management Accounting Fundamentals

CIMA Certificate in Business Accounting - 2006 Syllabus

CIMA Certificate in Business Accounting - 2000 Syllabus

Transition arrangements

The Syllabus

Any Questions?

Graham EatonHead of Examinations and Assessment, CIMA

Assessment

CIMA will assess students using objective test questions, delivered within a computer based assessment (CBA) package and offered at CIMA approved centres – as with the current certificate

The 5 subject assessments may be taken in any order and in any combination of subjects i.e. subjects may be studied either sequentially or concurrently

The pass mark for each of the 5 subject assessments is 50%

Assessment

Each of the 5 subject assessments will have a duration of 2 hours

The study weightings indicate the proportional distribution of marks that will be allocated to topics in any single subject assessment

Unlike any other release of a new syllabus at CIMA, this time there will be a period when CBA assessments for both the old and new syllabus are concurrently available – 2 October 2006 to 1 March 2007

Assessment

Parallel CBAs

New CBAsBegin2 Oct 2006

Current CBAs

End1 Mar 2007

Assessment

Question types

It is our intention to use the full range of objective test question styles available to us within the EDI I-assess software product

We will produce a question demo on the CIMA web site that will show the full range of question types deployed within the 5 new subject assessment question banks

Assessment

Assessment

Any Questions?

CIMA Study Support

Mike CashPublisher, Elsevier

www.cimapublishing.com

Who is Elsevier?

Who is Elsevier?

Elsevier is part of Reed Elsevier plc

Over 37,000 employees world-wide

Books group in Oxford publishes

textbooks

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CIMA’s official publishing partner

Elsevier bought into an Exclusive Official Publishing partnership with CIMA in December 02

Main objective is to provide the best possible study materials for CIMA students and lecturers

Close working relationship with

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CIMA and Elsevier …..

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CIMA Publishing Products

CIMA Publishing Products

RevisionCIMA Official Revision Cards

PracticeCIMA Official Exam Practice Kit

Computer based preparation for CBA

CIMA Official e-Success CD

The knowledgeCIMA Official Learning System

Reasons to be cheerful….

Why adopt CIMA’s official learning materials?

1. Offer the best chance of success for your students

2. The only materials CIMA recommend as core reading

3. The only texts written and endorsed by the examining CIMA Faculty

nobody is better qualified to explain how to pass

CIMA Official Learning Systems

Available for new Certificate

June 06

CIMA Official Learning Systems

The Knowledge

Re-engineered to meet the demands of the syllabus for the new CIMA Certificate

Provide a clear logical route through the new syllabus, referencing the learning outcomes throughout

Includes Mock Paper and Revision Questions throughout

E-Success CD-ROMs

CBA simulation and preparation

New Certificate assessed only by CBA

The only CBA preparation software and question bank endorsed by CIMA

Questions written by the people writing the CBA questions

e-tutorials and feedback show students how to increase their mark

E-Success CD-ROMs

Helps students become familiar with the CBA experienceSuitable for class room use

including as a progress test to assess when students are ready to sit the real thingand to identify and support areas of weakness

Sample question

Feedback on incorrect answers

Workings for correct answer

CIMA Official Exam Practice Kit

Available for new Certificate September 06

CIMA Official Exam Practice Kits

Practice

Exam standard multiple choice questions

Detailed explanations or calculations for each answer, showing why the answer is correct

Written by leading CIMA tutors, providing valuable insight on how to score top marks

Includes mock paper

CIMA Official Revision Cards

Available for new Certificate September 06

Pocket size notes

Pocket size notes

Breaks down new certificate syllabus into memorable bite-size chunks

Diagrams and tables help reinforce memory retention and recall

Portable size – ideal for pockets and bags to allow study at any time

CIMA Official Revision Cards

We can help you …..

We can help you prepare for the new Certificate

CIMA Official Learning Systems for the new CIMA Certificate will be available

PDF files available online mid-May at http://textbooks.elsevier.com/CIMA

Printed copies available 3 weeks later –automatically sent to previous adopters

Interested in adopting CIMA Official Learning Systems for the first time?

Log on to: http://textbooks.elsevier.com/CIMA

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See inspection copies online

Other related products to help you and your students ….

Better Exam Results

Invaluable guide to study technique, especially for accounting students

CIMA Official Terminology

Dictionary of terms used in exams and materials Updated in 2005

Elsevier - CIMA Publishing Team

For content and availability queries

Joanna Wiles, Acquisitions Editor

Tel: + 44 (0)1865 314987

Mike Cash, Publisher

Tel: + 44 (0)1865 314549

Elsevier - CIMA Publishing Team

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Any Questions?

cima lecturers conference 2006the same as at present – 5, with each having it’s own assessment...

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