ACCA 2027 · Knowledge
ACCA K1 Financial Accounting
K1 Financial Accounting is a Knowledge-level exam in ACCA’s 2027 qualification. It replaces FA/FFA — Financial Accounting. It is a CBE, 2 hours, 100 marks exam with a 50% pass mark, and the first exams run from July 2027.
Key facts
- Level
- Knowledge
- Format
- CBE · 2 hours · 100 marks
- Pass mark
- 50%
- Replaces
- FA/FFA — Financial Accounting
- First exams
- July 2027 (on-demand CBE)
- Syllabus
- 7 sections (A, B, C, D, E, F, G), 8 subsections, 34 learning outcomes
- Employability module at this level
- Responsible Business Management
Overview
What K1 covers
K1 Financial Accounting is the Knowledge-level successor to FA (F3). It covers the full scope of financial accounting for limited companies including the regulatory framework, company financial statements, consolidated financial statements (simple groups), interpretation, and a new Section G on digital technology in accounting. The sole-trader content moves down to F1.
Exam format
| Part | Detail |
|---|---|
| Section A | 35 × 2-mark OTs (70 marks) |
| Section B | 2 × 15-mark MTQs (30 marks) |
| Overall | 2 hours |
| Overall | 100 marks |
Key changes vs FA/F3
- Sole-trader content moved down to F1 Foundations
- Focus is now entirely on limited companies
- New Section G: Digital Technology in Accounting (AI, cloud, cybersecurity)
- Consolidation scope limited to single subsidiary and associates
- Same exam format as current FA: 35 OTs + 2 MTQs
Syllabus comparison
FA/F3 → K1: topic-by-topic changes
13 changes, from whole sections removed to topics added or raised in intellectual level.
| Change | Area or topic | Detail |
|---|---|---|
| NEW SECTION | Partnerships (K1 Section H) | Entirely new section with 3 subsections. H1: partnership agreements — what a partnership is, purpose and content of a partnership agreement, appropriations of profits (salaries, interest on drawings, interest on capital, share of residual profit/loss). H2: partnership accounting records — differences between capital and current accounts, preparation of partners' capital and current general ledger accounts. H3: financial statements and changes — SFP and P&L for a partnership, admission of a new partner including treatment of goodwill arising (note: no goodwill calculations required). This content had no place in FA at any level. |
| NEW | Payroll (K1 C2) | New subsection within Recording transactions: calculate staff costs and employee deductions; prepare journal entries for payroll transactions. Not covered in FA at all. |
| RESTRUCTURED | Section A expanded to absorb FA Section B | FA had a standalone Section B (Accounting principles, concepts and qualitative characteristics). K1 absorbs this into Section A as A6 (key principles and concepts) and A7 (qualitative characteristics). The content is identical; only the section placement changes. All subsequent FA sections shift by one letter (FA C → K1 B; FA D → K1 C; etc.). |
| MOVED | Events after the reporting period | FA G4 placed events after the reporting period inside "Preparing financial statements." K1 C11 moves it into "Recording transactions and events." Content (adjusting vs non-adjusting; accounting treatment differences) is identical. |
| MERGED | Depreciation merged into tangible non-current assets (K1 C5) | FA treated tangible non-current assets (D4) and depreciation (D5) as separate subsections. K1 C5 combines them into "Tangible non-current assets and depreciation" — all acquisition, disposal, revaluation, depreciation and NCA register outcomes together. |
| MERGED | Correction of errors and suspense accounts merged (K1 E2) | FA F2 (Correction of errors) and F3 (Suspense accounts) were separate subsections. K1 E2 merges them into "Suspense accounts and the correction of errors." |
| EXPANDED | Reconciliations — now covers receivables AND payables (K1 D2) | FA E2 was "Payables account reconciliations" only. K1 D2 is "Receivables and payables reconciliations" — explicitly covers both trade receivables reconciliations to customer statements and trade payables reconciliations to supplier statements. |
| RENAMED | "Basic consolidated financial statements" → "Consolidated financial statements" (K1 G) | FA Section H was "Preparing basic consolidated financial statements." K1 Section G removes "basic" from the name. The consolidation content scope (subsidiaries, goodwill at full fair value, consolidated SFP and P&L, associates and equity method principle) appears unchanged. |
| RENAMED | "Finance costs" → "Interest expenses" (K1 C10) | FA D10 was "Capital structure and finance costs." K1 C10 is "Capital structure and interest expenses." Content appears equivalent. |
| EXAM CHANGE | Section B MTQ allocation made explicit | FA: Section B described as "two 15-mark multi-task questions — consolidations and accounts preparation." K1: explicitly one MTQ from Section F (individual financial statements) and one from Section G (consolidated financial statements). G MTQs may also include tasks from Section I (interpretation). The change makes the allocation unambiguous. |
| Retained | Core double-entry and recording content | Sales/purchases, cash, inventories (FIFO/AVCO), intangibles/amortisation, accruals/prepayments, provisions, capital structure, receivables/payables (irrecoverable debts, allowances) — all retained from FA with equivalent content. |
| Retained | Individual financial statements content | SFP, SPL&OCI, statement of cash flows (direct and indirect), disclosure notes, incomplete records techniques — all retained. |
| Retained | Interpretation (Section I) | Ratios (profitability, liquidity, efficiency, position), analysis — retained. I1 now explicitly adds "limitations" of financial statement analysis alongside importance and purpose. |
Syllabus
K1 syllabus breakdown
Every section, subsection and learning outcome in the K1 Financial Accounting syllabus.
AThe Context and Purpose of Financial Reporting
A1Regulatory framework
- Identify the users of financial statements and their needs
- Understand the role of IASB, Conceptual Framework, IFRS and IAS
- Understand the regulatory framework and its purpose
BThe Qualitative Characteristics of Financial Information
B1Qualitative characteristics
- Apply the fundamental characteristics: relevance, faithful representation
- Apply the enhancing characteristics: comparability, verifiability, timeliness, understandability
- Understand the cost constraint
CThe Use of Double-Entry and Accounting Systems
C1Double-entry bookkeeping
- Record transactions using double-entry
- Maintain ledger accounts
- Prepare a trial balance and correct errors
- Prepare control accounts and reconciliations
DRecording Transactions and Events
D1Accounting for transactions
- Account for sales revenue, purchases and inventories (IAS 2)
- Account for tangible non-current assets (IAS 16) including depreciation
- Account for intangible assets (IAS 38)
- Account for provisions and contingencies (IAS 37)
- Account for events after the reporting period (IAS 10)
- Account for irrecoverable debts and allowance for receivables
- Account for accruals and prepayments
EPreparing Financial Statements
E1Single entity statements
- Prepare a statement of profit or loss and other comprehensive income
- Prepare a statement of financial position
- Prepare a statement of changes in equity
- Prepare a statement of cash flows (IAS 7) using indirect method
E2Simple consolidated statements
- Prepare a consolidated statement of financial position (single subsidiary)
- Calculate goodwill on acquisition (IFRS 3)
- Account for non-controlling interest (NCI)
- Identify and account for associates using equity method (IAS 28)
FInterpreting Financial Statements
F1Ratio analysis
- Calculate and interpret profitability ratios
- Calculate and interpret liquidity ratios
- Calculate and interpret efficiency ratios
- Calculate and interpret gearing and investor ratios
- Assess the limitations of ratio analysis
GDigital Technology in Accounting
G1Technology in financial accounting
- Understand the role of technology in accounting systems
- Identify benefits and risks of cloud accounting
- Understand the use of AI and automation in accounting processes
- Identify cybersecurity risks and data protection issues
ACCA K1: frequently asked questions
What is the ACCA K1 exam format?
K1 Financial Accounting is a CBE, 2 hours, 100 marks exam. Structure: Section A: 35 × 2-mark OTs (70 marks) · Section B: 2 × 15-mark MTQs (30 marks) · 2 hours · 100 marks. Pass mark: 50%.
When is the first ACCA K1 exam?
July 2027. New Foundations and Knowledge exams are on-demand computer-based exams from July 2027. The current syllabus’s last sitting is June 2027.
Which current ACCA paper does K1 replace?
FA/FFA — Financial Accounting. See the old-to-new paper mapping for every paper.
I passed FA. Do I need to sit K1?
Our mapping links FA Financial Accounting to K1, and ACCA maps exams passed under the current syllabus to the new structure, so you should not retake equivalent content. Check your full position in the transition planner and confirm with ACCA’s Transition Tool.
What changed in K1 compared with FA/F3?
Sole-trader content moved down to F1 Foundations. Focus is now entirely on limited companies. New Section G: Digital Technology in Accounting (AI, cloud, cybersecurity). Consolidation scope limited to single subsidiary and associates.
Clear FA before June 2027
FA maps to K1. Passing it on the current syllabus before the last sitting means one less exam to sit in the new qualification.