Accounting and Business

Learning Outcomes, Assessment Criteria and Indicative Content
Learning Outcome –
The learner will:
Assessment Criterion –
The learner can:
Indicative Content
1.Understand the concept and purpose of
academic research and writing.
1.1 Explain what is meant by the term ‘academic
research and writing.’
1.2 Explain different academic writing
conventions.
1.3 Discuss different types of academic
research.
●Seeking the truth
●Adding to knowledge
●Academic language
●Paragraphs and argument flows
●Paraphrasing
●Writing to word counts


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
●Descriptive research
●Associational research
●Intervention research
●Validity and reliability of research
2. Understand how to conduct academic research.2.1 Compare different sources of information and
evidence.
2.2 Explain the research process.
2.3 Differentiate between primary and secondary
research.
●Journals
●Textbooks
●Conferences
●Government data
●Research as a linear process
●Primary research – seeking new
information
●Secondary research – reviewing
existing information
3. Be able to demonstrate critical thinking skills.
3.1 Explain what is meant by the term ‘critical
thinking.’
3.2 Explain different critical thinking skills.
3.3 Explain why critical thinking is important in
academic research.
3.4 Explain how to apply techniques to evaluate
an argument.
●A systematic approach to
evaluating arguments.
●Critical reading
●Analysis and interpretation
●Being open-minded
●Self-regulation
●Objective v subjective
●Promoting creative
●Improving language and
presentation skills


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
●Thinking ‘outside the box’
●Argument coherence
●Evidence testing
●Validity testing
4. Understand how to construct a reliable and valid
academic argument.
4.1 Explain the key components of a reliable and
valid academic argument.
4.2 Differentiate between inductive and
deductive reasoning.
4.3 Suggest an argument structure for a given
topic.
●Evidence
●Premise (nature of academic
argument)
●Conclusion
●Inductive uses generalisation
●Deductive uses known evidence
and information
●Logical argument structures
Assessment
●To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet
the standards specified by all assessment criteria.
Learning Outcomes to be metAssessment Criteria to be coveredAssessment typeWord count (approx. length)
All 1 to 3 All ACs under LO 1 to 3 Coursework 2250 words
LO4 AC4.1, 4.2, 4.3 Presentation 10-minute presentation (750 words equivalent)
Indicative Reading List


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
●Bailey, S. (2017) Academic Writing: A Handbook for International Learners 5th edition, Routledge, London
●Cotrell, S. (2019) The Study Skills Handbook 5th edition, MacMillan, London
Additional Resources
●Journal of Academic Research
●Journal of Academic Writing
●An Intermediate Guide to Writing in English for University Study


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
BUSINESS AND THE ECONOMIC ENVIRONMENT

Learning Outcomes, Assessment Criteria and Indicative Content
Learning Outcome –
The learner will:
Assessment Criteria –
The learner can:
Indicative content
1.Understand different types of
businesses.
1.1Explain the different types of business
sectors.
1.2Compare different types of businesses.
1.3Explain the advantages and disadvantages
of different organisational structures.
1.4Explain the financial reporting requirements
for different types of business.
●Business Sectors:
oPrimary sector
oSecondary sector
oTertiary sector
oQuaternary sector
●Types of Business
oSole traders
oPartnerships


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
oPrivate limited companies (Ltd)
oPublic limited companies (PLC)
oProfit
oNot for profit
oNon-government (NGOs)
oMicro businesses
oSMEs,
oNational and multinational businesses
●Different Structures
oHierarchic structure
oBureaucratic structure
oMatrix structure
oFlat structure
oOrganisation structure chart
●Advantages and disadvantages: relating to
control, decision-making, financing, borrowing,
liability, profit-sharing, taxation, legal status (e.g.
veil of incorporation).
●Financial reporting requirements: responsibilities
for record-keeping and reporting.
2.Understand the influence of the
internal and external environment
on a business.
2.1Assess the needs, interests and influence
of a business’ stakeholders.
2.2Explain the features and influence of
globalisation on a business.
2.3Apply a technique to assess the internal
environment of a business.
2.4Apply a technique to assess the external
environment of a business.
●Business Stakeholders: represent the views of
those at the business or enterprise operations
level i.e. business goals, strategies, objectives,
targets, and key concerns about successes,
challenges, issues, risks, and problems
●Features of globalisation (international trade in
goods and services; international movement of
capital, global technology and digital
communications; trading blocs, international
currency exchange; international specialisation,


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
international movement of labour, multi-national
and transnational corporations; joint ventures;
outsourcing)
●Internal environment: internal factors, functions,
stakeholders, organisational culture
●Establishing a business’s capabilities
●Supporting strategic intent
●Planning for the future
●SWOT/TOWS
oStrengths: for example, market share,
reserves, innovation, brand
oWeaknesses: for example labour turnover,
lack of workforce skills, motivation
oOpportunities: for example technology,
overseas markets, product development
oThreats: rising costs, competitive rivalry, new
entrants, pressure groups, social trends,
government policies
●Capacity assessment grid
●McKinsey’s 7S framework
●Other relevant frameworks
●External factors, drivers and stakeholders
●Local, national and international cultures
●Establishing market position
●Recognising opportunities


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
●Preparing for change
●PESTLE analysis:
oPolitical (changes in government and
government policies, taxation, political
stability, industry regulations, global trade
agreements and restrictions);
oEconomic (government economic priorities
and policies, economic growth, economic
decline, exchange rates, inflation, interest
rates, consumer spending, labour costs);
oSocial (culture, lifestyle, career and life
expectations, consumer trends, fashions);
oTechnological (new technologies, use of
technology, impact of technology on industry,
individual businesses and the individual and
organisation);
oLegal (Changes in legislation and regulation
e.g. health and safety, employment
legislation, equality legislation, consumer
legislation, data protection);
oEnvironmental (corporate social
responsibility, consumer opinion, ethical
trading, fair trade, organic, sustainability,
responsibilities, legal requirements e.g. water
use, waste and carbon emissions).
●Ansoff matrix
3.Understand how macro-economic
factors impact a business.
3.1Compare key macro-economic factors.
3.2Describe the key components of aggregate
demand.
3.3Explain the term ‘circular flow of income.’
3.4Discuss how changes in aggregate
demand in the economy impact on the level
●Key factors and importance of and impact on
business: markets (perfect competition,
monopoly, monopolistic competition, oligopoly);
competitive advantage (strategies adopted
by firms, regulation of competition, supply and


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
of economic activity of a business. demand, elasticity of demand and supply,
customer perceptions and actions, pricing);
concepts-monetary and fiscal policies, market
structure, competition policies.
●Aggregate demand: relationship between the
total quantity of goods and services demanded
(from all the four sources of demand) and the
price level, all other determinants of spending
unchanged. The aggregate demand curve is a
graphical representation of aggregate demand.
●A circular flow of income: economic model that
describes how the money exchanged in the
production, distribution, and consumption of
goods and services flows in a circular manner
from producers to consumers and back to the
producers
●Injections and withdrawals from the circular flow
of income; government expenditure and taxation;
the impact of changes in consumption and the
level of investment on employment and the price
level (inflation); the impact of full employment of
changes in aggregate demand
4.Understand how micro-economics
factors impact on a business.
4.1Compare key micro-economic factors.
4.2Explain how prices are determined in a
perfectly competitive market.
4.3Explain how changes in the conditions of
supply and demand influence equilibrium
price.
4.4Explain how imperfect markets can have
an impact on the level of output and prices
charged by a business.
●Micro-economic factors and importance to and
impact on businesses: cost and output decisions;
economies and diseconomies of scale; short and
long run; multi-national and transnational
corporations; joint ventures; outsourcing; core
markets; Labour (employee skills, markets);
technology; innovation; research and
development; core competencies; business
environment (political, economic, social,


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
technical, legal, environmental); cultural
environment.
●Features of perfect competition and the
determination of equilibrium price (demand and
supply analysis)
●Changes in the conditions of supply and demand
and their impact on price and output in a
perfectly competitive market;
●Elasticity of demand and supply imperfect
markets (monopoly, monopolistic competition,
oligopoly); regulation of markets to promote
competition; strategies adopted by firms to
achieve a competitive advantage (price and non-
price strategies); cost and output decisions;
economies and diseconomies of scale; Short and
long run business decisions
Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.
Learning Outcomes to be met Assessment Criteria to be coveredAssessment type Word count (approx. length)
All 1 to 4 All ACs under LO 1 to 4 Coursework 3000 words
Indicative Reading List
Capon C. (2009) Understanding the Business Environment 3
rd
Edition, Financial Times
Sloman, J. and Hinde, K. (2007). Economics for Business; 4
th
edition, Harlow: Pearson Education
Wetherly, P. and Otter, D. (2008). The Business Environment, Oxford: Oxford University Press


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
PRINCIPLES OF FINANCIAL ACCOUNTING

Learning Outcomes, Assessment Criteria and Indicative Content
Learning Outcome –
The learner will:
Assessment Criteria –
The learner can:
Indicative content
1.Understand why businesses need
to establish financial record-
keeping systems.
1.1Explain the need for financial record-
keeping.
1.2Explain the importance of liquidity and
solvency in business.
1.3Explain the accounting equation.
1.4Explain how to record financial transactions
using the double-entry method of
bookkeeping.
●Need for financial record-keeping:
oto monitor revenue and costs
oto calculate what the business is worth
oto calculate profit
oto prepare the financial statements
ofor submitting financial returns to the tax
authorities
oto set and monitor financial targets
oto instigate efficiency savings


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
oto monitor and communicate financial
performance to stakeholders
oto present financial summaries to potential
lenders and investors
●Liquidity and solvency:
othe concept of liquidity and its importance to
business; current assets, current liabilities and
net current assets (working capital)
othe difference between liquidity and solvency
ocash flow and the preparation and analysis of
a cash flow forecast
●The accounting equation:
othe meaning of assets, equity and liabilities;
oassets = equity + liabilities
orecording financial transactions involving
changes in assets liabilities and equities
●The double-entry bookkeeping method:
oThe principles of double-entry bookkeeping
oT-accounts and the rules of double-entry
oThe treatment of purchases, expenses, assets,
revenue, liabilities and sales
oEntering financial transactions into the
accounts
2.Be able to account for year-end
adjustments.
2.1Examine the purpose and importance of
end of year adjustments in the preparation
of final accounts.
2.2Calculate the value of revenue and cost of
sales, for given data, over the accounting
period.
2.3Calculate year-end adjustments, for given
data, to account for irrecoverable debts and
provisions for doubtful debts.
●Year-end adjustments: changes that need to be
made to the balance sheet and profit and loss
statement in order to ensure that the year-end
reports are an accurate reflection of the
company’s accounts, a company can conclude
the overall financial position of the business for
their financial year, which is sometimes referred to
as being able to “close the books.”


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
2.4Calculate year-end adjustments, for given
data, to account for accruals and
prepayments when preparing the financial
statements.
2.5Calculate the cost of depreciation from
different methods of depreciation for given
data.
●Importance ie legal obligation to do so for all
limited companies, will help shareholders and
directors as it understand how business has
performed, avoid tax overpayment etc.
●Calculate the value of sales revenue and cost of
sales:
oRevenue: taking into the value of account
sales returns
oCost of sales: opening and closing
inventory, returns out and carriage inwards
oIrrecoverable and doubtful debts: writing off
irrecoverable debts; provision for doubtful
debts based on aged trade receivables
(debtors) schedule.
●Accruals and prepayments: identifying items giving
rise to prepayments and accruals e.g. utility bills,
rents, wages, insurance, professional fees.
●Depreciation is a way for businesses to allocate
the cost of fixed assets, including buildings,
equipment, machinery, and furniture, to the years
the business will use the assets.
3.Be able to prepare financial
reporting statements for different
types of organisations.
3.1Explain the purpose of preparing final
accounts for sole traders and partnerships.
3.2Prepare final accounts, including relevant
adjustments, for a specific sole trader
business.
3.3Prepare final accounts, including relevant
adjustments, for a specific partnership
business.
3.4Analyse the financial statements of a
selected business.
●Purpose of preparing accounts: for tax purpose, to
ascertain profit, to secure external finance, to
report to investors, to monitor and assess the
performance of the business, to determine the
financial viability of the business, to identify
potential issues which may need to be addressed.
to inform future business plans
●The conceptual accounting framework: principles
underlying the conceptual accounting framework:


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
trust in the information provided; easy to
understand; provides the right information; ability
to compare one business to another accounting
concepts: business entity; going concern;
accruals; duality; consistency; realisation;
prudence; materiality
●Application of relevant accounting standards, for
example, IASs and IFRSs.
●Prepare financial statements:
oPreparation of Financial Statements
to include revenue/sales; sales returns;
purchases; purchase returns; carriage on
purchases; opening and closing inventory;
adjustment for drawings of goods, cost of
sales; gross profit.
oYear-end adjustments: depreciation
prepayments and accruals; irrecoverable debts
/ provision for doubtful debts / aged trade
receivables (debtors) schedule.
oStatement of Profit or loss (Income statement)
oStatement of Financial Position
4.Understand how professional
characteristics and ethical
principles are applied and
regulated in an accountancy
context.
4.1Explain the professional characteristics and
ethical principles exhibited by an
accountant.
4.2Evaluate the impact of a breach of ethics
on accountants and business
organisations.
4.3Explain the role of regulatory bodies for
accountancy in a specific country.
4.4Identify the requirements for external audit
and the basic processes undertaken.
●Key principles:
oprofessional characteristics (autonomy,
accountability, ethical behaviour, specialised
knowledge, adheres to codes of professional
conduct, licenced to practice, represented
by/membership of professional bodies);
opractices accountants should comply with to
ensure ethical standards of behaviour are met;
application of an ethical code; whistleblowing;
principles-based approaches v rules-based
approaches to ethics.


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
●Impact of breach of ethical principles: impact on
accountants and businesses; legal implications ie
money laundering, false accounting etc; (including
fines, imprisonment); difficulties in monitoring and
identifying; damage to reputation; implications for
professional body membership, whistleblowing,
conflicts of interest
●Role of regulatory bodies and professional
associations:
●The role of the International Accounting Standards
Board (IASB); the purpose of International
accounting standards (IAS) and their relationship
to the conceptual accounting framework
●The role of domestic (own country) regulatory
bodies and their influence on accounting practice;
data protection and money laundering regulations;
impact on accountants of breaching regulations
●Professional associations: standard setting;
reasons standards are required; examinations,
licence to practice, domestic (own country) and
international accounting standards; monitoring and
enforcement
●External audits: "full assurance" to investors and
financial market participants that a company's
accounting records are "fair," complete and in
adherence with generally accepted accounting
principles, industry standards and regulatory
requirements.
●The relationship between the Board of Directors,
external auditors and shareholders in a public


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
limited company.
Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.
Learning Outcomes to be metAssessment Criteria to be coveredAssessment type Word count (approx. length)
All 1 to 4 All ACs under LO 1 to 4
Coursework / Preparation of Financial
Statements
3000 words
Indicative Reading List
Wood, F Sangster, A (2004) Business Accounting; Volume 2 (10
th
edition), FT Prentice Hall
Atrill P & McLaney E (2007) Accounting & Finance for Non-specialists; 6
th
edition. Financial Times/ Prentice Hall.
Atrill P & McLaney E (2021) Financial Accounting for Decision-Makers 10
th
Edition (Pearson)
Drury, J. C. (2007) Management and Cost Accounting; 7
th
edition, Chapman and Hall.


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
QUANTITATIVE METHODS IN A BUSINESS CONTEXT

Learning Outcomes, Assessment Criteria and Indicative Content
Learning Outcome –
The learner will:
Assessment Criteria –
The learner can:
Indicative contents
1.Be able to use numerical
techniques in a business context.
1.1Apply numerical techniques in a business
context.
1.2Perform calculations to inform business
decision making.
●Data analysis in business : to determine trends;
identify the relationship between variables
including price and demand; analyse costs,
forecast future performance, analyse consumer
behaviour, measure the impact of management
actions, analyse business performance against
targets and business competitors
●Numerical techniques: application of the rules


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
of numeracy in a business context to whole
numbers, fractions and decimals; calculation of
measures of central tendency (mean, median
and mode) measures of dispersion (range,
quartile range, standard deviation) positive and
negative correlation between two variables,
estimating and forecasting ; percentages;
approximating data using rounding; significant
figures; interpret data including index numbers
over a specific time period, transpose and
evaluate formulae; simple financial transactions
involving purchases, wages, taxation,
discounts; simple and compound interest;
straight-line and reducing balance depreciation;
calculations involving foreign currency involving
changes in exchange rates (conversion,
transaction and commission costs)
2.Be able to construct and use
graphs, charts and diagrams for
informed decision making.
2.1Draw charts and diagrams derived from tabular
accounting data.
2.2Plot graphs, applying the general rules and
principles of graphical construction.
2.3Interpret mathematical graphs of accounting
data.
●Draw charts and diagrams: Methods of data
presentation; charts and diagrams derived from
tabular data.
●Plot graphs: mathematical graphs; graphing
quadratic, identifying dependent/independent
variables.
●Interpret graphs: interpretation of graphical data
in business; identifying misrepresentations of
graphical data; use graphical information to
support decision making.
3.Understand how business and
management data is used to
inform business decision making.
3.1Compare different types of business and
management data.
3.2Represent and interpret business and
management data.
3.3Identify appropriate methods for communicating
business and management data to
●Different types of data and management
information:
oquantitative and qualitative data;
odiscrete and continuous data
ocumulative data


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
stakeholders. ogrouped and ungrouped data.
oraw data and the notion of management
information as processed data used in
decision-making
●Analyse business data: analyse business data
to identify trends and relationships between
business variables including costs, revenue and
profits
●Use outcome numerical analysis to inform
business decisions: including decisions relating
to price, output, costs, performance, quality.
●Determine and interpret statistics: measures of
central tendency (e.g. mean, mode and
median) and their correct selection and
application; calculation of averages for different
types of data/data sets; measures of
dispersion; limitations of statistics; identifying
misuse of statistics.
●Communicate the outcome of an analysis of
management information to business
stakeholders:
●Internal stakeholders (including Directors,
managers and the workforce)
●External stakeholders (including potential
investors, lenders and suppliers)
●Communication to take account of the needs of
different stakeholder groups.
●Different written report formats, e.g. formal or
informal, and their appropriateness for


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
audience and content.
●Different types of presentations including
choice and use of appropriate software to
include textual, graphical and pictorial
elements.
●Use of handouts and summary sheets.
●Use of tables, graphs, charts, diagrams:
●Creation of pictograms, pie charts, bar charts,
frequency curves, histograms, line graphs,
scattergrams.
●Making use of scattergrams or scatter (XY)
graphs and linear trend lines: extrapolation for
forecasting (reliability).
●The use of tables to simplify and rationalise the
presentation of data to aid understanding of the
information within that data.
●The use of appropriate formats, e.g. one-way
tables, two-way tables.
Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.
Learning Outcomes to be met Assessment Criteria to be coveredAssessment type Word count (approx. length)
All 1 to 3 All ACs under LO 1 to 3 Coursework 3000 words
Indicative Reading List


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
Dewhurst, F. (2006). Quantitative methods for Business and Management; (2
nd
edition). McGraw-Hill Education
McGraw-Hill Morris, C., (2012). Quantitative Approaches in Business Studies. 8th Ed., Prentice Hall
Anderson D. et al (2019). Essentials of Statistics for Business and Economics 9
th
Edition, South-Western College Publisher


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
MANAGEMENT ACCOUNTING

Learning Outcomes, Assessment Criteria and Indicative Content
Learning Outcome –
The learner will:
Assessment Criteria –
The learner can:
Indicative content
1.Understand the functions of
management accounting in
business.
1.1Define management accounting,
1.2Explain requirements for various management
accounting systems used in business.
1.3Explain the function of cost accounting in
business accounting.
1.4Explain the relationship between cost
accounting and management accounting.
1.5Explain how cost accounting, management
account and financial accounting are
coordinated to aid effective decision-making in
business.
●Management accounting: analyses the data
on costs produced by the cost accounting
function; produce management information for
decision-makers relating to budget-setting and
monitoring, cash flow forecasting, finance
costs of borrowing, inventory management
costs, capital project appraisal and investment
appraisal to determine costs and returns over
time; costing and pricing decisions to
determine the break-even point and the
margin of safety.


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
●Different types of management accounting
systems: Cost-accounting systems, inventory
management systems, job-costing systems
and price-optimising systems. Benefits of
different types of systems.
●Cost accounting
●Why decision-makers need information on
business costs
●Classification and calculation of business
costs (fixed costs, variable costs, overhead
costs, , semi-variable costs, step costs, direct
costs, indirect costs, average costs, total
costs)
●Calculate costs from source documentation
including purchase requisition forms,
purchase order, delivery note, goods received
note, supplier’s invoice, stores requisition
●The need for cost control and the identification
of cost centres, cost codes and budgets
●create a simple cost coding system (6 digit)
●Differences between management account
and financial accounting:
onature of reports produced
ostakeholders served
olevel of detail;
oregulations
oreporting intervals
o time orientation


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
orange and quality of information
●The relationship between cost accounting,
management accounting and financial
accounting:
●Differences between management account
and financial accounting: including nature of
reports produced; stakeholders served; level
of detail; regulations; reporting intervals; time
orientation; range and quality of information
●Long-term strategic planning: information
provided by the accounting functions to
decision-makers and strategic managers to
determine strategic objectives
●Operational plans: enable targets to be set at
a departmental(functional level)
●Tactical decision-making: identify potential
immediate challenges relating to cost control
and budgets; contribution of tactical decisions
to changes in the external environment
2.Understand the importance of
budgeting, working capital
management and accounting for
depreciation.
2.1Explain the contribution of budgeting-setting
and monitoring to business performance.
2.2Explain the advantages and disadvantages of
different types of budget-setting.
2.3Explain how to apply the techniques for
managing working capital management.
2.4Explain the methods used to depreciate non-
current assets.
●Budget-setting and monitoring:
othe purpose of budgeting
obudget-setting, business planning and
resource allocation to support business
objectives
otypes of budgets:
oadvantages and disadvantages of different
types of different types of budgets
incremental, zero-based, fled budgets
obudget-monitoring as management tool


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
●Working capital management:
othe importance of liquidity in a business
othe difference between liquidity and
solvency
ocalculate net current assets (current
assets – current liabilities)
ocalculate and interpret liquidity ratios
(current ratio; acid test ratio)
oprepare a cash flow forecast from given
data and analyse the implications for the
business
ocalculations of depreciation using the
straight-line and reducing balance
methods
3.Be able to calculate standard
costs and budget variances.
3.1Explain the purpose of standard costing for a
selected organisation.
3.2Calculate standard costs for given data.
3.3Calculate variances for given data.
3.4Discuss the advantages and limitations of
standard costing.
●The meaning of standard costing: types of
standards (ideal and attainable)
●Calculation of variances:
oThe difference between an adverse
variance and a favourable variance
omaterial variances (price and usage);
olabour variances (rate and efficiency);
ototal fixed overhead variance; and
●Advantages and limitations of standard
costing:
oAdvantages: for example better cost
control, information for control and
decision making, easier inventory
measurement, easier record keeping
Limitations: including determining variances
may be more difficult; exceptions may not be
reported; management by exception can lower


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
employee morale.
4.Understand how to apply break-
even analysis in different contexts.
4.1Explain how to calculate break-even analysis
using formula.
4.2Explain how a business organisation can
apply cost, volume and profit analysis.
4.3Explain the limitations of break-even analysis.
●Break-even analysis
oConstruct a break-even chart from fixed
costs, variable costs and revenue
oAnalyse in a graphical format the impact
on the break-even point of a change in
fixed costs variable costs price
●Calculate the break-even point by formula
oThe margin of safety and its implications
for a business
●Contribution
ocalculation of the contribution per unit
●The use of break-even analysis:
oto determine the number of units which will
cover costs;
oto avoid losses
oto determine the margin of safety;
oto identify the impact of changes in costs
and price on the break-even point
oto determine the relationship between
costs, revenue and profit at different levels
of output
●The limitations of break-even analysis:
othe assumption that the business will sell
all stock at the same price
ovariable costs could change regularly
onew entrants into the market may result in
price competition
othe cost-revenue-output relationship may
not be linear.


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.
Learning Outcomes to be met Assessment Criteria to be coveredAssessment type Word count (approx. length)
All 1 to 4 All ACs under LO 1 to 4
Coursework / Preparation of Financial
Statements
3000 words
Indicative Reading List
Drury, JC. (2007) Management and Cost Accounting; 7
th
edition, Chapman and Hall.
Horngren C.T. Introduction to Management Accounting, 16
th
edition (Pearson)
Izhar, R. Hontoir, J. Accounting, Costing and Management; 2
nd
rev. edition. Oxford University Press
Randall, H. (2005) AS and A Level Accounting, Cambridge University Press
LEADING AND MANAGING TEAMS

Learning Outcomes, Assessment Criteria and Indicative Content
Learning Outcome –
The learner will:
Assessment Criteria –
The learner can:
Indicative Content
1.Understand leadership and
management theories.
1.1Differentiate between leadership and
management.
1.2Explain key leadership theories.
1.3Explain key management theories.
●Soft leadership (inspiration, motivation)
●Hard management (policymaking, planning)
●Difference between leader and manager
●Leadership Theories
●Trait theory
●Behaviour theories,
●Autocratic style, Democratic style, Laissez-faire
style
●Situational theory
●Contingency theory
●Transactional vs transformational
●Leadership management schools/approaches
●Scientific management
●Bureaucratic management
●Human relations
●Systems management


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
●Situational theories
2.Understand how teams are
developed.
2.1Explain what is meant by the term ‘team
development.’
2.2Explain what is meant by the term ‘high
performance team.’
2.3Compare different team development models.
●Aligned goals
●Mutual trust and respect
●Collaboration
●Effective communication
●Tuckman’s model of team stages: forming,
storming, norming, performing.
●Adair’s task, team, individual framework
●McGregor’s X/Y theory: authoritarian (Theory
X) and participative (Theory Y)
3.Understand how to improve
individual and team performance.
3.1Explain techniques used to improve individual
and team performance.
3.2Explain the importance to an individual of
improving own performance.
3.3Explain the importance to a business of
effective individual and team performance.
3.4Discuss the role of motivation theories in
improving individual and team performance.
3.5Explain the contemporary challenges of leading
and managing staff.
●SMART: Specific, Measurable, Achievable,
Realistic, and Timebound goals
●Training and development
●Appraisals
●Coaching and mentoring
●Develop own skills
●Enhanced promotion opportunities
●Increased productivity
●Increased quality
●Maslow’s hierarchy of needs: physiological,
safety, social, esteem and self-actualisation


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
●Herzberg’s 2 factor theory: Motivating factors;
causes employees to work harder. Hygiene
factors: absence of hygiene factors will cause
employees to work less hard.
●Vroom’s expectancy theory: employee's
motivation is an outcome of how much an
individual wants a reward (Valence), the
assessment that the likelihood that the effort
will lead to expected performance
(Expectancy) and the belief that the
performance will lead to reward
(Instrumentality).
●Contemporary challenges including:
oDiversity and inclusion
oRegulations and legislation
oImpact of new technology
oNeed for flexibility in job roles
oDealing with the implications of societal
changes and trends
oWorkforce expectations
4.Be able to determine own capacity
to be an effective leader and
manager.
4.1Apply techniques to determine own capacity to
be an effective leader and manager.
4.2Assess own ability to improve knowledge and
skills to be an effective leader and manager.
●Personal SWOT
●Leadership/management assessments
●Myers Briggs Type Indicator (MBTI)
●Emotional intelligence assessment
●Reflective journals
●Reflective statements


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.
Learning Outcomes to be met Assessment Criteria to be coveredAssessment type Word count (approx. length)
All LO1, LO3 All ACs under LO1 and LO3 Coursework 3000 words
LO2 AC 2.1, 2.2, 2.3 Presentation 10-minute presentation equivalent
to 750 words
LO4 AC 4.1, 4.2 Reflective log 500 words
Indicative Reading List
Adair, J. (2018) Develop Your Leadership Skills: Fast, Effective Ways to Become a Leader People Want to Follow, Kogan Page, London
Kelly, P. and Cole, G. (2020) Management: Theory and Practice 9th edition. Cengage, Boston
Additional Resources
Journal of Leadership & Organisational Studies
Journal of Management


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
LEVEL 5 UNIT SPECIFICATION


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
PRINCIPLES AND CONCEPTS OF BUSINESS STRATEGY

Learning Outcomes, Assessment Criteria and Indicative Content
Learning Outcome –
The learner will:
Assessment Criteria –
The learner can:
Indicative Content
1.Understand the principles of
business strategy.
1.1Explain what is meant by the term ‘business
strategy’.
1.2Compare different levels of business strategy.
1.3Compare elements of a strategic framework.
1.4Explain strategy development processes.
●Strategy:
oOperational strategy
oTactical strategy
oCorporate strategy
●Elements:
oVision
oMission
oObjectives


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
oStrategy
●Approach
●Tactics
●Deliberate strategies
●Emergent strategies
2.Understand key business strategy
theories and concepts.
2.1Differentiate between different types of
business strategies.
2.2Compare the elements of a strategic
management process.
2.3Discuss key organisational theories which
impact business strategy.
●Types:
oGrowth strategies
oDiversification strategies
oCost leadership strategies
oHybrid strategies
●Planning – execution and monitoring – review
and adjust
●Scientific management
●Bureaucratic management
●Human relations
●Systems management
3.Understand a business’s strategic
options.
3.1Explain what is meant by the term ‘strategic
option.’
3.2Compare different strategic options available to
a business.
3.3Recommend a relevant strategic option which a
business could implement.
●Joint ventures
●Market penetration
●Vertical/horizontal integration
●Internationalisation
●Merger/acquisition
●Diversification


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.
Learning Outcomes to be met Assessment Criteria to be coveredAssessment type Word count (approx. length)
All LO1 to 2 All ACs under LO 1 to 2 Report 2000 words
LO3 AC3.1-3.3 Presentation 10 min/1000 words
Indicative Reading List
Johnson, G. et al (2019) Exploring Strategy 12
th
edition, Pearson, Harlow
Whittington, R. et al (2020) Fundamentals of Strategy 10
th
edition, Pearson, Harlow
Additional Resources
Journal of Business Strategy
Management Help


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
FINANCIAL MANAGEMENT

Learning Outcomes, Assessment Criteria and Indicative Content
Learning Outcome –
The learner will:
Assessment Criteria –
The learner can:
Indicative content
1.Understand the functions of
financial management.
1.1Explain the scope and control of financial
management and control in business.
1.2Explain the objectives of financial management
in business.
1.3Explain the operational functions of financial
management in a business.
●Financial management scope and control:
oInvestment decisions in non-current
assets and net current assets (working
capital)
oFinancial decisions: raising finance
oProfit distribution decisions: retained
profit; distributed profit; dividend payable
decisions
●Objectives:


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
oSecure supply of funds to the business
oEnsure adequate returns to shareholders
oObtain optimum return on funds invested
taking into account risks and business
needs
oDetermine the capital structure of the
business
●Functions:
oThe investment of business resources
(treasury management)
oEstimate capital requirements
oSource business finance
oMoney management (working capital
management and cash flow)
●Financial control
2.Understand working capital
management.
2.1Explain the nature, elements and importance
of working capital in a business.
2.2Evaluate how a business assesses its working
capital requirements and funding strategies.
2.3Analyse ways in which a business can manage
its working capital requirements.
●Nature, elements and importance of working
capital: definition of working capital;
characteristics of working capital; elements of
working capital; objectives of working capital
management (liquidity, profitability); conflict
between liquidity and profitability; role in
financial management; importance for
different types of business organisations to
include (sole trader, partnership, private
limited company, public limited company,
third sector organisations).
●Assessment of needs and funding strategies:
calculating working capital requirement:
working capital cycle; terms of trade;
investment in current assets; liquidity of
assets; funding strategies (permanence of


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
current assets; long and short term finance;
matching principle; attitude to risk.
●Management of working capital: cash
operating cycle; use of ratios (current, quick,
inventory turnover, debtor turnover, sales
revenue to working capital); inventory
management (e.g. economic order quantity,
just in time); managing accounts receivable
(establishing creditworthiness, collection of
debt; settlement incentives; factoring and
discounting); managing trade credit;
managing cash (cash flow forecasting , using
short term investment).
3.Understand how capital is
structured in a business.
3.1Explain the factors that determine the capital
structure of a business.
3.2Explain the factors which lead to the
undercapitalisation and overcapitalisation of a
business.
3.3Explain the impact of undercapitalisation and
overcapitalisation on financial management
strategy.
●Capital structure:
oTypes of securities (shares and
debentures)
oGearing
●Factors determining capital structure:
●Features of equities (ordinary shares),
preference shares (cumulative preference
shares and participating preference shares),
debentures; the impact of these sources of
finance on the flexibility of control within the
business
●Gearing ratio and its meaning
●The need for finance from investors: the mix
of equities, preference shares and
debentures which will attract investors with
different approaches to risk


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
●Capital market conditions: share piece
valuations on the open market
●Market share and sales turnover and sales
volume
●Type and size of business (sole trader,
partnerships, private limited company, public
limited company, multinational corporation)
●Capitalisation: the permanent investment in a
company, including equities, preference
shares and debentures, excluding long-term
loans
Overcapitalisation:
●Features: profits are not sufficient to pay
interest on debentures or pay dividends to
shareholders
●Reasons: high promotion costs when offering
shares for sales; purchase of assets at
inflated cost; inadequate provision for
depreciation; generous dividends at the
expense of retained profits; over-estimation
of potential returns to shareholders;
Undercapitalisation:
oFeatures: high profits resulting in high
dividends; return on capital shows an
upward trend
oReasons: low promotion costs when
offering shares for sales; purchase of
assets at low cost; adequate provision for
depreciation; conservative dividends pay-
outs to shareholders in favour of retained


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
profits; effective corporate governance
●Financial management of overcapitalisation
and undercapitalisation:
●Impact on shareholders; the business and the
wider public
Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.
Learning Outcomes to be met Assessment Criteria to be coveredAssessment type Word count (approx. length)
All 1 to 3 All ACs under LO 1 to 3 Coursework 3000 words
Indicative Reading List
Campbell R et al (2021) Strategic Risk Management: Designing Portfolios and Managing Risk, 1
st
edition (2021)
Graham, M. (2013) Accounting for Non-accountants: A Manual for Managers and Learners. 9
th
edition. Kogan Page: London
Hill, C. and Jones, G. (2012) Strategic Management: An Integrated Approach. 10
th
edition. USA: South-Western.


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
FINANCIAL PLANNING AND CONTROL

Learning Outcomes, Assessment Criteria and Indicative Content
Learning Outcome –
The learner will:
Assessment Criteria –
The learner can:
Indicative content
1.Understand the functions of
financial planning and control.
1.1Explain the features of corporate financial
planning.
1.2Explain the key requirements to formulate a
corporate financial plan.
●Corporate plans: purpose/aims; the process of
corporate financial planning (capital structure
requirements, information gathering,
objectives, strategies and targets, risk
evaluation and risk management, resource
allocation and utilisation, monitoring,
evaluating performance)
●Key requirements of the financial planning


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
aspects of the corporate plan:
oReview strategic priorities and objectives
oAccess to financial statements
oReal-time management information
oFinancing requirements
oFinancial performance outcomes, trends
and targets
oMonitoring systems
oRisk Management Planning system
2.Understand sources of business
finance and the techniques used to
develop investment strategy.
2.1Compare sources of business finance to
support business plans in different business
contexts.
2.2Assess the risks associated with different
sources of finance in different business
contexts.
2.3Explain the influence of financial and money
markets on financial planning and control.
2.4Explain the techniques used in the
development of a business investment
strategy.
●Sources of finance:
oshort-term finance (overdraft, loans, trade
credit, lease finance); long-term finance
(equity, debt, lease, venture
capital);;raising short and long-term
finance; internal finance (retained earnings,
working capital management, dividend
policies relating to retained and distributed
profits); business angels, government
assistance, supply chain, crowdfunding,
peer-to-peer (P2P) lending); cost of
finance; gearing ratios; interest coverage;
lease/buy decisions; liquidity;
o Sources of business finance appropriate
to a business at different stages in its
development
●Financial and money markets: role of national
and international money markets; financial
intermediaries; functions of stock market and
corporate bond market; role of money markets
(short term liquidity, short term trade finance,
managing currency and interest rate risk); role
of banks and financial institutions; principle
instruments (interest-bearing, discount,


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
derivatives).
●Techniques and tools: portfolio management
tools used in the context of an
individual/corporate investment strategy;
attitudes towards financial risk when building
an investment portfolio models of strategic
management; objective setting; definition of
the balanced scorecard; using balanced
scorecard to implement strategy; modern
portfolio theory (MPT) and risk.
3.Understand global financial risk
management.
3.1Analyse the importance of global financial risk
management.
3.2Evaluate risk management techniques used in
business.
3.3Apply techniques used by a business that
reduces exposure to global financial risks.
●Managing and controlling financial in a global
financial environment: financial strategies used
in the global environment; capital investment
relating to funds invested in a business
organisation for the purpose of furthering its
strategic objectives; international aspects of
strategy (scope of operations, resource
allocation, competitive advantage, synergy);
risk factors including exchange rates and
interest rates, taxation rates, corporate
legislation; market risk, credit risk, liquidity risk,
operational risk.
●Financial risks in the global market: costs and
risks of different sources of finance; foreign
currency risks; interest rate risks; causes of
fluctuations in exchange and interest rates;
●Risk identification and management
techniques: comparison of techniques -
PESTLE, STEEPLE, SWOT; Delphi Technique
of risk analysis; sensitivity what-if? analysis;
trend analysis (forecasting and extrapolation);
role of artificial intelligence (AI) in risk analysis


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
and mitigation; active portfolio management
Limitations and benefits of different techniques
Methods used to manage interest and
currency risks including forward exchange
contracts and matching.
●Evaluation of techniques: implications for data
collection, management information and big
data, costs, risks and benefits to a business
including shareholder value.
4.Understand the principles of
corporate governance and how they
support effective financial planning
and control.
4.1Explain the role and purpose of corporate
governance for businesses in relation to
financial management and control.
4.2Assess the practical implications of effective
corporate governance on financial planning
and control.
●Corporate governance: the role of corporate
governance, governance principles (e.g. the
Nolan principles in the UK) direction and
control of the business; increased
accountability; governance structures including
committee structures and the different roles
and responsibilities of executive and non-
executive directors; fiduciary duties of officers;
bribery and fraud; independent audit; key
governance regulations (e.g. UK Corporate
Governance Code and company law);
international governance.
●Practical implications for the control of the
financial aspects of the corporate plan:
corporate financial objectives, reporting
requirements, impact of audit opinions
(external financial audits) and internal audit
(risk assessment and operational management
processes), arrangements for accountability;
management and control of risks; board
remuneration; arrangements for engagement
and communication with stakeholders;
understanding stakeholder interests


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.
Learning Outcomes to be met Assessment Criteria to be coveredAssessment type Word count (approx. length)
All 1 to 4 All ACs under LO 1 to 4 Coursework 3000 words
Indicative Reading List
Fabozzi, F. (2010) The Basics of Finance: An Introduction to Financial Markets, Business Finance, and Portfolio Management. London: Wiley.
Fernando, A. C. (2009) Corporate Governance: Principles, Policies and Practice. Beijing: Prenctice Hall.
Howells, P. and Bain, K. (2007) Financial Markets and Institutions. 5
th
Edition Harlow: Pearson Education.
Weetman P. (2014) Financial and Management Accounting 6
th
Edition, Pearson


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
FINANCIAL REPORTING

Learning Outcomes, Assessment Criteria and Indicative Content
Learning Outcome –
The learner will:
Assessment Criteria –
The learner can:
Indicative content
1.Understand the purpose of
financial reporting and budgets.
1.1Explain the purpose of financial reporting for
meeting organisational objectives, development
and growth.
1.2Analyse the context of financial reporting
including regulatory frameworks and
governance of financial reporting.
1.3Describe how budgeting and monitoring of
business performance contribute to business
success.
1.4Explain the advantages and disadvantages of
●Financial reporting:
odisclosure of financial information to various
stakeholders about the financial
performance and financial position of the
organisation over a specified period of time.
ocomplying with regulatory frameworks.
ogovernance of financial reporting including
duties and responsibilities of responsible
officers.


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
different types of budget-setting.
1.5Analyse and account for variances in a budget.
1.6Prepare budget monitoring reports.
ounincorporated or incorporated
organisations.
oensuring all organisations comply with the
same rules and standards.
oseeking funding/investment.
opredicting future financial positions and
cash flow.
●Budget-setting and monitoring:
othe purpose of budgeting
obudget-setting, business planning and
resource allocation to support business
objectives
●Types of budgets:
oadvantages and disadvantages of different
types of budgets, incremental, zero-based,
fled budgets
obudget-monitoring as management tool
●Variance analysis:
oDetermine the reasons for variances
oManagement actions to address budget
variances
●Prepare budget monitoring reports
ofor an individual budget holder
ofor a senior management team relating to
the overall budgetary position of the
business (master budget)
2.Understand how to report on
the outcome of control
accounts.
2.1Explain the purpose and functions of control
accounts.
2.2Prepare control accounts from given data.
2.3Prepare a report on the outcome of an analysis
of control accounts .
●Control accounts: purpose and function of
control accounts (summary account in general
ledger); link to other records; purpose of books
of prime (original) entry (sales journal,


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
purchases journal, sales returns journal,
purchases returns journal).
●Preparation of control accounts:
oto cover sales and purchases, receipts and
payments, discounts, returns, irrecoverable
debts, dishonoured cheques, interest due,
contra entries, refunds, balances
oprepare reconciliation statements:
preparation of schedule of trade
receivables, schedule of trade payables,
revised control account, reconciliation
statements.
●Prepare a management report on control
accounts:
oan assessment of errors identified
oprovide up-to-date information on the total
of trade receivables and trade payables
3.Be able to report the outcome of
an investment appraisal.
3.1Apply different methods of investment appraisal
to business decision-making.
3.2Assess the impact of an investment proposal.
3.3Prepare a report on the outcome of an
investment appraisal.
●Investment appraisal techniques:
opurpose;
ofeatures of the main investment appraisal
techniques and their advantages and
disadvantages.
●Calculate different methods of investment
appraisal:
oPayback
oaccounting rate of return (ARR)
onet present value (NPV)
ointernal rate of return (IRR).
●Evaluate proposals:
oanalyse capital investment appraisal results;


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
use capital investment appraisal techniques
to make informed decisions; justify
decisions made and techniques used.
oNon-financial factors: qualitative factors
affecting investment decisions including the
concept of the triple bottom line; corporate
social responsibility including
●Prepare a report on the outcome of an
investment appraisal:
oimpact of taxation and inflation on appraisal
methods
oadjusting for risk and uncertainty,
(probability, sensitivity analysis, simulation,
adjusted payback, risk-adjusted discount
rates)
othe features of environmental management
accounting (EMA)
olease or buy decisions
oasset replacement: methods of depreciation
(straight-line depreciation and reducing
balance depreciation
4.Be able to report on the financial
performance of a business.
4.1Analyse the financial statements of a business.
4.2Evaluate the financial performance of a
business.
4.3Demonstrate how to communicate financial
information to different stakeholder groups.
●Analysis of financial statements using the full
statements or extracts from the statements
(including limited companies):
oProfitability: gross and net profit margins
oLiquidity: net current assets (working
capital); current ratio; acid test ratio (quick
ratio);
oEfficiency: inventory turnover rate; trade
payables ratio; trade receivables ratio
●Evaluation of the financial performance of a
business:


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
owith reference to its own
strategic/operational targets
othe performance of its competitors
orecommend strategies for addressing
under-performance
otrend analysis
●Preparation of reports on business performance
oFor senior managers
oFor different stakeholder groups
(shareholders, potential investors, lenders)
oEquality and diversity issues when
communicating with stakeholders (Written,
digital; verbal; translations; Braille/large
print)
oCreation and interpretation of graphs using
spreadsheets: line, pie, bar charts and
histograms.
oScatter (XY) graphs and linear trend lines:
extrapolation for forecasting (reliability)
oPresentations and report writing: use of
appropriate formats; presentation software
and techniques.
Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.
Learning Outcomes to be metAssessment Criteria to be coveredAssessment type Word count (approx. length)
All 1 to 4 All ACs under LO 1 to 4 Coursework 3500 words


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
Indicative Reading List
Atrill P & McLaney E (2021) Financial Accounting for Decision-Makers 10
th
Edition (Pearson)
Atrill, P. and McLaney, E. (2010) Accounting & Finance for Non-specialists. 10
th
edition. London: Financial Times/ Prentice Hall.
Van Horne, J. and Wachewicz, J. (2009) Fundamentals of Financial Management. Harlow: FT Prentice Hall
White, G. I., Sondhi, A. C. and Fried, D. (2003) The Analysis and Use of Financial Statements. 3
rd
edition. Hampshire: John Wiley and Sons.
Wood, F. and Sangster, A. (2011) Business Accounting. 12
th
edition. London: FT Prentice Hal
THE MANAGEMENT OF HUMAN RESOURCES

Learning Outcomes, Assessment Criteria and Indicative Content
Learning Outcome –
The learner will:
Assessment Criterion –
The learner can:
Indicative Content
1. Understand the purpose and objectives of
human resource management.
1.1 Explain how human resource management has
evolved.
1.2 Discuss the purpose of human resource
management.
1.3 Explain the objectives of human resource
management.
●Concept of human resource
management
●Welfare office – labour manager –
personnel management – HRM
●Staffing
●Employee compensation
●Discipline
●People – process - performance
●Workforce planning
●Talent management
●Employee engagement
●Performance management
2. Understand the functions of human resource
management.
2.1 Explain key operational functions of human
resource management.
2.2 Explain key strategic functions of human
resource management.
2.3 Assess the relationship between business
strategy and human resource management.
●Recruitment and selection
●Training and development
●Employee welfare
●Employment law compliance
●Strategy integration
●Strategic HR planning
●Human capital development


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
●Forecasting
3. Understand how internal and external
factors impact the human resource
management function.
3.1 Compare the internal factors which affect
human resource management.
3.2 Compare the external factors which affect
human resource management.
●Internal factors:
●Resources and capabilities
●Leadership
●Learning and development
●Motivation
●Business and functional
strategies
●Organisational culture
●Equality and diversity
●External factors:
●Competition and PESTEL forces
●Skills trends
●Competitor behaviour
●HR availability
●HR costs
●Legislation
4. Understand modern development in human
resource management function in a business.
4.1 Discuss the impact of technological
advancements, such as artificial intelligence and
automation, on HRM functions.
4.2 Discuss the effectiveness of initiatives such as
flexible working arrangements, mental health
programs, and diversity training.
●Impact of Technology
●Streamlined recruitment
processes
●Automated screening and
candidate matching
●Enhanced employee


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
performance tracking
●AI-driven analytics for
management
●Improved employee
engagement
●Communication via AI-
powered chatbots
●Virtual assistants for
assistance
●Efficient training and
development programs
●Personalized learning
platforms
●Automated administrative
tasks
●Reduction of HR workload
●Increased efficiency
●Advanced data analytics
●Better decision-making
●Strategic planning support
●Flexible working arrangements:
●Promote work-life balance
●Allow for personalized
schedules
●Increase employee


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
autonomy
●Mental health programs:
●Provide support for
employees' mental well-
being
●Offer resources for stress
management and coping
strategies
●Reduce absenteeism and
improve overall productivity
●Diversity training:
●Increase awareness of
biases and stereotypes
●Foster inclusive workplace
culture
●Enhance understanding of
diverse perspectives
Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.
Learning Outcomes to be metAssessment Criteria to be coveredAssessment
type
Word count (approx. length)
All 1 to 4 All ACs under LO 1 to 4 Coursework 3000 words


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
Indicative Reading List
Hall, L. et al (2020) Human Resource Management 11
th edition, Pearson, Harlow
Marchington, M. (2020) Human Resource Management at Work: The Definitive Guide 7
th Edition, CIPD, London
Additional Resources
Human Resource Management Journal
International Journal of Human Resource Management
Chartered Institute of Personnel and Development
BUSINESS START-UP: CONCEPTION TO MARKET

Learning Outcomes, Assessment Criteria and Indicative Content
Learning Outcome –
The learner will:
Assessment Criterion –
The learner can:
Indicative Content
1.Understand the fundamental
requirements for starting a new
business.
1.1 Describe the range of resources required
to start a business.
1.2 Describe the personal skills and qualities
required to start a business.
1.3 Describe the legal requirements when
starting a business.
●Resources required for start-up:
●Capital investment
●Labour resources
●Physical resources
●Support systems
●Personal skills and qualities: leadership
management
●financial management, problem solving skills,
negotiation skills, project management skills
●Legal requirements: formalised business
structure, operating licence, business
insurance, register for taxation
2. Understand sources of support
available to new businesses.
2.1 Compare sources of financial support.
2.2 Describe support provided by
governments.
2.3 Describe support provided by non-
government organisations.
2.4 Compare sources of non-financial
support.
●Savings
●Friends and family
●Interest bearing loans
●Investment ‘angels’
●Grants
●Zero interest loans


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
●Employment support schemes
●Free training workshops
●Free business advice
●Free mentoring
●Local government
●Central government
●Banks
●Chambers of Commerce
●Professional bodies
●Community support
3. Be able to create a business plan for a
new business to gain stakeholder support.
3.1 Produce a business plan for a start-up
business.
3.2 Demonstrate effective communication
when seeking stakeholder support for a new
business.
●Business Plan:
●Executive Summary
●Industry Overview
●Market and Competition Analysis
●Sales and Marketing Plan
●Management Plan
●Operating Plan
●Financial Plan
Assessment


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.
Learning Outcomes to be metAssessment Criteria to be coveredAssessment typeWord count (approx. length)
All LO 1 to 2
LO3 (part)
All ACs under LO 1 to 2
AC3.1
Coursework 2500 words
LO3 (part) AC3.2 Presentation 10-minute presentation (850 words equivalent)
Indicative Reading List
Barrow, C. (2016) Starting and Running a Small Business All-in-one for Dummies 3
rd edition, John Wiley, London
Pink, A. and MacDonald, A. (2021) Business Start Start-Up Guide, Pink Proactive Publishing, UK
Flick, U. (2020) Introducing Research Methodology: A Beginner’s Guide to Doing a Research Project. 3rd Ed. London: Sage.
Gray, D. (2017) Doing Research in The Real World. 4th Ed. London: Sage.
Saunders, M., Lewis, P. And Thornhill, A. (2019) Research Methods for Business Students. 6th Ed. Harlow: Pearson.
Additional Resources
The Journal of Entrepreneurship
Management Help
Write a Business Plan


OTHM LEVEL 5 EXTENDED DIPLOMA IN ACCOUNTING AND BUSINESS
IMPORTANT NOTE
Whilst we make every effort to keep the information contained in the programme
specification up to date, some changes to procedures, regulations, fees matter, timetables,
etc may occur during the course of your studies. You should, therefore, recognise that this
booklet serves only as a useful guide to your learning experience.
For updated information please visit our website www.othm.org.uk.