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Appendix 2: Required competency areas and learning outcomes
Content Summary
RCA01: Accounting Fundamentals
This area covers the form and function of financial statements and how financial transactions are recorded.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 | Explain the role and purpose of accounting processes and systems |
| LO2 |
Explain the accounting requirements for financial statements
|
| LO3 | Demonstrate knowledge of how to prepare journal entries for different business structures |
| LO4 | Explain the importance of ethics in the context of accounting and reporting |
Minimum topic coverage
- Different business structures and models (sole traders, partnerships, companies, for-profit, not-for-profit, government entities)
- The role and purpose of accounting function
- The purpose and structure of financial statements and annual reports
- Local regulatory framework for financial reporting
- Conceptual Framework for Financial Reporting
- The accounting equation
- Accounting processes including recording transactions
- The role of ICT in accounting (including accounting software and the role of enterprise resource planning systems)
- Principles of corporate governance
- Ethics in accounting (including awareness of the Code of Ethics for Professional Accountants and acting in the public interest)
RCA02: Financial Accounting and Reporting
This area covers the theoretical principles underlying accounting practice and their application to the preparation and analysis of financial statements. It also covers current developments in financial reporting at a national and international level.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 | Apply relevant accounting standards to transactions and other events |
| LO2 | Demonstrate knowledge of how to prepare and present financial statements in accordance with relevant accounting standards |
| LO3 | Demonstrate the ability to analyse financial statements, calculate key ratios, manage working capital, and effectively communicate financial results to stakeholders |
| LO4 | Explain the importance of ethics in accounting and reporting performance |
Minimum topic coverage
- AS 1 Presentation of financial statements (IFRS 18 Presentation and disclosure in financial statements)
- IAS 2 Inventories
- IAS 7 Statement of Cash Flows
- IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
- IAS 10 Events after the Reporting Period
- IAS 12 Income Taxes
- IAS 16 Property, plant and equipment
- IAS 36 Impairment of Assets (with focus on the impairment of individual assets)
- IAS 37 Provisions, Contingent Liabilities and Contingent Assets
- IAS 38 Intangible Assets
- IFRS 3 Business combinations (with focus on the preparation of an acquisition analysis for a wholly owned subsidiary)
- IFRS 10 Consolidation financial statements (with focus on the preparation of financial statements for a parent with a wholly owned subsidiary)
- IFRS 15 Revenue from Contracts with Customers (with focus on the 5-step revenue recognition application to recognise common revenue transactions)
- IFRS 16 Leases (with focus on accounting for a basic lease by a lessee)
- Awareness of the sustainability disclosure standards:
- IFRS S1 General requirements for Disclosure of Sustainability-related Financial Information
- IFRS S2 Climate related disclosures
RCA03: Audit and Assurance
This topic covers the nature and purpose of audit and assurance and the regulatory and professional environment in which it operates. The area includes an understanding of the role of auditing standards, and their application to the audit process.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 |
Describe the roles and responsibilities of the auditor within the context of the relevant regulatory framework
|
| LO2 | Identify and assess the risks related to audit of the financial statements |
| LO3 | Apply International Standards on Auditing to the audit of general-purpose financial statements |
| LO4 | Explain the role and significance of corporate governance and non-financial reporting within the broader regulatory framework |
| LO5 | Apply relevant ethical principles and professional standards to audit engagements in accordance with the applicable regulatory and ethical framework |
Minimum topic coverage
- Local regulatory framework for audit and assurance (including audit requirements)
- Assurance framework
- Framework for audit quality and an awareness of quality management standards ISQM 1 Quality management for firms that perform audits or reviews of financial statements, or other assurance or related services engagements and ISQM 2 Engagement quality reviews
- Auditor independence
- Use of ICT in the audit process including analysis of the adequacy of ICT processes and controls
- General principles and responsibilities of an auditor (ISAs 200-265)
- Risk assessment and response to assessed risks (ISAs 300-450)
- Audit evidence (ISAs 500-580)
- Using the work of others (ISAs 600-620) (awareness only)
- Audit conclusions and reporting (ISAs 700-720)
- Assurance services, including awareness of ISAE 3000 (Revised) Assurance Engagements other than audits or reviews of historical financial information and ISSA 5000 General requirements Sustainability Assurance Engagements
RCA04: Finance
This competence area covers fundamental concepts and application of business finance and treasury and should address the overarching questions of finance, namely how organisations are financed, how they make investment decisions and how they make distribution or dividend policies.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 | Explain the financial environment in which a business operates, including the roles of financial markets, institutions, and regulatory bodies |
| LO2 | Calculate and interpret data commonly used in business decision making |
| LO3 | Apply appropriate techniques to support investment decision making |
| LO4 | Explain the role and significance of ethics in financial decision making |
| LO5 | Apply common statistical methods to calculate and interpret data |
| LO6 | Explain how emerging technology can support data analysis and decision making within a business |
Minimum topic coverage
- Capital structure and funding options (various sources of debt and equity finance)
- Cost of capital (including calculation of CAPM and WACC)
- Common financial management concepts and calculations (IRR, NPV, ARR)
- Use of ICT to support financial calculations, data analysis, and decision making
- Dividend policy
- Financial risks and risk mitigation
- International trade and finance in a global environment
- Use of ICT to analyse data and information
- Fundamentals of statistical analysis (descriptive and inferential statistics) and its role in business
RCA05: Management accounting
This competence area covers an understanding of budgeting, product and service costing, control and performance evaluation, and strategic management accounting.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 | Describe the key components of the management accounting business environment |
| LO2 | Analyse the economic environment within which a business operates |
| LO3 | Calculate, analyse and interpret key data used in budgeting and costing decisions |
| LO4 | Apply appropriate techniques to support investment decision making in various contexts |
| LO5 | Explain the importance of ethical principles in guiding management accounting decisions |
Minimum topic coverage
- Business strategy
- Business risks and the application of risk management framework
- Organisation dynamic including structure, behaviours, and culture
- Common tools to analyse organisational performance (e.g. PESTEL, SWOT, Porter's five forces, Value chain analysis and Porter's generic strategies)
- Key financial ratios
- Costing methods and Cost-Volume-Profit analysis (job costing, process costing, standard costing, full absorption costing, activity-based costing)
- Pricing methods
- Budgeting and forecasting, variance analysis
- Introduction to working capital
- Use of technology to prepare reports to support management decision making
RCA06: Economics
This competency area covers the fundamental concepts of microeconomics and macroeconomics and covers the role of individuals and businesses in different types of market structures. It evaluates the response of business activity to changes in macroeconomic indicators as well as the impact of regulatory and political environments on business.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 | Explain the fundamental principles of microeconomics and macroeconomics and evaluate their relevance in addressing economic issues |
| LO2 |
Describe the impact of changes in macroeconomic indicators on business activity |
| LO3 | Explain the characteristics and implications of different market structures, including perfect competition, monopolistic competition, monopoly, and oligopoly |
Minimum topic coverage
- Fundamentals of microeconomics and the impacts on business
- Concepts of markets, demand, supply and price including elasticity, and comparative advantage
- Market structures, including perfect competition, monopolistic competition, oligopoly and monopoly
- Market failure and government intervention
- Fundamentals of macroeconomics and the impacts on business
- Macroeconomic measures including GDP, inflation and employment
- Fiscal and monetary policy
- International trade and globalization
- Balance of payments and exchange rates
RCA07: Business law
This area covers general legal knowledge relating to the business environment and an understanding of the responsibilities and risks in a business environment. It also covers data protection and privacy regulations that apply when collecting, generating, storing, accessing, using or sharing data and information.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 |
Identify relevant laws and how they apply to business |
| LO2 | Describe the main elements of law relevant to finance professionals |
| LO3 | Apply ethical guidance in the context of law |
Minimum topic coverage
- Local legislative framework and the sources of law
- Corporations/Company law (incorporation of companies, concept of separate legal entity, duties of directors, insolvency, record keeping)
- Contract law
- Law of negligence
- Law of agency
- Employment law
- Data protection
- Intellectual property law
RCA08: Taxation (Australia or New Zealand jurisdiction-specific)
This competence area covers the fundamentals of the taxation system and its administration.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 | Identify the sources of taxation law and the framework in which taxation is administered |
| LO2 | Determine the income tax consequences of events and transactions |
| LO3 | Apply the fundamentals of calculating taxable income and tax payable for business entities |
| LO4 | Determine the indirect tax consequences of events and transactions |
| LO5 | Apply ethical guidance and best practice when dealing with clients and other professionals |
Minimum topic coverage
| Australia | New Zealand |
| Sources of income tax law including legislation, case law and Australian Tax Office (ATO) publications/guidance | Sources of income tax law including legislation, case law and Inland Revenue (IR) publications/guidance |
| Foundational concepts in income tax law, including residency and source, assessable income and deductions | |
| Tax administration, including types of tax returns/assessments, ATO rulings and the tax appeal process |
Tax administration, including types of tax returns/assessments, IR rulings and the dispute resolution process |
| Individuals - general tax obligations and framework applicable such as tax rates, tax offsets, simple calculations of taxable income/tax payable | Individuals - general tax obligations and framework applicable such as tax rates, tax credits, simple calculations of taxable income/tax payable |
| Companies - general tax obligations and requirements such as calculation of taxable income and tax payable, tax losses, dividend imputation system and franking account concepts using simple scenarios, awareness of Small Business Entity (SBE) rules | Companies - general tax obligations and requirements such as calculation of taxable income and tax payable, tax losses, dividend imputation system and imputation credit account concepts using simple scenarios, awareness of look-through company concept |
| Other structures - general tax obligations and requirements applicable to a variety of other structures, such as partnerships, trusts and superannuation funds | Other structures - general tax obligations and requirements applicable to a variety of other structures, such as partnerships, trusts and portfolio investment entities |
| Property and capital transactions (depreciating assets, trading stock, Capital Gains Tax (CGT) regime) | Property and capital transactions (depreciating assets, trading stock, taxation of land) |
| Pay as you go (PAYG) system of tax collection | Pay as you earn (PAYE) system of tax collection |
| Goods and Services Tax (GST), including interaction with income tax and simple calculations of net GST payable/refundable | |
| Fringe Benefits Tax (FBT) framework and simple calculations of FBT payable | Fringe Benefit Tax (FBT) framework and simple calculations of FBT payable |
Appendix 2: Professional Competencies
IES 3 outlines the professional skills that aspiring accountants must develop, including intellectual, interpersonal, communication, personal, and organisational skills, which should complement their technical competence. Additionally, IES 4 highlights the importance of adhering and integrating ethical principles, professional values, and integrity in accounting programs.
Intellectual Skills
(IES Reference: IES3(a) Intellectual Skills Proficiency Level: Foundation)
Intellectual skills enable a professional accountant to evaluate data and information, apply critical thinking to solve problems, make decisions and exercise good judgment in complex organisational situations.
Interpersonal and Communication Skills
(IES Reference: IES3(b) Interpersonal and Communication skills Proficiency Level: Foundation)
Interpersonal and communication skills enable a professional accountant to work with others for the common good of the organisation, receive and transmit information, form reasoned judgments and make decisions effectively.
Personal Skills
(IES Reference: IES3(c) Personal Skills Proficiency Level: Foundation)
Personal skills relate to the attitudes and behaviour of professional accountants. Developing these skills helps individual learning and personal improvement.
Ethical Principles, Professional Values and Integrity
(IES Reference: IES 4 (b) Ethical Principles Proficiency Level: Foundation)
An understanding of ethical and professional values and attitudes are essential elements in the development of accounting professionals. It is expected that programs would incorporate the fundamental ethical values of integrity, objectivity, and confidentiality, as well as professional competence and due care.