ICSAN Financial Accounting study guide
ICSAN Financial Accounting · Work through your exam, one topic at a time.
Financial Accounting is one of the core papers in the professional examination programme of the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN), the body that qualifies and regulates chartered secretaries and governance professionals in Nigeria. The paper is aimed at candidates who need working fluency in double-entry bookkeeping and in the preparation and interpretation of financial statements, whether or not they intend to specialise in accountancy. The ICSAN Financial Accounting study guide has 12 sections and about 3,354 words.
01Conceptual Framework and Regulatory Framework of Financial Reporting
This domain examines the Conceptual Framework for Financial Reporting and Nigeria's regulatory layer. Candidates must know the objective of general purpose financial statements, the qualitative characteristics, element definitions, recognition and measurement, and how CAMA 2020, the FRCN and IFRS interact.
290 words, about 1 min02Accounting Concepts, Conventions and the Accounting Equation
This domain tests the concepts that underpin double entry: business entity, going concern, accrual, matching, consistency, materiality, prudence, realisation and money measurement. It also tests the accounting equation and how transactions change it.
279 words, about 1 min03Books of Prime Entry, Ledger Accounts and the Trial Balance
This domain tests the flow from source documents to books of prime entry, posting to ledger accounts, balancing accounts and extracting a trial balance. It checks double-entry accuracy and the purpose of each book.
287 words, about 1 min04Bank Reconciliation Statements and Control Accounts
This domain tests reconciliation of the cash book with the bank statement and the use of receivables and payables control accounts. It examines timing differences, bank errors and ledger control totals.
275 words, about 1 min05Correction of Errors and Suspense Accounts
This domain tests identification and correction of errors, including those that do not affect the trial balance, and the use of a suspense account when the trial balance fails to agree. Errors of omission, commission, principle, original entry, reversal, compensating error and transposition may or may not affect the trial balance.
247 words, about 1 min06Accruals, Prepayments, Depreciation and Provisions
This domain tests year-end adjustments: accruals, prepayments, depreciation and provisions, and their effect on profit and financial position. Accrued expense: expense incurred but not paid; credit liability.
272 words, about 1 min07Preparation of Financial Statements for Sole Traders and Partnerships
This domain tests preparation and presentation of financial statements for sole traders and partnerships, including capital and current accounts, profit-sharing arrangements and the appropriation account. Sole trader: closing capital = opening capital + profit - drawings.
283 words, about 1 min08Company Financial Statements and Presentation of Financial Statements
This domain tests company financial statements under IAS 1 and CAMA 2020: statement of profit or loss and other comprehensive income, statement of changes in equity, statement of financial position, and disclosure of share capital, reserves and dividends. Present fairly and comply with IFRS; apply going concern, accrual, consistency and materiality.
297 words, about 1 min09Interpretation and Analysis of Financial Statements (Ratio Analysis)
This domain tests computation and interpretation of profitability, liquidity, efficiency, gearing and investor ratios, and the ability to explain causes and limitations. Gross profit margin = gross profit/revenue x 100; operating margin = operating profit/revenue; net margin = profit after tax/revenue.
277 words, about 1 min10Cash Flow Statements
This domain tests preparation and interpretation of a statement of cash flows under IAS 7, including operating, investing and financing activities and reconciliation of cash and cash equivalents. Classify cash flows by activity, not by account name.
285 words, about 1 min11Public Sector and Not-for-Profit Accounting
This domain tests accounting for public-sector entities and not-for-profit organisations: fund accounting, budgets, receipts and payments, accrual-based statements under IPSAS, and accountability for restricted resources. Public-sector entities report on stewardship of public funds; IPSAS provides accrual and cash-basis standards.
277 words, about 1 min12Information Technology in Accounting and Professional Ethics
This domain tests controls over computerised accounting systems and the ethical standards expected of a professional accountant, including the ICAN Code of Ethics. IT general controls cover access, change management, backup, disaster recovery and cybersecurity; application controls cover input, processing and output.
285 words, about 1 min