CHANGES TO THE ACCA QUALIFICATION AND FOUNDATION LEVEL IN 2015-16

This article explains the planned updates to the ACCA Qualification syllabuses
taking place as part of the process of continuous syllabus refreshment and
improvement.
INTRODUCTION
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, F1F3, F4 ENG and
GLO) and some variant exams for the F4P7 will not be available during
the March/September exam sessions.
More detailed information about where the September 2015 sessions
will be offered and which exams will be available is on the ACCA
website (see 'Related links').
There are no new structural changes to the ACCA Qualification in 201516. The
most recent significant changes were made to the Fundamental level syllabuses
in February and December 2014 which were carefully detailed in last years
article as part of ACCAs policy of rolling out of more objective testing at the
Fundamentals level to the F5F9 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 201516. 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 F4F9 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.
ACCA FUNDAMENTALS LEVEL (SKILLS MODULE)
F4, CORPORATE AND BUSINESS LAW
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.
F5, PERFORMANCE MANAGEMENT
There are no changes planned for the F5 syllabus from September 2015.
F6 (UK), TAXATION
Some of the syllabus areas have been reordered as shown in Table 1 below:
Table 1 Reordering within F6 (UK)

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

The exemption where an

Section and subject area

Syllabus content
employer pays for medical
treatment.

Excluded topics

Real time reporting late filing

penalties.

B3 Income from selfemployment Excluded topics

The loss relief restriction that

applies to the partners of a
limited liability partnership.

B3 iv Income from selfemployment

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

B3 Income from selfemployment

Syllabus content
Part B3j v on the loss relief
restriction that applies to the
partners of a limited liability
partnership deleted.

F7 (INT), FINANCIAL REPORTING

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:
i Identification of contracts
ii Identification of performance
obligations
iii Determination of transaction
price
iv Allocation of the price to
performance obligations
v Recognition of revenue when/as
performance obligations are
satisfied.
b Explain and apply the criteria
for recognising revenue
generated from contracts where
performance obligations are
satisfied over time or at a point in

These changes
have been made
to reflect the
principles of IFRS
15, Revenue from
contracts with
customers.

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
ii repurchase agreements
iii bill and hold arrangements
iv consignments
f Prepare financial statement
extracts for contracts where
performance obligations are
satisfied over time.

Table 2 Deletions to F7
There have been no deletions to the study guide for the exam year commencing
1 September 2015.
F8 (INT), AUDIT AND ASSURANCE
Table 1 Amendments to F8
Section and
subject area
D4b Amended wording
of outcome to refer to
cut-off testing rather
than the
cut-off assertion.

Syllabus content
D4b Inventory:
i inventory counting procedures in
relation to year-end and continuous
inventory systems
ii cut-off testing

Section and
subject area

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.

Syllabus content

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.

F9, FINANCIAL 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

ACCA PROFESSIONAL LEVEL

P1, GOVERNANCE, RISK AND ETHICS
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.

P2 (INT), CORPORATE REPORTING

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
Discuss and apply the criteria
that must be met before an
entity can apply the revenue
recognition model to that
contract.

C1b and c

Discuss and apply the fivestep model which relates to

revenue earned from a
contract with a customer.

C3d

Apply and discuss the

treatment of the expected
loss impairment model.
Discuss current issues in
corporate reporting,
including:
i recent IFRSs
ii practice and regulatory
issues
iii proposed changes to IFRS
iv problems with extant
standards

H3a

(This outcome has been

expanded to clarify the range
of issues that may be tested
within this subject area)

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)
C6a and b

Syllabus content
Outline the principal
considerations in developing

Section and subject area

(in prior year study
guide)

Syllabus content
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
15Revenue 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.

P3, BUSINESS ANALYSIS

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

Section and subject area

Syllabus content

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).

P4, ADVANCED FINANCIAL MANAGEMENT

There are no changes to the syllabus.
P5, ADVANCED PERFORMANCE MANAGEMENT
Amendments:
Section and subject area

A1 Strategic planning and

control

C1 Performance management
information systems

C3d
E1 Alternative views of
performance measurement
and management

Syllabus content
A1g amended to; Apply and
evaluate the methods of
benchmarking performance

C1b amended to; Evaluate the

compatibility of management
accounting objectives and
the management accounting
information systems
Wording amended to clarify
the syllabus content in this
area
E1a amended to; Apply and
evaluate the
balanced scorecard
approach as a way in which to

Section and subject area

Syllabus content
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

P6 (UK), ADVANCED TAXATION

Some of the syllabus areas have been reordered as shown below:
Reordering within P6 (UK)
Section and subject
area
Reordering of syllabus
area A

Amendment
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

Section and subject

area

Amendment
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 selfemployment

Recognise the tax treatment of

the investment income of a
partnership

A1e Property and

Assess the tax implications of

Section and subject

area

Amendment

investment income

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.

P7 (INT), ADVANCED AUDIT AND ASSURANCE

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
pre-determined
objectives

a Describe the audit of

performance information
(pre-determined objectives) and
differentiate from performance
auditing

E6b Amended to add

reference to
pre-determined
objectives

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.

CHANGES TO THE FOUNDATIONS LEVEL AND

CAT SYLLABUSES
There are very few changes to the Foundations Level syllabuses. These are
detailed below.
INTRODUCTORY CERTIFICATE IN FINANCIAL AND MANAGEMENT
ACCOUNTING
There are no planned changes to either of the FA1 or MA1 syllabuses for
September 2015.

INTERMEDIATE CERTIFICATE IN FINANCIAL AND MANAGEMENT

ACCOUNTING
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
Outcome deleted as it was a
duplication of other study
guide outcomes

E2b

MA2:
There are no planned changes to MA2.
DIPLOMA IN ACCOUNTING AND BUSINESS:
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
B2a amended

Syllabus content
a Describe Mintzbergs components of the
organisation and explain the different ways
in which formal organisations may be
structured:

Section and
subject area

Syllabus content
i Entrepreneurial
ii Functional
iii Matrix
iv Divisional: (geographical, by product, or
by customer type)
v Boundaryless: (virtual, hollow or modular)

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 intragroup trading.

FOUNDATIONS SPECIALIST OPTIONS EXAMS

The main areas that have been changed in the Foundations in Audit (FAU)
syllabus are shown below:
Amendments to FAU

Syllabus
content

Section and subject area

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

Section and subject area

D3 Gains and losses on the

disposal of shares and
securities

D4d Gains and losses on the

disposal of movable and
immovable property

Syllabus content
D3d Sale of rights
awareness of basic treatment
(partial vs. small disposal)
only removed from syllabus
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