ACCA F1 Sample Study Note

8/12/2019 ACCA F1 Sample Study Note

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ACCA F1 Accountant in Business

Sample Study Note

For exams in DEC2014


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Lesco Group Limited, April 2015

All rights reserved. No part of this publication may be reproduced, stored in aretrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording or otherwise, without the prior written

permission of Lesco Group Limited.


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Sample Note Content:

Product Summary .......................................................................................... 4

Live online course timetable ............................................................................ 5

Main study note content [Total Pages: 67] ........................................................ 7

Organization ............................................................................................... 8

Parts within organization ............................................................................ 18

1. Roles & Functions within organization ...................................................... 19

2. Teams .................................................................................................. 25

3. Committees .......................................................................................... 29

Please note:

This is just the sample study note extracted from the main study note in your tuition study

[This tuition study note is consistent in basic/super/gold package]. There would be more

chapters in the main study note covering the whole ACCA syllabus.

You can also take a look at the content within the main study note below:


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Product Summary


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Live online course timetable

Timetable: [Super+Gold package-additional revision would

be agreed between tutor and student]

Live Online Revision

Live revision1 Live revision2

F5 Performance management 25thOct 7:00a.m.-14:00 22ndNov 6:00a.m.-13:00

F7 Financial Reporting (INT) 2ndNov 6:00a.m.-13:00 29thNov 6:00a.m.-13:00

F8 Audit and Assurance (INT) 18thOct 7:00a.m.-14:00 19thOct 7:00a.m.-14:00

F9 Financial Management 4thOct 7:00a.m.-14:00 5thOct 7:00a.m.-14:00

P1 Governance, Risk and

Ethics1stNov 6:00a.m.-13:00 30thNov 6:00a.m.-13:00

P2 Corporate Reporting (INT) 26thOct 7:00a.m.-14:00 9thNov 6:00a.m.-13:00

P3 Business Analysis 11thOct 7:00a.m.-14:00 12thOct 7:00a.m.-14:00

P4 Advanced Financial

Management8thNov 6:00a.m.-13:00 23rdNov 6:00a.m.-13:00

P5 Advanced Performance

management15thNov 6:00a.m.-13:00 16thNov 6:00a.m.-13:00

P7 Advanced Audit and

Assurance (INT)27thSept 7:00a.m.-14:00 28thSept 7:00a.m.-14:00


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Last minute revision

Last minute revision Tutor

F5 Performance management 28thNov 12:00-14:00 Ian

F7 Financial Reporting (INT) 1st Dec 12:00-14:00 Steve

F8 Audit and Assurance (INT) 22ndNov 14:30-16:30 Alan

F9 Financial Management 22ndOct 12:00-14:00 Steve

P1 Governance, Risk and Ethics 30thNov 13:30-15:30 Alan

P2 Corporate Reporting (INT) 16thNov 14:00-18:00(4hrs) Kieran

P3 Business Analysis 18thOct 14:30-16:30 Alan

P4 Advanced Financial Management 19thNov 12:00-14:00 Steve

P5 Advanced Performance management 21st Nov 12:00-14:00 Ian Ja

P7 Advanced Audit and Assurance (INT) 23rdNov 13:30-15:30 Alan


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Main study note content [Total Pages: 67]


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Organization


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1. Purpose of organization

1. What is organization?

An organization would have these characteristics: A group of people with a common objective; Everybody would have their own responsibility(social arrangement); There would be rules existed to control employees performance.

Eg,

A group of people in the train is not an organization

2. Why organization?

Having an organization we can work better!

Overcoming limitations (physical and intelligent, or mental). Create Synergy :1 + 1 >2. Expertise Time saving division of labours.


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2. Types of organization

1. Private sector (profit making organization) and public sector (non-profit

making organization-NPMO)

Private sector

Sole traderOne person owns and runs the business.

The sole trader and the business are legally the same entity and therefore the sole trader is

personally liable for any business debts.

PartnershipTwo or more persons owns and runs the business.

The partners and the business are legally the same entity and therefore the partners are

jointly liable for any business debts.

Limited liability companyShareholders and a number of appointed directors own and run the business.

A company is a legal entity in its own right, and therefore the shareholders only have

limited liability for any business debts.

Public sector (Run by government)

(non-profit making organization-NPMO)

Public schools and education institutions; Hospitals; The Central Bank; The Army, Navy and the Air Force;


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The national social and security organisation

2. Non-governmental organization(NGOs)(Run by individual)

(non-profitmakingorganziation)

This is for the social benefit and thats why its set up.

This is not run by government but by individuals and so individuals need to raise

money from the outside and this is very difficult.


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3. Structure of organization

Types of structures:

The organization would be arranged in many ways:

1. Simple (Entrepreneurial) Structure

Advantage: This is quick when decision is made.

Disadvantage: if boss is away then the origination cant do anything.

Boss

Team

2. Functional Structure

Advantage: its cheap to run because there is just 1 department and its good if

you just own one/similar product.

Disadvantage: if you have any products then its not suitable.

Boss

Department1 Department2


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Span of control

This means number of people specifically reporting to their direct boss.

Note: number of people below their direct boss is not span of control.

This would determine either there would be a tall structure or a flat structure.

Tall structure: you focus on the quality.(reduce span of control)(Centralisation):

This means lots of levels in the hierarchy (long Scalar chain).

Flat structure: you focus on the effectiveness.(increase span of control)

(Decentralisation)

This means fewer levels in the hierarchy (short Scalar chain).

But how to decide span of control? (Factors affecting span of control):

1. Workload

Planning work (non-supervisory job)less span of control

Decision making work (non-supervisory job)less span of control

Control work(supervisory work)---can increase span of control

2. Competence

3. Style

Control directive (task-focus): decrease span of control

Delegation (people-focus): increase span of control.


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4. Support

If employees can help each other then you can increase span of control.

Models/theories of structure

1. Anthony hierarchy

Roberts Anthony identified management activities, at three different levels:

1. Strategic: board of directors; (What to do: Market leader in education field)

2. Tactic: middle management;(Detail what to do and How to do it)

3. Operational: front line workers. (Just do it)

But a comment on this is not all employees within company would focus on how to

do the work based on Strategy. And not everybody knows strategy within the

compay and hence:


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2. Mintzbergsorganisation configuration

Mintzberg divides the organisation into 5 aspects:

People know strategy:

StrategicApexsenior management

Middlelinemiddle managers

Operatingcoreemployees directly involved in producing goods and services

People not know strategy:

Technostructureproviding technical support about how to do it from tactic level.

Supportstaffproviding general supportlike public relations, legal consultancy,

Canteen staff


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Formal & Informal Structures

The above structures we looked at are formal structures.

And there would be informal structures as well in the organization.


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Parts within organization

There are basically 3 parts within an organization:

1. Functions

2. Teams

3. Committees


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1. Roles & Functions within organization

So why do we have roles and functions within organization?

Well if the roles and functions cant add value to the organization, why do we keep

them?

So this is the concept behind PORTERS VALUE CHAIN.

The five primary activities are:

Inbound logistics (Inventory storage)

Operations, (Add value)

Outbound logistics, (Distribution)

Marketing and sales (Advertising etc)

After sale service. (installation; repairmentetc)

The four secondary (support) activities are:

Firm infrastructure (general management; Accounting & Finance)


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Human Resource Management, (Recruiting & Training staff)

Technology Development(R&D on product & Process)

Procurement.(selecting suppliers & purchasing strategy & Capital investment)

Different departments:

The purchasing department would deal with

Inbound logistics (Inventory storage)

Procurement.(selecting suppliers & purchasing strategy & Capital investment)

When determining purchasing strategy we can consider the purchasing mix:

1. Quantity

2. Quality

3. Price

4. Delivery

The production departmentdeals with operation of materials and turns those

into finished goods. They aim at efficiency during the operation process.

Outbound logistics(Distribution) is normally outsourcedby company to 3rdparty to

distribute goods on behalf of us.


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The marketing departmentwould deal with marketing and sale bits.

Marketing means to turn people into potential buyers by launching lots of

campaigns.

Sales means to turn potential buyers into the real buyers. Normally its referring to

direct sales.

How to be able to successfully market our products would depend on marketing mix.

Marketing mix for tangible products: 4Ps(Why customer would come and buy your

products?)

Product: Because your product is good and unique so they buy them.

Price: Because your products offer a very low price and hence customers buy them.

Price skimming:

Aim at small group of people and charge them at a high price for a small

amount of goods

Low risks:

1, we don't have to develop too many products which costs us that much

2, we can drop the price down as we see fit.

3, High barrier to entry, Eg, technology

Price penetration:


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Aim at large group of people and charge them at a low price for a large

amount of goods

High risks

1, we have to develop too many products which costs us that much

2, we cant drop the price down easily as we see fit.

3, No barrier to entry

Place: Because your product place is convenient for the customer so they buy

them.

Eg, you distribute your products directly to customers etc,

Eg, You give the right to Retailer and customers can buy from retailer directly which

would be convenient for them.

Promotion: Because theres an attractive promotion for your products and hence

customer buy them.

Marketing mix for Service: (Add another 3Ps):

People:Who delivers service would have an impact on whether your product would

be successfully sold.

Processes:by which the service is delivered: watch online?

Physical evidenceof the service: Small gifts?

Accounting & Finance department

Accountants do lots of things:

Financial accounting: prepare Financial statements for different stakeholders.


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Step1: transaction and source document

Step2: books of prime entry

Step3: ledger & balance off the account

Step4: trial balance

Step5: year end adjustment journal

Step6: FS(SOFP & SOCI)

Accounting standards develops from IAS to IFRS. Development process:

Draft Proposal

Working group to have some suggestions

Publish discussion document-to allow people see what you are doing

Public comment

Exposure draft (like a practice but not compulsory)

IFRS


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Management accounting:

Planning: Plan future activities, budget

Decision making: Whether to set up company and what further investment that

company may try to make

Control: Variance-Compare results of operation with expected(meet sales/ cost

target?)

Financial management:investment; financing & dividend policy

Tax issues:

Pay tax

Tax avoidance: legal

Tax evasion: illegal


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2. Teams

There are 2 characteristics of teams:

Complementary skills-this means members within the team would help each other. Mutually accountable-this means members would hold accountable with each other,

for example, if a team is to design one product, there is no point that Mary withinthe team would say to Tony within the team that,you design and I leave.


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Teams Roles: (Belbinsteam roles theory)

Belbin said there are 3 typesroles within a team: thinking, people and action

oriented

role.

Types Roles

Thinking oriented:

Plant: Only Provide Creative Ideas Solve difficult problems

Monitor-Evaluator: Assessing the contributions of others.

Specialist Only specialize in his area but cant see the

whole picture

People oriented:

Co-coordinator: overall leader CEO/chairman

Team worker: supportive not competitive Giving support to others

Resource investigator People who always exploit opportunities

Actions oriented:

Shaper: keep teams moving Middle line managers

Implementer: manufacturing actual product Front line workers

Completer-finisher: look for errors Quality checking Dept; internal auditors


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There are 4 types of teams: (MD, MS, SM, Virtual)

Multi-discipline teams: this is a typical team with different people with differentskills and knowledge working together.

Multi-skills teams: this means one person within the team can finish the wholeproject. This type of team is flexible meaning each of them can finish the project on

their own but the disadvantage of this would be TOO EXPENSIVE!

Self-managed teams: like professionals within the team like lecturers, although

they are within the team but they would have high level of autonomy of decidinghow to do it.

Virtual teams: this means members within a team would communicate with eachother using WEBINAR like Skype etc and this is through virtual communication.


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TuckmansDevelopment of the team theory

1. Forming

Just several members get together and know each other.

No leader is in this stage.

2. Storming

In this stage conflict among members exists.

Members may disagree with each other but company is growing.

3. Norming

Members have a common goal with meetings.

Members accept each other.

Company is growing very fast.

4. Performing

Get the tasks done.

Leader tells you what do to and you know how to do it.

5. Dorming

This means members doing the same things over and over again without thinking

and hence its hard for them to provide new thinking.


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6. Mourning/ Adjourning.

Members leave.Mourning

Members start a new project.Adjourning

3. Committees

What

Groups of members to solve complicated issues.

1. They have functions.

2. They stand for different stakeholdersinterest.

This is between functions and teams.

Function specializes in each function like accounting etc.

Teams are effective.

There are 3 types of committees:

Level:

Executive committees Board of directors

Management committees Quality control committee

Time

Permanent committees

Temporary committees(Ad hoc committee)

Overall & Sub


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Joint committee Quality control committee

Sub committee Like material, human and

distribution committee under the

overall quality control committee

People:

Committee chair

Should be impartial and punctual and regular in attendance at meetings.

Committee secretary should:

Before meeting: prepare the date, place for meeting.

During meeting: Help chair documenting notes.

After meeting: prepare minutes, like decision made by the committee.

How to use committees successfully?

Competence There are minimum number member attending the meeting, like 4 out of 7. Clear authority given


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Documents

ACCA F1 Sample Study Note