Appendix D
Proposed 2004 HKAL Principles of Accounts Syllabus
Notes on Changes ' : . . . .
1.In the first meeting of the 1999/2000 Sixth Form Principles of Accounts Subject Committee. the
following recommendations made by the UK examiner were considered noteworthy: '
(a).Make the questions less intricate and reinforce the element of. analysis and higher order skills.
(b)Delete those parts of the syllabus which concern specialist transactions more suited to the examinations of professional accountancy bodies (e.g. Section' III; Section IV(g) and Section V (e)). ,
(c)Include aspects of all accounting rather than just financial accounting, and introduce some
management accounting topics.
2.The subject committee resolved that a holistic curriculum review should be conducted so as to explore
the desirability of a fundamental syllabus change. A joint HKEA/CDC working party was subsequently
set up to undertake the work..
3.The following changes were proposed:
(a)The objectives of the examination are expanded so that they include analysis and evaluation of accounting information and the ability to make reasonable recommendations.
(b)To ensure a balanced coverage of candidates' knowledge, Section A questions, which carry 30 marks each, are made compulsory in both Papers 1 and 2. In Section B, however, the choice of questions continues to be two out of three, with each question carrying 20 marks.
(c)The syllabus content is streamlined with some sub topics rearranged so as to illustrate the new orientation of the curriculum.
(d)The following topics or sub topics are specifically deleted:
(a) Bills of exchange
(ii)Joint venture accounts
(iii)Consignment accounts
(iv)Hire purchase accounts
(v)Branch accounts
(vi)Investment accounts
(vii)Partnership accounts: Piecemeal realisation
(viii)Partnership accounts: Amalgamation of businesses to form a partnership
(ix) Accounts of limited liability company:Issue of shares and debentures: payable by means of instalments
(x)Accounts of limited liability company: Forfeiture of shares and their reissue
(xi)Accounts of limited, liability company: Preparation of published accounts
(xii)Accounts of limited liability company: Redemption of debentures
(xiii)Accounts of limited liability company: Treatment of pre and post incorporation profit
(xiv)Income determination: Nature of income and the distinction between capital and income
P.2
(e) New topics and sub ;topics are added as follows:
(i)Purposes of financial reporting: An introduction to the regulatory framework of accounting
(ii)Accounting principles and concepts: Meanings and implications of `true and fair view' and
'`substance over form'
(iii)Books of accounts and records: Information technology applications in accounting systems
(iv) Accounting for limited liability company: Consolidated accounts (one subsidiary and
acquisition method only)
(v)Valuation of fixed assets: Accounting for leases (lessee only)
SECTION IV: AN INTRODUCTION TO MANAGERIAL ACCOUNTING
(vi)Costing principles and systems
(vii)Standard costing
(viii)Budgeting
(ix)Investment appraisal