IAB LEVEL 2 CERTIFICATE IN BOOK-KEEPING (Qualification Accreditation

IAB LEVEL 2 CERTIFICATE IN BOOK-KEEPING (Qualification Accreditation No. 100/2870/5 – Accreditation end date 31 August 2008) QUALIFICATION SPECIFICATION CONTENTS No Section 1 Introduction 2 Aims 3 Target Group 4 Statement of Level 5 Entry Requirements 6 Progression 7 The Structure of the Qualification 8 Assessment and Grading 9 Certification 10 NVQ in Accounting Level 2 Sign-posting 11 Key Skills Links 12 Spiritual, Moral, Ethical, Social and Cultural Values 13 Health and Safety Issues, Environmental Issues and European Developments 14 Reasonable adjustments for candidates with particular requirements 15 Enquiries and Appeals 16 Learning Outcomes and Assessment Criteria Appendix 1 - Key Skills Mapping Appendix 2 - Key Skills Summary Statements Appendix 3 - Mapping to National Occupational Standards Levels 2, 3, and 4 Appendix 4 - IAB Framework for Regulation and Code of Best Practice Pages 2 2 2 2 2 3 3 3 4 4 4 4 4 4 4 5 - 15 16 - 18 19 - 26 27 - 43 44 IAB (International Association of Book-keepers) Burford House 44 London Road SEVENOAKS Kent TN13 1AS Telephone: 01732 458080 Web: www.iab.org.uk IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 1 1. INTRODUCTION The overall aim of this qualification is to accredit candidates’ knowledge and understanding of the fundamental principles concerned in the use of a manual accounting system. Within the qualification, candidates have the opportunity to gain knowledge of basic manual book-keeping routines concerning the documentation and processes related to making and receiving payments. They will gain an initial insight into both cash and credit business transactions, VAT and other manual routines. The qualification requires candidates to understand those transactions, which are necessary for the day-today function of an accounting system and for processing of simple documents. Accuracy, integrity and security of data should always be uppermost in the candidates mind. Candidates may use this qualification as the basis of further study of manual systems and use it as underpinning knowledge for the study of the IAB Level 3 Certificate in Book-keeping and also progress to the IAB Level 2 Certificate in Computerised Book-keeping. To be awarded the full qualification, candidates are required to successfully demonstrate their competence by means of two external examinations (one examination per unit). It will also provide progression to the NVQs in Accounting at Levels 2, 3 and 4. Candidates will receive acknowledgement of successful completion of each Unit individually. 2. AIMS In summary, the qualification aims to enable candidates to: a) Assess their competence and understanding in carrying out a range of day-to-day book-keeping routines and activities using a manual book-keeping system. The activities will include entry of business transactions, and routine book-keeping tasks. b) To assess their understanding of the importance of maintaining accuracy, security and integrity in performing any book-keeping tasks using a manual accounting system. c) Upon completion, progress in their learning to further develop their knowledge, understanding and skills by: Further studies of accounting routines and procedure at this Level (Level 2) Progression to the IAB Level 2 Certificate in Computerised Book-keeping. 3. TARGET GROUP The IAB Level 2 Certificate in Book-keeping is aimed at individuals who wish to begin their studies of double entry book-keeping and gain a qualification at Level 2 of the National Framework from a point of no previous knowledge. It could also be used by those candidates who have some practical knowledge and skills and wish to gain an accredited qualification in the subject. 4. STATEMENT OF LEVEL This qualification has been designed to assess the knowledge and skills of manual Book-keeping at Level 2 of the National Qualifications Framework. 5. ENTRY REQUIREMENTS As the examination tests the application of knowledge and understanding and not the recall of facts and figures, a high standard of performance is required. Information regarding equivalent qualifications can be found via the IAB web-site (www.iab.org.uk) or by contacting the IAB directly. It is recommended that before commencing a course leading to either or both of the Units of the IAB Level 2 Certificate in Book-keeping the prospective student will already have basic skills in numeracy and literacy. IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 2 6. PROGRESSION The qualification has been designed to provide the essential knowledge, understanding and skills required to complement and enable candidates to progress to other related qualifications at Level 2 of the National Qualifications Framework. The qualification will provide a basis for progression to the study of the IAB Level 2 Certificate in Computerised Book-keeping. It will also provide progression to the NVQ in Accounting at Level 3 with some aspects of Unit 7 of the National Occupational Standards also being covered. It will also provide progression to A/AS levels in Accounting and related units in the Advanced Vocational Certificate of Education (AVCE) qualifications. 7. THE STRUCTURE OF THE QUALIFICATION The Level 2 qualification is divided into two separately examined Units Unit 1 contains the manual aspects of the syllabus and comprises eight mandatory Learning Outcomes with associated Assessment Criteria. It should be noted that this Unit also contains work in a manual environment only. Unit 2 contains further work on manual aspects of the syllabus comprising seven mandatory Learning Outcomes with associated Assessment Criteria Teachers/trainers may find it necessary to address the Learning Outcomes in a different order initially. Teachers and trainers should ensure that learning programmes are designed to meet the needs of individual candidates. They should also ensure that learning programmes take account of the need for candidates’ to continue to be fully competent in the knowledge and skills gained during this initial study of manual bookkeeping. It is considered that each Unit of this qualification has a ‘notional’ estimate of 30 Guided Learning Hours (GLH) or 60 hours of Notional Learning Time (NLT). It is ‘notional’ because the actual GLH, or NLT, of course must take into account the specific needs of the individual candidates for the qualification. For example, candidates who are relatively new to working with numbers may need significantly more GLH/NLT as opposed to those with substantial experience who may need less. Teachers/trainers should use their professional judgement in assessing the needs of candidates and deciding the GLH/NLT to be provided. 8. ASSESSMENT AND GRADING All Learning Outcomes will be assessed through two, externally set and marked, two hour examinations, each consisting of a series of four hand-written tasks. The examination will build on the candidates’ bookkeeping knowledge and will assess the candidate’s ability in relation to the Learning Outcomes. Candidates will be required to carry out the tasks accurately and in keeping with current accounting concepts and practice. Faults will be incurred where candidates make errors in numeracy or failing to follow required procedures and formats. In order to achieve a Pass, candidates will be required to complete the assessment tasks without exceeding the permitted error tolerance. Results will be graded Pass or Fail only. Pass grades are further categorised into Distinction with Commendation, Distinction, Credit and Pass. Fail grades are categorised into Marginal Fail and Fail. PASS AND FAIL MARKS/PERCENTAGES A* DISTINCTION WITH COMMENDATION A DISTINCTION B CREDIT C PASS M MARGINAL FAIL F FAIL 95% and above 85 – 94.99% 70 – 84.99% 55 – 69.99% 50 – 54.99% Below 50% Candidates may sit the Examination of each Unit on either the specific dates set and published by the IAB or on dates set by Centres on an ‘On-demand’ basis. Centres are advised to consult the IAB Centre Handbook on the IAB website (www.iab.org.uk) or contact the IAB for details of how to arrange an ' On-demand' examination. All necessary security of candidate data and information will be undertaken by the IAB. IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 3 9. CERTIFICATION All candidates who achieve a Pass grade will receive a formal Results Letter and may apply for a Unit Certificate. On successful completion of both Units at this Level the candidate may apply for the IAB Level 2 Certificate in Book-keeping 10. NVQ IN ACCOUNTING LEVEL 2 SIGN-POSTING A sign-posting map is provided at the end of the Unit Specification demonstrating the links between this qualification and the knowledge and understanding requirements of the NVQ in Accounting at Level 2. 11. KEY SKILLS LINKS During their study towards the qualification, candidates may have opportunities to develop the knowledge and skills necessary to produce some of the evidence required for the Level 2 for the following Key Skills: Communication Working with Others Application of Number Information Communication Technology Improving Own Learning and Performance Problem Solving Appendices 1 and 2 provide details of the links between this qualification and potential opportunities to develop the Key Skills. 12. SPIRITUAL, MORAL, ETHICAL, SOCIAL AND CULTURAL VALUES Tutors preparing candidates would have opportunities to introduce relevant ethical, social and moral values throughout a course leading to this qualification. Of specific relevance would be matters of honesty and integrity, probity and confidentiality of information. In addition, the IAB Framework for Regulation and Code of Best Practice (provided at Appendix 4) also underpin all Learning Outcomes of the qualification. 13. HEALTH AND SAFETY ISSUES, ENVIRONMENTAL ISSUES AND EUROPEAN DEVELOPMENTS There is no specific coverage of these issues within the qualification. 14. REASONABLE ADJUSTMENTS REQUIREMENTS FOR CANDIDATES WITH PARTICULAR The IAB and IAB Accredited Centres are required to ensure that candidates with particular assessment needs are not disadvantaged and that appropriate arrangements are made to meet their assessment needs. The procedure to make an application for arrangements to meet a candidate’s specific needs is detailed in the IAB Centre Handbook. 15. ENQUIRIES AND APPEALS The IAB and IAB Accredited Centres are required to process all enquiries and appeals in accordance with the IAB established procedures. IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 4 16. UNIT SPECIFICATIONS INCLUDING NVQ LEVEL 2, 3 AND 4 IN ACCOUNTING SIGNPOSTING IAB Level 2 – Certificate in Book-Keeping Unit 1 (IAB Unit Code B2.1) – Aim of the Unit Upon the completion of study for this unit, it is intended that the candidate will be able to: • • • • • • • • Understand and apply basic Accounting Concepts and Book-keeping Ethics Understand fundamental double entry Book-keeping terms and processes Calculate Value Added Tax Prepare and Validate Business Documents Use sub divided Books and record credit based transactions Make and Receive Payments Record Receipts and Payments Process Petty Cash Entering Transactions into Books of Prime Entry (Unit accreditation Number D103/1539) Prior Knowledge and Skills Requirements There are no requirements for this Unit. Learning Outcome 2.1.1 Understand and apply basic accounting concepts and Book-keeping ethics Assessment Criteria Be able to recognise and apply the basic accounting concepts of: • Business Entity • Money Measurement • Duality • Historic Cost Be aware of the need for confidentiality in the keeping of financial records. 2.1.2 Understand fundamental double entry Book-keeping terms and processes Understand the terms assets, capital and liabilities. Have knowledge of the purpose of the Balance Sheet. Be able to: • Identify assets, capital and liabilities and open double entry Books (single ledger system) • Process a range of basic business transactions through a single ledger system. • Balance off ledger accounts. IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 5 2.1.3 Calculate Value Added Tax Have knowledge of the current VAT registration rules and know who must register for VAT. Be aware of the need to quote a VAT registration number on business documents. Be able to: • Identify the government department responsible for administration of the VAT scheme • Explain the following terms • VAT standard rate • VAT zero rate • Exempt from VAT • VAT output tax • VAT input tax • Outside the scope of 2.1.3 Calculate Value Added Tax (continued) Be able to: • Calculate VAT output tax in accordance with current VAT rules • Calculate VAT output tax given a VAT inclusive amount • Calculate VAT input tax in accordance with current VAT rules • Calculate VAT input tax given a VAT inclusive amount • Check VAT input tax on incoming business documents • Identify and report errors in calculation of VAT Be able to: • Keep a VAT account and record VAT output and input tax • Balance a VAT account and explain the closing balance 2.1.4 Prepare and validate business documents Be aware of the rules regarding documentation retention. Understand the function of the following business documents, that flow between buyer and seller, in support of trade credit transactions: • Letter of Enquiry • A Quotation • A Purchase Order • An Acknowledgement of Order • An Advice Note • A Delivery Note • An Invoice • A Debit/Credit Note • A Statement of Account • A Remittance Advice. Be able to calculate the following discounts: • Trade Discount • Cash/Settlement discount Be able to check or prepare the following documents relating to credit based customers, ensuring accuracy of calculations and completeness of information: • Purchase Order • Sales Invoice • Debit/Credit Note Be able to check or prepare the following documents relating to credit based suppliers against supporting documentation, ensuring accuracy of calculations and completeness of information: • Purchase Order • Delivery Note • Invoice • Debit/Credit Note Be able to use internal material and documentation: • In Customer and/or Supplier files • Catalogues and Price lists • Goods Received Notes • Goods Returned Notes. IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 6 2.1.5 Use sub divided Books and record credit based transactions Understand the need for a suitable accounting administration system and appreciate the advantages of using a sub divided Book-keeping system, which includes the use of Books of Prime Entry. Be able to use double entry Book-keeping principles to process a diverse range of business transactions through a sub divided Book-keeping system as follows: • The General or Nominal Ledger • Personal Accounts of the Sales Ledger • Personal Accounts of the Purchase Ledger Understand the different methods of processing and appreciate the advantages and disadvantages of: • ‘Real time’ processing • ‘Batch’ processing Be able to list information from invoices received from creditors in the purchase Day Book and; • Operate the Purchase Day Book in columnar format to facilitate the analysis of goods and services by product, department or expense • Total and code the Day Book • Make transfers from the Day Book to appropriate accounts in the main Books. Be able to list information from credit notes received from creditors in the Purchase Returns Day Book and: • Operate the Purchase Returns Day Book in columnar format to facilitate the analysis of goods and services by product, department or expense • Total and code the Day Book • Make transfers from the Day Book to appropriate accounts in the main Books. Be able to list information from invoices issued to Debtors in the Sales Day Book and; • Operate the Sales Day Book in columnar format to facilitate the analysis of goods and services by product or department • Total and code the Day Book • Make transfers from the Day Book to appropriate accounts in the main Books. Be able to list information from credit notes issued to Debtors in the Sales Returns Book and; • Operate the Sales Return Day Book in columnar format to facilitate the analysis of goods and services by product or department • Total and code the Day Book • Make transfers from the Day Book to appropriate accounts in the main Books Understand the purpose of the Journal as a Book or voucher. Be able to use the Journal to: • Open double entry Books • Account for the purchase of fixed assets on credit • Make transfers between accounts. NB: Whilst students will be required to make postings from the Day Books to Sales Ledger and Purchase Ledger Control Accounts in this Unit, they will not be required to reconcile Personal account balances to Control account balances IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 7 2.1.6 Make and receive payments Understand and identify the appropriate methods of making and receiving payments Be able to: • Make and receive payment in cash (notes and coins) • Prepare a cheque for signature • Check a cheque received for completeness. Know how to: • Process plastic cash receipts and payments using manual and EFTPOS transfer systems • Set up standing orders and direct debit mandates • Process standing orders and direct debit receipts and payments • Process giro credit, BACSTEL-IP and CHAPS receipt and payments Be able to: • Prepare a BACSTEL-IP payment listing • Process settlement by offset / contra transactions Be able to: • Prepare a till contents sheet for cash based transactions • Prepare monies for banking • Prepare a paying in slip. 2.1.7 Record receipts and payments Understand that the Cash Book can be both a Book if Prime entry and a main Book. Be able to process receipts and payments transactions through a columnar/analysed cash Book: • Accurately enter cash discounts allowed and received • Extend receipts/payments to appropriate analysis columns. • Balance off and code the Cash Book • Bring down cash and bank balances • Make transfers from the Cash Book to appropriate accounts in the main Books. NB: Whilst students will be required to make postings from the Analysed Cask Book to Sales Ledger and Purchase Ledger Control Account in this unit, they will not be required to reconcile personal account balances to control account balances. 2.1.8 Process Petty Cash Understand the advantages of keeping a Petty Cash Book as a subsidiary of the main Cash Book. Understand the advantage of appointing a Petty Cashier to be responsible for the petty cash float and the petty cash records. Be able to: • Explain the Imprest System of petty cash • Draw up a Petty Cash Voucher • Enter petty cash transactions into a Petty Cash Book • Balance and code the Petty Cash Book • Bring down the petty cash balance • Complete a cheque requisition and restore the petty cash imprest balance • Make transfers from the Petty Cash Book to appropriate accounts in the main Books. Candidates may sit the Examination of this Unit on either the specific dates set and published by the IAB or on dates set by Centres on an ‘On-demand’ basis. Centres are advised to consult the IAB Centre Handbook on the IAB website (www.iab.org.uk) or contact the IAB for details of how to arrange an ' On-demand' examination. All necessary security of data and information will be undertaken. UNIT ASSESSMENT IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 8 NVQ IN ACCOUNTING LEVEL 2 SIGN-POSTING IAB Level 2 Certificate in Book-keeping Unit 1 (IAB Unit Code B2.1) – Entering Transactions into Books of Prime Entry Learning Outcomes of the IAB Level 2 Unit 1 Certificate in Book-keeping 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 Understand and apply basic Accounting Concepts and Book-keeping ethics Understand fundamental double-entry book-keeping terms and processes Calculate Value Added Tax Prepare and validate business documents Use sub-divided Books and record credit based transactions Related to the following Elements of the NVQ in Accounting Level 2 1.1; 1.2 2.1; 2.2; 2.3 3.1; 3.2 1.1, 1.2 2.1, 2.2 3.1, 3.2, 3.3 1.1, 1.2 1.1; 1.2 2.1; 2.2 4.1 1.1; 1.2 2.1; 2.2 3.1; 1.2 2.2 3.1 4.1 1.2 2.2 3.1 4.1 1.1; 1.2 2.1; 2.2 4.1 2.1, 2.2 2.1.6 Make and Receive Payments 2.1.7 Record Receipts and Payments 2.1.8 Process Petty Cash IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 9 NVQ IN ACCOUNTING LEVEL 3 SIGN-POSTING IAB Level 2 Certificate in Book-keeping Unit 1 (IAB Unit Code B2.1) – Entering Transactions into Books of Prime Entry Learning Outcomes of the IAB Level 2 Unit 1 Certificate in Book-keeping Related to the following Elements of the NVQ in Accounting Level 3 2.1.1 Understand and apply basic Accounting Concepts and Book-keeping ethics 2.1.2. Understand fundamental double-entry bookkeeping terms and processes 2.1.3 Calculate Value Added Tax 2.1.4 Prepare and validate business documents 2.1.5 Use sub-divided Books and record credit based transactions 2.1.6 Make and Receive Payments 2.1.7 Record Receipts and Payments 2.1.6 Process Petty Cash 7.3 7.3 7.3 7.3 7.3 IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 10 IAB Level 2 – Certificate in Book-Keeping Unit 2 (IAB Unit Code B2.2) – Using the Double Entry Book-keeping System (Unit Accreditation Number R103/1540) Aim of the Unit Upon the completion of study for this unit, it is intended that the candidate will be able to: • • • • • • • Account for Value Added Tax Prepare a Statement of Account Prepare a reconciliation to a Supplier Statement of Account Account for Bad Debts Use Checking Devices – Prepare Control Accounts Use Checking Devices – Reconcile Cash Book Balances (Cash and Bank) Use Checking Devices – Prepare a Trial Balance Prior Knowledge and Skills Requirements Before starting a course of study or training to the assessment for this unit, it is assumed and is advisable that the candidate has already acquired the knowledge and skills as specified in Unit 1 of the IAB Level 2 Certificate in Book-keeping. Learning Outcome 2.2.1 Account for Value Added Tax Assessment Criteria Be able to: • Use the information from within the double entry book-keeping system to prepare a VAT Return (VAT 100) • Complete a VAT Return (VAT 100) Be able to: • Use information from within the double entry book-keeping system to prepare a Statement of Account • Extract information from the personal account of a Trade Debtor in the Sales Ledger and prepare a Statement of Account 2.2.2 Prepare a Statement of Account 2.2.3 Prepare a reconciliation to Be able to use information from within the double entry book-keeping system to a Supplier Statement of reconcile a Supplier Statement of Account and prepare a Remittance Advice. Account Be able to: • Compare the transactions posted to the personal account of the Trade creditor in the Purchase Ledger to the postings per their Statement of Account and account for differences between the two sets of records • Prepare a Reconciliation Statement bringing the personal account balance into agreement with the Statement of Account balance • Identify invoices falling due for payment • Pay invoices falling due for payment taking credit for goods returned, and taking advantages of cash / settlement discounts on offer • Prepare a Remittance Advice to be issued with payment. IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 11 2.2.4 Account for Bad Debts 2.2.5 Use checking devices Prepare Control Accounts Be able to use information from within the double entry book-keeping system to identify bad debts, and account for a bad debt write off. Be able to: • Define the term ‘bad debt’ • Review Debtor account balances within the Sales Ledger and identify bad debts • Prepare a Journal entry to support a bad debt write off • Process a bad debt write off Understand the function of Sales and Purchase Ledger Control Accounts Be able to collect data from relevant sources to prepare the Sales and Purchase Ledger Control Accounts by: • Transferring totals from the purchase Day Book to the Purchase Ledger Control Account • Transferring totals from the Purchase Returns Day Book to the Purchase Ledger Control Account • Transferring totals from the Sales Day Book to the Sales Ledger Control Account • Transferring relevant information from the Cash Book including • Receipts from Credit Customers • Payments to Credit Suppliers • Discounts Allowed and Received Be able to reconcile Control Account balances to Schedules of Debtors and Creditors extracted from the Sales and Purchase Ledgers. 2.2.6 Use checking devices Reconcile Cash Book Balances (Cash and Bank) Understand the need to check, as a matter of routine, the balances on the Cash Account and Bank Account within the double entry book-keeping system. Be able to: • Prepare a Statement that will reconcile cash held to that shown in the Cash Book • Account for time lag differences between the Cash Book Bank Account Postings and the Bank Statement Postings • Prepare a Bank Reconciliation Statement and reconcile closing balances • Update the Cash Book Bank Account following reconciliation. Understand the form and function of the Trial Balance. Be able to: • Prepare a Trial Balance from the accounts within the main Books of Account • Prepare a Trial Balance from a list of ledger account balances Understand the limitations of the Trial Balance and have a knowledge of the types of errors not disclosed by the Trial Balance Be able to: • Correct book-keeping errors • Re-draft the Trial Balance after corrections 2.2.7 Use checking devices Prepare a Trial Balance Candidates may sit the Examination of this Unit on either the specific dates set and published by the IAB or on dates set by Centres on an ‘On-demand’ basis. Centres are advised to consult the IAB Centre Handbook on the IAB website (www.iab.org.uk) or contact the IAB for details of how to arrange an ' On-demand' examination. All necessary security of data and information will be undertaken. UNIT ASSESSMENT IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 12 NVQ IN ACCOUNTING LEVEL 2 SIGN-POSTING IAB Level 2 Certificate in Book-keeping Unit 2 (IAB Unit Code B2.2) – Using the double entry book-keeping system Learning Outcomes of the IAB Level 2 Unit 2 Certificate in Book-keeping 2.2.1 Account for Value Added Tax Related to the following Elements of the NVQ in Accounting Level 2 1.1; 1.2 2.1; 2.2; 3.1; 4.2 1.1 3.2 2.2 3.2 1.1 3.2 1.1; 1.2 2.1; 2.2 3.1; 3.2; 3.3 4.2 3.1, 3.2 3.1; 3.2; 3.3 4.2 2.2.2 2.2.3 2.2.4 2.2.5 Prepare a Statement of Account Prepare a reconciliation to a Supplier Statement of Account Account for Bad Debts Use checking devices – Prepare Control Accounts 2.2.6 2.2.7 Use checking devices – Reconcile Cash Book balances (Cash and Bank) Use checking devices – Prepare a Trial Balance IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 13 NVQ IN ACCOUNTING LEVEL 3 SIGN-POSTING IAB Level 2 Certificate in Book-keeping Unit 2 (IAB Unit Code B2.2) – Using the double entry book-keeping system Learning Outcomes of the IAB Level 2 Unit 2 Certificate in Book-keeping 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 2.2.6 2.2.7 Account for Value Added Tax Prepare a Statement of Account Prepare a reconciliation to a Supplier Statement of Account Account for Bad Debts Use checking devices – Prepare Control Accounts Use checking devices – Reconcile Cash Book balances (Cash and Bank) Use checking devices – Prepare a Trial Balance 7.3 Related to the following Elements of the NVQ in Accounting Level 3 7.3 5.2 5.2 IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 14 NVQ IN ACCOUNTING LEVEL 4 SIGN-POSTING IAB Level 2 Certificate in Book-keeping Unit 2 (IAB Unit Code B2.2) – Using the double entry book-keeping system Learning Outcomes of the IAB Level 2 Unit 2 Certificate in Book-keeping 2.2.1 Account for Value Added Tax 2.2.2 Prepare a Statement of Account 2.2.3 Prepare a reconciliation to a Supplier Statement of Account 2.2.4 Account for Bad Debts 2.2.5 Use checking devices – Prepare Control Accounts 2.2.6 Use checking devices – Reconcile Cash Book balances (Cash and Bank) 2.2.7 Use checking devices – Prepare a Trial Balance 15.3, 15.4 Related to the following Elements of the NVQ in Accounting Level 4 IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 15 APPENDIX 1 - KEY SKILLS MAPPING GRIDs IAB LEVEL 2 CERTIFICATE IN BOOK-KEEPING – UNIT 1 (Unit B2.1) UNIT OUTCOME COMMUNICATION APPLICATION OF NUMBER INFORMATION COMMUNICATI ON TECHNOLOGY IMPROVING OWN PERFORMA NCE WORKING WITH OTHERS PROBLEM SOLVING 2.1.1 2.1.2 1 2 1 2 1 2 3 4 5 1 C2.1, C2.2a, C2.2b,C2.3 C2.1, C2.2a, C2.2b,C2.3 C2.1, C2.2a, C2.2b,C2.3 C2.1, C2.2a C2.1, C2.2a, C2.2b,C2.3 C2.1, C2.2a, C2.2b,C2.3 C2.1, C2.2a, C2.2b,C2.3 N2.1, N2.2 WO2.1, WO2.2, WO2.3 PS2.1 2.1.3 N2.1, N2.2 N2.1, N2.2 WO2.1, WO2.2, WO2.3 WO2.1, WO2.2, WO2.3 PS2.1, PS2.2 PS2.1, PS2.2, PS2.3 2.1.4 2 3 4 5 6 1 2.1.5 2 3 4 5 6 7 8 C2.1, C2.2a, C2.2b,C2.3 C2.1, C2.2a, C2.2b,C2.3 N2.1, N2.2 N2.1, N2.2, N2.3 N2.1, N2.2, N2.3 N2.1, N2.2, N2.3 N2.1 N2.1 N2.1 N2.1 N2.1 N2.1 N2.1 WO2.1, WO2.2, WO2.3 WO2.1, WO2.2, WO2.3 WO2.1, WO2.2, WO2.3 WO2.1, WO2.2, WO2.3 WO2.1, WO2.2, WO2.3 WO2.1, WO2.2, WO2.3 WO2.1, WO2.2, WO2.3 WO2.1, WO2.2, WO2.3 WO2.1, WO2.2, WO2.3 PS2.1, PS2.2, PS2.3 PS2.1,PS2.3 PS2.1, PS2.3 PS2.1, PS2.3 PS2.1, PS2.3 PS2.1, PS2.3 PS2.1, PS2.3 PS2.1, PS2.3 PS2.1, PS2.3 PS2.1, PS2.3 16 C2.1, C2.2a IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 2.1.6 1 2 3 4 1 2 1 2 3 C2.1, C2.2a, C2.2b,C2.3 C2.1, C2.2a, C2.2b,C2.3 C2.2a, C2.2b, C2.3 C2.2a, C2.2b, C2.3 C2.2a, C2.2b, C2.3 C2.2a, C2.2b, N2.1 N2.1 N2.1, N2.3 N2.1, N2.3 N2.1, N2.3 WO2.1, WO2.2, WO2.3 WO2.1, WO2.2, WO2.3 WO2.1, WO2.2, WO2.3 WO2.1, WO2.2, WO2.3 WO2.1, WO2.2, WO2.3 PS2.1, PS2.3 PS2.1, PS2.3 PS2.1, PS2.3 PS2.1, PS2.3 2.1.7 2.1.8 IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 17 IAB LEVEL 2 CERTIFICATE IN BOOK-KEEPING – UNIT 2 (Unit B2.2) KEY SKILLS MAPPING GRID UNIT OUTCOME COMMUNICATION APPLICATION OF NUMBER INFORMATION COMMUNICATI ON TECHNOLOGY IMPROVING OWN PERFORMA NCE WORKING WITH OTHERS PROBLEM SOLVING 2.2.1 2.2.2 2.2.3 2.2.4 N2.1, N2.2, N2.1, N2.2, N2.3 2.2.5 C2.1, C2.2a C2.1, C2.2a, C2.2b, C2.3 N2.1, N2.2, N2.3 N2.1, N2.2 N2.1, N2.2, N2.3 N2.1, N2.2, N2.3 N2.1, N2.2, N2.3 N2.1, N2.2, N2.3 N2.1, N2.2, N2.3 WO2.1, WO2.2, WO2.3 WO2.1, WO2.2, WO2.3 WO2.1, WO2.2 WO2.1, WO2.2, WO2.1, WO2.2, WO2.3 WO2.1, WO2.2, WO2.1, WO2.2, WO2.3 PS2.1, PS2.2, PS2.1, PS2.2, PS2.1, PS2.2, PS2.3 PS2.1, PS2.2, PS2.3 PS2.1, PS2.2, PS2.1, PS2.2, PS2.3 PS2.1, PS2.2, WO2.1, WO2.2, WO2.3 PS2.1, PS2.2, WO2.1, WO2.2, WO2.3 PS2.1, PS2.2, PS2.3 WO2.1, WO2.2, WO2.3 PS2.1, PS2.2, PS2.3 WO2.1, WO2.2, PS2.1, PS2.2, PS2.3 2.2.6 C2.1, C2.2a, C2.2b, C2.3 2.2.7 1 2 1 1 2 1 2 1 2 3 1 2 1 2 N2.1, N2.2, N2.3 C2.1, C2.2a, C2.2b, C2.3 C2.1, C2.2a, C2.2b, C2.3 N2.1, N2.2, N2.3 IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 18 APPENDIX 2 KEY SKILLS - QUALIFICATION LEVEL MAP for IAB Level 2 Certificate in Book-keeping – Unit 1 KEY SKILLLS ( LEVEL 2 ) STANDARDS 2.1.1 Understand and apply basic Accounting Concepts and bookkeeping ethics Evidence Class work & homework. Evidence may vary according to course delivery. Be able to communicat e an understandin g of the benefits of Accounting Concepts and the Accounting Equation to others 2.1.2 2.1.3 Understand Calculate Value fundamenta Added Tax l double entry bookkeeping terms and processes 2.1.4 Prepare and validate business documents 2.1.5 Use sub-divided books and record credit transactions 2.1.6 Make and Receive Payments 2.1.7 Record Receipts and Payments 2.1.8 Process Petty Cash COMMUNICATION C21a Contribute to a discussion about a straightforward subject. C21b Give a short talk about a straightforward subject using an image. C22 Read and summarise information from two extended documents about a straightforward subject. C23 Write two different types of documents about straight- forward subjects. One piece of writing should be an extended document and include at least one image Evidence Evidence Evidence Evidence Evidence Evidence Class work & Class work & Class work & Class work & Class work & Class work Classwork & homework homework homework. homework homework &homework homework Evidence may Evidence may Evidence may Evidence may Evidence may vary Evidence may Evidence vary vary according to vary vary vary may vary according to according to according to according to according to according to course course course course course course course delivery. Discuss with delivery delivery. delivery. delivery. delivery. delivery. Be able to Be able to Be able to Discuss Give a clear Give a clear others the discuss discuss the discuss appropriate understandi understandi need for the sub dividing methods for ng to others what is information with others, ng of the of the main recording what is meant by necessary the use and fundamental books of the income meant by to account information processes bookbusiness received the Cash for VAT. necessary related to keeping and the posting and Book and for the use the terms and of the payments to the and accounting compiling of be made. processes various information for petty business Be able to and how business it contains, cash. documents discuss they relate transactions. especially and what is to the the including understood business balances. the types of by the organisatio documents banking n necessary system and and the use the pro’s and cons’ of of different discounts. payment methods. IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 19 WORKING WITH OTHERS WO2.1 Plan straightforward work with others, identifying objectives and clarifying responsibilities, & confirm working arrangements. WO2.2 Work cooperatively with others towards achieving identified objectives, organising tasks to meet your responsibilities. WO2.3Exchange information on progress and agree ways of improving work with others to help achieve objectives. Evidence Class work &homework. Evidence may vary according to course delivery. Use knowledge of the Accounting Concepts and Accounting Equation to explain various aspects of basic bookkeeping to others Evidence Evidence Evidence Evidence Evidence Evidence Class work Class work Class work Class work & Class work & Classwork & Class work & &homework. &homework &homework homework homework homework homework. Evidence may Evidence may Evidence may vary Evidence may Evidence may Evidence may Evidence according to vary vary vary vary vary may vary according to according to according to according to according to course according to course course course course course course delivery. Be able to liaise delivery delivery. delivery. delivery. delivery. delivery. Work with others Be able to plan To liaise with Be able to Discuss with Deal with those with others the entering in both the other organise others the employees and plan the of business timescale for same and members of with others timescales claiming transactions the entering different the the and Petty Cash into the of department organisatio preparation routines for expenditure Books of documents s of the n in the of cash entry of in a polite Prime Entry recording of receipts and into the Day organisatio based and with others, VAT. transactions payments Books and n, to accurate in for banking Plan work so into the Ledgers of compile manner accordance that the VAT and visits to Books of the business business according with Return can the Bank. Prime Entry. documents to organisatio be according organisatio nal completed to nal procedures in a timely organisatio procedures. manner nal requirement s. IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 20 APPLICATION OF NUMBER N21 Interpret information from two different sources, including material containing a graph. N22 Carry out calculations to do with: A Amounts and sizes B Scales and proportions C Handling statistics D Using formulae N23 Interpret the results of your calculations and present your findings. You must use at least one graph, one chart and one diagram. Evidence NONE INFORMATION COMMUNICATION TECHNOLOGY IT21 Search for and select information for two different purposes IT22 Explore and develop information, and derive new information, for two different purposes. IT23 Present combined information for two different purposes. Your work must included at least one example of text, one example of images, and one example of numbers. Evidence NONE Evidence Evidence Evidence Evidence Evidence Evidence Class work & Class work & Classwork & Class work Class work Class work Class work & homework homework. homework &homework &homework &homework. homework Evidence may Evidence may Evidence may Evidence may vary Evidence may Evidence Evidence may vary according to vary vary vary may vary vary according to according to according to according to according to according to course course course course course course course delivery. Be able to delivery delivery. delivery. delivery. delivery. delivery. Enter all types of Make cash Be able to Be able to Prepare Calculate and prepare receipts and payments to process a calculate business prepare batches of invoices and payments those range of VAT from a documents monies for credit notes into an claiming business Gross and from given banking. information, for entry in analysed petty cash. document Net Make and including the Day cash book Enter all into the situation. receive the Books and and be able petty cash Books of accurate Prime Entry Total the Day payments in calculation to balance receipts and and Books with cash. payments of off the cash ‘balance off’ accuracy . into the discounts. book the various Also make entries Petty Cash bringing in the Book. Total accounts down the Petty Ledgers where balances to from the Day Cash Book necessary the start of Books and agree the next ensuring the amount financial accuracy at for period. all times. reimbursem ent to restore the balance. Evidence Evidence Evidence Evidence Evidence Evidence Evidence NONE NONE NONE NONE NONE NONE NONE IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 21 IMPROVING OWN LEARNING AND PERFORMANCE LP2.1 Help set targets with an appropriate person and plan how these will be met LP2.2 Take responsibility for some decisions about your learning, using your plan to help meet targets and improve your performance LP2.3 Review progress with an appropriate person and provide evidence of your achievements PROBLEM SOLVING PS1 Identify a problem, with help from an appropriate person, and identify different ways of tackling it. PS2 Plan and try out at least one way of solving the problem PS3 Check if the problem has been solved and identify ways to improve problem solving skills. Evidence NONE Evidence NONE Evidence NONE Evidence NONE Evidence NONE Evidence NONE Evidence NONE Evidence NONE Evidence Class work &homework. Evidence may vary according to course delivery. Understand any errors that arise from the outcome of applying the Accounting Equation. Understand where the figures are derived from and how the errors may have arisen. Evidence Evidence Evidence Evidence Evidence Evidence Evidence Class work & Class work Class work & Class work & Class work & Class work Class work homework &homework. homework. homework homework &homework &homework Evidence may Evidence may Evidence may Evidence may vary Evidence may Evidence may Evidence may vary according to vary vary vary vary vary according to according to according to according to according to according to course course course course course course course delivery. Identify and deal delivery delivery. delivery. delivery. delivery. delivery. Be aware of Identify errors Deal with errors Deal with errors Identify what Identify errors in with errors arising from arising from errors that arising from errors may the cash that arise calculation incorrect incorrect may occur have balance from of VAT both compilation completion when the occurred in held for incorrect constituents internally of business of banking making Petty Cash batch totals of the documents. and by documents, entries into against the or Accounting suppliers or Be able to or missing the cash balance in incorrectly Equation goods or documents. check if the book and be the Petty totalled Day error has able to Cash Book. are services. Books or Be able to been correct incorrectly Be able to incorrect those errors correct the accurately applied correct postings to those errors in an Petty Cash corrected. By applying the the Ledgers Accounting and inform accurate Book if Equation necessary and necessary check the personnel. acceptable and identify problem has manner. interested been personnel internally or overcome externally. IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 22 KEY SKILLS - QUALIFICATION LEVEL MAP for IAB Level 2 Certificate in Book-keeping – Unit 2 KEY SKILLLS ( LEVEL 2 ) STANDARDS 2.2.1 Account for Value Added Tax 2.2.2 Prepare a Statement of Account 2.2.3 2.2.4 Prepare a Account for Bad Reconciliati Debts on to a Supplier Statement of Account 2.2.5 Use checking devices – Prepare Control Accounts 2.2.6 Use checking devices – Reconcile Cash Book Balances (Cash and Bank) 2.2.7 Use checking devices – Prepare a Trial Balance COMMUNICATION C21a Contribute to a discussion about a straightforward subject. C21b Give a short talk about a straightforward subject using an image. C22 Read and summarise information from two extended documents about a straightforward subject. C23 Write two different types of documents about straight- forward subjects. One piece of writing should be an extended document and include at least one image Evidence Evidence Evidence Evidence Evidence Class work & Class work Class work & Class work & Class work & homework &homework homework homework homework Evidence may Evidence may Evidence may vary Evidence may Evidence may vary according to vary vary vary according to according to according to according to course course course course course delivery. Discuss, with delivery. delivery. delivery. delivery. Discuss the use Be able to Discuss the use Discuss and others, the and discuss the and communicat need for information preparation preparation of a e the need monitoring Reconciliati necessary of a for Control unpaid debts and the Accounts as on of a to account Statement a checking transactions Suppliers for VAT of Account device, and need to Statement including describe account for of Account compiling how they bad debts to the the VAT are relevant Return prepared. Ledger entries Evidence Evidence Class work & Class work & homework homework Evidence may Evidence may vary vary according to according to course course delivery. delivery. Discuss and Discuss and communicat explain to e the need others the for a Trial need for, Balance as and a checking outcome of, device, and reconciliatio describe n between how it is the prepared. Statement of Account from the Bank, and the balances in the Cash Book. IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 23 WORKING WITH OTHERS WO2.1 Plan straightforward work with others, identifying objectives and clarifying responsibilities, & confirm working arrangements. WO2.2 Work cooperatively with others towards achieving identified objectives, organising tasks to meet your responsibilities. WO2.3Exchange information on progress and agree ways of improving work with others to help achieve objectives. Evidence Class work &homework. Evidence may vary according to course delivery. To liaise with other members of the organisatio n in the recording of VAT. Plan work so that the VAT Return can be completed in a timely manner Evidence Class work & homework Evidence may vary according to course delivery. Liaise with others, where necessary, in gaining the information necessary to prepare a Statement of Account APPLICATION OF NUMBER N21 Interpret information from two different sources, including material containing a graph. N22 Carry out calculations to do with: A Amounts and sizes B Scales and proportions C Handling statistics D Using formulae N23 Interpret the results of your calculations and present your findings. You must use at least one graph, one chart and one diagram Evidence Evidence Class work Class work & &homework. homework Evidence may Evidence may vary vary according to according to course course delivery. delivery. Be able to Be able to calculate accurately VAT from a calculate Gross and the outstanding Net balance on situation a Statement and of Account complete from the the VAT given Return information, showing including whether a the opening payment is balance due to or from Customs and Excise Evidence Evidence Evidence Class work Class work & Class work & &homework homework homework. Evidence may vary Evidence may Evidence may according to vary vary according to according to course course course delivery. Deal with delivery. delivery. Liaise with information Work with others to complete others, given by postings of where others, necessary, entries to relating to in gaining the Ledgers. decision Gain the the based information transactions, information necessary such as the necessary to prepare a writing off of to compile Supplier bad debts. Control Statement Accounts Reconciliati and relay on the conclusions to other personnel Evidence Evidence Evidence Class work & Class work Class work & homework &homework homework Evidence may Evidence may vary Evidence may vary according to vary according to according to course course course delivery. Ensure that the delivery. delivery. Be able to double entry Calculate the accurately balance principles reconcile a accurately are adhered Supplier of the to, i.e that Statement Control each side of of Account Accounts the Journal to the having must agree relevant recorded all in total ledger necessary before postings for Account information and prepare bad debts gleaned a takes place. from other Reconciliati Ledger on Accounts Statement and Books of Prime Entry. Evidence Evidence Class work & Class work & homework homework Evidence may Evidence may vary vary according to according to course course delivery. delivery. Work with others Identify, and to gain the work within information the necessary timescale to compile set by the Trial others for Balance and the pass on to completion other of the Cash internal Book and personnel. reconciliatio n with the Bank Statement. Evidence Evidence Class work & Class work & homework homework Evidence may Evidence may vary vary according to according to course course Deliver delivery. Complete a Bank Calculate the Reconciliati Total of the on Trial Statement Balance and update having recorded all the Cash necessary Book. information gleaned from other Ledger Accounts and Books of Prime Entry. IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 24 INFORMATION COMMUNICATION TECHNOLOGY IT21 Search for and select information for two different purposes IT22 Explore and develop information, and derive new information, for two different purposes. IT23 Present combined information for two different purposes. Your work must included at least one example of text, one example of images, and one example of numbers. IMPROVING OWN LEARNING AND PERFORMANCE LP2.1 Help set targets with an appropriate person and plan how these will be met LP2.2 Take responsibility for some decisions about your learning, using your plan to help meet targets and improve your performance LP2.3 Review progress with an appropriate person and provide evidence of your achievements Evidence NONE Evidence NONE Evidence NONE Evidence NONE Evidence NONE Evidence NONE Evidence NONE Evidence NONE Evidence NONE Evidence NONE Evidence NONE Evidence NONE Evidence NONE Evidence NONE IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 25 PROBLEM SOLVING PS1 Identify a problem, with help from an appropriate person, and identify different ways of tackling it. PS2 Plan and try out at least one way of solving the problem PS3 Check if the problem has been solved and identify ways to improve problem solving skills. Evidence Evidence Evidence Evidence Evidence Class work & Class work Class work Class work Class work homework. &homework. &homework. &homework &homework. Evidence may Evidence may Evidence may Evidence may vary Evidence may according to vary vary vary vary according to according to according to according to course course course course course delivery. Correct errors delivery. delivery. delivery. delivery. Identify where an Identify and Identify and Identify errors made when arising from error has correct correct entering entry of VAT occurred if errors errors transactions into the the Control arising arising related to Ledger Account when when bad debts balances do Account preparing a preparing a and are not agree and Statement Reconciliati identified with the subsequent of Account on within the totals of the production from Statement bookSales and of the VAT business and keeping transactions Purchase Return . Be comparing system, by and then Ledger able to the using the comparing Account correct Supplier Journal. those errors it to the balances. Statement and inform relevant Correct of Account necessary Customers’ such errors with the personnel Ledger and inform relevant internally Account any Ledger and interested Account. externally. personnel. Evidence Evidence Class work & Class work & homework homework Evidence may Evidence may vary vary according to according to course course delivery. delivery. Identify where an Be able to error has identify occurred if internal the Trial errors Balance within the does. Cash Book Inform any resulting from a Bank interested Reconciliati personnel on of the Statement, differences and those and apply caused by any the Bank. information Be able correct given. such errors and notifiy the necessary personnel internally and externally. IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 26 APPENDIX 3 National Occupational Standards in Accounting Level 2 Mapping of IAB Level 2 Certificate in Book-keeping Unit 1 Unit 1: Recording Income and Receipts Element: 1.1 Process documents relating to goods and services supplied Element: 1.2 Process receipts THE STATUTORY FRAMEWORK - Know and Understand: The Business Environment 1 Types of business transactions and documents involved (Element 1.1) 2 Basic law relating to contract law and Sale of Goods Act (Elements 1.1 & 1.2) 3 Document retention policies (Elements 1.1 & 1.2) 4 General principles of VAT (Element 1.1) 5 Types of discounts (Element 1.1) 6 Cheques, including crossings and endorsements (Element 1.2) 7 The use of banking documentation (Element 1.2) 8 Automated payments (Element 1.2) 9 Credit limits(Elements 1.1 & 1.2) 10 Basic law relating to data protection (Element 1.2 Accounting Methods 11 Double entry book-keeping including balancing of accounts (Elements 1.1 and 1.2) 12 Accounting for receipts from credit customers and customers without credit accounts (Elements 1.1 and 1.2) 13 Methods of coding data (Element 1.1) 14 Operation of manual accounting systems (Elements 1.1 and 1.2) 15 Operation of computerised accounting systems including output (Elements 1.1 and 1.2) 16 The use of the cash book and petty cash book as part of the double entry system or as books of prime entry (Elements 1.1 & 1.2) 17 Batch control (Elements 1.1 & 1.2) 18 Relationships between accounting systems and the ledger (Elements 1.1 and 1.2) 19 Credit card procedures (Element 1.2) 20 Methods of handling and storing money, including the security aspects (Element 1.2) 21 Petty Cash procedures; imprest and non-imprest methods; analysis (Elements 1.1 and 1.2) IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc Learning Outcomes 2.1.1 - 2.1.8 implied implied implied 27 Unit 2: Making and Recording Payments Element: 2.1 Process documents relating to goods and services received Element: 2.2 Process payments THE STATUTORY FRAMEWORK – Know and Understand: The Business Environment 1 Types of business transactions and documents involved (Element 2.1) 2 Basic law relating to Contract Law and Sale of Goods Act (Elements 2.1 and 2.2) 3 Document retention policies 4 General principles of VAT (Element 2.1) 5 Types of discount (Element 2.1) 6 Cheques, including crossing and endorsements (Elements 2.2) 7 Automated payments (elements 2.1 and 2.2) 8 Different ordering systems; Internet, verbal and written (Element 2.1) 9 Documentation for payments (Element 2.2) 10 Basic law relating to Data Protection (Element 2.2) Accounting Methods 11 Double Entry book-keeping, including balances accounts (Elements 2.1 and 2.2) 12 Accounting for payments to credit suppliers, and to suppliers where a credit account is not available (Elements 2.1 & 2.2) 13 Capital and Revenue expenditure (Elements 2.1 and 2.2) 14 Methods of coding data (Element 2.1) 15 Operation of manual accounting systems (Elements 2.1 and 2.2) 16 Operation of computerised accounting systems, including output (Elements 2.1 and 2.2) 17 The use of the Cash Book and Petty Cash Book as part of the double entry system or as Books of Prime Entry (Elements 2.1 and 2.2) 18 Batch Control (Elements 2.1 and 2.2) 19 Relationship between accounting system and ledger (Elements 2.1 and 2.2) 20 Credit Card procedures (Elements 2.1 and 2.2) 22 Payroll accounting procedures; accounting for Gross Pay and statutory and non-statutory deductions through the Wages and Salaries Control Account; payments to external agencies, security and control; simple gross pay to net calculations but excluding the use of tax and NI tables (Element 2.1) 23 Methods of handling and storing money from a security aspect (Element 2.2) The Organisation 24 Relevant understanding of the organisation’s accounting systems and administrative systems and procedures (Elements 2.1and 2.2) 25 The nature of the organisation’s business transactions (Elements 2.1 and 2.2) 26 Organisational procedures for authorisation and coding of purchase invoices and payments (Elements 2.1 and 2.2) 27 House style for correspondence (Element 2.1) 28 Organisational procedures for filing source information (Elements 2.1 and 2.2) IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc Learning Outcomes 2.1.1- 2.1.8 implied implied Implied 28 Unit 3: Preparing Ledger Balances and an initial Trial Balance Element: 3.1 Balance bank transactions Element: 3.2 Prepare ledger balances and control accounts Element: 3.3 Draft an initial trial balance THE STATUTORY FRAMEWORK - Know and Understand: The Business Environment 1 Types of business transactions and the documents involved (elements 3.1 and 3.2) 2 General principles of VAT (Element 3.1) 3 General bank services and operation of bank clearing system (Element 3.1) 4 Function and form of banking documents (Element 3.1) Accounting Methods 5 Double entry book-keeping, including balancing accounts (Elements 3.1, 3.2 and 3.3) 6 Methods of coding (Elements 3.1, 3.2 and 3.3) 7 Capital and Revenue expenditure ((Element 3.1) 8 Operation of manual accounting systems (Elements 3.1, 3.2 and 3.3) 9 Operation of computerised accounting systems, including output (Elements 3.1, 3.2 and 3.3) 10 The use of the Cash Book and Petty Cash Book as part of the double entry system, or as Books of Prime Entry (Elements 3.1, 3.2 and 3.3) 11 Identification of different types of errors (Element 3.1) 12 Relationship between the accounting system and the ledgers (Elements 3.1 and 3.2) 13 Petty Cash procedures; Imprest and non imprest methods; analysis (Element 3.2) 14 Methods of posting from primary records to ledger accounts (Element 3.2) 15 Inter-relationship of accounts – double entry system (Elements 3.2 and 3.3) 16 Use of Journals (Elements 3.2 and 3.3) 17 Reconciling Control Accounts with Memorandum Accounts (Element 3.2) 18 Function and form of the Trial Balance (Element 3.3) The Organisation 19 Relevant understanding of the organisation’s accounting systems and administrative systems and procedures (Elements 3.1, 3.2 and 3.3.) 20 The nature of then organisation’s business transactions (Elements 3.1,3.2 and 3.3) 21 Organisations procedures for filing source information (Elements 3.1, 3.2 and 3.3) Learning Outcomes 2.1.1 – 2.1.8 Implied IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 29 Unit 4: Supplying information for Management Control 4.1 Code and extract information 4.2 Provide comparisons on costs and income THE STATUTORY FRAMEWORK - Know and Understand: The Business Environment 1 Types of cost centres, including profit centres, and investments centres (Element 4.1) 2 Costs, including wages, salaries, services and consumables (Element 4.1) Accounting Methods 3 Identifying cost centres (Element 4.1) 4 The purpose of management information: decision making, planning and control (Element 4.1) 5 The make up of Gross Pay (Element 4.1) 6 The relationship between financial and management accounting (Element 4.1) 7 Methods of analysing information in spreadsheets (Element 4.2) 8 Methods of presenting information, including word-processed documents (Element 4.2) 9 Handling confidential information (Element 4.2) 10 The role of management information in the organization (Element 4.3) 11 Awareness of the relationship between financial and management accounting (Element 4.2) The Organisation 12 Relevant understanding of the organisation’s accounting systems and administrative systems and procedures (Elements 4.1, 4.2) 13 The nature of the orgnaisation’s business transactions (Element 4.1, 4.2) 14 The goods and services produced, bought and delivered by the organization (Element 4.1, 4.2) 15 The cost centres within the organization (Element 4.1) 16 Organisational coding structures (Element 4.1) 17 The orgnaisation’s confidentiality requirements (Element 4.1) 18 House style for presentation of different types of documents, including word-processed documents(Element 4.2) Learning Ourcomes 2.1.1 – 2.1.8 implied Implied throughout IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 30 National Occupational Standards in Accounting Level 3 Mapping of IAB Level 2 Certificate in Book-keeping Unit 1 Unit 7: Preparing Reports and Returns Element 7.1 Prepare and present periodic performance reports Element 7.2 Prepare reports and returns for outside agencies Element 7.3 Prepare VAT Returns THE STATUTORY FRAMEWORK - Know and Understand: The Business Environment 1 Main sources of relevant government statistics (Element 7.1, 7.2) 2 Relevant performance and quality measures (Element 7.1) 3 Main types of outside organisations requiring reports and returns: regulatory, grant awarding, information collecting, trade associations (Element 7.2) 4 Basic law and practice relating to all issues covered in the range statement and referred to in the performance criteria. Specific issues include, the classification of types of supply, registration requirements, the form of VAT invoices, tax points (Element 7.3) 5 Sources of information on VAT: Customs and Excise Guide (Element 7.3) 6 Administration of VAT: enforcement (Element 7.3) 7 Special schemes: annual accounting, cash accounting; bad debt relief (Element 7.3) Accounting Techniques 8 Use of standard units of inputs and outputs (Element 7.1, 7.3) 9 Time series analysis (Element 7.1) 10 Use of index numbers (Ement 7.1) 11 Main types of performance indicators; productivity, cost per unit, resource uitilisation, profitability (Element 7.1, 7.2) 12 Ratios: Gross Profit Margin, Net Profit Margin; Return on Capital Employed (Elements 7.1, 7.2) 13 Tabulation of accounting and other quantitative information using spreadsheets (Elements 7.1, 7.2) 14 Methods of presenting information: written reports; diagrammatic; tabular (Elements 7.1, 7.2) Learning Outcomes 2.1.1 - 2.1.8 Implied IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 31 implied implied The Organisation 15 How the accounting systems of an organisation are affected by its organisational structure , its administrative systems and procedures and the nature of its business transactions (Elements 7.1, 7.2, 7.3) 16 The purpose and structure of the reporting systems within the organisation (Elements 7.1, 7.2, 7.3) 17 Background understanding that a variety of outside agencies may require reports and returns from organisations and that these requirements must be built into administrative and accounting systems and procedures (Element 7.2, 7.3) 18 Background understanding that recording and accounting practices may vary between organisations and different parts of organisations (Elements 7.1, 7.2, 7.3) 19 The basis of the relationships between the organisation and the VAT Office (Element 7.3) implied IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 32 National Occupational Standards in Accounting Level 2 Mapping of IAB Level 2 Certificate in Book-keeping Unit 2 Unit 1: Recording Income and Receipts Element: 1.1 Process documents relating to goods and services supplied Element: 1.2 Process receipts THE STATUTORY FRAMEWORK - Know and Understand: The Business Environment 1 Types of business transactions and documents involved (Element 1.1) 2 Basic law relating to contract law and Sale of Goods Act (Elements 1.1 & 1.2) 3 Document retention policies (Elements 1.1 & 1.2) 4 General principles of VAT (Element 1.1) 5 Types of discounts (Element 1.1) 6 Cheques, including crossings and endorsements (Element 1.2) 7 The use of banking documentation (Element 1.2) 8 Automated payments (Element 1.2) 9 Credit limits(Elements 1.1 & 1.2) 10 Basic law relating to data protection (Element 1.2 Accounting Methods 11 Double entry book-keeping including balancing of accounts (Elements 1.1 and 1.2) 12 Accounting for receipts from credit customers and customers without credit accounts (Elements 1.1 and 1.2) 13 Methods of coding data (Element 1.1) 14 Operation of manual accounting systems (Elements 1.1 and 1.2) 15 Operation of computerised accounting systems including output (Elements 1.1 and 1.2) 16 The use of the cash book and petty cash book as part of the double entry system or as books of prime entry (Elements 1.1 & 1.2) 17 Batch control (Elements 1.1 & 1.2) 18 Relationships between accounting systems and the ledger (Elements 1.1 and 1.2) 19 Credit card procedures (Element 1.2) 20 Methods of handling and storing money, including the security aspects (Element 1.2) 21 Petty Cash procedures; imprest and non-imprest methods; analysis (Elements 1.1 and 1.2) Learning Outcomes 2.2.1 – 2.2.7 implied implied implied IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 33 Unit 2: Making and Recording Payments Element: 2.1 Process documents relating to goods and services received Element: 2.2 Process payments Learning Outcomes 2.2.1 – 2.2.7 THE STATUTORY FRAMEWORK - Know and Understand: The Business Environment 1 Types of business transactions and documents involved (Element 2.1) 2 Basic law relating to Contract Law and Sale of Goods Act (Elements 2.1 and 2.2) 3 Document retention policies 4 General principles of VAT (Element 2.1) 5 Types of discount (Element 2.1) 6 Cheques, including crossing and endorsements (Elements 2.2) 7 Automated payments (elements 2.1 and 2.2) 8 Different ordering systems; Internet, verbal and written (Element 2.1) 9 Documentation for payments (Element 2.2) 10 Basic law relating to Data Protection (Element 2.2) implied Accounting Methods 11 Double Entry book-keeping, including balances accounts (Elements 2.1 and 2.2) 12 Accounting for payments to credit suppliers, and to suppliers where a credit account is not available (Elements 2.1 and 2.2) 13 Capital and Revenue expenditure (Elements 2.1 and 2.2) 14 Methods of coding data (Element 2.1) 15 Operation of manual accounting systems (Elements 2.1 and 2.2) 16 Operation of computerised accounting systems, including output (Elements 2.1 and 2.2) 17 The use of the Cash Book and Petty Cash Book as part of the double entry system or as Books of Prime Entry (Elements 2.1 and 2.2) 18 Batch Control (Elements 2.1 and 2.2) 19 Relationship between accounting system and ledger (Elements 2.1 and 2.2) 20 Credit Card procedures (Elements 2.1 and 2.2) 22 Payroll accounting procedures; accounting for Gross Pay and statutory and non-statutory deductions through the Wages and Salaries Control Account; payments to external agencies, security and control; simple gross pay to net calculations but excluding the use of tax and NI tables (Element 2.1) 23 Methods of handling and storing money from a security aspect (Element 2.2) implied Implied IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 34 The Organisation 24 Relevant understanding of the organisation’s accounting systems and administrative systems and procedures (Elements 2.1and 2.2) 25 The nature of the organisation’s business transactions (Elements 2.1 and 2.2) 26 Organisational procedures for authorisation and coding of purchase invoices and payments (Elements 2.1 and 2.2) 27 House style for correspondence (Element 2.1) 28 Organisational procedures for filing source information (Elements 2.1 and 2.2) IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 35 Unit 3: Preparing Ledger Balances and an initial Trial Balance Element: 3.1 Balance bank transactions Element: 3.2 Prepare ledger balances and control accounts Element: 3.3 Draft an initial trial balance THE STATUTORY FRAMEWORK - Know and Understand: Learning Outcomes 2.2.1 – 2.2.7 The Business Environment 1 Types of business transactions and the documents involved (elements 3.1 and 3.2) 2 General principles of VAT (Element 3.1) 3 General bank services and operation of bank clearing system (Element 3.1) 4 Function and form of banking documents (Element 3.1) Accounting Methods 5 Double entry book-keeping, including balancing accounts (Elements 3.1, 3.2 and 3.3) Implied implied 6 Methods of coding (Elements 3.1, 3.2 and 3.3) 7 Capital and Revenue expenditure ((Element 3.1) 8 Operation of manual accounting systems (Elements 3.1, 3.2 and 3.3) 9 Operation of computerised accounting systems, including output (Elements 3.1, 3.2 and 3.3) 10 The use of the Cash Book and Petty Cash Book as part of the double entry system, or as Books of Prime Entry (Elements 3.1, 3.2 and 3.3) 11 Identification of different types of errors (Element 3.1) 12 Relationship between the accounting system and the ledgers (Elements 3.1 and 3.2) 13 Petty Cash procedures; Imprest and non imprest methods; analysis (Element 3.2) 14 Methods of posting from primary records to ledger accounts (Element 3.2) 15 Inter-relationship of accounts – double entry system (Elements 3.2 and 3.3) 16 Use of Journals (Elements 3.2 and 3.3) 17 Reconciling Control Accounts with Memorandum Accounts (Element 3.2) 18 Function and form of the Trial Balance (Element 3.3) The Organisation 19 Relevant understanding of the organisation’s accounting systems and administrative systems and procedures (Elements 3.1, 3.2 and 3.3.) 20 The nature of then organisation’s business transactions (Elements 3.1,3.2 and 3.3) 21 Organisations procedures for filing source information (Elements 3.1, 3.2 and 3.3) IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 36 Unit 4: Supplying information for Management Control 4.1 Code and extract information 4.2 Provide comparisons on costs and income THE STATUTORY FRAMEWORK - Know and Understand: The Business Environment 1 Types of cost centres, including profit centres, and investments centres (Element 4.1) 2 Costs, including wages, salaries, services and consumables (Element 4.1) Accounting Methods 3 Identifying cost centres (Element 4.1) 4 The purpose of management information: decision making, planning and control (Element 4.1) 5 The make up of Gross Pay (Element 4.1) 6 The relationship between financial and management accounting (Element 4.1) 7 Methods of analysing information in spreadsheets (Element 4.2) 8 Methods of presenting information, including word-processed documents (Element 4.2) 9 Handling confidential information (Element 4.2) 10 The role of management information in the organization (Element 4.3) 11 Awareness of the relationship between financial and management accounting (Element 4.2) The Organisation 12 Relevant understanding of the organisation’s accounting systems and administrative systems and procedures (Elements 4.1, 4.2) 13 The nature of the organisation’s business transactions (Element 4.1, 4.2) 14 The goods and services produced, bought and delivered by the organization (Element 4.1, 4.2) 15 The cost centres within the organization (Element 4.1) 16 Organisational coding structures (Element 4.1) 17 The organisation’s confidentiality requirements (Element 4.1) 18 House style for presentation of different types of documents, including word-processed documents(Element 4.2) Learning Outcomes 2.2.1 – 2.2.7 Implied throughout IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 37 National Occupational Standards in Accounting Level 3 Mapping of IAB Level 2 Certificate in Book-keeping Unit 2 Unit 5: Maintaining financial records and preparing accounts: 5.1 maintain records relating to capital acquisition and disposal 5.2 Collecting and collating information for the preparation of final accounts 5.3 Preparing the final accounts of sole traders and partnerships THE STATUTORY FRAMEWORK - Know and Understand: The Business Environment 1 The types and characteristics of different assets and key issues relating to the acquisition and disposal of capital. (Element 5.1) 2 The relevant legislations and regulations (Elements 5.1, 5.2 and 5.3) 3 The main requirements of relevant Statements of Standard Accounting Practice and Financial Reporting Standards (Elements 5.1, 5.2 and 5.3) 4 Legal requirements relating to the division of profits between partners (Element 5.3) 5 The methods of recording information for the organizational accounts of sole traders and partnerships (Elements 5.2 and 5.3) 6 The structure of the organizational accounts of sole traders and partnerships (Elemen5 5.3) 7 The need to present accounts in the correct form (Elements 5.2 and 5.3) 8 The form of final accounts of sole traders and partnerships (Element 5.3) 9 The importance of maintaining the confidentiality of business transactions (Elements 5.1, 5.2 and 5.3) Accounting Techniques 10 Methods of depreciation and when to use each of them; straight line; reducing balance (Element 5.1) 11 The accounting treatment of capital items sold, scrapped or otherwise retired from service (Element 5.1) 12 How to use plant registers and similar subsidiary records (Element 5.1) 13 How to use the transfer Journal (Elements 5.1 and 5.2) 14 The methods of funding ; part exchange deals (Element 5.1) 15 The accounting treatment of accruals and prepayments (Elements 5.2 and 5.3) 16 The methods of analysing income and expenditure (Element 5.2) 17 The method of closing off revenue accounts (Element 5.2) 18 The methods of restructuring accounts from incomplete evidence (Elements 5.2 and 5.3) 19 How to identify and correct different types of error (Element 5.2) 20 How to make and adjust provisions (Elements 5.2 and 5.3) 21 How to draft year end final accounts of sole trader and partnerships (Element 5.2) IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc Learning Outcomes 2.2.1 – 2.2.7 38 Accounting Principles and Theory 22 Basic accounting concepts that play a role in the selection of accounting policies – accruals and going concern 23 The objective and constraints in selecting accounting policies- relevance, reliability, comparability and ease of understanding, materiality (Elements 5.1, 5.2 and 5.3) 24 The principles of double entry accounting (Elements 5.1, 5.2 and 5.3) 25 The distinction between capital and revenue expenditure and what constitutes capital expenditure (Element 5.1) 26 The function and form of accounts for income and expenditure (Elements 5.1, 5.2 and 5.3) 27 The function and form of a trial balance and an extended trial balance (Element 5.2) 28 The function and form of a profit and loss account and balance sheet for sole traders and partnerships (Element 5.3) 29 The basic principles of stock valuation including those relating to cost or net realisable value and what is included in ‘cost’ (Elements 5.2 and 5.3) 30 The objectives of making provisions for depreciation and other purposes (Elements 5.1, 5.2 and 5.3) The Organisation 31 The ways the accounting system of an organisations are affected by its organisational structure, its administrative systems and procedures and the nature of the business transactions (Elements 5.1, 5.2 & 5.3) IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 39 Unit 7: Preparing Reports and Returns Element 7.1 Prepare and present periodic performance reports Element 7.2 Prepare reports and returns for outside agencies Element 7.3 Prepare VAT Returns THE STATUTORY FRAMEWORK - Know and Understand: Learning Outcomes 2.2.1 – 2.2.7 The Business Environment 1 Main sources of relevant government statistics (Element 7.1, 7.2) 2 Relevant performance and quality measures (Element 7.1) 3 Main types of outside organisations requiring reports and returns: regulatory, grant awarding, information collecting, trade associations (Element 7.2) 4 Basic law and practice relating to all issues covered in the range statement and referred to in the performance criteria. Specific issues include, the classification of types of supply, registration requirements, the form of VAT invoices, tax points (Element 7.3) 5 Sources of information on VAT: Customs and Excise Guide (Element 7.3) 6 Administration of VAT: enforcement (Element 7.3) 7 Special schemes: annual accounting, cash accounting; bad debt relief (Element 7.3) Accounting Techniques 8 Use of standard units of inputs and outputs (Element 7.1, 7.3) 9 Time series analysis (Element 7.1) 10 Use of index numbers (Element 7.1) 11 Main types of performance indicators; productivity, cost per unit, resource uitilisation, profitability (Element 7.1, 7.2) 12 Ratios: Gross Profit Margin, Net Profit Margin; Return on Capital Employed (Elements 7.1, 7.2) 13 Tabulation of accounting and other quantitative information using spreadsheets (Elements 7.1, 7.2) 14 Methods of presenting information: written reports; diagrammatic; tabular (Elements 7.1, 7.2) implied The Organisation 15 How the accounting systems of an organisation are affected by its organisational structure , its administrative systems and procedures and the nature of its business transactions (Elements 7.1, 7.2, 7.3) 16 The purpose and structure of the reporting systems within the organisation (Elements 7.1, 7.2, 7.3) 17 Background understanding that a variety of outside agencies may require reports and returns from organisations and that these requirements must be built into administrative and accounting systems and procedures (Element 7.2, 7.3) 18 Background understanding that recording and accounting practices may vary between organisations and different parts of organisations (Elements 7.1, 7.2, 7.3) 19 The basis of the relationships between the organisation and the VAT Office (Element 7.3) implied IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 40 National Occupational Standards in Accounting Level 4 Mapping of IAB Level 2 Certificate in Book-keeping Unit 2 Unit 15: Operating a Cash Management and Credit Control System Element 15.1 Monitor and control cash receipts and payments Element 15.2 Manage cash balances Element 15.3 Grant credit Element 15.4 Monitor and control the collection of debts THE STATUTORY FRAMEWORK - Know and Understand: The Business Environment 1 The main types of cash receipts and payments: regular revenue receipts and payments; capital receipts and payments; drawing/dividends and disbursements; exceptional receipts and payments (Element 15.1) 2 The basic structure of the banking system and the money market in the UK and the relationships between financial institutions (Element 15.2) 3 Bank overdrafts and loans; terms and conditions; legal relationship between bank and the customer (Element 15.2) 4 Types of marketable security (Bills of Exchange, Certificates of Deposit; governments securities, local authority short term loans); terms and conditions, risks (Element 15.2) 5 Government monetary policies (Element 15.2) 6 Legal issues: basic contract; terms and conditions of contracts relating to the granting of credit; Data Protection Legislation and credit control information (Element 15.3) 7 Sources of credit status information (Element 15.3) 8 External sources of information: banks; credit agencies and official publications (Element 15.3) 9 Legal Issues: remedies for breach of contract (Element 15.4) 10 Legal and administrative procedures for the collection of debts (Element 15.4) 11 The effect of bankruptcy and insolvency on organisations (Element 15.4) Accounting Techniques 12 Form and structure of cash budgets (Element 15.1) 13 Lagged receipts and payments (Element 15.1) 14 Basic statistical techniques for estimating future trends: moving averages, allowance for inflation (Element 15.1) 15 Computer models to assess the sensitivity of elements of cash budget change (e.g. price, wage rate changes) Element (15,1) 16 Managing risk and exposure (Element 15.2) 17 Discounts for prompt payment (Element 15.3) 18 Interpretation and use of credit control information (Element 15.3, 15.4) IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc Learning Outcomes 2.2.1 – 2.2.7 Implied 41 19 Methods of collection (Elements 15.4) 20 Factoring arrangements (Element 15.4) 21 Debt insurance (Element 15.4) 22 Methods of analysing information on debtors: aged analysis of debtors; averaged periods of credit given and received; incidence of bad and doubtful debts (Element 15.4) 23 Evaluation of different collection methods (Element 15.4) Accounting Principles and Theory 24 Cash flow accounting and its relationship to accounting for income and expenditure (Element 15.1) 25 Liquidity management (Element 15.2, 15.3, 15.4) The Organisation 26 Understanding that the accounting systems of an organisation are affected by its organisational structure, its administrative systems and procedures and the nature of its business transactions (Elements 15.1, 15.2, 15.3, 15.4) 27 Understanding that recording and accounting practices may vary in different parts of the organisation (Elements 15.1, 15.4) 28 An understanding that practice in this area will be determined by an organisation’s specific financial regulations, guidelines and security procedures (Element 15.2) 29 An understanding that in public sector organisations there are statutory and other regulations relating to the management of cash balances (Element 15.2) 30 Understanding that practice in this area will be determined by an organisation’s credit control policies and procedures (Element 15.3) 31 An understanding of the organisation’s relevant policies and procedures (Elements 15.1, 15.3, 15.4) partial Implied IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 42 APPENDIX 4 FRAMEWORK FOR REGULATION A member or a person entering into membership of the Association must comply 1. with the law within his or her country of residence and contractual being. This applies to any actions made in the course of work completed either for an employer or a client, or any third party that looks to his or her professional standing. 2. A member must not do anything which compromises or impairs, or is likely to compromise or impair, his or her integrity, or in the case of a client relationship, his or her professional independence. 3. A member must always show a proper standard of work in all professional work completed in accordance with generally accepted practices and accounting standards. 4. A member must not bring himself or herself into disrepute, or the Association into disrepute or the Accounting or Book-keeping professions into disrepute. 5. A member must comply and uphold, so long as they remain a member, all matters of regulation shown in the Articles of Association, Byelaws and other material published by the Association and be bound by any action taken by Council relating to his or her membership. 6. Any member who personally offers services, seen by their client as accountancy work is required to hold a practising certificate. 1. 2. 3. 4. 5. CODE OF BEST PRACTICE All members must exercise due care in carrying out their work. All members should plan their work. All members should have an adequate system of administration for the work they undertake. The terms of reference for any work should be agreed before the work commences, and members should adhere to those terms. The level of remuneration for any work undertaken should be agreed between the parties before the work is undertaken. The Association is not involved in setting the level of fees. In the event of a dispute between a member and a third party the Association will appoint an arbitrator. The costs of arbitration to be met by the parties involved. Ant member who holds funds or property for a third party, must keep such funds or property clearly distinct from their own property and handle it with the same care as they would their own. No member should accept work where there is a conflict of interest unless all parties are aware of that conflict and have agreed that the work can be undertaken. Provision should be made as appropriate for continuity of service in the event of the member being incapacitated by illness, or in the event of death of the member. 9. 10. Where a member becomes aware that a third party with whom he has a contractual relationship is acting in breach of the law, they must ensure that they comply with Regulation 1. Any member advertising services should comply with the standards laid down by the Advertising Standards Authority, or any similar regulations applicable in their country, or in the country where the advertisement is placed. In order to comply with Regulation 3 members should ensure that they remain competent by undertaking the necessary regular training each year. their need for PII which is recommended for those holding a Practising Certificate with the IAB. 6. 7. 8. 11. 12. IAB LEVEL 2 Certificate in Book-keeping Qualification Specification Version 1 20 March 2005.doc 43