2025 Accounting Syllabus Updates

In this blog post, we'll walk you through the main additions to the syllabus, chapter by chapter. For those who want the full details, you can download our free PDF summary using the link at the bottom of this post.

Chapter 1: Introduction to Accounting

In this chapter, two significant additions have been made to the syllabus:

1. Taskforce on Climate-related Financial Disclosures (TCFD):
   • Listed companies in the UK are now required to apply the TCFD's disclosure recommendations.
   • These disclosures include information on climate-related risks and opportunities faced by the company.
   • For the Accounting examination, a detailed understanding of TCFD requirements is not necessary.
2. The International Sustainability Standards Board (ISSB) and Sustainability Disclosure Standards:
   • The ISSB does not have the authority to mandate the application of IFRS Sustainability Disclosure Standards.
   • National governments are responsible for requiring the application of these standards in annual reports.

Chapter 3: Recording Financial Transactions

This chapter adds content on two concepts:

1. Cloud Computing:
   • Defined as on-demand access to computing resources via the internet.
   • Resources are hosted remotely by cloud services providers (CSPs).
   • Cloud accounting involves performing accounting tasks using cloud computing software, typically delivered as Software-as-a-Service (SaaS).
   • Types of cloud services include SaaS, Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS).
   • Benefits of cloud accounting include collaboration possibilities with advisors and professionals.
2. Artificial Intelligence (AI):
   • AI involves creating advanced computer systems that perform tasks typically requiring human intelligence.
   • Functions include learning from data, reasoning, problem-solving, and pattern recognition.
   • AI's role in accounting and bookkeeping includes:
     • Automating data entry
     • Categorising expenses
     • Performing reconciliations
     • Detecting fraud and errors
     • Generating reports
     • Providing customer service through chatbots
   • Disadvantages of using AI in bookkeeping are also discussed, such as high initial costs and potential difficulties with non-standard transactions.

The chapter also includes updated information on cheques, describing them as written instructions from an account holder to their bank and explaining the process of receiving and processing cheques.

Chapter 5: Preparing Basic Financial Statements

This chapter introduces new content on the components of a system of internal control, specifically focusing on errors that can arise in computerised accounting systems:

• Data entry errors by users
• Software bugs, with an example of the Post Office Horizon scandal
• Inaccurate formulae in software
• Integration issues with other software packages

The chapter also provides a detailed explanation of how to prepare the statement of financial position, including the use of a pro forma and the transfer of balances from the trial balance.

Chapter 6: Errors and Corrections to Accounting Records and Financial Statements

This chapter briefly mentions that while some smaller businesses still use cheques, their use has declined significantly due to the growing preference for electronic payment methods.

Chapter 10: Non-Current Assets, Depreciation and Impairment

The chapter introduces new content on non-current asset disposals, explaining:

• The need to remove the cost and accumulated depreciation of disposed assets from accounting records
• Recording the proceeds from the sale or disposal
• Recognising profit or loss on disposal in the statement of profit or loss
• The use of a disposals T account and alternative calculation methods

Chapter 14: Company Financial Statements Under UK GAAP

This chapter provides updated information on filing financial statements with Companies House:

• Options for submitting paper or electronic copies
• Benefits of electronic filing through the Companies House WebFiling service
• Availability of submitted financial statements for public viewing online

The syllabus updates also include a glossary with definitions for key terms such as Artificial Intelligence, Cheques, Cloud Accounting, and Cloud Computing.

To ensure you're fully prepared for your exams, don't forget to make use of our Certificate Level subscription package, which includes online quick-fire questions on these 2025 syllabus updates. Click here to access the subscription package.

To download our free PDF summary of the main syllabus changes, click the link below.