Home » ICAN Syllabus » The foundation level of the ICAN-ACA professional examination is the first level reserved for those who do not have any post-secondary school background in Accounting. Those who studied management, science, art, and law in higher institutions are exempted from some courses at the foundation level. (Please see the academic and professional qualification exemption below.
The competencies required in this level are knowledge and understanding, and there are five subjects in this level. The chartered accountancy qualification – the ACA, of the Institute of Chartered Accountants of Nigeria (ICAN), with its integrated components, is one of the most advanced professional accountancy qualifications globally.
The professional examination comprises fifteen subjects with ethics embedded in each subject. The requirements for ICAN-ACA qualification are set out in this syllabus in the form of learning outcomes and competencies. The fifteen subjects are grouped into three levels: Foundation; Skills; and Professional.
The content of the foundation-level courses provides for simple learning outcomes that form the building blocks for the higher-level subjects.
The contents of the foundation-level courses provide for simple learning outcomes that form the building blocks for the higher-level subjects. There are five subjects at this level including
1. Taxation
2. Business, Management, and Finance,
3. Financial Accounting,
4. Management Information, and
5. Business Law
The BMF course offered by ICAN critically examines the underlying principles of management, concepts of leadership and effective communications in business, financial management decisions, and more.
By studying this updated BMF syllabus, you will gain the theoretical and non-theoretical skills you need to either ace your examinations or become an expert in your business environment.
An understanding of the business environment (global and local), markets, financial markets, entities and organisations provides a foundation for business professionals. This subject revolves around a basic understanding of the purpose, and objectives of businesses; issues of business ethics, governance, corporate social responsibility and sustainability.
On successful completion of this paper, candidates should be able to:
| Syllabus for ICAN Foundation Level | |||
| Level | Foundation | ||
| Course Name | A2 – Business, Management, & Finance | ||
| Abbreviation | BMF | ||
| A. Business processes and environment | |||
| Topic | Breakdown | Marking Guide | |
| 1 | Nature of business, types and objectives | (a) Explain the nature, types and objectives of business organisation. (b) Explain the basic characteristics, purposes, merits and demerits of the following types of business organisation: (i) Sole proprietorship; (ii) Partnership; (iii) Limited liability companies: Private Public (iv) Non-governmental organisations; (v) Public sector organisations; (vi) Alliances; and (vi) Cooperative society. (c) Identify and explain the various business functions; (d) Explain the importance of business to its stakeholders; (e) Explain the different classifications of economic activities based on the following occupations: (i) Profession/Vocation; (ii) Employment; and (iii) Business. (f) State the merits and demerits of each of the occupations listed above. | 25% |
| 2 | Business and organisational structures and choices | (a) Explain the basic characteristics and purposes of the following organisational structures: (i) Centralised; (ii) Decentralised; (iii) Matrix and mixed; (iv)Networks; and (v) Virtual arrangements. (b) Explain the advantages and disadvantages of each of the organisational structures listed above. | |
| 3 | The business environment | (a) Explain the meaning and importance of the following: (i) Globalisation/International business; (ii) Macro-economic/National environment; (iii) Micro-economic/Markets and industries; and (iv)Stakeholders. (b) Explain the concept of environmental scanning, its methods and importance. | |
| B. The role of professional accountants in business and society | 10% | ||
| (a) Explain from the perspective of the public interest, the role of professional accountants in business and society. (b) Explain the basic principles of ethics and its importance to professional accountants. | |||
| C. Management and organisational behaviour | 35% | ||
| 1 | Basic management functions | (a) Give various definitions of management. (b) Identify and explain types of management skills. (c) Explain the following basic management functions, their importance and application in the field of accounting: (i) Planning; (ii) Organising; (iii) Controlling; (iv) Coordinating; (v) Directing; and (vi) Supervising. (d) Identify and explain the various management roles. | |
| 2 | Management, individual and organisational behaviour | (a) Explain the nature and significance of formal and informal organisation. (b) Explain the role and importance of organisational culture. (c) Explain the relationship between leadership and management. (d) State the roles of individual and group behaviour in organisations. (e) Identify and explain conflict management and various resolution mechanisms. (f) Explain the nature and significance of team formation, development and management. (g) Explain the concept of employee motivation and its relationship with productivity. (h) State and explain the various management theories with emphasis on scientific, administrative and other modern management theories; such as Frank and Lillian Gilbreth’s motion theory, Hertzberg’s Hygiene, Motivation factor theory and other related theories. | |
| 3 | Communications in business | (a) Explain the basic elements of communication. (b) Explain verbal and non-verbal communication. (c) State the principles of effective listening. (d) Explain organisational communication: (i) Formal and informal; and (ii) Internal and external (e) Explain methods of business communication. (f) State the barriers to effective communication. (g) State the different communication patterns. (h) Explain the process and conduct at meetings. (i) Explain the basic elements of report writing. (j) Explain the process of electronic communication. | |
| D. The role of finance | 30% | ||
| 1 | Basics of business finance and financial markets | (a) Identify the various sources of finance that are available to business organisations. (b) Explain the characteristics of the different sources of finance, stating their advantages and disadvantages. (c) Describe the characteristics of financial market. (d) Explain finance functions and financial management objectives. (e) Explain the following concepts: (i) Covenants; (ii) Warranties; and (iii) Guarantees. (f) Prepare a cash budget using given data. | |
| 2 | Investment decisions | (a) Explain and apply the key tools of mathematics used in solving business finance problems: (i) Compound interest and simple interest; (ii) Discounting; (iii) Annuities; (iv) Present value of annuities; and (v) Sinking funds and amortisation. (b) Identify and apply the following investment appraisal techniques: (i) Accounting rate of return; (ii) Payback period; (iii) Discounted payback; (iv) Net present value; and (v) Internal rate of return. | |
Looking to ace your Financial Accounting exams in one sitting? Look no further, you’re in the right place. To attain at least the pass mark for the ICAN Foundation level Financial Accounting exams, then adequate preparation through extensive study should be done.
How then do you know that you’ve studied extensively for the Financial Accounting exams? When you’ve successfully gone through your studies using the updated ICAN syllabus.
This syllabus contains all the topics covered in Financial Accounting and their breakdown. Studying with it will provide you with an in-depth knowledge of the scope and purpose of financial accounting, and more importantly, get you a hundred percent ready for the exams.
The purpose of financial accounting is to equip accounting professionals with knowledge of the essential framework of assumptions that underpin reliable reporting and the requisite skills to compile reliable financial statements for sole traders, partnerships, companies and not-for-profit entities.
On successful completion of this paper, candidates should be able to:
| Syllabus for ICAN Foundation Level | |||
| Level | Foundation | ||
| Course Name | A3 – Financial Accounting | ||
| Abbreviation | FA | ||
| A. Accounting framework | |||
| Topic | Breakdown | Marking Guide | |
| 1 | Scope and purpose of accounting | (a) Define accounting and state the objectives of accounting. (b) Differentiate between accounting and book-keeping. (c) Discuss the different types of accounting. | 10% |
| 2 | 2. Identify the users of accounting information and their information needs. | ||
| 3 | Explain the qualitative characteristics of useful financial information. | ||
| 4 | List and explain the elements of financial statements. | ||
| 5 | . Explain the following accounting concepts: (a) Going concern; (b) Accruals; (c) Materiality and aggregation; (d) Substance over form; (e) Business entity concept; (f) Fair presentation; (g) Offsetting; (h) Consistency of presentation; and (i) Prudence. | ||
| 6 | Bases of accounting | Discuss accrual, cash and break-up bases of accounting. | |
| 7 | The regulatory environment of accounting | (a) Explain the need for regulation of accounting practice. (b) Identify the sources of regulation of accounting practice. | |
| 8 | State the roles of accountants in business and the economy. | ||
| B. Recording financial transactions | 15% | ||
| 1 | Identify source documents of accounting data and information such as invoices, receipts, credit notes, debit notes, purchase orders, goods received notes, cheque counterfoils, deposit slips, bank statements and payment vouchers. | ||
| 2 | Record and account for transactions and events relating to revenue/incomes, expenses, assets, liabilities and equity in accordance with Generally Accepted Accounting Principles (GAAP) using: (a) Books of prime entry; and (b) Cash books including internal control over cash. | ||
| 3 | Apply double entry principles to: (a) Accounting equation; (b) Basic rules of double entry book-keeping; (c) Ledger accounts entry principle; and (d) Balancing ledger accounts and extracting trial balance. | ||
| 4 | State the usefulness and limitations of trial balance. | ||
| C. Reconciliation in financial accounting | 15% | ||
| 1 | Errors and omissions | (a) Identify errors in the double entry system. (b) Identify errors not highlighted by the extraction of the trial balance. (c) Correct book keeping errors for given transactions. (d) Determine the effect of errors on profit or loss/surplus or deficit. (e) Explain the use of suspense account. | |
| 2 | Control accounts and reconciliations | (a) Explain the use of receivables control account. (b) Explain receivables control account. (c) Explain the use of payables control account. (d) Explain payables control account. (e) Explain the purpose of suppliers’ statements and their reconciliation with the ledgers. | |
| 3 | Bank reconciliation | (a) State the purpose of bank reconciliation statement. (b) Identify the causes of difference between cash book and bank statement balances. (c) Prepare bank reconciliation statement. (d) Identify and correct cash book errors. (e) Explain the use of adjusted cash book to determine the cash position in the financial statements. | |
| 4 | Accounting treatment for bad and doubtful debts | (a) Account for the write off of bad debts. (b) Account for the recovery of bad debts. (c) Determine the balance on the allowance for doubtful debts accounts. (d) Account for the movement on the allowance for doubtful debts accounts. (e) Account for movements in receivables. | |
| 5 | Accounting treatment for accruals and prepayments | (a) Explain the meaning of an accrual. (b) Account for accruals. (c) Explain the meaning of a prepayment. (d) Account for prepayments. (e) Explain the meaning of accrued and unearned incomes. (f) Account for accrued and unearned incomes. | |
| D. Accounting for transactions in the financial statements | 20% | ||
| 1 | Accounting for Property, Plant and Equipment (PPE) in accordance with IAS 16 | (a) Identify the elements of PPE cost. (b) State how PPE cost are initially recorded and measured. (c) Compute, explain and record depreciation using the straight line and reducing balance methods. (d) Account for depreciation in the statement of profit or loss and other comprehensive income. (e) Account for disposal of PPE. (f) Prepare simple notes to account for movements in PPE. | |
| E. Accounting for partnership, not-for-profit entities and incomplete records | 20% | ||
| 1 | Partnership accounts | (a) Discuss partnership business. (b) Prepare partners’ current and capital accounts. (c) Determine partners’ share of profits. (d) Account for changes in partnership (excluding amalgamation and piecemeal realization). | |
| 2 | Not-for-profit entities’ accounts | (a) Prepare receipts and payments account. (b) Prepare income and expenditure account. (c) Prepare statement of assets and liabilities. | |
| 3 | Incomplete records | (a) State the need for preparation of accounts from incomplete records. (b) Determine profit from the opening and closing capital balances. (c) Explain the use of accounting equation, gross profit percentage, cash book summaries, memoranda and control accounts to determine missing figures for financial statements. | |
| F. Financial statements | 20% | ||
| 1 | State and explain the purpose, nature and relationships among the main components of financial statements. | ||
| 2 | Accounting policies, change in accounting estimates and errors (IAS 8) | (a) Define accounting policies. (b) Explain the guidance on the selection of accounting policies. (c) Account for changes in accounting policies. (d) Differentiate between accounting policies and accounting estimates. (e) Explain how to account for changes in estimates. (f) Identify and correct prior year errors. | |
| 3 | Accounting for inventories (IAS 2) | (a) Explain the nature of inventories. (b) Explain IAS 2 requirements for valuation of inventories. (c) Explain the elements of cost of inventories. (d) Explain the valuation and recognition of inventories on the basis of lower of cost and net realisable value. (e) Explain and measure the value of inventory using first-in-first-out (FIFO) and weighted average cost (WAC). (f) Explain the impact of various valuation methods on the profit or loss for a period. (g) Explain the adjustment of opening and closing values of inventory in the financial statements. (h) Explain the use of periodic and perpetual inventory methods. | |
| 4 | Preparation of simple financial statements and supporting notes | (a) Prepare statement of profit or loss and other comprehensive income in accordance with IAS 1. (b) Prepare statement of financial position in accordance with IAS 1. (c) Prepare simple statement of cash flows in accordance with IAS 7. (d) Prepare simple statement of change in equity. | |
| Applicable accounting standards | Conceptual Framework for Financial Reporting 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 16 – Property, Plant and Equipment (PPE). | ||
| Notes | All new applicable standards may be examined after six months from the date of issue. All applicable laws may be examined after six months from date of amendment or enactment. | ||
Managers are professionals who cannot be substituted within an organisation. Management plays a pivotal role in every organisation because effective management decision helps an organisation navigate towards its set goals.
Are you an aspiring chartered accountant or a business professional seeking to become an effective manager and decision-maker within the financial or business world? If yes, then, this Management Information course is essential for you.
To be knowledgeable in management decision-making, the application of quantitative methods in financial management, and ace your forthcoming examinations as well, you should study Management Information using the updated ICAN syllabus.
Accountants play vital roles in management, especially in management decision-making. Management information deals with the production of useful information to support management decision-making. Such information includes costing, management accounting and application of quantitative methods in financial management. Management information takes an integrated approach by developing an awareness of information technology and systems support.
On successful completion of this subject, candidates should be able to:
| Syllabus for ICAN Foundation Level | |||
| Level | Foundation | ||
| Course Name | A4 – Management Information | ||
| Abbreviation | MI | ||
| A. Cost accounting | |||
| Topic | Breakdown | Marking Guide | |
| 1 | Introduction to cost accounting | (a) Describe the purpose and role of cost accounting within an organisation considering the following: (i) Definition of cost accounting; (ii) Purpose of cost accounting; (iii) Role of cost accountants; and (iv) Advantages and disadvantages of cost accounting. (b) Differentiate between cost accounting and financial accounting. (c) Outline the managerial processes of planning, decision making and control. (d) Explain the concepts of strategic, tactical and operational planning. (e) Differentiate between cost data and information. (f) Explain the attributes of good information. | 30% |
| 2 | Cost classifications, codification, segregation and estimation | (a) Cost classifications (i) Explain the meaning of cost classification. (ii) Explain the different classifications of cost. (iii) Describe different types of cost behaviour using graphical illustrations. (b) Cost codification (i) Define cost codification. (ii) Explain the principles of a coding system. (iii) Explain and illustrate the use of codes in categorising transactions. (c) Cost segregation and estimation (i) Explain the meaning of cost segregation and cost estimation. (ii) Explain the structure of linear functions and equations. (iii) Demonstrate the use of the following cost segregation techniques: Industrial engineering; Account analysis; Scatter graph; High/low analysis; and Regression analyses. (iv) Calculate and explain simple correlation coefficient. | |
| 3 | Accounting for cost elements | (a) Accounting for inventory (i) Describe the different procedures and documents necessary for material management: Ordering; Purchasing; Receiving; Storage; and Issuing. (ii) Explain inventory management and control procedures. (iii) Identify, explain and calculate relevant inventory costs. (iv) Compute optimal re-order quantities (involving quantity discounts). (v) Explain and calculate the value of closing inventory and material issues to production using LIFO, FIFO and average methods. (vi) Explain Just-In-Time (JIT). (b) Accounting for labour (i) Explain labour recording and monitoring procedures. (ii) Determine direct and indirect costs of labour. (iii) Describe different remuneration methods: time-based systems, piecework systems, and individual and group incentive schemes. (iv) Determine the level and ascertain the causes and costs of labour turnover. (v) Prepare and explain the entries in payroll accounting. (c) Accounting for overheads (i) Explain the components of overheads (ii) Distinguish amongst allocation, apportionment and absorption of overheads. (iii) Describe the bases of overheads apportionment. (iv) Apportion and re-apportion overhead costs between production and service centres (including using the reciprocal method where service cost centres work for each other and simultaneous equation method). (v) Describe the bases and procedures involved in determining production overhead absorption rates. (vi) Explain and calculate under- and over-absorption of overheads. (vii) Explain activity based costing. (i) Explain the components of overheads. | |
| 4 | Costing methods | (a.) Explain types of costing methods and compile cost using: (i) Specific order costing of: Job costing; Batch costing; and Contract costing. (ii) Process costing Determine the cost of a unit of output where there is normal loss, abnormal loss and abnormal gain. Prepare process accounts (including accounting for normal loss, abnormal loss and abnormal gain). Explain the concept of equivalent units. Determine the value of complete units and work-in-progress (WIP) using weighted average and FIFO methods. Differentiate between by-products and joint products. Estimate the value of by-products and joint products at splitoff point (the point of separation). (iii) Service costing Identify situations where the use of service/operation costing is appropriate. Illustrate suitable unit cost measures that may be used in different service/operation situations. Carry out service cost analysis in simple service industry situations. | |
| 5 | Costing techniques | (a) Explain the various types of costing techniques. (b) Prepare an income statement and determine the profit or loss under absorption and marginal costing. (c) Describe the advantages and disadvantages of absorption and marginal costing. (d) Reconcile the profits or losses computed under absorption and marginal costing. | |
| B. Forecasting, budgeting and decision making | 30% | ||
| 1 | Forecasting techniques | (a) Explain the principles of time series analysis (cyclical, trend, seasonal variation and random elements). (b) Explain the advantages and disadvantages of time series analysis. (c) Calculate moving averages; use trend and seasonal variation (additive and multiplicative) to make budget forecasts. | |
| 2 | Budgeting | (a) Explain the importance of budgeting system. (b) Describe the stages in the budgeting process. (c.) Explain the importance of principal budget factor. (d) Prepare simple functional budgets. (e) Prepare simple cash budget. (f) Prepare simple master budget. | |
| 3 | Basic variance analysis | (a) The purpose and principles of standard costing Identify types of standard and calculate the following basic variances: i. Direct material price and usage; ii. Direct labour rate and efficiency; iii. Variable production overhead expenditure and efficiency; iv. Fixed production overhead expenditure and volume; and v. Sales price and volume. (b) Explain possible causes of the variances. | |
| 4 | Cost-Volume-Profit (CVP) analysis | (a) Explain the concept of cost-volume-profit analysis. (b) Calculate break-even point, margin of safety and target profit for a single product. (c) Prepare and explain break-even chart (traditional approach, contribution approach, profit/volume approach). (d) Explain the limitations of cost-volume-profit analysis. | |
| 5 | Decision-making | (a) Explain the concept of relevant cost and revenue. (b) Explain the concept of limiting factor. (c) Describe short-term decision-making situations involving make or buy decisions using relevant cost approach. (d) Explain and calculate optimal resource allocation to a product or service based on the concept of limiting factor (single constraint/bottleneck). | |
| C. Information systems and technology | 40% | ||
| 1 | Information systems | (a) Define and explain information systems. (b) State the approaches to information systems. (c) Explain the usefulness of information systems to the following business functions. (i) Sales and marketing; (ii) Manufacturing and production; (iii) Finance and accounting; and (iv) Human resources. (d) Describe the relationship among organisations, information systems and business processes. (e) State and explain the following classifications of information systems: (i) Executive support systems (ESS); (ii) Management information systems (MIS); (iii) Decision support systems (DSS); (iv) Knowledge management systems (KMS); (v) Transaction processing systems (TPS); and (vi) Office information systems (OIS). (f) Explain the ethical, social, and political issues of information systems. (g) Explain the impact of contemporary information systems and the Internet on the protection of individual privacy and intellectual property. (h) State management challenges in developing and using information systems in organisations. | |
| 2 | Electronic business and e-commerce | (a) Explain the modern information technology infrastructure for a digital firm. (b) Identify internet platforms and the use of e-business and e-commerce. (c) Describe the technologies used for e-business and e-business models. (d) Explain the internal and external applications of e-business and e-commerce. (e) Itemise management issues associated with e-business. (f) Explain the effect of internet technology on value propositions, business models, consumer retailing and business-to-business transactions. (g) Explain e-commerce payment systems. (h) State the role of internet technology in facilitating management and coordination of internal and inter-organisational business processes. (i) Explain the challenges posed by e-business and e-commerce in transactions. (j) Explain m-commerce and its applications in business | |
| 3 | Information technology | a. Computer hardware (i) Identify and discuss different types of computer hardware. (ii) Identify and discuss computer processor, storage, input and output devices. b. Computer software (i) Explain the following: System software; Application software packages; Process of managing computer software; and Collaborative and social software. (ii) State the methods and processes of acquiring application software packages. c. Database and information storage (i) Explain the approaches to filing in an organization. (i) Define and explain a database. (iii) Explain the procedure for database purchase; design principles, warehousing and maintenance issues. (iv) Explain the database management systems (DBMS) approach. (v) Explain modern media in storing data and information. (vi) Outline the process of managing data resources. d. Cloud computing (i) Explain the infrastructure, platform and application (software service) layers of the cloud pyramid. (ii) Explain the characteristics of cloud computing. (iii) Differentiate between private and public clouds. e. Processing techniques (i) Explain and distinguish amongst multitasking, multi-processing and multi-programming. (ii) Explain centralized, decentralized and distributed processing and state their advantages and disadvantages. (iv) Differentiate between on-line and real-time processing. | |
| 4 | Organisational support systems | a. Enterprise applications Describe the following applications that support business functions: i. Enterprise resource planning (ERP); ii. Supply chain management (SCM); iii. Customer relationship management (CRM) systems; iv. Warehouse management system (WMS); and v. Enterprise content system (ECS). b. Computer forensic Define and explain computer forensic practices and applications. | |
| 5 | The role of accountants in information system development | Explain the following: (a) The system development life cycle (SDLC); (b) Alternatives to SDLC including prototyping and rapid application development; (c) System development and management considerations; (d) The impact of developing new systems on organisations; (e) Developing information systems that support an organisation’s business plan; (f) The core activities in the systems development process; (g) Alternative methods for developing information systems and alternative methodologies for modelling systems; and (h) The challenges of developing information systems. | |
| 6 | System security and control | (a) Explain the purpose for special protection from destruction, error, and abuse of information systems. (b) Explain the business value of security and control. (c) Explain the organisational and managerial frameworks for security and control. (d) Identify various system vulnerabilities and abuses. (e) State the preventive maintenance techniques and security controls. (f) Explain disaster recovery planning. (g) Explain quality control and quality assurance. (h) Outline the tools and technologies for safeguarding information resources. (i) Identify the challenges posed by information systems security and control, and management solutions. | |
As a professional accountant who wishes to ace the ICAN Business Law course in the forthcoming ICAN professional examinations, you need to have an in-depth understanding of the legal insights relevant to your field and how they work.
This course will expose you to the theoretical and non-theoretical aspects of Nigerian law and laws relevant to the public sector. You will understand how these laws affect you, your clients, and your organization. This updated ICAN syllabus is an effective resource that will help you study to know all that you should about Business Law and effectively apply them.
Accountants as business finance professionals are expected to have a sound foundation in law that is relevant to businesses and their operations. Professional accountants need a strong background in company law and laws relevant to public sector entities. All business professionals also need knowledge of how laws affect them personally and in their employment and business activities.
On successful completion of this paper, candidates should be able to:
| Syllabus for ICAN Foundation Level | |||
| Level | Foundation | ||
| Course Name | A5 – Business Law | ||
| Abbreviation | BL | ||
| A. The Nigerian legal and court systems | |||
| Topic | Breakdown | Marking Guide | |
| 1 | (i) Identify and explain sources of Nigerian law. (ii) Outline the distinction between civil law and criminal law. (iii) Differentiate between case law and statutes. (iv) Explain the hierarchy of courts in Nigeria. | 5% | |
| B Partnership, company and insolvency laws | 35% | ||
| 1 | Partnership law | (a) Explain the nature as well as types of, and the differences between a partnership and a company. (b) Describe the process by which a partnership may be formed including the preparation of relevant documents. (c) Identify the procedure for management of a partnership including the rights and duties of partners, their relationship inter se and with third parties. (d) Describe when and how a partnership may be dissolved. | |
| 2 | Company Law | (a) Outline the composition and functions of the Corporate Affairs Commission. (b) Describe the procedure for incorporation of a company, preincorporation contracts, promoters and their duties. (c) Explain the consequences of incorporation and lifting the veil of incorporation. (d) Describe the contents of a Memorandum and Articles of Association and how each can be amended. (e) State the procedures for issue of shares and debentures (corporate bonds). (f) Identify and explain ways in which the capital of a company is maintained and protected including laws relating to distribution of profits. (g) State how directors may be appointed, re-appointed, removed or in any other way cease to hold office. (h) Outline the duties of directors including fiduciary and other duties. (i) Explain the powers of directors. (j) State the consequences of a breach of duty by a director. (k) State the requirements for share transfer and disclosure of ownership. (l) Explain how shareholders can influence the composition of the board, strategy or decisions of a company. (m) Describe how meetings of shareholders can be requisitioned and how voting operates. (n) Identify the rights of shareholders to challenge the management of a company. (o) Explain issues bordering on appointment, powers, functions and removal/resignation of a company secretary. (p) Distinguish among types of meeting (statutory annual general meeting, extraordinary general meeting), notices required and resolutions. (q) Differentiate between ordinary and special resolutions. (r) Describe statutory books and practical issues that relate to record keeping and filing. (s) Explain the duties, powers and responsibilities of a company auditor, outlining the basic steps of appointment, removal and resignation. (t) Explain how a company may be wound up. | |
| 3 | Law of Insolvency | (a) Describe the differences among the types of insolvency, liquidation and receivership taking into consideration the rights of creditors and shareholders. (b) Outline the consequences of insolvency. (c) Explain the nature of and differences between fixed and floating charges. | |
| C. Criminal Law | 10% | ||
| 1 | Criminal law regulating businesses and professional accountancy practice | 1. Distinguish among laws, ethics and ethical codes. 2. State the basic laws relating to theft, fraud and deception. 3. State the basic laws relating to bribery. 4. State the basic laws relating to money laundering. 5. Explain the basic laws relating to negotiable instruments. 6. Identify situations relating to data protection and computer misuse. 7. Outline electronic evidence. 8. Explain the role of an accountant as an expert witness in fraud cases including computer fraud. | |
| D. Law of commercial transactions | 35% | ||
| 1 | Law of contract | (a) Explain the nature, framework and types of contract. (b) Describe how a contract may be made emphasizing the elements of a valid contract and how it can be enforced. (c) Explain vitiating elements and how a contract may be terminated as well as the remedies for breach of contract. (d) Describe the nature of e-contracts and outline how they can be enforced. | |
| 2 | Agency | (a) Explain the nature of an agency relationship. (b) Identify situations where agency exists. (c) Explain the duties, rights and legal capacity of an agent. | |
| 3 | Law of torts | (a) Describe negligent actions or omissions and outline their consequences. (b) Explain vicarious liability and passing off. | |
| 4 | Sale of goods | (a) Define goods. (b) Explain passing of property. (c) State the duties, rights and remedies of a seller and buyer. (d) Explain the duties and rights of a seller and buyer as well as elements of passing off in sale of property. | |
| 5 | Hire purchase | (a) Distinguish hire purchase from similar contracts. (b) State the mandatory contents of a Memorandum of hire purchase. (c) Explain the rights, duties and remedies of parties to a hire purchase contract. | |
| 6 | Insurance | Explain the nature of insurance contract, insurable interest, subrogation and contribution as well as assignment of policy. | |
| 7 | Banking and negotiable instruments | (a) Explain the duties of banks and other financial institutions. (b) Describe the powers and duties of the Central Bank of Nigeria (Reference to Central Bank Act as well as Banks and Other Financial Institutions Act. (c) Explain types of Negotiable Instrument and the duties and liabilities of parties to a bill. (d) Define bill of lading and explain its nature and operation. (e) Describe letter of credit and letter of comfort. | |
| E. Employment law | 5% | ||
| 1 | (i) Identify situations that give rise to employment contracts. (ii) State the law relating to employment, including employment contracts, duties and rights, dismissal, unfair dismissal and other claims of the employee. | ||
| F. Law of trusts and administration of estate | 5% | ||
| 1 | (i) Explain creation of trusts, the duties, powers, rights and accounts of trustees as well as the rights of beneficiaries. (ii) Explain the investments authorized by the Trustee Investment Act. (iii) Differentiate between executors and administrators and explain their duties. | ||
| G. Alternative dispute resolution mechanisms | 5% | ||
| 1 | (i) Define alternative dispute resolution (ADR) mechanisms. (ii) Explain the nature, operation, advantages and disadvantages of alternative dispute resolution mechanisms as against courtadjudicated disputes. (iii) Explain arbitration and arbitral awards. | ||
| Exemption Guidelines | ||
| SN | Academic Qualification | Exemptions |
| A | PhD (Accounting) with M.Sc. (Accounting) and B.Sc.(Accounting) | All subjects in Foundation and Skills levels |
| B | M.Sc. (Accounting) obtained from ICAN accredited institutions in addition to B.Sc. in Accounting. | All subjects in Foundation level B1.Financial Reporting B2. Audit and Assurance |
| C | M.Sc. (Accounting) obtained from ICAN accredited institutions but without B.Sc. in Accounting. | A2. Business, Management and Finance A3. Financial Accounting A4. Management Information |
| D | M.Sc. (Accounting) obtained from non-accredited institutions in addition to B.Sc. in any accounting related discipline. | A2. Business, Management and Finance A3. Financial Accounting A5. Business Law |
| E | B.Sc/HND (Accounting) obtained under the Mutual Co-operation Agreement with Tertiary Institutions (MCATI) | All subjects in Foundation and Skills Levels |
| F | ATSWA ( from year 2010) | All subjects in Foundation Level B2. Audit and Assurance |
| G | ATS II (pre-2010) | A2. Business, Management and Finance A3. Financial Accounting A4. Management Information |
| H | B.Sc./HND (Accounting) obtained from ICAN accredited Institutions in Nigeria. | All subjects in Foundation Level B2. Audit and Assurance |
| I | B.Sc./HND (Accounting) obtained from recognised institutions in Nigeria but not accredited by ICAN. | A2. Business, Management and Finance A3. Financial Accounting A5. Business Law |
| J | B.Sc./HND (Accounting)/ Masters in Accounting & Finance (MAF) obtained from foreign recognised institutions. | A2. Business, Management and Finance A3. Financial Accounting A4. Management Information |
| K | B.Sc. Economics | A2. Business, Management and Finance |
| L | B.Sc. Actuarial Science | A2. Business, Management and Finance A5. Business Law |
| M | B.Sc./HND Insurance | A2. Business, Management and Finance A5. Business Law |
| N | B.Sc./HND/B.A Business Admin/Management/Public Administration | A2. Business, Management and Finance A5. Business Law |
| O | B.Sc./HND Banking and Finance | A2. Business, Management and Finance A5. Business Law |
| P | B.Sc./HND Marketing | A2. Business, Management and Finance A5. Business Law |
| Q | MBA/MBF in addition to B.Sc./HND in non- accounting discipline | A2. Business, Management and Finance A5. Business Law |
| R | B.Sc. (Ed.) Accounting or B.Ed. Business Education (Accounting option) | A2. Business, Management and Finance A3. Financial Accounting A5. Business Law |
| S | B.Ed. Education Management (Accounting Option) | A2. Business, Management and Finance A5. Business Law |
| T | B.Ed. Business Education | A2. Business, Management and Finance |
| U | B.Sc./B.A Commerce | A2. Business, Management and Finance A5. Business Law |
| V | B.Sc./HND Cooperative and Rural Development | A2. Business, Management and Finance A5. Business Law |
| W | LL.B/LL.M/LL.D | A5. Business Law |
| Professional qualifications | ||
| SN | Qualifications | Exemptions |
| A | Associate Chartered Institute of Bankers of Nigeria (ACIBN) | All subjects in Foundation level except Taxation |
| B | Associate Institute of Financial Services, UK (Formerly Chartered Institute of Bankers, London) | A2. Business, Management and Finance A3. Financial Accounting |
| C | Associate Chartered Institute of Stockbrokers of Nigeria (ACIS) | A2. Business, Management and Finance A3. Financial Accounting A5. Business Law |
| D | Associate Institute of Chartered Secretaries and Administrators (AICSA) | A2. Business, Management and Finance A3. Financial Accounting A5. Business Law |
| E | Associate Chartered Institute of Insurance of Nigeria (ACIIN) | A2. Business, Management and Finance A5. Business Law |
| F | Associate Chartered Institute of Taxation of Nigeria (ACITN) | All subjects in Foundation level except Management Information |
| G | Certified National Accountant of Nigeria (CNA) | All subjects in Foundation and Skills levels |
| H | Federal Treasury Academy with effect from 1987 (Formerly Federal Treasury Training School) (EMA) | All subjects in Foundation Level B2. Audit and Assurance |
| I | ICAEW | All subjects at all levels |
| J* | CIPFA, UK | All levels except the following subjects in each of the levels: A5. Business Law C4. Advanced Taxation |
| K* | CIMA, UK | All levels except the following subjects in each of the level: A5. Business Law B5. Public Sector Accounting & Finance C2. Advanced Audit and Assurance C4. Advanced Taxation |
| L* | ACCA, UK CPA, USA ICAS, UK ICAI, UK | All levels except the following subjects in each of the levels: A5. Business Law B5. Public Sector Accounting & Finance C4. Advanced Taxation |
| M | AIA (Final) with effect from 1994 AAT (UK) | A2. Business, Management and Finance A3. Financial Accounting A4. Management Information B2. Audit and Assurance |
| N | AIA (Pre-1994) | A2. Business, Management and Finance A3. Financial Accounting A4. Management Information |
Exam registration fee for the Foundation-level of ICAN depends on the number of courses you want to register for. Writing 4 courses at this level will cost you N48,510. See fee breakdown here:
There are five courses in the foundation level of ICAN. They are; Taxation, Business, Management, and Finance, Financial Accounting, Management Information, and Business Law.
Candidates must register online for the examinations. Visit the institute’s website for guidelines on students’ registration.
The Foundation level examinations can be completed in one diet sitting. Candidates writing the examinations may register for any number of papers at a level and shall be credited with each paper passed. However, they are expected to complete the examination at a level before attempting papers at a higher level.
ICAN examination is done twice a year, usually in May and November. However, registration for the exam starts 3 months before the exam dates.
The pass mark for each paper of the ICAN examination is 50%.
You can choose “self-study” or attend tutorials. It is advised that you study for the exams using the updated ICAN syllabus which available at syllabus.ng.
Yes, Graduates with a B.Sc or HND in Accounting obtained from ICAN-accredited institutions or obtained under the Mutual Co-operation Agreement with Tertiary Institutions (MCATI) are exempted from all or some courses in the foundation level. Please check academic and professional exemption sections for more information
