Singapore · MOE Syllabus Outcomes
JC 2 Principles of Accounting.
The H2 Principles of Accounting syllabus develops students' understanding of accounting information systems and their role in decision-making. In JC2, students delve into advanced financial accounting for companies, financial statement analysis, and managerial accounting concepts to evaluate business performance.
01Accounting for Limited Companies
Focuses on the preparation and presentation of financial statements for limited companies. Students will analyse equity structures, borrowings, and cash flows.
Understand the structure of a company's equity, including ordinary and preference shares. Analyse the accounting entries for the issuance of shares and payment of dividends.
Prepare the Statement of Comprehensive Income and Statement of Financial Position for limited companies. Apply year-end adjustments specific to corporate entities.
Prepare and interpret the Statement of Cash Flows for a limited company. Distinguish between operating, investing, and financing activities.
Examine the accounting treatment for long-term borrowings such as debentures and bank loans. Calculate and record finance costs over the financial year.
02Financial Statement Analysis and Evaluation
Equips students with the analytical tools to evaluate a company's profitability, liquidity, and solvency. Emphasises the interpretation of ratios and their limitations.
Calculate and interpret profitability and efficiency ratios to assess business performance. Evaluate how well a company utilises its resources to generate returns.
Assess a company's ability to meet its short-term and long-term obligations. Analyse the working capital cycle and gearing ratios.
Evaluate a company from the perspective of an investor using investment ratios. Calculate earnings per share, price-earnings ratio, and dividend yield.
Critically evaluate the limitations of relying solely on financial ratios for decision-making. Consider non-financial factors and the impact of differing accounting policies.
03Managerial Accounting and Costing
Introduces managerial accounting concepts, focusing on cost behaviour and cost-volume-profit analysis. Students compare absorption and marginal costing techniques.
Classify costs by behaviour, function, and traceability to aid in management planning. Differentiate between fixed, variable, semi-variable, and step costs.
Apply CVP analysis to determine the break-even point and target profit levels. Evaluate the margin of safety and the impact of changes in costs or selling prices.
Compare and contrast absorption and marginal costing methods for inventory valuation and profit measurement. Reconcile the profits calculated under both methods.
04Accounting Information for Decision Making
Applies accounting information to short-term and long-term business decisions. Covers relevant costing, capital investment appraisal, and budgetary control.
Identify relevant costs and revenues for short-term decision-making scenarios. Apply relevant costing to make-or-buy, special order, and dropping a product line decisions.
Evaluate long-term investment projects using Net Present Value (NPV) and Payback Period methods. Understand the time value of money and its application in capital budgeting.
Understand the role of budgeting in planning and control. Calculate and interpret basic sales and cost variances to evaluate managerial performance.