THE LICENSURE EXAMINATION FOR CERTIFIED PUBLIC

ACCOUNTANTS (LECPA) SYLLABUS

BUSINESS ANALYSIS AND REPORTING
Effective October 2028 LECPA
The subject covers the candidates’ knowledge of the concepts, techniques, and methods applicable
to advisory services, financial analysis and reporting, financial operations, management, and emerging
reporting frameworks, such as integrated reporting and sustainability reporting.

The candidates must have a working knowledge to conduct various advisory services relating to
finance, operations, management, and emerging business methods and reporting frameworks. The
candidates must be able to communicate effectively matters pertaining to the business analysis and
reporting tasks. They must demonstrate the competencies of an entry-level accountant who can
address the fundamental requirements of the various stakeholders they will be interacting with as
they perform their professional tasks.

The examination with a duration of four (4) hours is composed of 80 multiple-choice questions and
2 caselettes with one caselette requiring straight problem solving and one caselette involving
theoretical analysis that require the candidates to explain relevant concepts, evaluate business
cases and recommend possible courses of action.

The syllabus for the subject is presented below:

GENERAL TOPICS LEARNING OUTCOMES

1.0 Management Accounting
1.1 Management Accounting Environment 1. Explain the Management
Accounting Environment.
1.2 Nature and classification of costs according 2. State the nature of costs and
to behavior classify them according to
1.2.1. Nature of costs behavior.
1.2.2. Classification of costs into fixed,
variable, semi-variable (or
mixed)
1.3 Splitting mixed costs into variable and fixed 3. Explain the importance of
components splitting mixed costs using high-
1.3.1. High-low method low method, graphic method
1.3.2. Graphic method and least-squares method.
1.3.3. Least Squares Method

1.4 Cost prediction techniques 4. Predict cost behavior using

1.4.1. Correlation correlation, regression, and
1.4.2. Regression learning curves.
1.4.3. Learning curves
1.5 Cost-Volume-Profit analysis 5. Analyze factors affecting profit
1.5.1. Factors affecting profit (selling price, such as selling price, sales
sales volume and costs volume and costs.
1.5.2. Break-even point 6. Determine break-even point,
1.5.3. Margin of safety margin of safety and operating
 1.5.4 Operating leverage
1.5.5 Targeted revenue to achieve profit
1.6 Standard costing and variance analysis
1.6.1. Rationale and benefits of using
standard costs for product costing
1.6.2. Variances
1.6.2.1 Direct materials variances
1.6.2.2 Direct labor variances
1.6.2.3. Overhead variances
1.7 Product Costing Techniques
1.7.1. Distinction between period costs and
product costs
1.7.2. Absorption Costing
1.7.3. Variable costing
1.7.4. Emerging product costing techniques
(throughput, targe, life-cycle costing)
1.7 Financial planning and budgeting
1.7.1 Purpose of a budget
1.7.2 Budgeting process
1.7.3. Types of budget
1.7.4. Operating budgets (sales, production,
purchase, manufacturing cost budget, cash
budget, financial statements)
1.7.5 Budget variances
1.8 Performance measurement
1.8.1 Responsibility accounting
1.8.2. Balanced scorecard
1.9 Decision making techniques
1.9.1 Costs in decision making
1.9.2. Decision-making using relevant
costing, probability analysis, and linear
programming
2.0 Financial Management
2.1 Financial statement analysis
leverage.
7. Determine targeted revenue to
achieve a desired profit.
8. Determine the rationale and
benefits of using standards for
product costing.
9. Determine and interpret the
direct materials variances
(quantity and price), direct labor
variances (rate and efficiency),
overhead variances (spending,
efficiency and volume).
10. Identify product costs and
period costs under variable and
absorption costing.
11. Reconcile the difference in
profit and costs between
absorption and variable costing.
12. Apply emerging product costing
techniques (throughput, target,
life cycle costing).
13. Define the purpose of a budget
and explain the budgeting
process.
14. Explain the differences among
static budget, flexible budget,
zero-based budget and
continuous budget.
15. Compute and interpret budget
variances.
16. Apply responsibility accounting
to evaluate segmental reports
and performance.
17. Use balanced scorecard as well
as other techniques to analyze
financial and non-financial
performance.
18. Explain the nature of relevant
costs, sunk costs, and
opportunity costs.
19. Recommend decisions (i.e.,
make or buy a part, accept or
reject a special order, sell or
process further, continue or
shutdown a segment) using
relevant costing, probability
analysis, and linear
programming.
20. Analyze the financial
 2.1.1. Horizontal analysis
2.1.2. Vertical analysis
2.1.3. Cash flow analysis
2.1.4. Gross profit variance analysis
2.1.5. Financial ratios
2.1.6. Financial forecasting
2.2 Working capital management
2.2.1. Cash management
2.2.1.1 conversion cycle,
2.2.1.2.optimal cash balance
2.2.2. Receivable and inventory
management
2.2.2.1 Evaluation of discount and
credit terms
2.2.2.2. Economic order quantity
2.2.2.3 Safety stock
2.2.2.4 Reorder point
2.3 Capital budgeting
2.3.1. Non-discounted methods
2.3.1.1. Payback period
2.3.1.2. Accounting rate of return
2.3.1.3. Bail-out payback period
2.3.2. Discounted methods
2.3.2.1. Net present value
2.3.2.2 Internal rate of return
2.3.2.3. Profiability index
2.4 Risks and leverage
2.4.1. Business, operating, and financing
risks
2.4.2 Assessment and measurement of
risks
2.4.3. Mitigating and managing risks
statements using vertical
analysis, horizontal analysis,
cash flow analysis, gross profit
variance analysis, financial
ratios and financial forecasting.
21. Compute cash conversion
cycle, optimal cash balance and
apply cash management
system to manage effectively
the cash position.
22. Formulate receivable and
inventory management policies
pertaining to evaluation of
discount and credit terms,
effectiveness of collection
program, and determination of
economic order quantity, safety
stock and reorder point.
23. Evaluate alternative sources of
short-term funds and analyze
their effective costs.
24. Evaluate capital investment
projects using non-discounted
(payback period, accounting
rate of return, bailout payback
period) and discounted capital
budgeting techniques (net
present value, internal rate of
return, profitability index).
25. Distinguish business/operating
risks, and financing risks.
26. Assess and measure risks and
recommend probable solutions
to mitigate business/operating
risks, and financing risks

2.5 Capital structure 27. Identify and evaluate sources of

2.5.1. Sources of intermediate and long- intermediate and long-term
term financing financing
2.5.2. Cost of capital 28. Determine the cost of capital
and recommend decision on
the appropriate long-term and
intermediate financing sources.
2.6 Financial Markets 29. Identify the type of financial
2.6.1. Types of financial market market (money market, capital
2.6.2. Financial market investment decisions market) instruments and
recommend investment
decisions based on risk-return
consideration as well as basic
 bond and stock valuation.

3.0 Economic Concepts

3.1 Microeconomics 30. Apply the knowledge of
3.1.1 Supply and change in quantity microeconomic concepts
supplied and change in supply (supply, demand, market
3.1.2. Demand and change in quantity equilibrium, price elasticity of
demanded and change in demand demand, market structure,
3.1.3. Market equilibrium and price elasticity production and cost functions)
of demand to obtain information and make
3..1.4. Market structure decisions relating to an entity’s
3.1.5. Production and cost functions business operations.
3.2 Macroeconomics 31. Apply the knowledge of
3.2.1 Macroeconomic concepts macroeconomic concepts
(GDP, business cycle,
unemployment, inflation rate,
consumer price index, fiscal
policies, monetary policies) to
understand and evaluate an
entity’s business and industry.
4.0 Accounting and Business Research
4.1 Research process 32. Explain the accounting
4.1.1 Identifying a problem research process (identifying a
4.1.2. Review of related literature problem, review the related
4.1.3. Formulation of hypotheses literature, formulate the
4.1.4. Gathering of data hypotheses, collect and
4.1.5. Testing the hypotheses analyze data, test the
4.1.6 Formulating conclusions and hypotheses, formulate
recommendations. conclusions and
recommendations).
4.2 Contents of a research paper 33. Explain the contents of a
research paper.
4.3 Research methods and techniques 34. Apply research techniques to
resolve business and
accounting issues.
4.4 Market research 35. Explain the purpose of a market
4.4.1 Types of market research research.
4.4.2. Market research process 36. Identify the different types of
market research
37. Discuss the general market
research process and apply the
appropriate analytical and
statistical methods.

5.0 Data Analytics

5.1 5.1.1. Principles in Data Analytics and Data 38. Explain the principles of data
Science analytics and data science.
5.1.2 The principle of extract, transform, and 39. Explain the principles of extract,
load (ETL) transform, and load (ETL).
 5.1.3. Levels of data analytics 40. Explain levels of data analytics
5.1.4. Big data model and big data model.

5.2 Data controls 41. Explain data process from a

5.2.1. Data process from raw data to raw data file to constructing a
constructing new data set new data set.
5.2.2. Data controls 42. Define data controls to ensure
completeness, accuracy, and
reliability of data.
5.3 Data visualization 43. Explain data visualization
5,3.1. Data Dashboards through data dashboards and
5,3.2. Data visualization Techniques related visualization
techniques.
5.4 Data evaluation and validation 44. Describe and evaluate data
5.4.1 Use of data analytics using analytics and big data
5.4.2. Use of big data models. models.
5.5 Data Ethics – Principles and application 45. Explain the data ethics
principles and their application.
6.0 Cost accounting
6.1 Distinction among Actual costing, normal 46. Distinguish between actual
costing, and standard costing costing, normal costing and
standard costing.
6.2 Job order costing and process costing 47. Compute and journalize the
6.2.1. Job-cost sheets cost of inventories (materials,
6.2.2. Cost of production report work in process, finished
6.2.3. Journal entries for the cost flows using goods) based on job cost
both job-order system and process cost- sheets (job order costing) and
system cost of production reports
6.2.4. Determine cost of inventories and (process costing).
inventory expense (cost of goods sold)

6.3 Activity-based costing 48. Assign costs to products or

6.3.1. Assigning costs to products based on services using activity-based
activity-based costing costing.
6.4 Allocation of indirect costs to products or 49. Assign costs to products or
services services and allocate indirect
6.4.1. Direct method costs of service departments
6.4.2. Step-down approach using the (a) direct method (b)
6.4.3. Reciprocal method step-down approach (c)
reciprocal method.
7.0 Earnings per share
7.1 EPS reporting based on the financial 50. Explain the scope and
reporting standards applicability of EPS reporting
standards.
7.2 Basic and diluted EPS 51. Compute basic earnings per
7.2.1 Basic earnings per share share.
7.2.2. Diluted earnings per share 52. Identify potential ordinary
shares and compute diluted
earnings per share.
 7.3 FS presentation of EPS 53. Present basic and earnings per
share in the financial
statements.
8.0 Emerging Non-Financial Reporting Frameworks
8.1 Nature of Integrated and Sustainability Reports 54. Identify the emerging reporting
8.1.1. Different Reporting Frameworks frameworks (Integrated
Reporting and Sustainability
Reporting)
8.2 SEC Requirements 55. Explain the SEC requirements
for Sustainability reports
8.3 Contents of Sustainability Reporting 56. Assess risks and opportunities
relating to sustainability.
8.4 Areas of concern and challenges in 57. Identify areas of concern in
preparing Sustainability Reports sustainability reports

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