CIMA - BA 3 - Fundamentals of Financial Accounting
The Chartered Institute of Management Accounting systematically covers major topics of inputs through the fundamental of financial accounting paper or BA-3. This subject precisely covers concepts to obtain a practical knowledge of financial accounting and the process behind the preparation of financial statements for single business entities. Students will learn about the importance of legislation and of accounting standards and the necessity to understand and apply needed controls for accounting systems, and the nature of errors is also covered. An introduction to measuring financial performance with the calculation of basic ratios will be taught. Students will also learn the accounting terms placed out in International Financial Reporting Standards (No detailed knowledge of any specific IFR Standards). It should also be noted that one only needs to learn the format and content of published accounts but the preparation of the same is not required.
The BA-3 syllabus is divided into four main layers. Although scheduling and dividing timings are personal choices of students, the percentages stated by CIMA also highlight the quantity of study time dedicated to each component, a higher percentage means more time required. It is important to note that all topics of the syllabus need to be given equal importance as all studied topics will be tested in the CIMA BA3 exam.
The below percentage division may be considered a point of reference and your study can revolve around it accordingly –
- 10% - Accounting Principles, Concepts, and Regulations
- 50% - Recording Accounting Transactions.
- 30% - Preparation of Accounts for Single Entity.
- 10% - Analysis of Financial Statements.
Students can take the CIMA BA3 exam on any day, provided they have booked it in advance. The examination format is computer-based and can be chosen among any of the Pearson VUE Centres. It will be a two-hour exam and consists of 60 compulsory objective test questions. The questions format ranges from short multiple-choice questions, number entry questions, and other formats. The passing score should be 100 out of 150.
Students are recommended to understand CIMA topics through reading, note-making, consistent question practice, and reviewing, before moving onto the next chapter.