Bookkeeping is that part of accounting which deals with the recording of actual transactions in monetary terms.The scope of bookkeeping is limited.
Book keeping is that part of accounting which deals with the recording of actual transactions in monetary terms.
This classification only includes recording and not the calculation of actual transactions. For example, the calculations of depreciation, accruals/prepayments and work-in-progress are not included. Effectively, this means the preparation of accounts up to trial balance without any adjustments.
The scope of bookkeeping is limited. Therefore, it is expected that a member who is approved to offer bookkeeping will also be approved to offer Financial Accounting and Accounts Preparation or Management Accounting or both.
Financial Accounting and Accounts Preparation (FA and AP)
Financial Accounting is the preparation of the full and abbreviated accounts that are required for statutory purposes by the prevailing Companies Acts and prepared using the relevant Accounting Standard(s).
Financial Accounts are sometimes referred to as “published accounts” or “annual accounts”. A member approved to offer Financial Accounting and Accounts Preparation but not approved to offer Limited Assurance Engagement, must not provide any additional assurance of the accuracy of the information included with the financial accounts over and above stating in the accountant’s report that: “these accounts have been prepared based on the information and explanations supplied by the principals/directors/trustees”, or in accordance with prevailing legislation where the accounts prepared are of a statutory nature.