ACCA Exam Levels: A Complete Guide in 2024

The ACCA (Association of Chartered Certified Accountants) is an international qualification which provides a route to becoming a professional accountant. Today, it has more than 233,000 members and 536,000 students around the globe for its extensive syllabuses that focus on basic fields such as financial reporting, taxation, auditing, and management.

A major strength of ACCA is its accreditation around the globe, which makes it a program of choice for those seeking global jobs. From the options like part-time learning and distance learning, it is suitable for full-time learners and those in other jobs.

Moreover, ACCA fosters ethical stewardship and professionalism, guaranteeing that all its members adhere to the highest standards of ethics. In this blog post, we will discuss the levels of ACCA, pass rates, ACCA’s pros, and job opportunities thereby giving you a clear vision of why ACCA is a game-changer in the world of finance.

What is ACCA?

ACCA is a globally recognized professional accounting body that offers one of the most sought-after qualifications in accounting and finance. It equips professionals with skills in financial management, taxation, auditing, and leadership, enabling them to work in diverse roles across industries. With ACCA certification, you can work in over 180 countries, making it a powerful asset for those looking to build an international career.

To understand more about the ACCA course in detail, read- All About the ACCA Course

ACCA Qualification Overview

The ACCA qualification is structured across different levels to ensure that students gradually develop a broad range of accounting, finance, and management skills. This step-by-step approach allows students to progress through the levels at their own pace, making it a flexible option for aspiring professionals.

• Levels of ACCA: ACCA is divided into three main levels: Applied Knowledge (Foundation), Applied Skills (Intermediate), and Strategic Professional (Professional).
• Duration: Typically, it takes around 3-4 years to complete the ACCA qualification, depending on the student’s pace and prior exemptions.
• Global Recognition: The ACCA qualification is recognized in over 180 countries, making it a gateway to international career opportunities.

ACCA Level Breakdown

The ACCA qualification is divided into three distinct levels, each progressively building on the knowledge and skills necessary for students to succeed as professional accountants. Each level has a clear purpose, helping students acquire expertise from fundamental accounting concepts to advanced strategic and leadership skills. Here’s a more detailed breakdown of each level:

Applied Knowledge Level

The Foundation Level introduces students to the fundamental concepts in accounting and business. This is the starting point for individuals without prior accounting education and lays the groundwork for the more advanced topics in later stages. It is crucial for building a strong understanding of basic accounting principles and business functions.

Subjects Covered:

• Business and Technology (BT): This subject emphasizes understanding the business environment, how organizations function, and the impact of technology on business operations. It also covers governance and ethics.
• Management Accounting (MA): Students are introduced to key management accounting concepts like costing, budgeting, variance analysis, and performance evaluation, providing essential skills for decision-making within businesses.
• Financial Accounting (FA): This subject covers the basic principles of financial accounting, including the preparation of financial statements, understanding balance sheets, income statements, and cash flow statements. It also introduces international accounting standards.

Key Skills Acquired:

• Understanding business functions and how technology integrates with them.
• Applying basic management accounting techniques, such as cost classification and budgeting.
• Preparing and interpreting financial statements for small businesses and organizations.

Applied Skills Level

The Intermediate Level, also known as Applied Skills, is designed to build on the foundational knowledge gained in the earlier stage. This level dives deeper into technical and practical aspects of accounting, helping students acquire the competencies needed to perform effectively in real-world accounting scenarios.

Subjects Covered:

• Corporate and Business Law (LW): This subject covers the essentials of corporate law, including contract law, company formation, corporate governance, and regulatory compliance. Understanding the legal environment is critical for accountants and financial managers.
• Performance Management (PM): This paper focuses on planning, control, and performance evaluation. It introduces advanced management accounting techniques like activity-based costing, decision-making models, and performance analysis tools.
• Taxation (TX): This subject covers taxation principles for individuals and businesses, including income tax, corporate tax, VAT, and capital gains tax. Students learn how to calculate tax liabilities and understand the role of taxation in financial planning.
• Financial Reporting (FR): In this paper, students learn to prepare and analyze financial statements for single entities and groups according to international accounting standards (IFRS). Topics include the conceptual framework of financial reporting, revenue recognition, and lease accounting.
• Audit and Assurance (AA): This subject focuses on auditing principles, covering the roles and responsibilities of auditors, risk assessment, internal controls, and the audit process from planning to completion.
• Financial Management (FM): This paper teaches the basics of financial decision-making, including investment appraisal, working capital management, business finance, and risk management. It equips students to make informed financial decisions in business settings.

Practical Skills Developed:

• Students learn how to interpret and apply legal principles in a corporate context.
• Gain expertise in taxation, including how to calculate and minimize tax liabilities.
• Develop the ability to audit financial statements and ensure regulatory compliance.
• Become proficient in financial reporting and preparing consolidated financial statements.

Professional Level

The Professional Level is the final stage of the ACCA qualification. It is divided into two parts: Essentials and Options, and is designed to equip students with the advanced skills needed for leadership and strategic decision-making in finance and business management. This level prepares students for senior roles within an organization, focusing on strategic thinking, governance, risk management, and performance evaluation.

Essentials (Compulsory Papers)

Strategic Business Leader (SBL):

• This is an integrated case study exam that tests a student’s ability to lead and make strategic decisions in a business setting. It covers governance, risk management, ethics, and strategic leadership.
• The paper requires students to analyze complex business scenarios and propose solutions as though they were in a leadership position.

Strategic Business Reporting (SBR):

• This paper focuses on preparing and interpreting complex financial reports for stakeholders.
• Students are required to apply International Financial Reporting Standards (IFRS) and interpret financial statements in various business contexts, such as group accounting, pension schemes, and financial instruments.

Options (Choose Two from Four):

Advanced Financial Management (AFM):

• This paper delves into complex financial management issues like risk management, corporate financing, mergers and acquisitions, and international financial strategies.
• It equips students to make high-level financial decisions in multinational corporations.

Advanced Performance Management (APM):

• This subject focuses on advanced performance measurement and management control techniques. Students learn how to use strategic planning and control systems to enhance organizational performance.
• It covers topics like performance evaluation, budgeting, and strategic decision-making in large organizations.

Advanced Taxation (ATX):

• This paper builds on the basics of taxation learned in the TX paper, focusing on advanced tax planning, international taxation, tax implications of corporate restructuring, and inheritance tax.
• Students learn to manage complex tax issues and advise clients or businesses on tax-efficient strategies.

Advanced Audit and Assurance (AAA):

• This subject focuses on advanced auditing practices, emphasizing the role of auditors in complex business environments.
• Students learn how to manage audit engagements, deal with regulatory and professional requirements, and address ethical issues in auditing.

Leadership Development:

• The Professional Level is designed to help students develop the leadership and advisory skills needed to operate at senior levels in organizations.
• It prepares students for roles such as CFO, financial manager, audit partner, and more.

Target Audience:

• Students who have completed the Applied Skills level and are looking to move into leadership roles within their organization.
• It is particularly suited for individuals aiming to work as financial managers, senior auditors, tax consultants, or strategic advisors.

Foundation Level Exams

The Foundation Level of ACCA is designed for students who are new to accountancy and finance or have minimal experience. This level introduces core accounting principles, management techniques, and essential financial concepts. Foundation Level exams provide a solid grounding before students progress to the Applied Knowledge and Applied Skills levels.

The Foundation Level comprises multiple exam pathways, including a focus on both financial and management accounting, as well as business and technology. Here’s a breakdown of the exams at this level:

FA1 – Recording Financial Transactions

FA1 focuses on the basics of financial accounting, emphasizing the recording and processing of financial transactions. It introduces double-entry bookkeeping, the preparation of basic financial statements, and the fundamentals of accounting.

Topics Covered:

• The accounting equation and principles
• Processing transactions for sales, purchases, receipts, and payments
• Preparing trial balances
• Understanding financial statements (income statement and balance sheet)

MA1 – Management Information

MA1 introduces students to management accounting principles, focusing on how information is gathered and used to support decision-making within organizations.

Topics Covered:

• The role of management information in decision-making
• Cost classification and behavior
• Basic budgeting and variance analysis
• Calculating costs using different costing methods

FA2 – Maintaining Financial Records

FA2 builds on FA1, covering more advanced concepts in financial accounting. Students learn how to maintain accurate financial records and prepare complete sets of financial statements.

Topics Covered:

• Accruals, prepayments, and adjustments
• Preparing income statements, balance sheets, and cash flow statements
• Accounting for inventory, receivables, and payables
• Depreciation and accounting for fixed assets

MA2 – Managing Costs and Finances

MA2 expands on the principles introduced in MA1, providing a more detailed understanding of how costs are managed and controlled within an organization.

Topics Covered:

• Costing techniques and systems (job, batch, and process costing)
• Break-even analysis
• Budgeting, standard costing, and variance analysis
• Short-term decision-making using marginal costing

FBT – Business and Technology

FBT (formerly known as AB – Accountant in Business) focuses on understanding how organizations operate in the modern business environment, the role of accountants, and the impact of technology on businesses.

Topics Covered:

• The business environment and its impact on accounting
• Governance, ethics, and corporate social responsibility
• The role of accounting and finance in decision-making
• Technology and its influence on business operations

FMA – Management Accounting

FMA is an introductory management accounting exam that teaches students how to use management accounting techniques for decision-making within a business. This exam focuses on planning, control, and performance evaluation.

Topics Covered:

• Costing methods (absorption costing, marginal costing)
• Budgeting, forecasting, and variance analysis
• Performance measurement techniques
• Contribution analysis and decision-making

FFA – Financial Accounting

FFA is a financial accounting exam that emphasizes the preparation of financial statements in line with international accounting standards. It covers accounting for transactions, preparation of financial reports, and principles of double-entry bookkeeping.

Topics Covered:

• Recording and processing transactions
• Preparing financial statements for single entities
• Accounting for assets, liabilities, and equity
• Complying with international financial reporting standards (IFRS)

FAU – Foundations in Audit

FAU provides an introduction to auditing principles, including the role and responsibilities of auditors, the audit process, and key auditing standards.

Topics Covered:

• The nature and purpose of audits
• The audit process, from planning to completion
• Internal controls and risk assessment
• Audit evidence and documentation

FTX – Foundations in Taxation

FTX focuses on the fundamentals of taxation for individuals and businesses. It introduces key tax concepts and prepares students to calculate tax liabilities.

Topics Covered:

• Introduction to personal and corporate taxation
• Income tax, VAT, and capital gains tax
• Tax compliance and reporting
• Calculating tax liabilities for individuals and businesses

FFM – Foundations in Financial Management

FFM provides an introduction to financial management, focusing on the key concepts of financing, investment appraisal, and working capital management.

Topics Covered:

• Financial objectives and shareholder value
• Investment appraisal methods (NPV, IRR)
• Sources of finance and cost of capital
• Managing working capital and liquidity

ACCA Qualification Level-wise Pass Rates – December 2023

Pass rates for ACCA exams provide valuable insight into the difficulty of different papers at each level. The pass rates vary depending on the complexity of the subject, the technical knowledge required, and the level of exam (Foundation, Applied Knowledge, Applied Skills, or Strategic Professional). Below is a detailed breakdown of pass percentages for each ACCA level based on recent exam sessions.

Qualification	Exam	Pass Rate (%)
Applied Knowledge	BT – Business & Technology	85%
	FA – Financial Accounting	69%
	MA – Management Accounting	68%
Applied Skills	LW – Corporate and Business Law	78%
	TX – Taxation	54%
	FR – Financial Reporting	48%
	PM – Performance Management	42%
	FM – Financial Management	48%
	AA – Audit and Assurance	41%
Strategic Professional – Essentials	SBL – Strategic Business Leader	52%
	SBR – Strategic Business Reporting	50%
Strategic Professional – Options	AAA – Advanced Audit and Assurance	34%
	AFM – Advanced Financial Management	45%
	APM – Advanced Performance Management	34%
	ATX – Advanced Taxation	49%
Foundation Level Qualifications	ACCA Diploma in Financial and Management Accounting (Level 2 RQF)
	FA1 – Recording Financial Transactions	83%
	MA1 – Management Information	84%
ACCA Diploma in Financial and Management Accounting (Level 3 RQF)
	FA2 – Maintaining Financial Records	76%
	MA2 – Managing Costs and Finance	63%
ACCA Diploma in Accounting and Business (Level 4 RQF)
	FBT – Business & Technology	81%
	FFA – Financial Accounting	71%
	FMA – Management Accounting	70%
Foundation Specialist Certificates (RQF Level 4)
	FAU – Foundations in Audit	49%
	FTX – Foundations in Taxation	50%
	FFM – Foundations in Financial Management	38%

For an in-depth analysis of the ACCA pass rates, check out the 2024 Update – Unveiling the Success Trends!

ACCA Level Exams and Passing Criteria

The ACCA qualification is designed to provide students with a solid foundation in accounting, finance, and management, equipping them with the skills needed to succeed in a range of professional roles. Each level of the ACCA qualification has its own set of exams, and students must meet specific passing criteria to progress to the next level. Here’s a detailed look at the structure of the ACCA exams and the passing criteria for each level.

Foundation Level Exam Passing Criteria

• The Foundation Level is designed for students new to accounting and finance, introducing core principles such as accounting, financial management, and business operations.
• To pass, students must achieve a minimum mark of 50% in each exam, demonstrating a basic understanding of these subjects.
• All exams are computer-based, offering flexibility in scheduling and providing quicker results, making it easier for students to progress to higher levels.

Retake Policies:

• If a student does not pass an exam, they are allowed to retake the exam as many times as necessary. Retakes can be scheduled at the student’s convenience, as these exams are available on demand throughout the year.
• There are no restrictions on the number of retakes, but students are encouraged to review their performance and study materials before attempting the exam again.

Note:- This Retake policy is applicable to all the other levels

Applied Knowledge Level Exam Passing Criteria

• The Applied Knowledge Level builds on the Foundation Level, focusing on key subjects like Business and Technology (BT), Management Accounting (MA), and Financial Accounting (FA).
• These exams are designed to enhance a student’s technical knowledge in finance and accounting. To pass, students must achieve a minimum score of 50% in each exam.
• Like the Foundation Level, these are computer-based exams, available on demand, and upon successful completion, students advance to the Applied Skills Level.

Applied Skills Level Exam Passing Criteria

• The Applied Skills Level builds on the Applied Knowledge exams, introducing more complex topics like Corporate and Business Law (LW), Performance Management (PM), Taxation (TX), Financial Reporting (FR), Audit and Assurance (AA), and Financial Management (FM).
• These exams test practical accounting skills and financial reporting, requiring students to apply technical knowledge in real-world scenarios. To pass, students must score a minimum of 50% in each exam.
• The exams are written-based and are held in specific exam sessions throughout the year in March, June, September, and December.

Strategic Professional Level Exam Passing Criteria

• The Strategic Professional Level is the final stage of the ACCA qualification, focusing on advanced skills in strategic decision-making, leadership, and technical knowledge.
• To pass, students must achieve at least 50% in each exam. This level consists of Essentials exams like Strategic Business Leader (SBL) and Strategic Business Reporting (SBR), and Options where students choose two from Advanced Financial Management (AFM), Advanced Performance Management (APM), Advanced Taxation (ATX), and Advanced Audit and Assurance (AAA).
• These exams are more rigorous, requiring students to apply concepts in real-world scenarios, particularly in SBL, which tests strategic thinking and business leadership.

Cost and Time Investment at Each ACCA Level

Pursuing ACCA in India involves various costs and a flexible timeline based on the student’s pace. Here’s a breakdown of the key expenses and duration:

• Registration Fee: One-time fee of £89, often discounted to £30.
• Annual Subscription: £134 per year to stay active and access ACCA resources.
• Exemption Fees: £84–£86 per exam for Applied Knowledge and £111–£114 for Applied Skills, allowing students to bypass certain exams.
• Exam Fees: Applied Knowledge: £84 per paper, Applied Skills: £111 per paper, Strategic Professional: £180–£252 per paper.

Estimated Total Cost

The total cost to complete ACCA is estimated at £2,500–£3,000, covering all fees. Additional expenses include study materials, coaching, and commuting costs.

Duration

The ACCA qualification typically takes 3–4 years to complete, depending on the student’s study schedule and exam success. Students can take exams at their own pace, with ACCA offering four exam sessions per year (March, June, September, December).

To get an in-depth understanding about the duration of ACCA, read- ACCA Course Duration

Study Tips and Resources for Each ACCA Level

Successfully passing ACCA exams requires thorough preparation and the strategic use of resources. Each ACCA level builds on the previous one, increasing in complexity, so it’s important to tailor your study approach to each stage. Below are study tips and key resources, including QuintEdge Coaching Class Practice Papers and Mock Exams, to help you excel at every level.

Foundation Level

The Foundation Level introduces basic accounting and financial concepts. It’s ideal for students new to the field, and building a strong understanding here is critical for later success.

Study Tips:

• Master the Basics: Focus on fundamental concepts such as bookkeeping, financial reporting, and basic cost management.
• Practice Regularly: Regular problem-solving helps reinforce foundational skills.
• Create Visual Aids: Use charts, diagrams, and flashcards to help memorize key terms and accounting processes.

Resources:

• ACCA Official Study Materials: ACCA provides comprehensive learning materials, syllabi, and technical articles, available on their official site.
• QuintEdge Coaching Class Practice Papers: These papers are designed to mirror real exam questions, offering valuable practice for understanding exam formats and building confidence.

Mock Exams:

• ACCA and QuintEdge offer mock exams, which help simulate real exam conditions, improving time management and helping you identify weak areas.

Applied Knowledge Level

The Applied Knowledge Level moves into more advanced topics like financial accounting, management accounting, and business technology. This level is about learning how accounting concepts are applied in the business world.

Study Tips:

• Focus on Application: Go beyond theoretical knowledge. Focus on how accounting and business technology are applied in real-life business scenarios.
• Use Case Studies: Apply theoretical concepts to case studies to strengthen practical understanding.
• Develop Time Management: As this level introduces more challenging exams, practicing under timed conditions will help prepare you for exam day.

Resources:

• QuintEdge Coaching Class Practice Papers: These papers offer targeted exercises on key subjects like Financial Accounting and Business Technology, helping students get accustomed to the exam structure.
• Mock Exams: Both ACCA and QuintEdge provide mock exams, which are crucial for assessing readiness and improving exam performance.

Applied Skills Level

The Applied Skills Level is more complex, with a focus on practical accounting skills like taxation, financial reporting, and audit assurance.

Study Tips:

• Break Down Topics: These subjects are more technical, so break down each topic into smaller parts and study them individually.
• Focus on Practice: Solve as many practice questions as possible to strengthen your grasp of complex topics.
• Master Time Management: Practice completing full-length exams within the time limit to improve speed and accuracy.

Resources:

• ACCA Study Guides and Resources: Official ACCA materials include past papers, technical articles, and detailed syllabus content.
• QuintEdge Coaching Class Practice Papers: These tailored practice papers are invaluable for applied skills subjects, helping students understand complex financial topics and refine problem-solving skills.
• Mock Exams: Taking multiple mock exams is essential for preparing for high-level exams, allowing you to refine your time management and exam strategy.

Strategic Professional Level

The Strategic Professional Level focuses on advanced strategic decision-making, leadership, and complex financial management. These exams prepare students for senior roles in accounting and finance.

Study Tips:

• Integrate Knowledge: At this level, you’ll need to integrate knowledge from all prior levels. Focus on synthesizing different topics to tackle complex case studies.
• Case Study Practice: Focus on strategic case studies that test leadership and decision-making skills.
• Use Exam Simulations: Simulate exam conditions regularly to sharpen decision-making skills and boost confidence.

Resources:

• QuintEdge Coaching Class Practice Papers: Specialized practice papers for Strategic Professional Level topics like Strategic Business Leader and Advanced Financial Management can provide key insights into high-level exams.
• Mock Exams: Both ACCA and QuintEdge offer full-length mock exams that are critical for preparing for Strategic Professional exams, helping students manage time and fine-tune strategic thinking.

Career Prospects After Each ACCA Level

The ACCA qualification opens up a wide range of career opportunities as students progress through each level. Here’s a quick summary of the career prospects after each stage:

Foundation Level

• Roles: Accounts Assistant, Junior Accountant, Trainee Accountant, Payroll Assistant.
• Opportunities: Entry-level positions in small accounting firms, corporate finance, or non-profits.

Applied Knowledge Level

• Roles: Accounts Executive, Audit Assistant, Finance Administrator, Bookkeeper.
• Opportunities: Corporate finance teams, audit firms, or SMEs, handling financial transactions and reporting.

Applied Skills Level

• Roles: Financial Analyst, Tax Consultant, Internal Auditor, Financial Accountant, Audit Associate, Management Accountant.
• Opportunities: Mid-level roles in corporate finance, tax consulting, audit firms, financial analysis, and management accounting.

Strategic Professional Level

• Roles: Finance Manager, Senior Auditor, Tax Manager, Financial Controller, Risk Manager, CFO.
• Opportunities: High-level positions in multinational corporations, public accounting firms, and consulting, leading financial departments and strategy.

Global Opportunities

ACCA opens doors globally in public accounting, corporate finance, banking, consulting, government, and non-profit sectors.

To know more about the Career Opportunities in detail, read- ACCA Career Opportunities

Conclusion

The ACCA qualification is a globally recognized credential that equips professionals with the knowledge and skills to excel in accounting and finance. From foundational principles to advanced strategic decision-making, each level of ACCA opens doors to diverse career opportunities, from entry-level roles to senior positions such as CFO or Finance Manager. Its international recognition makes it a valuable certification for those seeking global career opportunities.

With flexible study options and a range of resources available, ACCA offers a structured pathway for success. Whether you’re just starting your career or looking to advance to leadership roles, the ACCA qualification provides the expertise needed to thrive in the competitive world of finance. Careful planning of your time and financial investment will ensure a rewarding journey through the ACCA qualification.

Frequently Asked Questions