Intermediate
Stage (AAT Level 3 NVQ/SVQ in Accounting) - Detailed Syllabus
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Unit
5 Maintaining Financial Records and Preparing Accounts
Element 5.1 Maintaining records relating to capital acquisition
and disposal
Performance Criteria
In order to perform this element successfully you need to:
A Record relevant details relating to capital expenditure in the
appropriate records
B Ensure that the organisation’s records agree with the
physical presence of capital items
C Correctly identify and record all acquisition and disposal costs
and revenues in the appropriate records
D Correctly calculate and record depreciation charges and other
necessary entries and adjustments in the appropriate records
E Ensure that the records clearly show the prior authority for
capital expenditure and disposal and the approved method of funding
and disposal
F Correctly calculate and record the profit and loss on disposal
in the appropriate records
G Ensure that the organisation’s policies and procedures
relating to the maintenance of capital records are adhered to
H Identify and resolve or refer to the appropriate person any
lack of agreement between physical items and records
I Make suggestions for improvements in the way the organisation
maintains its capital records where ossible to the appropriate
person
Range Statement
Performance in this element relates to the following contexts:
Records:
•Asset register
•Books of original entry
•Ledgers
Depreciation:
•Straight line
•Reducing balance
Element
5.2 Collecting and collating information for the preparation of
final accounts
Performance Criteria
In order to perform this element successfully you need to:
A. Correctly prepare reconciliations for the preparation of final
accounts
B. Identify any discrepancies in the reconciliation process and
either take steps to rectify them or refer them to the appropriate
person
C. Accurately prepare a trial balance and open a suspense account
to record any imbalance
D. Establish the reasons for any imbalance and clear the suspense
account by correcting the errors, or reduce them and resolve outstanding
items to the appropriate person
E. Correctly identify, calculate and record appropriate adjustments
F. Make the relevant journal entries to close off the revenue
accounts in preparation for the transfer of balances to the final
accounts
G. Conduct investigations into business transactions with tact
and courtesy
H. Ensure that the organisation’s policies, regulations,
procedures and timescales relating to preparing final accounts
are observed
Range Statement
Performance in this element relates to the following contexts:
Reconciliations:
•Purchase ledger reconciliation
•Sales ledger reconciliation
•Closing stock reconciliation
Reasons for imbalance:
•Incorrect double entries
•Missing entries
•Numerical inconsistencies and wrong calculations
•Insufficient data and incomplete records have been provided
•Inconsistencies within the data
Adjustments:
•Prepayments and accruals
•Provisions for doubtful debts
•Provisions for depreciation
•Closing stock
Element
5.3 Preparing the final accounts of sole traders and partnerships
Performance Criteria
In order to perform this element successfully you need to:
A Prepare final accounts of sole traders in proper form, from
the trial balance
B Prepare final accounts of partnerships in proper form and in
compliance with partnership agreement, from the trial balance
C Observe the organisation’s policies, regulations, procedures
and timescales in relation to preparing final accounts of sole
traders and partnerships
D Identify and resolve or refer to the appropriate person discrepancies,
unusual features or queries
Range Statement
Performance in this element relates to the following contexts:
Final accounts of sole traders:
•Profit and loss account
•Balance sheet
Final accounts of partnerships:
•Profit and loss account
•Balance sheet
•Partnership appropriation account
•Partners’ capital and current accounts
Unit
6 Recording and Evaluating Costs and Revenues
Element 6.1 Record and analyse information relating to direct
costs and revenues
Performance Criteria
In order to perform this element successfully you need to:
A Identify direct costs in accordance with the organisation’s
costing procedures
B Record and analyse information relating to direct costs
C Calculate direct costs in accordance with the organisation’s
policies and procedures
D Check cost information for stocks against usage and stock control
practices
E Resolve or refer queries to the appropriate person
Range Statement
Performance in this element relates to the following contexts:
Direct costs:
•Materials
•Direct labour costs
Stocks:
•Raw materials
•part-finished goods
•Finished goods
Element
6.2 Record and analyse information relating to the allocation,
apportionment and absorption of
overhead costs
Performance Criteria
In order to perform this element successfully you need to:
A. Identify overhead costs in accordance with the organisation’s
procedures
B. Attribute overhead costs to production and service cost centres
in accordance with agreed bases of allocation and apportionment
C. Calculate overhead absorption rates in accordance with agreed
bases of absorption
D. Record and analyse information relating to overhead costs in
accordance with the organisation’s procedures
E. Make adjustments for under and over recovered overhead costs
in accordance with established procedures
F. Review methods of allocation, apportionment and absorption
at regular intervals in discussions with senior staff and ensure
agreed changes to methods are implemented
G. Consult staff working in operational departments to resolve
any queries in overhead cost data
Range Statement
Performance in this element relates to the following contexts:
Overhead costs:
•Fixed
•Variable
•Semi-variable
Bases
of allocation and apportionment:
•Direct methods
•Step down methods
Bases of absorption:
•Labour hour methods
•Machine hour methods
Element
6.3 Prepare and evaluate estimates of costs and revenues
Performance Criteria
In order to perform this element successfully you need to:
A. Identify information relevant to estimating current and future
revenues and costs
B. Prepare estimates of future income and costs
C. Calculate the effects of variations in capacity on product
costs
D. Analyse critical factors affecting costs and revenues using
appropriate accounting techniques and draw clear conclusions from
the analysis
E. State any assumptions used when evaluating future costs and
revenues
F. Identify and evaluate options and solutions for their contribution
to organisational goals
G. Present recommendations to appropriate people in a clear and
concise way and supported by a clear rationale
Range
Statement
Performance in this element relates to the following contexts:
Estimates:
•Short term decisions:
•Break-even analysis
•Margin of safety
•Target profit
•Profit volume ratio
•Limiting factors
•Long term decisions:
•Project appraisal using payback and discounted cash flow
methods
Methods of presentation:
•Verbal presentation
•Written reports
Unit
7 Preparing Reports and Returns
Element 7.1 Prepare and present periodic performance
reports
Performance
Criteria
In order to perform this element successfully you need to:
A. Consolidate information derived from different units of the
organisation into the appropriate form
B. Reconcile information derived from different information systems
within the organisation
C. Compare results over time using an appropriate method that
allows for changing price levels
D. Account for transactions between separate units of the organisation
in accordance with the organisation’s procedures
E. Calculate ratios and performance indicators in accordance with
the organisation’s procedures
F. Prepare reports in the appropriate form and present them to
management within the required timescales
Range Statement
Performance in this element relates to the following contexts:
Information:
•Costs
•Revenue
Ratios:
•Gross profit margin
•Net profit margin
•Return on capital employed
Performance indicators:
•Productivity
•Cost per unit
•Resource utilisation
•Profitability
Methods of presenting information:
•Written report containing diagrams
•Table
Element
7.2 Prepare reports and returns for outside agencies
Performance Criteria
In order to perform this element successfully you need to:
A. Identify, collate and present relevant information in accordance
with the conventions and
definitions used by outside agencies
B. Ensure calculations of ratios and performance indicators are
accurate
C. Obtain authorisation for the despatch of completed reports
and returns from the appropriate person
D. Present reports and returns in accordance with outside agencies’
requirements and deadlines
Range
Statement
Performance in this element relates to the following contexts:
Ratios:
•Gross profit margin
•Net profit margin
•Return on capital employed
Reports and returns:
•Written report
•Return on standard form
Element
7.3 Prepare VAT returns
Performance Criteria
In order to perform this element successfully you need to:
A. Complete and submit VAT returns correctly, using data from
the appropriate recording systems, within the statutory time limits.
B. Correctly identify and calculate relevant inputs and outputs.
C. Ensure submissions are made in accordance with current legislation
D. Ensure guidance is sought from the VAT Office when required,
in a professional manner
Range Statement
Performance in this element relates to the following contexts:
Recording systems:
•Computerised ledgers
•Manual control account
•Cash book
Inputs and outputs:
•Standard supplies
•Exempt supplies
•Zero rated supplies
•Imports
•Exports
Unit
21 Working With Computers
Element 21.1 Use computer systems and software
Performance Criteria
In order to perform this element successfully you need to:
A. Perform initial visual safety checks and power up the computer
system
B. Use passwords to gain access to the computer system where limitations
on access to data is required
C. Access, save and print data files and exit from relevant software
D. Use appropriate file names and save work
E. Back up work carried out on a computer system to suitable storage
media at regular intervals
F. Close down the computer without damaging the computer system
G. Seek immediate assistance when difficulties occur
Range Statement
Performance in this element relates to the following contexts:
•Visual safety checks:
•Hardware components
•Plugs
•Cables
•Interfaces
Computer system:
•Stand alone PC
•Networked system
Passwords:
•System
•Software
Difficulties:
•Hardware failure
•Software failure
•Corruption of data
Element
21.2 Maintain the security of data
Performance Criteria
In order to perform this element successfully you need to:
A. Ensure passwords are kept secret and changed at appropriate
times
B. Ensure computer hardware and program disks are kept securely
located
C. Identify potential risks to data from different sources and
take steps to resolve or minimise them
D. Maintain security and confidentiality of data at all times
E. Understand and implement relevant legal regulations Range Statement
Performance in this element relates to the following contexts:
Appropriate times:
•On a regular basis
•If disclosure is suspected
Potential
risks:
•Corruption
•Loss
•Illegal copying
Sources:
•Internal
•External
•Viruses
•Poor storage facilities
•Theft
Security:
•Back up copies
•Secure storage
Confidentiality:
•Passwords
Legal regulations:
•Data protection legislation
•VDU regulations
•Health and safety
•Document retention
Unit
22 Contribute to the Maintenance of a Healthy, Safe and Productive
Working Environment
Element
22.1 Monitor and maintain a safe, healthy and secure working environment
Performance Criteria
In order to perform this element successfully you need to:
A. Make sure you read, comply with and have up-to-date information
on the health, safety and security requirements and procedures
for your workplace
B. Make sure that the procedures are being followed and report
any that are not to the relevant person
C. Identify and correct any hazards that you can deal with I
safely, competently and within the limits of your authority
D. Promptly and accurately report any hazards that you are not
allowed to deal with II to the relevant
person and warn other people who may be affected
E. Follow your organisation’s emergency procedures promptly,
calmly and efficiently
F. Identify and recommend opportunities for improving health,
safety and security to the responsible person
G. Complete any health and safety records legibly and accurately
III
Range Statement
Performance in this unit relates to the following contexts:
Emergency procedures:
•Illness
•Accidents
•Fires
•Other reasons to evacuate the premises IV
•Breaches of security
Explanations
or examples of terms used:
I For example, trailing cables, filing
cabinet drawers left open or windows being left unsecured
when the premises are left unattended
II For example, frayed cables, broken
windows or a suspicious stranger on the premises
III For example, accident reports
IV For example, bomb threats
(For guidance only, not part of the standards.)
Element
22.2 Monitor and maintain an effective and efficient working environment
Performance Criteria
In order to perform this element successfully you need to:
A Organise the work area you are responsible for, so that you
and others can work efficiently V
B Organise the work area you are responsible for, so that it meets
your organisation’s
requirements VI and presents a positive
image of yourself and your team
C Identify conditions around you that interfere with effective
working VII
D Put right any conditions that you can deal with 8 safely, competently,
within the limits of your authority and with the agreement of
other relevant people
E Promptly and accurately report any other conditions 9 to the
relevant person
F Use and maintain equipment in accordance with manufacturer’s
instructions and your organisation’s procedures
Range Statement
There are no additional contextual requirements for this element.
Explanations or examples of terms used:
V For example, having your most used
filing cabinet within easy reach of your desk
VI For example, respecting your organisation’s
guidelines on displaying posters, pictures or
photographs
VII For example, bright sunlight,
office temperatures too hot or too cold, or the layout of the
office that may not support efficient working
VIII For example, adjusting the heating
IX For example, reporting that the
heating or air conditioning is not working
(For guidance only, not part of the standards.)
