2026 2028 Syllabus

Syllabus
Cambridge International
AS & A Level
Accounting 9706
Use this syllabus for exams in 2026, 2027 and 2028.
Exams are available in the June and November series.
Exams are also available in the March series in India.
Version 1
For the purposes of screen readers, any mention in this document of Cambridge IGCSE
refers to Cambridge International General Certificate of Secondary Education.
Why choose Cambridge International?
Cambridge International prepares school students for life, helping them develop an informed curiosity and a
lasting passion for learning. We are part of the University of Cambridge.
Our Cambridge Pathway gives students a clear path for educational success from age 5 to 19. Schools can
shape the curriculum around how they want students to learn – with a wide range of subjects and flexible ways
to offer them. It helps students discover new abilities and a wider world, and gives them the skills they need for
life, so they can achieve at school, university and work.
Our programmes and qualifications set the global standard for international education. They are created by
subject experts, are rooted in academic rigour and reflect the latest educational research. They provide a
strong platform for students to progress from one stage to the next, and are well supported by teaching and
learning resources. Learn more about our research at www.cambridgeassessment.org.uk/our-research/
We review all our syllabuses regularly, so they reflect the latest research evidence and professional teaching
practice – and take account of the different national contexts in which they are taught.
We consult with teachers to help us design each syllabus around the needs of their learners. Consulting with
leading universities has helped us make sure our syllabuses encourage students to master the key concepts in
the subject and develop the skills necessary for success in higher education.
We believe education works best when curriculum, teaching, learning and assessment are closely aligned.
Our programmes develop deep knowledge, conceptual understanding and higher-order thinking skills, to
prepare students for their future. Together with schools, we develop Cambridge learners who are confident,
responsible, reflective, innovative and engaged – equipped for success in the modern world.
Every year, nearly a million Cambridge students from 10 000 schools in 160 countries prepare for their future
with the Cambridge Pathway.
School feedback: ‘We think the Cambridge curriculum is superb preparation for university.’
Feedback from: Christoph Guttentag, Dean of Undergraduate Admissions, Duke University, USA
Quality management
Cambridge International is committed to providing exceptional quality. In line with this commitment, our
quality management system for the provision of international education programmes and qualifications
programmes for students aged 5 to 19 is independently certified as meeting the internationally recognised
standard, ISO 9001:2015. Learn more at www.cambridgeinternational.org/about-us/our-standards/
© Cambridge University Press & Assessment September 2023

Cambridge Assessment International Education is part of Cambridge University Press & Assessment. Cambridge University Press &
Assessment is a department of the University of Cambridge.
Cambridge University Press & Assessment retains the copyright on all its publications. Registered centres are permitted to copy
material from this booklet for their own internal use. However, we cannot give permission to centres to photocopy any material that is
acknowledged to a third party even for internal use within a centre.
Contents
Why choose Cambridge International?......................................................................... 2
1 Why choose this syllabus? ......................................................................................... 4
2 Syllabus overview ........................................................................................................ 8

Aims 8
Content overview 9
Assessment overview 10
Assessment objectives 11
3 Subject content ..........................................................................................................12

AS Level content 12
A Level content 20
Appendix – Summary of commonly used ratios (AS & A Level) 28
4 Details of the assessment ........................................................................................ 31

Paper 1 – Multiple Choice 31
Paper 2 – Fundamentals of Accounting 31
Paper 3 – Financial Accounting 32
Paper 4 – Cost and Management Accounting 32
Command words 33
5 What else you need to know .................................................................................... 34

Before you start 34
Making entries 35
Accessibility and equality 36
After the exam 37
How students, teachers and higher education can use the grades 38
Changes to this syllabus for 2026, 2027 and 2028 39
Important: Changes to this syllabus

The latest syllabus is version 1, published September 2023. There are no significant changes which affect
teaching.
Any textbooks endorsed to support the syllabus for examination from 2023 are still suitable for use with this
syllabus.
Cambridge International AS & A Level Accounting 9706 syllabus for 2026, 2027 and 2028.
1 Why choose this syllabus?
Key benefits
The best motivation for a student is a real passion for the
subject they are learning. By offering students a variety of
Cambridge International AS & A Levels, you can give them the
greatest chance of finding the path of education they most
want to follow. With over 50 subjects to choose from, students
can select the ones they love and that they are best at, which
helps motivate them throughout their studies. Cambridge
learner
Following a Cambridge International AS & A Level programme
helps students develop abilities which universities value highly,
including:
• a deep understanding of their subjects
• higher order thinking skills – analysis, critical thinking,
problem solving
• presenting ordered and coherent arguments
• independent learning and research.
Cambridge International AS & A Level Accounting engages students with the relevance and applicability
of accounting in real-world contexts and encourages interest in the role and responsibilities of the accountant.
Studying this subject helps students to understand, apply, analyse and evaluate accounting information to aid
decision-making in business and communicate information to stakeholders.
These transferable skills are an ideal foundation for further study and for a future career within accounting or
related professions.
Our approach in Cambridge International AS & A Level Accounting encourages learners to be:
confident,using accounting terminology and formats, preparing and analysing financial statements and
learning to communicate accounting information to stakeholders
responsible, considering how the ethical behaviour of accountants and auditors impacts the business and
other stakeholders
reflective, considering how the concepts and accounting standards underpin the preparation of accounts and
impact on the actions of the accountant
innovative, approaching learning and application with flexible and substantiated thinking
engaged, developing an interest in broader and evolving accounting issues, and exploring the range of types
of business for which a robust accounting system is required.
School feedback: ‘Cambridge students develop a deep understanding of subjects and

independent thinking skills.’
Feedback from: Principal, Rockledge High School, USA
Back to contents page www.cambridgeinternational.org/alevel 4

Cambridge International AS & A Level Accounting 9706 syllabus for 2026, 2027 and 2028. Why choose this syllabus?
Key concepts
Key concepts are essential ideas that help students develop a deep understanding of their subject and make
links between different aspects. Key concepts may open up new ways of thinking about, understanding or
interpreting the important things to be learned.
Good teaching and learning will incorporate and reinforce a subject’s key concepts to help students gain:
• a greater depth as well as breadth of subject knowledge
• confidence, especially in applying knowledge and skills in new situations
• the vocabulary to discuss their subject conceptually and show how different aspects link together
• a level of mastery of their subject to help them enter higher education.
The key concepts identified below, carefully introduced and developed, will help to underpin the course you will
teach. You may identify additional key concepts which will also enrich teaching and learning.
The key concepts for Cambridge International AS & A Level Accounting are:
• A true and fair view
Financial statements are designed to give a true and fair view of the financial position, performance and
changes in financial position of the business to internal and external stakeholders.
• Duality
Duality in accounting recognises that every financial transaction has a double (or dual) effect on the position
of a business as recorded in the accounts.
• Consistency
Consistency in the treatment of financial transactions enables the performance of a business to be
compared meaningfully over different time periods.
• Business entity
A business is a separate legal entity from the owner of a business. The accounting records must relate only
to the business and not to the personal assets and spending of the owner.
• Money measurement
Financial accounts only include items and transactions that can be expressed in terms of money. For
example, the purchase of raw material is recorded in the accounts whereas staff creativity is not.
• Planning and control
Management accounting provides a framework for a business to plan and control its finances and enables
informed decision-making.

International recognition and acceptance

Our expertise in curriculum, teaching and learning, and assessment is the basis for the recognition of
our programmes and qualifications around the world. Every year thousands of students with Cambridge
International AS & A Levels gain places at leading universities worldwide. Our programmes and qualifications
are valued by top universities around the world including those in the UK, US (including Ivy League universities),
Europe, Australia, Canada and New Zealand.
UK ENIC, the national agency in the UK for the recognition and comparison of international qualifications and
skills, has carried out an independent benchmarking study of Cambridge International AS & A Level and found
it to be comparable to the standard of AS & A Level in the UK. This means students can be confident that their
Cambridge International AS & A Level qualifications are accepted as equivalent, grade for grade, to UK AS & A
Levels by leading universities worldwide.
Cambridge International AS Level Accounting makes up the first half of the Cambridge International A Level
course in accounting and provides a foundation for the study of accounting at Cambridge International A Level.
The AS Level can also be delivered as a standalone qualification. Depending on local university entrance
requirements, students may be able to use it to progress directly to university courses in accounting or some
other subjects. It is also suitable as part of a course of general education.
Cambridge International A Level Accounting provides a foundation for the study of accounting or related
courses in higher education. Equally it is suitable as part of a course of general education.
For more information about the relationship between the Cambridge International AS Level and Cambridge
International A Level see the ‘Assessment overview’ section of the Syllabus overview.
We recommend learners check the Cambridge recognition database and university websites to find the most
up-to-date entry requirements for courses they wish to study.
Learn more at www.cambridgeinternational.org/recognition

Supporting teachers
We believe education is most effective when curriculum, teaching and learning, and assessment are closely
aligned. We provide a wide range of resources, detailed guidance, innovative training and targeted professional
development so that you can give your students the best possible preparation for Cambridge International
AS & A Level. To find out which resources are available for each syllabus go to
www.cambridgeinternational.org/support
The School Support Hub is our secure online site for Cambridge teachers where you can find the resources
you need to deliver our programmes. You can also keep up to date with your subject and the global Cambridge
community through our online discussion forums.
Find out more at www.cambridgeinternational.org/support
Support for Cambridge International AS & A Level
Planning and Teaching and Learning and revision Results

preparation assessment • Example candidate • Candidate Results
• Syllabuses • Endorsed resources responses Service
• Schemes of work • Online forums • Past papers and • Principal examiner
• Specimen Question • Support for mark schemes reports for teachers
Papers and Mark coursework and • Specimen paper
Schemes speaking tests answers
• Teacher guides
Sign up for email notifications about changes to syllabuses, including new and revised products and services,
at www.cambridgeinternational.org/syllabusupdates
Syllabuses and specimen materials represent the final authority on the content and structure of all of our
assessments.
Professional development
Find the next step on your professional development journey.
• Introductory Professional Development – An introduction to Cambridge programmes and qualifications.
• Extension Professional Development – Develop your understanding of Cambridge programmes and
qualifications to build confidence in your delivery.
• Enrichment Professional Development – Transform your approach to teaching with our Enrichment
workshops.
• Cambridge Professional Development Qualifications (PDQs) – Practice-based programmes that transform
professional learning for practising teachers. Available at Certificate and Diploma level.
Find out more at:

www.cambridgeinternational.org/support-and-training-for-schools/professional-development/
Supporting exams officers

We provide comprehensive support and guidance for all Cambridge exams officers.
Find out more at: www.cambridgeinternational.org/eoguide

2 Syllabus overview
Aims
The aims describe the purposes of a course based on this syllabus.
The aims are to enable students to:

• understand the role of accounting as an information system for monitoring, problem-solving and
decision-making
• appreciate the ethical issues that underpin the practice of accounting and their impact on the behaviour of
the accountant and of businesses
• appreciate the place of accounting in managing business change in response to economic, social and
technological developments
• develop the ability to apply and evaluate accounting concepts, principles, policies and practices
• develop skills of communication, analysis, interpretation and presentation of both qualitative and
quantitative accounting information
• develop skills and knowledge needed for further study or employment in accounting or business.
Cambridge Assessment International Education is an education organisation and politically

neutral. The contents of this syllabus, examination papers and associated materials do not endorse any
political view. We endeavour to treat all aspects of the exam process neutrally.

Cambridge International AS & A Level Accounting 9706 syllabus for 2026, 2027 and 2028. Syllabus overview
Content overview
Cambridge International AS Level students study topics 1.1–2.2.
Cambridge International A Level students study all topics 1.1–4.4.
AS Level topics A Level topics
Financial 1.1 Types of business entity 3.1 Preparation of financial statements

accounting 1.2 The accounting system 3.2 Regulatory and ethical
1.3 Accounting for non-current assets considerations
1.4 Reconciliation and verification 3.3 Business acquisition and merger
1.5 Preparation of financial statements 3.4 Computerised accounting systems
1.6 Analysis and communication of 3.5 Analysis and communication of
accounting information accounting information
Cost and 2.1 Costs and cost behaviour 4.1 Activity based costing (ABC)
management 2.2 Traditional costing methods 4.2 Standard costing
accounting
4.3 Budgeting and budgetary control
4.4 Investment appraisal
School feedback: ‘Cambridge International AS & A Levels prepare students well for university
because they’ve learnt to go into a subject in considerable depth. There’s that ability to really
understand the depth and richness and the detail of a subject. It’s a wonderful preparation for
what they are going to face at university.’
Feedback from: US Higher Education Advisory Council

Assessment overview
Paper 1 Paper 3
Multiple Choice 1 hour Financial Accounting 1 hour 30 minutes

30 marks 75 marks
30 Multiple-choice questions Three structured questions
Questions are based on sections 1 and 2 of the Questions are based on section 3 of the subject
subject content. content; knowledge of material from the AS Level
Externally assessed subject content is assumed.
28% of the AS Level Externally assessed
14% of the A Level 30% of the A Level
Paper 2 Paper 4
Fundamentals of Accounting 1 hour 45 minutes Cost and Management Accounting 1 hour

90 marks 50 marks
Four structured questions Two structured questions
Questions are based on sections 1 and 2 of the Questions are based on section 4 of the subject
subject content. content; knowledge of material from the AS Level
Externally assessed subject content is assumed.
72% of the AS Level Externally assessed
36% of the A Level 20% of the A Level
Information on availability is in the Before you start section.
There are three routes for Cambridge International AS & A Level Accounting:
Route Paper 1 Paper 2 Paper 3 Paper 4
1 AS Level only
(Candidates take all AS yes yes no no
components in the same exam
series)
2 A Level (staged over two years)

Year 1 AS Level* yes yes no no
Year 2 Complete the A Level no no yes yes
3 A Level
(Candidates take all components in yes yes yes yes
the same exam series)
* Candidates carry forward their AS Level result subject to the rules and time limits described in the Cambridge
Handbook. See Making entries for more information on carry forward of results [and marks].
Candidates following an AS Level route are eligible for grades a–e. Candidates following an A Level route are
eligible for grades A*–E.

Assessment objectives
The assessment objectives (AOs) are:
AO1 Knowledge and understanding

• Demonstrate knowledge and understanding of facts, terms, concepts, policies, procedures and techniques
relating to financial accounting and cost and management accounting.
• Apply this knowledge and understanding to a variety of accounting situations and problems, and present
outcomes in the most appropriate form.
AO2 Analysis
• Analyse financial accounting information and cost and management accounting information.
• Select, calculate and interpret relevant data and information.
• Communicate outcomes in the most appropriate form.
AO3 Evaluation
• Evaluate financial accounting information and cost and management accounting information to make
informed recommendations and decisions.
• Make judgements and draw conclusions based on financial and non-financial data.
Weighting for assessment objectives

The approximate weightings allocated to each of the assessment objectives (AOs) are summarised below.
Assessment objectives as a percentage of each qualification
Assessment objective Weighting in AS Level % Weighting in A Level %
AO1 Knowledge and understanding 63 55
AO2 Analysis 25 30
AO3 Evaluation 12 15
Total 100 100
Assessment objectives as a percentage of each component

Assessment objective Weighting in components %
Paper 1 Paper 2 Paper 3 Paper 4
AO1 Knowledge and understanding 70 60 54 44
AO2 Analysis 30 23 33 28
AO3 Evaluation 0 17 13 28
Total 100 100 100 100

3 Subject content
This syllabus gives you the flexibility to design a course that will interest, challenge and engage your learners.
Where appropriate you are responsible for selecting subject contexts, resources and examples to support your
learners’ study. These should be appropriate for the learners’ age, cultural background and learning context as
well as complying with your school policies and local legal requirements.
Cambridge International AS Level candidates study topics 1.1–2.2.
Cambridge International A Level candidates study all topics 1.1–4.4.
The AS Level content is assumed knowledge for A Level Paper 3 and Paper 4.
AS Level content
1 Financial accounting (AS Level)
1.1 Types of business entity
Candidates will explore the various ways in which a business may be structured with reference to legal
form, ownership, management and control. Candidates will investigate the benefits and drawbacks of each
type of entity from the point of view of owners and other stakeholders which will provide a context for the
preparation of financial statements.
1.1.1 Types of business entity

Candidates should have an understanding of:
• the different types of business entity:
– sole trader
– partnership
– limited company (including public limited company (plc))
• the advantages and disadvantages of these types of business entity
• sources of finance and methods of funding for these types of business entity including:
– loans (secured and unsecured)
– bank overdrafts
– payment by instalments
– rental/leasing as an alternative to purchase
– trade credit
– sources of finance for limited companies as in 1.5.4
Candidates are expected to use their understanding of types of business entity to take relevant decisions.
Note: Questions on Limited Liability Partnerships will not be set.

Cambridge International AS & A Level Accounting 9706 syllabus for 2026, 2027 and 2028. Subject content
1.2 The accounting system
Candidates will examine the need for the systematic recording of business transactions and explore how the
double entry system can be used to achieve this aim both in manual and computerised accounting systems.
Additionally, candidates will consider the accounting theories and concepts which form the basis of financial
accounting.
1.2.1 The accounting system

• the principles of the double entry system to record business transactions
• the accounting equation
• the role of books of prime entry in the recording of business transactions
– sales journal
– sales returns journal
– purchases journal
– purchases returns journal
– cash book
– general journal
• preparation of ledger accounts
• the purpose of a trial balance
• the advantages and disadvantages of maintaining full accounting records
• the accounting concepts underpinning the preparation of accounts: business entity, historic cost,
money measurement, going concern, consistency, prudence, realisation, duality, materiality, objectivity,
matching /accruals and substance over form
• the use of computerised accounting systems in recording financial transactions
• the advantages and disadvantages of introducing a computerised accounting system
• the ways in which the security of data can be ensured within a computerised accounting system
Candidates are expected to use their understanding of the accounting system to evaluate relevant
information and make informed business decisions.
Note: Knowledge of specific applications or software is not required.

1.3 Accounting for non-current assets
Candidates will look at the classification of business expenditure with particular reference to the treatment
of assets used in the longer term in a business. Candidates will also consider the purpose and methods of
recording the cost of using those assets over time and the subsequent change in value.
1.3.1 Capital and revenue income and expenditure

• the difference between the treatment of capital and revenue income and capital and revenue expenditure
• the effect on profit/loss and asset value of the incorrect treatment of capital and revenue expenditure
1.3.2 Changing asset values

• factors that cause the value of non-current assets to depreciate
• the purpose of accounting for depreciation of non-current assets and the associated application of
relevant accounting concepts
• how to calculate depreciation using the reducing balance and straight-line methods
• the most appropriate method of calculating depreciation
• how to measure the value of non-current assets by the cost model or the revaluation model
• how to prepare ledger accounts and journal entries for:
– non-current assets (acquisition and revaluation)
– depreciation and disposal (including entries for part exchange)
• how to calculate profit or loss on disposal of a non-current asset
• how to record the effect of a charge for depreciation in the statement of profit or loss and statement of
financial position
1.4 Reconciliation and verification
Candidates will assess the importance of being able to prepare complete and accurate financial statements
from underlying business records. In doing so candidates will consider the various methods available to
identify and rectify errors and omissions using internal procedures and third-party documentation, as well as
exploring possible limitations of such measures.
1.4.1 Reconciliation and verification

• the need to reconcile and verify ledger accounts using documentation from internal and external sources
• the benefits and limitations of reconciliation and verification procedures

1.4 Reconciliation and verification continued
1.4.2 Trial balance

• errors which affect the trial balance
• errors which do not affect the trial balance:
– omission
– commission
– principle
– original entry
– reversal
– compensating
• how to prepare ledger accounts and journal entries to correct errors using a suspense account
• the effect on the financial statements of the correction of errors
• the benefits and limitations of a trial balance
1.4.3 Bank reconciliation statements

• updating of cash books
• how to prepare bank reconciliation statements
• the benefits and limitations of preparing a bank reconciliation statement
1.4.4 Control accounts

• entries in control accounts
• sales ledger control accounts and purchases ledger control accounts
• reconciliation statements between control account balances and ledger balances
• the effects on financial statements of the correction of errors
• the benefits and limitations of control accounts
Candidates are expected to use their understanding of reconciliation and verification to evaluate relevant
information and make informed business decisions.

1.5 Preparation of financial statements
Candidates will consider how figures in a trial balance need to be adjusted in order to prepare a complete set
of financial statements in accordance with the matching/accruals concept and other fundamental accounting
concepts. In particular, candidates will examine the differing formats of financial statements necessary for
sole traders, partnerships and limited companies. Candidates will address specific aspects relating to how
partnerships account for individual partners’ shares of profits and losses, and study the characteristics of
limited company financial statements, particularly share capital and reserves. This gives an opportunity to
build on the background information relating to types of business entity introduced in 1.1.
Note: For the expected formats for the standard financial statements, see the document Teacher Guidance
for 9706 Accounting which accompanies this syllabus.
1.5.1 Adjustments to draft financial statements

• how to calculate and record the adjustments needed and the effect on financial statements in respect of:
– accruals and prepayments of income and expenses
– irrecoverable debts, irrecoverable debts recovered and allowance for irrecoverable debts
– depreciation
– inventory valuation
– correction of errors
1.5.2 Sole traders

• how to prepare a statement of profit or loss and statement of financial position for a sole trader from full
or incomplete accounting records. The business may be a trading or a service business
1.5.3 Partnerships
• how to prepare a statement of profit or loss, appropriation account and statement of financial position
for a partnership from full or incomplete accounting records. The business may be a trading or a service
business
• why partners may maintain separate capital accounts and current accounts
• how to prepare partners’ capital and current accounts
• the contents of a partnership agreement
• the advantages and disadvantages to partners of maintaining a partnership agreement
• the provisions of the Partnership Act 1890 in respect of partners’ salaries, division of profit or loss,
interest on partners’ loans, interest on capital and interest on drawings

1.5 Preparation of financial statements continued
1.5.4 Limited companies

• the features and accounting treatment of ordinary shares, bonus issues, rights issues, debentures,
dividends and reserves
Note: Questions will not be set on preference shares.
• the advantages and disadvantages to the company and to the shareholders of a company making a
bonus issue of shares and a rights issue of shares
• the advantages and disadvantages to the company and to the shareholders of a company issuing shares
and issuing debentures
• the distinction between capital reserves (share premium and revaluation reserve) and revenue reserves
(retained earnings and general reserve)
• how to prepare ledger accounts to record:
– an issue of ordinary shares at par or at a premium
– a rights issue of shares at par or at a premium
– a bonus issue of shares
Note: For the purpose of a bonus issue of shares, the revaluation reserve is not to be used.
• how to prepare a statement of profit or loss, statement of financial position and statement of changes in
equity for a limited company. The business may be a trading or a service business
• sources of finance for specified purposes
Candidates are expected to use their understanding of financial accounts of sole traders, partnerships and
limited companies to evaluate relevant information and make informed business decisions.
1.6 Analysis and communication of accounting information
Candidates will evaluate the diverse interests and range of information needs of parties who may have an
interest in a business. Candidates will assess how financial information can be analysed and interpreted
using a range of financial ratios in order to allow users of financial statements to gain an understanding of the
business performance. They will explore the use of such ratios in comparison with other similar businesses
and industry benchmarks, including having an appreciation of problems which may limit the usefulness of
such an analysis.
1.6.1 Users of accounting information

• the differing requirements for information of stakeholders including:
– owners
– managers
– employees
– investors
– lenders
– suppliers
– customers
– government
– public and environmental bodies
• how to communicate and analyse the information required by these different stakeholders

1.6 Analysis and communication of accounting information continued
1.6.2 Calculation and evaluation of ratios

• how to calculate key accounting ratios to measure profitability, liquidity and efficiency:
– profitability ratios: gross profit margin, mark-up, profit margin, return on capital employed, expenses
to revenue ratio (operating expenses to revenue ratio)
– liquidity ratios: current ratio, acid test ratio
– efficiency ratios: non-current asset turnover, trade receivables turnover (days),
trade payables turnover (days), inventory turnover (days), rate of inventory turnover (times)
Note: Candidates must use the formulae given in the appendix to section 3. These are the only formulae
accepted in candidate responses.
• how to evaluate the profitability, liquidity and efficiency of an organisation by interpreting ratios
• possible measures to improve the profitability, liquidity and efficiency of an organisation
• the limitations of accounting information
Candidates are expected to use their understanding of the calculation and evaluation of ratios to make
informed business decisions using relevant information.
2 Cost and management accounting (AS Level)

2.1 Costs and cost behaviour
Candidates will examine the classification of costs and the need to distinguish between the ways in which
costs may be treated in terms of traceability and behaviour. This will be explored within the context of why
businesses need to understand the nature of costs for the purposes of pricing and decision-making, serving
as an introduction to examining traditional costing methods (as defined in 2.2).
2.1.1 Materials and labour

• accounting for material and labour costs
• how to identify and calculate fixed costs, variable costs, semi-variable costs and stepped costs
• how to identify and calculate the elements of direct and indirect costs
• how to calculate the value of closing inventory using the first in first out (FIFO) and weighted average cost
(AVCO) methods (perpetual and periodic)
• the principles of just in time (JIT) management of inventory
Candidates are expected to use their understanding of accounting for materials and labour to evaluate
relevant information and make informed business decisions.

2.2 Traditional costing methods
Candidates will consider how to account for costs using absorption and marginal costing systems, as well
as exploring the impact of changes in business activity. In so doing, candidates will evaluate the benefits
and limitations of the contrasting approaches and examine how these tools may be used in determining the
cost and the selling price of a product or service, and for management decision-making and determining
business opportunities.
2.2.1 Costing applications

• how to apply traditional costing methods to prepare costing statements using unit, job and batch costing
principles in both manufacturing and service businesses as applicable
2.2.2 Absorption costing

• the difference between a cost centre and a cost unit
• how to allocate and apportion overhead expenditure between production and service departments
• how to calculate overhead absorption rates using an appropriate basis
• the causes and the calculation of under absorption and over absorption of overheads
• how to prepare costing and profit statements using absorption costing
• the uses and limitations of absorption costing
• the usefulness of absorption cost data as a support for management decision-making
• non-financial factors and their significance
2.2.3 Marginal costing

• how to calculate the contribution of a product
• how to interpret a break-even chart
Note: Candidates will not be asked to prepare a break-even chart.
• how to calculate the break-even point, contribution to sales ratio, level of output or sales to achieve a
target profit, and margin of safety
• the use and limitations of break-even analysis
• how to prepare costing and profit statements using marginal costing
• how to prepare a statement reconciling the reported profits using marginal costing and absorption
costing
• the uses and limitations of marginal costing
• the usefulness of marginal costing data as a support for management decision-making, including make-
or-buy, special orders, closure of business unit, limiting factors, target profit

2.2 Traditional costing methods continued
2.2.4 Cost–volume–profit analysis

• the advantages and limitations of cost–volume–profit analysis
• the usefulness of cost–volume–profit data as a support for management decision-making
• how to apply costing concepts to make business decisions and recommendations using supporting data
Candidates are expected to use their understanding of costing to evaluate relevant information and make
informed business decisions.
A Level content
3 Financial accounting (A Level)
3.1 Preparation of financial statements
Candidates will develop the skills established in 1.5 in respect of the preparation of financial statements. This
will involve exploring the impact of changes in the composition of a partnership, in addition to extending the
range of financial statements and associated notes required for limited companies. Candidates will further
encounter the specific requirements for how manufacturing businesses account for the cost of production,
and those for non-profit making organisations in the form of clubs and societies.
Note: For the expected formats for the standard financial statements, see the document Teacher Guidance
for 9706 Accounting which accompanies this syllabus.
3.1.1 Financial statements

• the need for and purpose of financial statements for specific types of business
3.1.2 Partnerships
• goodwill and the difference between purchased goodwill and inherent goodwill
• how to prepare partners’ capital and current accounts to record changes required in respect of goodwill
and revaluation of assets on:
– a change in the partners’ profit-sharing ratio
– the introduction of a new partner
– the retirement of an existing partner
– the dissolution of a partnership
• how to prepare the partnership appropriation account, statement of profit or loss and statement of
financial position including changes in a partnership occurring part-way through an accounting year
• how to prepare a realisation account and a revaluation account

3.1 Preparation of financial statements continued
3.1.3 Clubs and societies

• the distinction between a receipts and payments account and an income and expenditure account
• how to define and calculate the accumulated fund
• how to prepare, from full or incomplete accounting records:
– a receipts and payments account
– accounts for trading and revenue-generating activities
– a subscriptions account
– an income and expenditure account
– a statement of financial position
• how to account for other receipts, including life memberships and donations
• how to make adjustments to financial statements (as detailed in 1.5.1)
• how to evaluate possible sources of finance and methods of fundraising
3.1.4 Manufacturing businesses

• how to prepare a manufacturing account, to differentiate between direct and indirect expenses and to
include factory profit
• how to prepare, for a manufacturing business, a statement of profit or loss and a statement of financial
position
• how to account for manufacturing profit and the elimination of unrealised profit from unsold inventory
• the reasons why a business may account for manufacturing profit
3.1.5 Limited companies

• how to prepare for a limited company in line with the relevant international accounting standards and
legal requirements:
– statement of profit or loss
– statement of financial position
– statement of cash flows
– statement of changes in equity
– schedule of non-current assets
Candidates are expected to use their understanding of the financial accounts of partnerships, clubs and
societies, manufacturing businesses and limited companies to evaluate relevant information and make
informed business decisions.

3.2 Regulatory and ethical considerations
Candidates will examine the regulatory framework by exploring a number of International Accounting
Standards and how they are applied within a set of financial statements. Candidates will further consider the
wider ethical issues which underpin the practice of accounting and the need for accountants and businesses
to behave in an appropriate manner. Related to this, candidates will assess the nature of stewardship in
the context of a limited company, which will enable candidates to develop a more detailed appreciation of
the issues of ownership and control introduced in 1.1.1 and the associated requirement for an independent
examination of financial statements by an auditor.
3.2.1 International Accounting Standards

• the main provisions of each of the following International Accounting Standards (IAS):
– IAS 1 Presentation of financial statements
– IAS 2 Inventories
– IAS 7 Statement of cash flows
– IAS 8 Accounting policies, changes in accounting estimates and errors
– IAS 10 Events after the reporting period
– IAS 16 Property, plant and equipment
– IAS 36 Impairment of assets
– IAS 37 Provisions, contingent liabilities and contingent assets
– IAS 38 Intangible assets
Note: For guidance on the scope of each IAS that candidates are expected to be familiar with, teachers are
advised to consult the document Teacher Guidance for 9706 Accounting which accompanies this syllabus.
3.2.2 Ethical considerations

• the need for an ethical framework in accounting
• the fundamental principles of:
– integrity
– objectivity
– professional competence and due care
– confidentiality
– professional behaviour
• how the ethical behaviour of accountants and auditors impacts the business and other stakeholders
• the social implications of decision-making

3.2 Regulatory and ethical considerations continued
3.2.3 Auditing and stewardship of limited companies

• the role and responsibilities of the auditor
• the differences between an external audit and an internal audit
• the difference between a qualified and unqualified audit report
• stewardship and the role of directors and their responsibilities to shareholders
• the importance of a true and fair view in respect of financial statements
Candidates are expected to use their understanding of ethical considerations and auditing to evaluate
relevant information and make informed business decisions
3.3 Business acquisition and merger
Candidates will investigate reasons why businesses may choose to grow by acquiring or merging with
different types of business entity and how to account for the acquisition or merger. This will involve assessing
the distinction between the acquisition of a business as a whole and the individual assets of a business, as
well as an appraisal of business valuation and types of purchase consideration.
3.3.1 Business acquisition and merger

• the nature and purpose of the merger of different types of businesses to form a new business entity
• how to prepare journal entries and make entries in the relevant ledger accounts to record the:
– merger of two or more sole trader businesses to form a partnership or a limited company
– merger of a sole trader’s business with an existing partnership to form a new partnership
– acquisition of a sole trader’s business or partnership by a limited company
• how to calculate the value of goodwill on the acquisition of a business by another entity
• how to prepare statements of profit or loss and statements of financial position for the newly formed
business entity following the acquisition or merger, for example the limited company acquiring the
partnership
• the advantages and disadvantages of the acquisition or merger
Candidates are expected to use their understanding of business acquisition and merger to evaluate relevant
information and make informed business decisions

3.4 Computerised accounting systems
Candidates will further expand their understanding of accounting systems gained in 1.2 to encompass the
specific challenges posed by the introduction of a computerised accounting system. Candidates will explore
approaches to managing the transfer of accounting data to a computerised system and the necessary
safeguards required to ensure that the manual data is transferred completely and accurately to the new
system.
3.4.1 Computerised accounting systems

• the process of transferring the business accounts to a computerised accounting system
• ways in which the integrity of the accounting data can be ensured during the transfer to a computerised
accounting system
Note: Knowledge of specific applications or software is not required.
3.5 Analysis and communication of accounting information
Candidates will further enhance their appreciation of the use of accounting ratios by extending knowledge of
the range of ratios beyond those introduced in 1.6, in particular with reference to investment ratios applicable
to limited companies. Candidates will assess how these ratios may be interpreted with a view to linking
performance indicators and providing justified advice to stakeholders, as well as being able to suggest
possible measures for improvement.
3.5.1 Analysis and communication of accounting information

• how to calculate the following ratios:
– working capital cycle (in days)
– net working assets to revenue (sales)
– interest cover
– gearing ratio
– earnings per share
– price/earnings ratio
– dividend per share
– dividend yield
– dividend cover
Note: Candidates must use the formula given in the appendix to section 3. These are the only formulae
accepted in candidate responses.
• how to analyse and evaluate the results of the ratios and draw conclusions
• how to make appropriate recommendations to stakeholders on the basis of the analysis undertaken
• the interrelationships between ratios
Candidates are expected to use their understanding of the calculation and evaluation of ratios to make
informed business decisions using relevant information.

4 Cost and management accounting (A Level)

4.1 Activity based costing (ABC)
Candidates will explore the application of activity based costing as a contrast to the traditional costing
methods encountered in 2.2. Candidates will gain an insight into how overheads may be allocated to
products using measures which are not directly related to traditional overhead absorption bases, such
as direct labour hours, but rather to the activities which cause the costs to be incurred in the production
process (cost drivers). Candidates will also assess the uses and limitations of such a system.
4.1.1 Activity based costing

• the application of activity based costing (ABC)
• the uses and limitations of ABC
• what is meant by a cost driver
• how to use ABC to:
– identify the appropriate cost driver
– apportion and allocate overheads
– calculate the total cost and selling price of a unit
• the effect of different methods of overhead absorption on cost and profit
• how to apply ABC costing techniques to make business decisions and recommendations using
supporting data
4.2 Standard costing
Candidates will consider how a business may use a system of predetermined values as a basis for
comparison with actual costs and revenues in order to assess performance. Candidates will explore possible
reasons for the differences between actual and expected costs and revenues and how there may be
interrelationships between these differences. This will require an evaluation of how such information can be
used to improve the budget preparation process and business performance. Candidates will also evaluate
non-financial considerations which may have an impact on business decisions.
4.2.1 Standard costing

• the meaning of a system of standard costing in an organisation
• the advantages and disadvantages of a standard costing system
• how standard costing can be used as an aid to improve the performance of a business
• how to calculate the following variances:
– direct material price and usage
– direct labour rate and efficiency
– fixed overhead expenditure and volume
– fixed overhead capacity and efficiency sub-variances
– sales price and volume
• possible causes of favourable or adverse variances and their relationship to each other
• how to make business decisions and recommendations using supporting data
• the significance of non-financial factors

4.3 Budgeting and budgetary control
Candidates will investigate the reasons why an organisation uses a system of budgetary control. This
will involve exploring the nature, purpose and contents of budgets and how they may be used for the
purposes of planning and control to meet an organisation’s objectives. Candidates will consider how an
organisation may compare expected and actual results and in so doing assess how the budgeting process
can affect human responses to achievement of budget targets. Candidates will also evaluate non-financial
considerations which may have an impact on business decisions.
4.3.1 Budgeting and budgetary control

• the advantages and disadvantages of a budgetary control system to an organisation
• the advantages and disadvantages of preparing budgets using spreadsheets
• what is meant by a master budget
• how to prepare the following budgets:
– sales
– production
– purchases
– labour
– trade receivables
– trade payables
– cash
– budgeted statement of profit or loss
– budgeted statement of financial position
• the effect of limiting factors on the preparation of budgets
• the benefits of flexible budgeting over fixed budgeting
• how to prepare a flexible budget statement
• possible causes of differences between actual and flexible budgeted data
• how to prepare a statement reconciling the flexible budgeted cost of production with the actual cost of
production
• how to prepare a statement reconciling the flexible budgeted profit with the actual profit
• how to make business decisions and recommendations using supporting data
• the behavioural aspects of budgeting, including targets, incentives and motivation

4.4 Investment appraisal
Candidates will address ways in which a business may make a decision about a prospective capital
investment. This will require an assessment of the strengths and limitations of various investment appraisal
techniques, including examining the time value of money and discerning the difference between accounting
profits and cash flows. Candidates will also evaluate non-financial considerations which may have an impact
on investment decisions.
4.4.1 Investment appraisal

• future net cash inflows and outflows arising from the project
• how to apply the following capital investment appraisal techniques:
– payback
– accounting rate of return (ARR = (average profit / average investment) × 100)
– net present value (NPV)
– internal rate of return (IRR)
• the advantages and disadvantages of these capital investment appraisal techniques
• how to make investment decisions and recommendations using supporting data
Note: Questions on discounted payback will not be set.

Note: Questions involving a residual value of an investment at the end of a project will not be set.

Appendix – Summary of commonly used ratios (AS & A Level)

Profitability ratios
Gross profit
Gross profit margin (%) × 100
Revenue
Gross profit
Mark-up (%) × 100
Cost of sales
Profit for the year

× 100
Revenue
Profit margin (%) can also be expressed as
Profit for the year (after interest)
× 100
Revenue
Profit from operations

× 100
Return on capital employed (%) Capital employed
Capital employed = issued shares + reserves + non-current liabilities
Expenses
Expenses to revenue ratio (%) × 100
Revenue
Operating expenses to revenue Operating expenses

× 100
ratio (%) Revenue
Liquidity ratios
Current assets
Current ratio Current liabilities
Answer presented as a ratio
Current assets – inventory

Acid test ratio Current liabilities
Answer presented as a ratio

Efficiency ratios
Net revenue
Non-current asset turnover (times)
Total net book value of non-current assets
Trade receivables
Trade receivables turnover (days) × 365 days
Credit sales
Trade payables
Trade payables turnover (days) × 365 days
Credit purchases
Average inventory
Inventory turnover (days) × 365 days
Cost of sales
Cost of sales
Rate of inventory turnover (times)
Average inventory
Solvency and other ratios (A Level only)

Trade receivables turnover (days) + inventory turnover (days) –
Working capital cycle (days)
trade payables turnover (days)
Net working assets

× 100
Net working assets to revenue Revenue (sales)
(sales) (%)
Net working assets = inventories + trade receivables – trade payables
Profit from operations

Interest cover (times)
Interest payable
Fixed cost capital

× 100
Total capital
Gearing (%) which is
Non-current liabilities
× 100
Issued ordinary share capital + all reserves + non-current liabilities

Investment ratios (stock exchange ratios) (A Level only)

Profit for the year
Earnings per share
Number of issued ordinary shares
Market price per share

Price/earnings
Earnings per share
Annual ordinary dividend

Number of issued ordinary shares
Dividend per share where
Annual ordinary dividend = interim dividend paid + final dividend
proposed
Dividend per share

Dividend yield
Market price per share
Profit for the year available to pay ordinary dividend

Dividend cover
Annual ordinary dividend
Calculate ratios using year-end balances where appropriate, unless the question specifies the
use of average figures.
Calculate ratios to the number of decimal places required by the question.

Cambridge International AS & A Level Accounting 9706 syllabus for 2026, 2027 and 2028. Details of the assessment
4 Details of the assessment
Calculators
Calculators are essential for all papers.
Ratios
Candidates must use the formulae given in the appendix to section 3 of this syllabus for the accounting ratios.
Where a candidate uses an incorrect formula, this will not be credited, but the resulting figure will be credited as
the candidate’s own figure when used in following calculations.
Ratios are not given in the question paper.
Paper 1 – Multiple Choice

Multiple choice paper, 1 hour, 30 marks
Candidates answer all 30 questions and indicate their answers on the answer sheet provided.
The questions are based on the AS Level subject content only.
Twenty-two questions focus on financial accounting and eight questions focus on cost and management
accounting.
Candidates must use the formulae given in the appendix to section 3 to obtain their answers.
Paper 1 assesses AO1 Knowledge and understanding and AO2 Analysis.
Paper 2 – Fundamentals of Accounting

Written paper, 1 hour 45 minutes, 90 marks
This paper has four structured questions. Candidates answer all questions. Candidates answer on the question
paper.
The questions are based on the AS Level subject content only.
Questions 1, 2 and 3 focus on financial accounting. Question 1 has 30 marks; questions 2 and 3 have
15 marks each.
Question 4 focuses on cost and management accounting and has 30 marks.
Candidates must use the formulae given in the appendix to section 3. These are the only formulae accepted in
candidate responses.
Candidates should use international accounting terminology and formats as appropriate.
Where candidates are asked to make recommendations or decisions they are expected to support their answer
with a balance of reasons, and to justify their recommendation or decision.
Paper 2 assesses AO1 Knowledge and understanding, AO2 Analysis and AO3 Evaluation.

Paper 3 – Financial Accounting

Written paper, 1 hour 30 minutes, 75 marks
This paper has three structured questions. Each question is worth 25 marks. Candidates answer all questions.
Candidates answer on the question paper.
The questions are based on the A Level Financial Accounting subject content.
The content of the AS Level is assumed knowledge for the assessment of Paper 3.
Source materials for each question are supplied on a separate insert to the paper. Additional information is
included within each question on the question paper.
Candidates must use the formulae given in the appendix to section 3. These are the only formulae accepted in
candidate responses.
Candidates should use international accounting terminology and formats as appropriate.
Paper 4 – Cost and Management Accounting

Written paper, 1 hour, 50 marks
This paper has two structured questions. Each question is worth 25 marks. Candidates answer all questions.
Candidates answer on the question paper.
The questions are based on the A Level Cost and Management Accounting subject content.
The content of the AS Level is assumed knowledge for the assessment of Paper 4.
Source materials for each question are supplied on a separate insert to the paper. Additional information is
included within each question on the question paper.

Command words
Command words and their meanings help candidates know what is expected from them in the exams. The
table below includes command words used in the assessment for this syllabus. The use of the command word
will relate to the subject context.
Command word What it means
Advise write down a suggested course of action in a given situation
Allocate charge overheads that can be directly attributed to a specific cost centre to that centre
Analyse examine in detail to show meaning, identify elements and the relationship between
them
Apportion charge overheads that cannot be directly attributable to a cost centre, to other centres
using that overhead, on an appropriate basis
Assess make an informed judgement
Calculate work out from given facts, figures or information
Comment give an informed opinion
Compare identify/comment on similarities and/or differences
Contrast identify/comment on differences
Define give precise meaning
Describe state the points of a topic / give characteristics and main features
Discuss write about issue(s) or topic(s) in depth in a structured way
Evaluate judge or calculate the quality, importance, amount, or value of something
Explain set out purposes or reasons / make the relationships between things clear / say why
and/or how and support with relevant evidence
Identify name/select/recognise
Justify support a case with evidence/argument
Prepare present information in a suitable format
Reapportion recharge overheads from non-production cost centres on an appropriate basis
Reconcile process two sets of figures to confirm their agreement
State express in clear terms
Suggest apply knowledge and understanding to situations where there are a range of valid
responses in order to make proposals / put forward considerations

Cambridge International AS & A Level Accounting 9706 syllabus for 2026, 2027 and 2028. What else you need to know
5 What else you need to know
This section is an overview of other information you need to know about this syllabus. It will help to share the
administrative information with your exams officer so they know when you will need their support. Find more
information about our administrative processes at www.cambridgeinternational.org/eoguide
Before you start

Previous study
We recommend that learners starting this course should have completed a course in mathematics equivalent to
Cambridge IGCSE™ (Extended) or Cambridge O Level.
Guided learning hours

We design Cambridge International AS & A Level syllabuses to require about 180 guided learning hours for
each Cambridge International AS Level and about 360 guided learning hours for a Cambridge International
A Level. The number of hours a learner needs to achieve the qualification may vary according to each school
and the learners’ previous experience of the subject.
Availability and timetables

All Cambridge schools are allocated to an administrative zone. Each zone has a specific timetable.
Find your administrative zone at www.cambridginternational.org/adminzone
You can view the timetable for your administrative zone at www.cambridgeinternational.org/timetables
You can enter candidates in the June and November exam series. If your school is in India, you can also enter
your candidates in the March exam series.
Check you are using the syllabus for the year the candidate is taking the exam.
Private candidates can enter for this syllabus. For more information, please refer to the Cambridge Guide to
Making Entries.
Combining with other syllabuses

Candidates can take this syllabus alongside other Cambridge International syllabuses in a single exam series.
The only exceptions are:
• syllabuses with the same title at the same level.
Group awards: Cambridge AICE

Cambridge AICE (Advanced International Certificate of Education) is a group award for Cambridge International
AS & A Level. It encourages schools to offer a broad and balanced curriculum by recognising the achievements
of learners who pass exams in a range of different subjects.
Learn more about Cambridge AICE at www.cambridgeinternational.org/aice

Making entries
Exams officers are responsible for submitting entries to Cambridge International. We encourage them to work
closely with you to make sure they enter the right number of candidates for the right combination of syllabus
components. Entry option codes and instructions for submitting entries are in the Cambridge Guide to Making
Entries. Your exams officer has access to this guide.
Exam administration
To keep our exams secure, we produce question papers for different areas of the world, known as
administrative zones. We allocate all Cambridge schools to one administrative zone determined by their
location. Each zone has a specific timetable.
Some of our syllabuses offer candidates different assessment options. An entry option code is used to identify
the components the candidate will take relevant to the administrative zone and the available assessment
options.
Support for exams officers

We know how important exams officers are to the successful running of exams. We provide them with the
support they need to make entries on time. Your exams officer will find this support, and guidance for all other
phases of the Cambridge Exams Cycle, at www.cambridgeinternational.org/eoguide
Retakes and carrying forward marks

Candidates can retake Cambridge International AS Level and Cambridge International A Level as many times
as they want to. Information on retake entries is at www.cambridgeinternational.org/retakes
Candidates can carry forward the result of their Cambridge International AS Level assessment from one series
to complete the Cambridge International A Level in a following series. The rules, time limits and regulations
for carry-forward entries for staged assessment [and carrying forward component marks] can be found in the
Cambridge Handbook for the relevant year of assessment at www.cambridgeinternational.org/eoguide
To confirm what entry options are available for this syllabus, refer to the Cambridge Guide to Making Entries for
the relevant series.
Language
This syllabus and the related assessment materials are available in English only.

Accessibility and equality

Syllabus and assessment design
At Cambridge International, we work to avoid direct or indirect discrimination in our syllabuses and assessment
materials. We aim to maximise inclusivity for candidates of all national, cultural or social backgrounds and
candidates with protected characteristics, which include special educational needs and disability, religion and
belief, and characteristics related to gender and identity. We also aim to make our materials as accessible as
possible by using accessible language and applying accessible design principles. This gives all candidates the
fairest possible opportunity to demonstrate their knowledge, skills and understanding and helps to minimise the
requirement to make reasonable adjustments during the assessment process.
Access arrangements
Access arrangements (including modified papers) are the principal way in which Cambridge International
complies with our duty, as guided by the UK Equality Act (2010), to make ‘reasonable adjustments’ for
candidates with special educational needs (SEN), disability, illness or injury. Where a candidate would otherwise
be at a substantial disadvantage in comparison to a candidate with no SEN, disability, illness or injury, we
may be able to agree pre-examination access arrangements. These arrangements help a candidate by
minimising accessibility barriers and maximising their opportunity to demonstrate their knowledge, skills and
understanding in an assessment.
Important:
Requested access arrangements should be based on evidence of the candidate’s barrier to assessment
and should also reflect their normal way of working at school. This is explained in the Cambridge Handbook
www.cambridgeinternational.org/eoguide
• For Cambridge International to approve an access arrangement, we will need to agree that it constitutes
a reasonable adjustment, involves reasonable cost and timeframe and does not affect the security and
integrity of the assessment.
• Availability of access arrangements should be checked by centres at the start of the course. Details of our
standard access arrangements and modified question papers are available in the Cambridge Handbook
www.cambridgeinternational.org/eoguide
• Please contact us at the start of the course to find out if we are able to approve an arrangement that is not
included in the list of standard access arrangements.
• Candidates who cannot access parts of the assessment may be able to receive an award based on the
parts they have completed.

After the exam

Grading and reporting
Grades a, b, c, d or e indicate the standard a candidate achieved at Cambridge International AS Level. ‘a’ is the
highest and ‘e’ is the lowest grade.
Grades A*, A, B, C, D or E indicate the standard a candidate achieved at Cambridge International A Level. A* is
the highest and E is the lowest grade.
‘Ungraded’ means that the candidate’s performance did not meet the standard required for the lowest grade
(E or e). ‘Ungraded’ is reported on the statement of results but not on the certificate. In specific circumstances
your candidates may see one of the following letters on their statement of results:
• Q (PENDING)
• X (NO RESULT).
These letters do not appear on the certificate.
If a candidate takes a Cambridge International A Level and fails to achieve grade E or higher, a Cambridge
International AS Level grade will be awarded if both of the following apply:
• the components taken for the Cambridge International A Level by the candidate in that series included all
the components making up a Cambridge International AS Level
• the candidate’s performance on the AS Level components was sufficient to merit the award of a Cambridge
International AS Level grade.
On the statement of results and certificates, Cambridge International AS & A Levels are shown as General
Certificates of Education, GCE Advanced Subsidiary Level (GCE AS Level) and GCE Advanced Level (GCE
A Level).
School feedback: ‘Cambridge International A Levels are the ‘gold standard’ qualification. They
are based on rigorous, academic syllabuses that are accessible to students from a wide range
of abilities yet have the capacity to stretch our most able.’
Feedback from: Director of Studies, Auckland Grammar School, New Zealand

How students, teachers and higher education can use the grades
Cambridge International A Level
Assessment at Cambridge International A Level has two purposes:
1 to measure learning and achievement
The assessment confirms achievement and performance in relation to the knowledge, understanding and
skills specified in the syllabus.
2 to show likely future success
The outcomes help predict which students are well prepared for a particular course or career and/or which
students are more likely to be successful.
The outcomes help students choose the most suitable course or career
Cambridge International AS Level

Assessment at Cambridge International AS Level has two purposes:
1 to measure learning and achievement
The assessment confirms achievement and performance in relation to the knowledge, understanding and
skills specified in the syllabus.
2 to show likely future success
The outcomes help predict which students are well prepared for a particular course or career and/or which
students are more likely to be successful.
The outcomes help students choose the most suitable course or career
The outcomes help decide whether students part way through a Cambridge International A Level course
are making enough progress to continue
The outcomes guide teaching and learning in the next stages of the Cambridge International A Level
course.

Changes to this syllabus for 2026, 2027 and 2028

The syllabus has been updated. This is version 1, published September 2023.
You must read the whole syllabus before planning your teaching programme. We review our
syllabuses regularly to make sure they continue to meet the needs of our schools. In updating this syllabus, we
have made it easier for teachers and students to understand, keeping the familiar features that teachers and
schools value.
Any textbooks endorsed to support the syllabus for examination from 2023 are still suitable for
use with this syllabus.

School feedback: ‘While studying Cambridge IGCSE and Cambridge International A Levels, students
broaden their horizons through a global perspective and develop a lasting passion for learning.’
Feedback from: Zhai Xiaoning, Deputy Principal, The High School Affiliated to Renmin University of China
We are committed to making our documents accessible in accordance with the WCAG 2.1 Standard. We are always looking to improve
the accessibility of our documents. If you find any problems or you think we are not meeting accessibility requirements, contact us at
[email protected] with the subject heading: Digital accessibility. If you need this document in a different format, contact
us and supply your name, email address and requirements and we will respond within 15 working days.
Cambridge Assessment International Education, The Triangle Building, Shaftesbury Road, Cambridge, CB2 8EA, United Kingdom
t : +44 (0)1223 553554 email : [email protected] www.cambridgeinternational.org
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Syllabus

© Cambridge University Press & Assessment September 2023

Why choose Cambridge International?......................................................................... 2

1 Why choose this syllabus? ......................................................................................... 4

2 Syllabus overview ........................................................................................................ 8

3 Subject content ..........................................................................................................12

4 Details of the assessment ........................................................................................ 31

5 What else you need to know .................................................................................... 34

Important: Changes to this syllabus

1 Why choose this syllabus?

School feedback: ‘Cambridge students develop a deep understanding of subjects and

Back to contents page www.cambridgeinternational.org/alevel 4

Back to contents page www.cambridgeinternational.org/alevel 5

International recognition and acceptance

Learn more at www.cambridgeinternational.org/recognition

Back to contents page www.cambridgeinternational.org/alevel 6

Find out more at www.cambridgeinternational.org/support

Support for Cambridge International AS & A Level

Planning and Teaching and Learning and revision Results

Find out more at:

Supporting exams officers

Back to contents page www.cambridgeinternational.org/alevel 7

The aims are to enable students to:

Cambridge Assessment International Education is an education organisation and politically

Back to contents page www.cambridgeinternational.org/alevel 8

AS Level topics A Level topics

Financial 1.1 Types of business entity 3.1 Preparation of financial statements

Back to contents page www.cambridgeinternational.org/alevel 9

Multiple Choice 1 hour Financial Accounting 1 hour 30 minutes

Fundamentals of Accounting 1 hour 45 minutes Cost and Management Accounting 1 hour

Information on availability is in the Before you start section.

2 A Level (staged over two years)

Year 2 Complete the A Level no no yes yes

Back to contents page www.cambridgeinternational.org/alevel 10

AO1 Knowledge and understanding

Weighting for assessment objectives

Assessment objectives as a percentage of each qualification

Assessment objective Weighting in AS Level % Weighting in A Level %

AO1 Knowledge and understanding 63 55

Total 100 100

Assessment objectives as a percentage of each component

Paper 1 Paper 2 Paper 3 Paper 4

AO1 Knowledge and understanding 70 60 54 44

Total 100 100 100 100

Back to contents page www.cambridgeinternational.org/alevel 11

Cambridge International AS Level candidates study topics 1.1–2.2.

Cambridge International A Level candidates study all topics 1.1–4.4.

1.1.1 Types of business entity

Back to contents page www.cambridgeinternational.org/alevel 12

1.2 The accounting system

1.2.1 The accounting system

Back to contents page www.cambridgeinternational.org/alevel 13

1.3 Accounting for non-current assets

1.3.1 Capital and revenue income and expenditure

1.3.2 Changing asset values

1.4 Reconciliation and verification

1.4.1 Reconciliation and verification

Back to contents page www.cambridgeinternational.org/alevel 14

1.4 Reconciliation and verification continued