ICAN Foundation Level Notes

Business processes and environment (30% of marks)

1. 1Types of business organisation (i): sole proprietors, partnerships and LLPsRead
2. 2Types of business organisation (ii): companies, NGOs, cooperatives and joint venturesRead
3. 3Business functions, economic activities and the importance of businessRead
4. 4Organisational structure (i): types of structureRead
5. 5Organisational structure (ii): authority, delegation and controlRead
6. 6Committees, the board and directorsRead
7. 7The business and its stakeholdersRead
8. 8SWOT analysis and environmental scanningRead

The role of accountancy in business and society (10%)

1. 9The finance functionRead
2. 10Internal control and internal auditRead
3. 11Ethics and corporate social responsibilityRead

Management and organisational behaviour (25%)

1. 12Management and leadershipRead
2. 13Management theories: scientific, administrative and human relationsRead
3. 14Organisational culture, behaviour, and formal and informal organisationRead
4. 15Groups, conflict and motivationRead
5. 16Communication in businessRead
6. 17Digital communicationRead
7. 18Technology business models, project management, emotional intelligence and social thinkingRead

Elements of economics (25%)

1. 19Introduction to economicsRead
2. 20Demand and supplyRead
3. 21Costs, revenue and profitRead
4. 22Market structures and price controlsRead
5. 23Market failure, externalities and government interventionRead
6. 24National income accountingRead
7. 25Financial institutions and marketsRead
8. 26Monetary and fiscal policyRead
9. 27Inflation and unemploymentRead
10. 28Economic growth and developmentRead

Technology and data analysis (10%)

1. 29Business uses of IT, big data and data analyticsRead
2. 30CybersecurityRead
3. 31E-commerce and e-businessRead
4. 32Technology, globalisation and fintechRead

Management information (15% of marks)

1. 1Data, information and the qualities of good informationRead
2. 2Nature and purpose of management accountingRead
3. 3Management information systemsRead
4. 4Spreadsheets in cost and management accountingRead
5. 5Big data and data analyticsRead
6. 6Cost classification by element, function and behaviourRead
7. 7Direct and indirect costs, product and period costs, and cost codificationRead
8. 8Cost segregation and the high-low methodRead
9. 9Linear regression and the correlation coefficientRead

Accounting for cost elements (10%)

1. 10Inventory procedures, documents and recordsRead
2. 11Inventory valuation: FIFO, LIFO and average costRead
3. 12Economic order quantity and inventory control levelsRead
4. 13Just-in-time and other inventory management systemsRead
5. 14Labour costs, recording and remuneration methodsRead
6. 15Labour turnover and payroll accountingRead
7. 16Manufacturing overheads and the stages of absorption costingRead
8. 17Overhead apportionment and service department costsRead
9. 18Overhead absorption, under- and over-absorption, fixed and variable overheadsRead

Costing methods and techniques (20%)

1. 19Job costing and batch costingRead
2. 20Process costing: normal loss, abnormal loss and abnormal gainRead
3. 21Process costing: equivalent units and work-in-progressRead
4. 22Joint products and by-productsRead
5. 23Service costingRead
6. 24Marginal and absorption costing: preparing profit statementsRead
7. 25Reconciling profits and comparing marginal and absorption costingRead
8. 26Cost control and cost reductionRead

Forecasting, budgeting and budgetary control (20%)

1. 27Forecasting: types, process and methodsRead
2. 28Time series analysis and moving averagesRead
3. 29Lines of best fit and seasonal variationsRead
4. 30The budgeting system, principal budget factor and budget processRead
5. 31Preparing functional budgetsRead
6. 32Cash budgets and the master budgetRead

Standard costing and variance analysis (15%)

1. 33Standard costing: purposes, operation and standard cost cardsRead
2. 34Direct material and direct labour variancesRead
3. 35Variable and fixed production overhead variancesRead
4. 36Sales variances and reconciling budgeted and actual profitRead

Decision making techniques (20%)

1. 37Cost-volume-profit analysis and break-even pointRead
2. 38Margin of safety and break-even chartsRead
3. 39Relevant cost analysisRead
4. 40Limiting factors and make-or-buy decisionsRead
5. 41Other short-term decisions and shutdown decisionsRead

Accounting framework (10% of marks)

1. 1What is accounting? Business, objectives and usersRead
2. 2Roles of accountants, corporate governance and ethicsRead
3. 3FRC Nigeria, bases of accounting and elements of financial statementsRead
4. 4IASB Conceptual Framework and qualitative characteristicsRead
5. 5Accounting concepts, recognition and measurementRead

Recording financial transactions (15%)

1. 6The accounting equation and business transactionsRead
2. 7Double entry bookkeeping, journal entries and ledger accountsRead
3. 8Trial balance: preparation, uses and limitationsRead
4. 9Books of prime entry, sales and purchasesRead
5. 10VAT in Nigeria and how to account for itRead
6. 11Cash book and banking proceduresRead
7. 12Petty cash book and the imprest systemRead

Reconciliation in financial accounting (15%)

1. 13Bank reconciliation statement and the adjusted cash bookRead
2. 14Control accounts and supplier statementsRead
3. 15Correction of errors in the booksRead
4. 16Suspense accountsRead
5. 17Bad debts and the allowance for doubtful debtsRead
6. 18Accrued expenses and accrued incomeRead
7. 19Prepaid expenses and unearned incomeRead

Accounting for transactions in the financial statements (20%)

1. 20Property, plant and equipment (IAS 16): cost and the assets registerRead
2. 21Depreciation: straight-line and reducing balanceRead
3. 22Disposal and revaluation of property, plant and equipmentRead
4. 23Intangible assets (IAS 38) and impairment of assets (IAS 36)Read
5. 24Inventory: year-end adjustments, periodic and perpetual systemsRead
6. 25Inventory valuation (IAS 2): FIFO, weighted average and NRVRead
7. 26Provisions, contingent liabilities and contingent assets (IAS 37)Read

Financial statements (15%)

1. 27Sole trader financial statements and the extended trial balanceRead
2. 28Company statement of financial positionRead
3. 29Company statement of profit or loss and income tax (IAS 12)Read
4. 30Share capital: issue of shares, rights, bonus issues and changes in equityRead
5. 31IAS 8: accounting policies, estimates and prior-year errorsRead
6. 32IFRS 18: presentation and disclosure in financial statementsRead
7. 33Statement of cash flows (IAS 7): format and indirect methodRead
8. 34Statement of cash flows: direct method, investing and financingRead
9. 35Ratio analysis: profitability and efficiencyRead
10. 36Liquidity and gearing ratios and comparative analysisRead

Partnership, not-for-profit entities and incomplete records (15%)

1. 37Partnership accounts: profit sharing, capital and current accountsRead
2. 38Changes in partnership: admission, retirement and goodwillRead
3. 39Incomplete records: statement of affairs and the capital methodRead
4. 40Incomplete records: margins, control accounts and missing figuresRead
5. 41Not-for-profit accounts: receipts and payments, income and expenditureRead

Computerised and virtual accounting (10%)

1. 42Computerised accounting systems and accounting softwareRead
2. 43Digitisation, data structures and virtual accountingRead
3. 44Artificial intelligence, blockchain and remote-working fraudRead

The Nigerian legal and court systems (5% of marks)

1. 1Law and the sources of Nigerian lawRead
2. 2Legislation, judicial precedent and the legislative processRead
3. 3The courts, and civil and criminal proceedingsRead
4. 4Virtual evidence, cybercrime and data protection lawRead

Partnership, company and insolvency law (35%)

1. 5Types of business organisation and registration of business namesRead
2. 6Partnership law: formation, rights, duties and dissolutionRead
3. 7Limited partnerships and limited liability partnershipsRead
4. 8The Corporate Affairs Commission, types of company and incorporationRead
5. 9Promoters and pre-incorporation contractsRead
6. 10Consequences of incorporation and lifting the veilRead
7. 11Memorandum and articles of associationRead
8. 12Organs of the company: the board and the general meetingRead
9. 13Company meetings, notices, voting and resolutionsRead
10. 14Annual returns and company taxationRead
11. 15Directors: appointment, status, duties and removalRead
12. 16Company secretary, accounting records and financial statementsRead
13. 17Company audit, the auditor and the audit committeeRead
14. 18Company capital and securitiesRead
15. 19Maintenance of capital, dividends and share buy-backRead
16. 20DebenturesRead
17. 21Winding up and administration of companiesRead
18. 22Insolvency, receivership and chargesRead

Criminal law (10%)

1. 23Criminal law and business: law and ethics, theft, fraud and deceptionRead
2. 24Bribery, money laundering and the accountant as expert witnessRead

Law of commercial transactions (35%)

1. 25Law of contract (i): nature and formationRead
2. 26Law of contract (ii): terms, vitiating factors, discharge and remediesRead
3. 27E-contractsRead
4. 28AgencyRead
5. 29Law of torts: negligence, vicarious liability and passing offRead
6. 30Sale of goods (i): the contract and the passing of propertyRead
7. 31Sale of goods (ii): rights, duties and remedies of seller and buyerRead
8. 32Hire purchaseRead
9. 33InsuranceRead
10. 34Banking lawRead
11. 35Negotiable instrumentsRead
12. 36ChequesRead

Employment law (5%)

1. 37Employment lawRead

Law of trusts and administration of estates (5%)

1. 38TrustsRead
2. 39Administration of estates, wills and intestacyRead

Alternative dispute resolution (5%)

1. 40Alternative dispute resolutionRead

Information technology in business

1. 41Application of information technology in businessRead