Sri Lanka Advanced Level Examination Syllabus - Accounting

This syllabus outlines the curriculum for the Advanced Level Accounting examination, implemented from 2017. It is a competency-based curriculum, focusing on developing practical skills and theoretical understanding. The syllabus is structured around key competencies, competency levels, subject content, learning outcomes, and allocated time periods.

Grade 12

• 1.0 Analyses Accounting and its need (5 periods): This section introduces accounting, its objectives, stakeholders, and the different classifications of accounting (financial and management). It also covers the accounting environment and the impact of environmental factors on accounting processes.
• 2.0 Presents transactions and events of a business through an accounting equation (15 periods): This section covers the business entity concept, money measurement concept, the accounting equation, and the impact of transactions on assets, liabilities, and equity. It also introduces the income statement and statement of financial position.
• 3.0 Records business transactions and events based on the double entry system (12 periods): This section explains the dual aspect concept, the double entry system, different types of accounts, and the elements of financial statements.
• 4.0 Posts transactions to the ledger using prime entry books (93 periods): This section covers source documents, prime entry books (cash book, petty cash book, sales journal, purchase journal, returns inwards/outwards journals, general journal), bank reconciliation, control accounts, and subsidiary ledgers. It also includes preparing financial statements after balancing ledger accounts and rectifying errors.
• 5.0 Uses accounting concepts by analysing the basis of financial accounting (34 periods): This section delves into key accounting concepts: entity, going concern, money measurement, periodicity, accrual, realization, matching, historical cost, prudence, materiality, substance over form, disclosure, and consistency.
• 6.0 Prepares financial statement of a sole proprietorship business (46 periods): This section focuses on preparing the income statement and statement of financial position for a sole proprietorship, including adjustments for closing stock, prepayments, accruals, bad debts, depreciation, drawings, and VAT.
• 7.0 Prepares Financial Statements of manufacturing business (10 periods): This section covers calculating the cost of production, preparing financial statements for a manufacturing business, and the statement of cost of production.
• 8.0 Prepares Financial Statements of a "not for profit making" organization (16 periods): This section explains the importance of accounting for non-profit organizations, preparing subscription accounts, accounting for donations and life membership fees, and preparing financial statements.
• 9.0 Prepares Financial Statements of a business using the incomplete records (14 periods): This section explains incomplete records and how to convert them to double entries for preparing financial statements.
• 10.0 Prepares Financial Statements of a partnership business (55 periods): This section covers the legal environment of partnerships, special transactions, partners' equity (capital and current accounts), preparing the income statement and appropriating profits/losses, and accounting for changes in equity due to admission or retirement of partners.

Grade 13

• 11.0 Prepares Financial Statements of a Limited liability company (40 periods): This section covers the legal background of limited liability companies, the conceptual framework of financial accounting, accounting policies, changes in accounting estimates, errors, accounting for stocks, property, plant and equipment, provisions, contingent assets and liabilities, leases, events after the reporting period, and revenue recognition.
• 12.0 Makes use of Sri Lanka Accounting standards in the preparation and presentation of financial statements (90 periods): This section focuses on applying Sri Lanka Accounting Standards to prepare and present financial statements, including the comprehensive income statement, statement of financial position, statement of changes in equity, statement of cash flows, and accompanying notes.
• 13.0 Contributes to managerial decisions by analyzing and interpreting financial statements through accounting ratios (40 periods): This section covers the analysis and interpretation of financial statements using various ratios, including liquidity ratios, financial stability ratios, profitability ratios, efficiency ratios, and investor ratios.
• 14.0 Evaluates basic concepts of Management Accounting (90 periods): This section introduces management accounting, cost concepts, cost classification, material control procedures, labor cost recording and salary calculations, preparing pay sheets, and overhead cost absorption.
• 15.0 Contributes to marginal decision making process through the analysis of the cost behaviour and cost volume profit analysis (20 periods): This section covers cost behavior, cost-volume-profit analysis, break-even point, margin of safety, and sensitivity analysis.
• 16.0 Contributes to capital investment decisions (20 periods): This section focuses on long-term decision-making processes and investment evaluation methods, including accounting rate of return, payback period, and net present value.

This detailed syllabus provides a comprehensive framework for learning and teaching accounting at the Advanced Level. It emphasizes practical application and aims to equip students with the skills and knowledge necessary for further education and professional careers in accounting.