Appendix 2: Technical competency areas and learning outcomes (detailed)
TCA01: Accounting systems and processes
This area covers the form and function of financial statements and how financial transactions are recorded.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 | Explain the different business structures |
| LO2 |
Explain the following in relation to financial accounting:
|
| LO3 | Record transactions to illustrate the activities of different types of businesses, including sole trader, partnerships and straightforward corporate/company accounts |
| LO4 | Apply the accounting treatment to record basic business transactions and other events for different types of business using the principles of double entry accounting |
| LO5 | Use accounting software to record business transactions |
| LO6 | Explain the accounting principles and concepts underlying accounting and financial reporting including the principles of the Conceptual Framework of Accounting and generally accepted accounting principles |
TCA02: Financial accounting and reporting
This area covers the theoretical principles underlying accounting practice and their application to the preparation and analysis of financial statements. It also covers current developments in financial reporting at a national and international level.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 | Apply International Financial Reporting Standards (IFRSs) or other relevant standards to transactions and other events – refer to TCA2 schedule 1 for guidance on suggested content |
| LO2 | Evaluate the appropriateness of accounting policies used to prepare financial statements and understand that accounting involves the application of significant professional judgement – refer to TCA2 schedule 2 for guidance on suggested content |
| LO3 | Prepare general purpose financial statements, including consolidated financial statements, in accordance with IFRSs or other relevant national standards – refer to TCA2 schedule 3 for guidance on suggested content |
| LO4 | Prepare, analyse and interpret financial statements and related disclosures |
| LO5 | Interpret reports including financial and non-financial data and information such as sustainability reports, integrated reports and extended external reporting |
| LO6 | Discuss the theoretical principles underlying accounting practice (Accounting Theory). |
| LO7 | Discuss current national and international developments in financial reporting and information |
TCA03: Audit and assurance
This topic covers the nature and purpose of audit and assurance and the regulatory and professional environment in which it operates. The area includes an understanding of the role of auditing standards, and their application to the audit process.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 |
In relation to auditing, explain the:
|
| LO2 | Apply International Auditing Standards or other relevant auditing standards, laws, and regulations applicable to an audit of general-purpose financial statements – refer to TCA3 schedule 1 for guidance on suggested content |
| LO3 | Assess the risks of material misstatement in the financial statements and consider the impact on the audit strategy |
| LO4 | Apply quantitative methods that are used in audit engagements |
| LO5 | Identify relevant audit evidence, including contradictory evidence, to inform judgments, make decisions and reach well-reasoned conclusions |
| LO6 | Conclude whether sufficient and appropriate audit evidence has been obtained |
TCA04: Business law
This area covers general legal knowledge relating to the business environment and an understanding of the responsibilities and risks in a business environment. It also covers data protection and privacy regulations that apply when collecting, generating, storing, accessing, using or sharing data and information.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 | Explain the national legal system and identify the sources of law |
| LO2 | Explain the laws and regulations applicable to the environment in which professional accountants operate – refer to TCA4 schedule 1 for guidance on suggested content |
| LO3 | Explain the laws and regulations that govern the different forms of legal entities, including the significance of the concept of separate legal entity – refer to TCA4 schedule 1 for guidance on suggested content |
| LO4 | Explain the key features and purpose of contract law – refer to TCA4 schedule 1 for guidance on suggested content |
| LO5 | Apply data protection and privacy regulations when collecting, generating, storing, accessing, using or sharing data and information |
TCA05: Economics
This area covers the fundamental concepts of microeconomics and macroeconomics and the role of individuals and businesses in different types of market structures. It evaluates the response of business activity to changes in macroeconomic indicators and the impact of regulatory and political environments on business.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 | Explain economic systems and the concept of resource allocation |
| LO2 | Describe the fundamental principles of microeconomics and macroeconomics – refer to TCA5 schedule 1 for guidance on suggested content |
| LO3 | Explain the role of individuals and businesses in different types of market structures, including perfect competition, monopolistic competition, monopoly and oligopoly |
| LO4 | Describe the effect of changes in macroeconomic indicators on business activity |
| LO5 | Recognise regulatory and political environments and how they impact on business |
TCA06: Finance and financial management
This area covers the fundamental concepts and application of business finance and treasury. It aims to address the overarching questions of finance, namely how organisations are financed, how they make investment decisions and how they establish distribution or dividend policies.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 | Apply the mathematics of finance |
| LO2 |
Describe the following in relation to finance:
|
| LO3 | LO3 Discuss how organisations are financed, comparing the various sources of financing available to an organisation, including bank financing, financial instruments, and bonds, equity and treasury markets – refer to TCA6 schedule 1 for guidance on suggested content |
| LO4 | Explain the theory of capital markets |
| LO5 | Discuss how organisations make investment and distribution decisions – refer to TCA6 schedule 2 for guidance on suggested content |
| LO6 | Explain basic financial risks and risk management concepts – refer to TCA6 schedule 2 for guidance on suggested content |
TCA07: Management accounting
This area covers budgeting, product and service costing, control and performance evaluation, and strategic management accounting.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 |
Explain the following in relation to organisations and management accounting:
|
| LO2 | Prepare detailed budgets and forecasts for management purposes, demonstrating an understanding of the budgeting process and its role in organisational management |
| LO3 | Applying appropriate quantitative techniques, use costing information for business planning and control – refer to TCA7 schedule 1 for guidance on suggested content |
| LO4 | Apply the principles and procedures involved in analysing and managing an organisation’s cash flow and working capital requirements |
| LO5 | Evaluate the performance of an organisation, its products, people and business segments – refer to TCA7 schedule 2 for guidance on suggested content |
| LO6 | Analyse data and information to prepare reports that support management decision making – refer to TCA7 schedule 3 for guidance on suggested content |
TCA08: Quantitative methods
This area covers the basic collection, analysis and interpretation of business data.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 | Explain the role of statistical analysis for decision making |
| LO2 | Apply commonly used quantitative methods and techniques to collect and analyse financial and non-financial data – refer to TCA8 schedule 1 for guidance on suggested content |
| LO3 | Review statistical data including hypothesis testing |
| LO4 | Interpret the results of data analysis |
TCA09: Taxation
This area covers the fundamentals of the taxation system and its administration.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 | Identify the sources of taxation law and the framework in which taxation is administered – refer to TCA9 schedule 1 for guidance on suggested content |
| LO2 | Identify various types of taxation including income tax, consumption taxes, goods and services tax, taxes on capital and fringe benefit/benefits tax – refer to TCA9 schedule 2 for guidance on suggested content |
| LO3 | Apply the fundamentals of calculating the taxable income and tax payable for individuals and business entities – refer to TCA9 schedule 2 for guidance on suggested content |
| LO4 | Analyse the taxation issues associated with straight forward international transactions – refer to TCA9 schedule 3 for guidance on suggested content |
TCA10: Information and communications technology (ICT)
This area covers how ICT impacts an organisation’s environment and business model. This includes analysing the data and information to enhance the efficiency and effectiveness of a business’s operating systems, processes and communications channels. ICT includes accounting information systems and their application to solve business problems. These are important elements in the initial development of accounting and business professionals.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 | Explain the impact of ICT on an organisation’s environment and business model, and how it supports data analysis and decision making – refer to TCA10 schedule 1 for guidance on suggested content |
| LO2 | Explain how ICT supports the identification, reporting, and management of risk in an organisation and how it can enhance the efficiency and effectiveness of an organisation’s systems and processes – refer to TCA10 schedule 2 for guidance on suggested content |
| LO3 | Explain how ICT is used to analyse data and information – refer to TCA10 schedule 3 for guidance on suggested content |
| LO4 | Explain how ICT is used to enhance the efficiency and effectiveness of communication – refer to TCA10 schedule 4 for guidance on suggested content |
| LO5 | Analyse the adequacy of ICT processes and controls and identify the improvements that could be made to them – refer to TCA10 schedule 5 for guidance on suggested content |
TCA11: Business acumen
This area covers the local and global organisational environment which a business operates in and the features relating to business strategy and management. The basic principles of governance, risk management and internal controls deepens the understanding of business practices.
Learning outcomes
At a minimum, graduates are expected to be able to:
| LO1 |
Explain the following in relation to the organisational environment in which a business operates:
|
| LO2 | Describe the environment an organisation operates in, including the primary economic, legal, regulatory, political, technological, social and cultural aspects |
| LO3 | Analyse aspects of the global environment that affect international trade and finance |
| LO4 | Identify the features of globalisation, including the role of multinationals and emerging markets |
| LO5 | Explain the principles of good governance, including the rights and responsibilities of owners, investors, and those charged with governance. Also explain the role of stakeholders in governance, disclosure and transparency requirements |
| LO6 |
Analyse the following in relation to an organisation:
|
Appendix 2A: Technical competency areas content guidance schedules
Please note, when designing a program seeking professional accreditation, only refer to these schedules as a guide, rather than a checklist of all content requirements. They're provided to help with course content design and highlight the key technical concepts graduates are expected to have exposure to when joining the workplace of continuing professional study.
TCA02 Financial accounting and reporting: Schedule 1
LO1: Apply International Financial Reporting Standards (IFRSs) or other relevant standards to transactions and other events
As a guideline, we suggest covering the following key content areas related to these learning outcomes:
A. Application of accounting standards involving measurement:
- IAS 16/AASB 116 Property, plant and equipment
- IAS 2/AASB 102 Inventories
- IAS 37/AASB 137 Provisions, contingent liabilities and contingent assets
- IAS 21/AASB 121 The effects of changes in foreign exchange rates. The focus should be on accounting for the translation of foreign currency purchases and sales into an entity's functional currency
B. Application of accounting standards involving professional judgement:
- IAS 12/AASB 112 Income taxes
- IFRS 16/AASB 16 Leases, focussing on accounting for a basic lease by a lessee
- IAS 36/AASB 136 Impairment of assets, focussing on the accounting for the impairment of individual assets
- IAS 38/AASB 138 Intangible assets
- IAS 10/AASB 110 Events after the reporting period
C. Accounting for complex practical issues in financial reporting:
- IFRS 15/AASB 15 Revenue from contracts with customers, focusing on the five-step revenue recognition application to recognise common revenue transactions
- IFRS 3/AASB 3 Business combinations focussing on the preparation of an acquisition analysis for a wholly owned subsidiary.
- IFRS 9/AASB 9 Financial instruments, IFRS 7/AASB 7 Financial instruments: Disclosures and IAS 32/AASB 132 Financial instruments: Presentation. As a guideline, what is required is a basic introduction to this standard covering an understanding of the definition of a financial instrument, the ability to identify and be aware of the classification rules for common financial assets, common financial liabilities and common equity instruments and the ability to account for the issue of equity instruments and dividends thereon.
TCA02 Financial accounting and reporting: Schedule 2
LO2: Evaluate the appropriateness of accounting policies used to prepare financial statements and understand that accounting involves the application of significant professional judgement
As a guideline, we suggest covering the following key content areas related to this learning outcome:
- IAS 8/AASB 108 Accounting policies, changes in accounting estimates and errors
This standard requires compliance with any specific IFRS/IAS applying to a transaction, event or condition. It provides guidance on developing accounting policies for other items that result in the provision of relevant and reliable information.
TCA02 Financial Accounting and Reporting: Schedule 3
LO3: Prepare financial statements, including consolidated financial statements, in accordance with IFRSs or other relevant standards
As a guideline, we suggest covering the following key content areas related to these learning outcomes:
- Fundamentals of financial statement preparation
Includes an understanding of the conceptual framework (2018), regulatory framework and a basic awareness of the Corporations Act, Australia, in relation to financial reporting - Prepare the financial statements for a basic company (IAS 1/AASB101 Presentation of financial statements and IAS 7/AASB107 Statement of cash flows), including the notes that accompany the statements
- Prepare consolidated financial statements for a parent with a wholly owned subsidiary (IFRS10/ AASB10 Consolidated financial statements).
TCA03 Audit and Assurance: Schedule 1
LO2: Apply International Auditing Standards or other relevant auditing standards, laws, and regulations applicable to an audit of general-purpose financial statements
As a guideline, we suggest covering the following key content areas:
| Topics and learning outcomes | International Auditing Standards (ISAs)/ Australian Auditing Standards (ASAs) |
|---|---|
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Pre-engagement activities: |
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Planning and risk assessment – Assess the risks of material misstatement in the financial statements and consider the impact on the audit strategy |
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Response to assessed risk – Tests of controls, tests of details and the use of quantitative methods that are used in audit engagements |
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Evidence gathering and documentation – Identify and document relevant audit evidence, including contradictory evidence, to inform judgments, make decisions, and reach well-reasoned conclusions |
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Completion and communication – Conclude whether sufficient and appropriate audit evidence has been obtained and communicate the same |
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TCA04 Business law: Schedule 1
LO2: Explain the laws and regulations applicable to the environment in which professional accountants operate
LO3: Explain the laws and regulations that govern the different forms of legal entities, including the significance of the concept of separate legal entity
LO4: Explain the key features and purpose of contract law
As a guideline, we suggest covering the following key content areas related to these learning outcomes:
1. Law of agency
2. Law of negligence
3. Contract law
- Introduction to contracts
- Agreement between parties
- Intention to create legal relations consideration
- Capacity of the parties
- Genuine consent
- Rights of parties and discharge
- Remedies for breach of contract
- Contract law compared to tort
4. Corporations law
- Incorporation of companies and its consequences
- Concept of separate legal entity
- Duties of directors
- Governance
- Share transfers
- Role of company secretary/directors
- Membership, meetings and dividends
- Corporate insolvency
5. Statutory and administrative requirements relating to record keeping, auditing, reporting and disclosure
TCA05 Economics: Schedule 1
LO2: Describe the fundamental principles of microeconomics and macroeconomics
As a guideline, we suggest covering the following key content areas related to these learning outcomes:
Microeconomics
- Markets, demand, supply and price including elasticity
- Comparative advantage
- Market structures, including perfect competition, monopolistic competition, oligopoly and monopoly
- Market failure and government intervention
Macroeconomics
- Macroeconomic measures including GDP, inflation and employment
- Fiscal and monetary policy
- International trade and globalization
- Balance of payments and exchange rates
- Financial markets
TCA06 Finance and financial management : Schedule 1
LO3: Discuss how organisations are financed, comparing the various sources of financing available to an organisation, including bank financing, financial instruments, and bonds, equity and treasury markets
As a guideline, we suggest covering the following key content areas related to these learning outcomes:
Assessing financing options
Funding options
- The characteristics of various sources of debt and equity finance alternatives
Capital structure
- Structure, advantages and disadvantages of capital and debt markets
- The factors influencing the cost of capital
- The ability to calculate and discuss the advantages and disadvantages of CAPM and WACC
TCA06 Finance and financial management: Schedule 2
LO5: Discuss how organisations make investment and distribution decisions
LO6: Identify and explain basic financial risks and risk management concepts
As a guideline, we suggest covering the following key content areas related to these learning outcomes:
Insights for decision making:
- Financial aspects of decision making: Apply capital budgeting techniques in the evaluation of capital investment decisions; calculate and explain results of project evaluation decisions using IRR, NPV, payback (standard and discounted) and the accounting rate of return (ARR)
- Dealing with uncertainty in decision-making: Assessing investment decisions using sensitivity analysis and applying professional judgement
- Dividend policy: Dividend relevance theory, dividend irrelevance theory and the optimal dividend theory
- Business valuation: Describe different equity valuation methods
- Explain income, asset-based and market valuation approaches used for investment decisions, business planning and long-term financial management
TCA07 Management accounting: Schedule 1
LO4: Applying appropriate quantitative techniques, to use costing information for business planning and control
As a guideline, we suggest covering the following key content areas related to these learning outcomes:
- analysis of cost behaviour and the drivers of costs
- determine and calculate appropriate financial analysis (including discounted cashflows) to support decisions that plan to improve business performance including product and job costing, cost management, cost-volume-profit analysis, outsourcing and pricing
- distinguish and calculate different types of organisational costs and use established methods to cost specific operating decisions. Includes job costing, process costing, standard costing and variance analysis, product costing, full absorption costing versus marginal costing, inventory management and cost-volume profit analysis
- explain and calculate price using various pricing methods
TCA07 Management accounting: Schedule 2
LO5: Evaluate the performance of an organisation and of its products and business segments
As a guideline, we suggest covering the following key content areas related to these learning outcomes:
- outline environment and organisational tools used to evaluate organisational performance (e.g. PESTEL, SWOT, Porter's five forces, Value chain analysis and Porter's generic strategies)
- identify financial and non-financial KPIs to measure business performance
- discuss the scorecard performance management model
- discuss the application of benchmarking to assess business performance
TCA07 Management accounting: Schedule 3
LO6: Analyse data and information to prepare reports that support management decision making
As a guideline, we suggest covering the following key content areas related to these learning outcomes:
- prepare reports to support management decision making using a simple decision-making model including relevant costs and revenues
- prepare reports to support management decision making on quality control, performance measurement and comparative analysis
- report writing to communicate (i) business insights and recommendations, and (ii) business decisions and their rationale
TCA08 Quantitative methods: Schedule 1
LO2: Identify and apply commonly used quantitative methods and techniques to collect and analyse financial and non-financial data
LO3: Review statistical data including hypothesis testing
As a guideline, we suggest covering the following key content areas related to these learning outcomes:
- presenting and describing information, including data collection, presentation in tables and chart format and numerical descriptive measures
- measuring uncertainty, including probability and discrete probability distributions, normal and other continuous distributions and sampling distributions
- drawing conclusions about populations, including confidence interval estimations, hypothesis testing and analysis of variance
- determining cause and making forecasts, including regression analysis, and time series forecasting
- hypothesis testing including chi square and non-parametric tests, model building and decision making
- introduction to basic Excel and how it can be used in statistics
TCA09 Taxation: Schedule 1
LO1: Identify the sources of taxation law and the framework in which taxation is administered
Please note, taxation will vary between countries and there will be flexibility regarding areas of coverage.
As a guideline, we suggest covering the following key content areas related to these learning outcomes:
- the types of tax returns and assessments, including ATO rulings and the tax appeal process
- the ability to distinguish the difference between tax planning, tax avoidance and tax evasion
- the ability to discuss the sources of Australian income tax law including legislation, case law, and the ATO
TCA09 Taxation: Schedule 2
LO2: Identify various types of taxation including income tax, consumption taxes, taxes on capital, goods and services tax and fringe benefits tax
LO3: Identify and apply the fundamentals of calculating the taxable income and tax payable for individuals and business entities
Please note, taxation will vary between countries and there will be flexibility regarding areas of coverage.
Income tax
- Income tax framework: The ability to explain the residency of taxpayers and source of income; discuss the tax rates for individual residents and non-residents; explain the different tax rates for other tax entities; explain the concept of tax offsets and provide simple examples including PAYG; and calculate the taxable income/(loss) and tax payable/(refundable) using simple scenarios
- Income fundamentals: The ability to explain and calculate assessable income for an entity; explain ordinary income, statutory income, exempt income and non-assessable non-exempt income; understand the difference between income from personal exertion, income from property and income from a business; understand cash versus earnings/accruals for tax purposes; and determine the difference between revenue and capital transactions using simple scenarios
- Deductions fundamentals: Explain and calculate common general and specific deductions; explain simple deductions that are denied; and advise on the substantiation rules for work-related, car and travel expenses using simple scenarios
Property and capital transactions
- Depreciating assets: The ability to explain and calculate the decline in value for depreciating assets using the prime cost method and diminishing value method; explain and calculate balancing adjustments; explain blackhole expenditure; explain and calculate the deduction available for capital works; explain the interaction between expenditure for capital allowances, capital works CGT and trading stock using simple scenarios
- Trading stock: Covering the ability to explain and apply the trading stock definition; the consequences of purchasing and selling trading stock; the application of the valuation methods for trading stock; and calculating the effect of trading stock on taxable income for simple scenarios
- Capital Gains Tax (GGT) regime: Covering the common exemptions and concessions; the application of gains and losses and the calculation of the discount; calculating a taxpayer's capital gain or loss using simple scenarios and advising the taxpayer accordingly; and applying the CGT exemptions and concessions for simple scenarios
Income tax: Tax structures and transactions
- Taxation of an individual: The ability to explain the general tax principles that apply to individuals
- Taxation of a partnership: The ability to explain what a partnership is, discuss the general tax principles for partnerships and calculate the net income of a partnership including the partner's share of net income
- Taxation of companies: The ability to discuss the taxation principles that apply to companies; calculate the taxable income and tax payable of a company, including the applicable tax rates; and identify tax losses that may be carried forward
- Dividends: The ability to explain the imputation system and franking account provisions using simple scenarios
- Trusts: The ability to explain the common types of trusts, calculate the net income or loss of a trust, and explain how the net income of a trust is taxed
- Small business entity (SBE): The ability to identify an SBE and discuss the SBE concessions
- Superannuation: The ability to discuss the taxation of superannuation funds and explain the different types of superannuation funds and contributions
Goods and services tax (GST)
- The ability to describe the administration and compliance of GST, and its interaction with income tax
- The ability to explain the GST framework and calculate net GST payable/refundable using simple scenarios
Employment remuneration and fringe benefits tax (FBT)
- The ability to explain the pay as you go (PAYG)/pay as you earn (PAYE) system of taxation collection and the treatment of allowances to individual taxpayers; and discuss the tax treatment of salary sacrifice into superannuation
- The ability to explain the FBT framework and calculate FBT payable using simple scenarios
TCA09 Taxation: Schedule 3
LO4: Analyse the taxation issues associated with non-complex international transactions
Please note, taxation will vary between countries and there will be flexibility regarding areas of coverage.
As a guideline, we suggest covering the following key content areas related to these learning outcomes:
- the calculation of the tax payable by taxpayers in receipt of foreign income, using simple straightforward scenarios
- the determination of the taxpayer's liability to interest, dividend and royalty withholding tax
TCA10 Information and communications technology (ICT): Schedule 1
LO1: Explain the impact of ICT on an organisation’s environment and business model, and how it supports data analysis and decision making
As a guideline, we suggest covering the following key content areas related to this learning outcome:
- explain the impact of ICT on current and emerging accounting practices dealing with different types of organisations, including the impact of databases, data storage, networks, internet, blockchain and transaction processing, XBRL, robotics process automation, the use of artificial intelligence in accounting, business intelligence and the use of big data in organisations and in auditing.
TCA10 Information and communications technology (ICT): Schedule 2
LO2: Explain how ICT supports the identification, reporting and management of risk in an organisation and how it can enhance the efficiency and effectiveness of an organisation’s systems and processes
As a guideline, we suggest covering the following key content areas related to this learning outcome:
- an ICT system should be able to visualise, confirm and maintain the relevance and integrity of information systems and would include explaining an understanding of systems documentation techniques, business processes and systems documentation, systems development life cycle, information systems’ controls for system development, enterprise resource planning (ERP) systems, auditing computer-based systems and the use of auditing support systems, computer fraud and cyber security.
TCA10 Information and communications technology (ICT): Schedule 3
LO3: Explain how ICT is used to analyse data and information
As a guideline, we suggest covering the following key content areas related to this learning outcome:
- an ICT system that is able to analyse data and produce useful information would include the use of database management systems, database design, relational databases, data analytics, the use of big data in organisations and in auditing, and the usefulness of programs such as Tableau, PowerBi, Pivot tables etc.
TCA10 Information and communications technology (ICT): Schedule 4
LO4: Explain how ICT is used to enhance the efficiency and effectiveness of communication
As a guideline, we suggest covering the following key content areas related to this learning outcome:
- enhancing the efficiency and effectiveness of communicating useful information would include an understanding of graphs and dashboards, entity relationship diagrams and inhouse versus cloud etc.
TCA 10 Information and communications technology (ICT): Schedule 5
LO5: Identify the adequacy of ICT processes and controls, and the improvements that could be made
As a guideline, we suggest covering the following key content areas related to this learning outcome:
- awareness of the role of a responsible custodian of data and producer of useful information, including an understanding of ICT processes and controls, system flowcharts and data flow diagrams, accessibility to data including its security, data integrity or its accuracy and reliability, etc.