Is ACCA Easy to Crack? ACCA Pass Rate & More

ACCA or the Association Of Certified Chartered Accountants is a global accountancy course that enables you to work as a CA in more than 180 countries. This professional course governed by the UK body is highly prestigious and in demand. The ACCA course has about three levels: knowledge, skill, and professional.

When compared to the Indian CA or even US CPA  Course the ACCA course is quite flexible in terms of appearing for the papers, gaining exemptions and even obtaining your mandatory work experience. The ACCA course is said to be moderately complex, however, if you’d like to know more about the ACCA difficulty level, here’s a detailed overview of how to become an ACCA.

About ACCA Qualification

ACCA or the Association of Chartered Certified Accountants is a globally recognised accounting course accepted in over 180 countries. This UK-based course can be completed in a year or two based on your learning pace or the exemptions you’ve gained. ACCA equips students with hardcore accounting concepts like taxation, auditing, strategic business reporting, financial reporting, etc. Since Chartered Accountancy concepts are taught from a global perspective, the candidate gains the right skills to become a Global Chartered Accountant.

Why is the ACCA Qualification So Popular?

The following are some of the reasons why ACCA is so popular:

Global Recognition:

ACCA accreditation is accepted in over 180 countries, which makes it one of the most valued credentials for professionals who want to work outside their countries. It opens up job roles in finance, accounting, and management with employers across the entire world.

Comprehensive Curriculum:

ACCA supports learners in the academic as well as managerial fields that include topics of financial accounting, management accounting, taxation, various auditing practices, financial management, and strategic business leadership. By covering such a wide range of topics in one course, students become well-rounded in their skills.

Flexibility:

The study program of the ACCA allows flexibility in terms of dates available to take exams and flexible options for studying. Candidates can either study full-time or part-time and may take any number of exams every year, which helps them have time to work and for other commitments. 

Professional Growth:

ACCA provides a clear pathway for career progression. Throughout the levels, the candidates gain a better insight into the subject and also prove more beneficial to the employers as well as earn higher salaries.

Practical Experience Requirement:

After completing all three levels; there is a condition that a three-year practical experience requirement should be fulfilled for you to be eligible and get the ACCA membership. This would mean that the ACCA graduates would not just have theoretical experience but also practical skills, which would prove beneficial for the employer.

Ethics and Professionalism:

ACCA places great focus on ethics and professionalism. The required Ethics and Professional Skills module gives members the ‘integrity and responsibility mindset’ to deal with ethical challenges at the workplace.

Support and Resources:

An ACCA offers their students and members a wealth of study materials, a whole set of tools online, and a network of professionals across the globe. This support allows candidates to be successful on exam day and continue that development into their full careers.

Diverse Career Opportunities:

The ACCA qualification provides extensive career opportunities in any type of industry, including public practice, corporate finance, the public sector, financial services, and so on. Since professionals through the ACCA qualification are highly educated, they can be employed as Financial Analysts, Auditors, Tax Consultants, and even CFO.

Continuous Learning:

ACCA promotes CPD to keep their members abreast of new industry trends and regulatory changes. This means an ACCA professional is never left behind in the competitive job market.

Affordability:

Compared to other professional qualifications, the cost of being an ACCA member is relatively cheap. It therefore becomes accessible to more potential candidates. Further, ACCA rewards the students through scholarships and finances that cut across diverse backgrounds.

All these add up to make the ACCA qualification popular, increasing its demand among aspiring finance and accounting professionals all over the world.

Relevant Skills ACCA Program Covers

• Financial accounting and reporting
• Preparation and presentation of financial statements
• Comprehension of International financial reporting standards (IFRS).
• Understanding and interpretation of financial reporting with decision-making requirements.

Management Accounting:

• Budgeting and forecasting and cost management options
• Monitoring and controlling performance.
• Management process and strategic decision-making

Taxation:

• Understanding of tax laws and regulations.
• Expertise in financial and tax advisors and consultants regarding tax planning and compliance for individuals and business offices.
• Experience with global tax models and procedures

Audit and Assurance:

• Audit principles and standards
• Inside and outside audits
• Evaluating risks and confirming the accuracy and completeness of financial information.

Financial Management:

• Controlling finance and investments
• Knowledge of capital structure, working capital management and financial risk management.
• Financial analysis and planning methods

Ethics and Professionalism:

• A solid foundation of ethical standards and declaration of professional conduct
• Solving ethical dilemmas in professional settings
• A pledge to honesty, and to openness in work-related activities.

Strategic Business Leader

• Strategic planning and execution.
• Attributes of leadership and management
• Managing change and transforming the business.

Performance Management:

• How to measure and control performance in business, etc.
• Get a grasp of KPIs and apply them.
• Check-track-automate the use of performance data to drive organizational efficiency and effectiveness.

Corporate and Business Law:

• An insight into the legal principles linked to business and finance.
• Good understanding of corporate governance/regulatory framework.
• Application of legal theories to business execution and compliance.

Financial Analysis and Decision-Making:

• Finance Interpreting financial data skills.
• Ensuring that business decisions are underpinned by financial data.
• Investment appraisal and financial forecasting techniques.

IT & Digital Skills:

• Strong financial software and tool knowledge.
• The impact of digital technologies on one of the oldest professions in business – finance and accounting.
• Knowledge of data analytics and data management.

Global Perspective:

• Knowing the ways of world financial markets and international business conditions.
• Adhering to standards of international accounting and finance.
• Global specialization in the cultural and economic specificities.

Communication and People Skills

• Implementation of financial information at a great complexity level.
• Excellent communication and strong interpersonal skills in working with staff, clients, and stakeholders
• Strong competence in communicating financial insights, and recommendations.

Problem-Solving & Critical Thinking

• Be able to analyze financial information and business scenarios critically.
• Strategies for overcoming financial and operational hurdles.
• Apply analytics to guide strategic and tactical decision-making.

Risk Mitigation Techniques

• Setting up risk management framework and internal controls.
• These are and will be among the most sought-after skills across industries – making a career in the world of finance a great choice or an option to invest in the right skills to get that dream job that will supercharge your finance and accounting career.

ACCA Course Details and Structure

The ACCA qualification allows students to gain the necessary skills and knowledge to achieve a career in finance, accounting, and management. The ACCA course consists of three major levels; Applied Knowledge, Applied Skills, and Strategic Professional. Every level ensures it builds upon the previous level’s knowledge for complete key understanding and application of a particular concept.

Applied Knowledge Level

This stage introduces students to elementary accounting and finance. The following is the list of ACCA subjects that a student needs to pass:

• Business and Technology (BT): Business environment, structure of the business, and the effects of technology.
• Management Accounting (MA): Costing technique, budgetary control, performance measurement.
• Financial Accounting (FA): Making financial reporting, checking accuracy and presenting the reports.

Applied Skills Level

This level builds on the knowledge from the Applied Knowledge level and develops students’ technical skills in accounting and finance. It consists of six exams:

• Corporate and Business Law (LW): Covers the legal framework in which businesses operate.
• Performance Management (PM): Focuses on techniques and decision-making in management accounting.
• Taxation (TX): Introducing principles of taxation and its implication on individuals/businesses.
• Financial Reporting (FR): Evolution of financial reporting and International Financial Reporting Standards (IFRS).
• Audit and Assurance (AA): Covers the audit principle and practice.
• Financial Management (FM): FM is about financial management, investment appraisal, and business finance.

Strategic Professional Level

This level will support students by providing deep and complex skill expertise with a strategic thinking orientation. There are two compulsory papers and two of four optional papers:

Compulsory Exams:

• Strategic Business Leader (SBL): This course provides an integrated knowledge of leadership, strategy, and risk.
• Strategic Business Reporting (SBR): This course focuses on advanced financial reporting and the process of analysis.

Optional Exams (choose two):

• Advanced Financial Management (AFM): Deals with the advanced techniques of financial management.
• Advanced Performance Management (APM): Concerned with strategic performance management.
• Advanced Taxation (ATX): Consists of advanced studies of detailed concepts on taxation.
• Advanced Audit and Assurance (AAA): Covers advanced audit and assurance practices.

Subjects in the ACCA with Pass Rates & Statistics

The ACCA qualification consists of many subjects with their specific pass rates and statistics. The statistics may tell the students about the difficulty rate of a particular exam as well.

Applied Knowledge Level

Business and Technology (BT)

Pass Rate: Approximately 82%

Management Accounting (MA)

Pass Rate: Approximately 65%

Financial Accounting (FA)

Pass Rate: Approximately 71%

Applied Skills Level

Corporate and Business Law (LW)

Pass Rate: Approximately 85%

Performance Management (PM)

Pass Rate: Approximately 39%

Taxation (TX)

Pass Rate: Approximately 51%

Financial Reporting (FR)

Pass Rate: Approximately 49%

Audit and Assurance (AA)

Pass Rate: Approximately 39%

Financial Management (FM)

Pass Rate: Approximately 51%

Strategic Professional Level

Compulsory Exams:

Strategic Business Leader (SBL)

Pass Rate: Approximately 49%

Strategic Business Reporting (SBR)

Pass Rate: Approximately 49%

Optional Exams:

Advanced Financial Management (AFM)

Pass Rate: Approximately 36%

Advanced Performance Management (APM)

Pass Rate: Approximately 30%

Advanced Taxation (ATX)

Pass Rate: Approximately 33%

Advanced Audit and Assurance (AAA)

Pass Rate: Approximately 32%

The pass rates reflect how tough or easy the exam is and the amount of preparation required for the paper. Pass rates on a higher scale mean that the subjects are easier to understand and less preparation is needed to pass an exam. Conversely, lower pass rates demand that the exam be tougher and that you will need your preparation to be more intense.

ACCA Eligibility:

Wondering what are the eligibility requirements for enrolling for ACCA? Here’s all you need to know about.

• To be eligible to register for ACCA qualification, students should have qualified for their 10+2 examinations with an aggregate of 65% in Mathematics / Accounts and English, and a minimum of 50% in other subjects. 
• Students who have just passed the class 10 exam or who don’t satisfy any of the above-mentioned conditions can also register for the ACCA course through the Foundation in Accountancy (FIA) route.

Analyzing and Interpreting Pass Rates

Analysis of the ACCA pass rates shows that some subjects are much easier compared to others. The Applied Knowledge Level has higher pass rates, such as 82 per cent for the paper on Business and Technology. That is quite an easy concept to understand and master. However, the Applied Skills level presents some moderate challenges, such as 39 per cent for Performance Management and 51 per cent for Taxation, which illustrate the complexity of these subjects. 

The Strategic Professional level is tougher to pass, with pass rates as low as 36% for Advanced Financial Management and 30% for Advanced Performance Management, clearly showing the importance of advanced knowledge and strategic thinking here. 

By looking at these pass rates, the candidates can more intelligently strategise their study efforts, targeting more problematic subjects for increased chances of success.

What Do You Need to Know About the ACCA Course Exams?

The ACCA course examination is structured into three levels: Applied Knowledge, Applied Skills, and Strategic Professional. Each level builds on the previous level, and they cover topics in financial accounting, management accounting, business law, tax, audit, and financial management, ensuring that students have both theoretical knowledge and practical application.

How Difficult is ACCA?

The ACCA qualification is demanding because the syllabus is deep, and the examination mechanism is rigorous. Pass rates vary from one subject to another, meaning that there is a different level of passing in each subject. While accounts and bookkeeping subjects have more pass rates, advanced performance management tends to have low pass rates in the sense that it relates to the complexity involved in the subject. Therefore, it requires hard work, good study habits and also an appreciation of accounting principles.

How Can I Clear ACCA on My First Attempt?

Prepare a study plan well before exams, covering all the syllabus, so that you clear ACCA in one go. Use all the ACCA-approved study materials and resources available. Attend coaching classes, if possible. Try to solve all the previous year’s exam papers to get familiar with the pattern of the exams and time limits. Monitor your progress regularly and tackle the weak areas early on. Discipline and concentration will lead to success.

Is it Possible to Study and Clear ACCA if I Am Working?

Yes, it is possible to study and clear ACCA while working. Time management and discipline are crucial. Create a realistic study schedule that accommodates your work commitments. Take advantage of flexible study options such as online classes and weekend study sessions. Consistent effort and maintaining a balance between work and study will help you manage both effectively.

Conclusion

Passing ACCA exams is quite tough, but achievable if approached properly. Proper preparation, disciplined study, and effective time management are required. Despite the tough exams, many working professionals and average students complete the ACCA qualification. Based on the individual circumstances and the speed of studying, it usually takes 3-4 years to complete all the levels of ACCA. The qualification opens up rewarding career opportunities, with salaries being paid as determined by experience, location and the employing organisation.

FAQ’s on Is ACCA Easy to Crack:

Is it Hard to Pass the ACCA?

Yes, the ACCA exams are difficult due to their comprehensive coverage and high standards. With intense study and adequate preparation, one can pass ACCA.

Can an Average Student Crack ACCA?

Yes, an average student can crack the ACCA, provided he applies himself with consistency, a desirable study strategy, and the use of available resources along with support systems.

How Many Years Does It Take to Crack ACCA?

It usually takes three to four years to crack all the ACCA exams, subject to the study pace and commitment of an individual.

What is the Salary of ACCA?

Remuneration varies significantly with the experience, location, and employer. In India, an ACCA professional would expect his remuneration to lie in a range between INR 6-12 lakhs per annum, with higher salaries being paid by larger firms and multinational corporations.

Partham Barot is an ACCA-certified professional. showcasing his expertise in finance and accountancy. he’s revolutionising education by focusing on practical, real-world skills. Partham’s achievements underscore his commitment to elevating educational standards and empowering the next generation of professionals.