ACCA Skill Level Subjects | How to Start & Prepare | Exam Pattern | What to Keep in Mind

The ACCA Skill Level is the next major milestone in the ACCA qualification blueprint, building on the fundamental concepts learnt in the applied knowledge level. The level is designed to develop advanced financial skills and practical expertise essential for a successful career in accounting and finance. The subjects focus on real-world application, preparing you to address complex challenges in professional roles.

When Can You Start Preparing For ACCA Skill Level?

• After Knowledge Level: Progress to the Skill Level after completing the Knowledge Level exams.
• Direct Entry via Exemptions: If you hold a relevant degree or professional qualification, you may qualify for exemptions from Knowledge Level exams and directly begin Skill Level subjects.

The ACCA board likens the applied skills level to a master’s degree certification for those entering post a professional level and that of a bachelor’s degree certification for those who started from the foundational level. Whether you’re continuing after the Knowledge Level or entering directly via exemptions, mastering the Skill Level is crucial for your ACCA journey.

The 6 ACCA Skill Level Subjects

This level has the maximum number of subjects from the three ACCA level exams. It’s a pathway to develop on the foundational knowledge, acquire the required professional skills and develop a strong base for your professional strategic level.

The default order recommended by ACCA is an ideal schedule to follow for the exams. However, you can adjust the sequence to suit your preferences and needs.

• Corporate and Business Law (LW)

It is recommended to start the applied skills level exams with LW; particularly for those who haven’t opted for its exemption and have started their ACCA journey from the knowledge level, as this exam is similar in structure. ACCA Offers country-specific variants such as ENG (UK), SGP (Singapore), MYS (Malaysia)and a Global Law (GL) option you can choose to learn about.

Exam Format: The corporate and business law exam is a 2 hour paper divided into 2 parts —

Section A – Comprises of Objective Type questions (OT questions). This section is worth 70 marks, containing a mixture of 20 one-mark questions and 25 two-mark questions

Section B – Worth 30 marks in total, it comprises of 6 multi task questions (which focus on analysis and application of learning). Each of the problem scenario questions contains a series of tasks and has a value of 5 marks.

What You’ll Learn: This subject introduces the legal framework of business operations, focusing on essential laws that govern contracts, partnerships, companies and employment. It also explores ethical considerations and regulatory compliance in the corporate world.

Why It’s Important: Understanding business law is crucial for professionals to ensure organisations operate within legal boundaries. It equips students with the knowledge to navigate legal challenges and know when to use the help of a legal specialist.

• Taxation (TX)

TX provides the skills and know-how about the tax system needed to compute tax liabilities and basic planning techniques required by individuals and/or both single and groups of companies. The ACCA taxation paper varies depending on the jurisdiction chosen by you. The format of the exam will be the same for each variation but the exam is tailored to cover specific tax laws, regulations and compliance requirements of the chosen country.

Exam Format: TX is a 3 hour long exam divided into 3 sections —

Section A – This section has 15 OT questions worth 2 marks each

Section B – It has 3 case studies for which you have to answer 5 Objective questions each. Each question is of 2 marks each making one single case study worth 10 marks. In total, section B is of 30 marks.

Section C – Worth 40 marks in totals, it includes scenario based questions that require long written responses and calculations.

What You’ll Learn: In the Taxation paper, you’ll gain a deep understanding of how tax systems operate, including the principles and structure of taxation in your chosen jurisdiction. You’ll learn to ensure compliance with tax regulations, accurately compute tax liabilities and apply planning techniques to optimize tax outcomes for individuals and businesses.

Why It’s Important: Taxation is a critical component of financial decision-making and the TX paper equips you with the skills to interpret and apply complex tax laws effectively. This expertise is invaluable for advising clients, ensuring compliance and identifying tax-saving opportunities, which are essential for both individuals and organizations.

• Financial Reporting (FR)

The subject educates you on accounting standards and frameworks involved in creating financial statements of entities including tactics required to analyse and interpret said statements. It builds on the fundamentals learnt in the Applied Knowledge level’s Financial Accounting and Skill’s LW. It sets you up with the knowledge required for Strategic Business reporting.

Exam Format: The FR exam format is similar to the TX exam and will be followed for the next 3 exams too. That is, 3 sections—

Section A – 15 Objective Type questions worth 2 marks each

Section B – Worth 30 marks. It has 3 case studies, which have 5 OT questions worth 2 marks each. Meaning each case study has a value of 10 marks

Section C – Worth 40 marks in totals. Two 20 marks scenario based questions that require individual narrative and/or numerical calculations you need to input on blank spreadsheets.

What You’ll Learn: It focuses on key principles of financial reporting, with an emphasis on International Financial Reporting Standards (IFRS). You’ll learn how to prepare financial statements for single entities and groups, apply accounting standards to various transactions and analyze the financial performance of businesses with a professional approach.

Why It’s Important: Mastery of financial reporting is essential for accurate decision-making and transparency in business. The FR exam equips you to prepare financial statements that comply with IFRS, ensuring global consistency and reliability. Additionally, you’ll develop the ability to interpret these statements, providing insights that drive strategic decisions for stakeholders and organizations.

• Performance Management (PM)

PM is about building the skills needed to apply management accounting techniques you’ve already learned. It lays the foundation for more specialized capabilities explored in Advanced Performance Management. While the exam includes costing, it goes beyond that to cover several other equally important areas.

Exam Format: Similar to other Applied Skill exams it has 3 sections—

Section A – 15 Objective Type questions worth 2 marks each. The questions in this section will cover the entire PM syllabus.

Section B – 3 case studies consisting of 5 objective questions worth 2 marks each. The case/ scenarios will include 5 main syllabus areas

Section C – 2 questions worth 20 marks each. These questions could either be one entire 20 marks requirement or broken down into several requirements.

What You’ll Learn: You’ll learn budgeting methods, cost analysis and techniques for measuring and managing performance in various business contexts. This includes understanding risk, pricing strategies and cost control to improve organizational efficiency.

Why It’s Important: The skills developed in the PM exam are vital for strategic business roles, as they help you analyze data and provide insights for better decision-making. By mastering techniques like variance analysis and key performance indicators (KPIs), you can influence business strategy, optimize resources and drive overall performance improvements.

• Financial Management (FM)

The FM syllabus focuses on the knowledge and skill a finance manager is expected to acquire in respect to investment, financing and dividend policy decisions.

Exam Format: A 100 mark questionnaire divided into 3 parts—

Section A – Narrative or calculative 15 Objective Type questions worth 2 marks each.

Section B – It comprises 3 questions (case studies) each containing five objective test questions worth 2 marks. Therefore, a single case study/ scenario is of 10 marks.

Section C – 2 questions worth 20 marks each. These questions are mainly focused on the C,D or E areas only, but may include requirements from other areas.

What You’ll Learn: FM equips you with practical knowledge of financial tools used to evaluate business performance and investment opportunities. You’ll explore strategies for effective financial planning, learn techniques for assessing risks and understand how to manage working capital to support sustainable growth.

Why It’s Important: Financial management is essential for ensuring an organization’s stability and success. The FM exam prepares you to optimize financial resources by making informed decisions on investments, funding and risk mitigation, enabling businesses to achieve long-term profitability and resilience.

• Audit and Assurance (AA)

you will gain insights into the processes required to conduct an assurance engagement and learn how to apply these processes within the framework of professional regulations.

Exam Format: All questions in this exam are mandatory; the exam is divided into two sections—

Section A -This section includes 3 OT case questions, each based on a scenario with five objective test items worth 2 marks each, totaling 10 marks per case. These cases cover various syllabus areas and combine knowledge-based and application-focused questions.

Section B – It includes 3 constructed response questions—one worth 30 marks and two worth 20 marks—requiring written responses, with some involving ratio calculations or materiality analysis for audit planning or review.

What You’ll Learn: The ACCA Audit and Assurance (AA) exam introduces the fundamental concepts of auditing, including risk assessment, internal controls, and assurance processes. You’ll gain practical knowledge on how to plan and carry out an audit engagement, from acceptance and detailed planning to evidence collection, review, and reporting. The exam focuses on applying auditing procedures to accounting standards and drafting financial statements, building on knowledge from financial accounting.

Why It’s Important: Auditing is a critical function that ensures the accuracy and reliability of financial statements, safeguarding stakeholder trust. The AA exam equips you with the skills needed to evaluate risks, test controls, and provide assurance, making you well-prepared for roles in auditing, compliance, and risk management. This foundation is invaluable for advancing to more specialized auditing and assurance responsibilities in your career.

ACCA Skill Level Exam Fees:

The exam fees for ACCA Applied Skills exams in India typically range from approximately ₹9,000 to ₹15,000 per subject (as per the ACCA website currently the exams cost £143), depending on factors such as the timing of registration (early, standard, or late entry).

How to Start & Prepare for the Skill Level

• Exam Strategy

• • You can choose to start the applied skills exams with an exam that is similar in structure to the previously taken applied knowledge examinations. LW before proceeding on to others.
  • Consider taking subjects in a sequence that builds on prior knowledge, e.g. AA utilises the information learnt in FR.
  • Balance technical subjects like FR with analytical ones like PM for variety.
  • Be careful about which variant you choose for exams which have multiple variants to choose from like TX as that particular variant can only be sat twice a year.

• Creating a Structured Study Plan

• • Divide study time based on the complexity of each subject.
  • Allocate daily or weekly slots for theory, practical application and revision.

• Recommended Resources

• • ACCA-approved study texts and question banks.
  • Online platforms offering video tutorials and practice exams.
  • Seek help from coaching centres for guidance and structured preparation.

• Practice with Mock Exams and Past Papers

• • Mock exams replicate real exam scenarios and help improve time management.
  • Reviewing past papers gives insights into frequently tested topics and exam patterns.

• Balancing Theory and Practical Application

• • Relate theoretical knowledge to real-world scenarios for better retention.
  • Case studies and interactive learning tools can make preparation engaging.

Common Challenges and How to Overcome Them

• Time Management: Create a detailed study schedule and stick to it.
• Complex Topics: Break down difficult concepts into smaller, manageable chunks.
• Staying Motivated: Set short-term goals and reward yourself for achieving them.

How Can Proschool Help You Prepare for the Applied Skills Level Exams?

Preparing for the Applied Skills Level exams can be overwhelming, especially with the sheer amount of content to cover and the pressure to perform well. At Proschool, we understand the challenges that ACCA aspirants face and provide the support needed to help you navigate through them.

Whether it’s personalized attention, access to quality resources, or career guidance, we ensure that you not only prepare effectively but also excel in your exams.

Here’s how Proschool can help you score well and overcome common hurdles:

• 12000+ Trained in Accounting and Finance: Proschool has successfully trained over 12,000 students in Accounting and Finance, helping them achieve their career goals and exam success.
• Cost-Effective Training: You can save on registration fees and training costs with Proschool, making your ACCA journey affordable.
• Exemptions Support: We provide expert guidance on obtaining ACCA exemptions, giving you a head start on your qualification.
• Exam Pass Commitment: Proschool offers unlimited classroom and doubt-solving sessions if you fail your ACCA exams, ensuring you stay on track for success.
• Extensive Pool of Questions: With over 600+ practice questions per subject, Proschool ensures you have the extensive practice you need to ace your exams easily.
• Flexible Batch Starts: New batches start every month, giving you flexibility in choosing your preferred start date.
• Proschool Pass Rate > Global Pass Rate: Proschool’s pass rate consistently exceeds

At Proschool, we believe in providing comprehensive support to make your ACCA journey smooth and successful. Let us help you not just prepare for the Applied Skills Level exams but also set you up for a rewarding career.

Conclusion

The ACCA Applied Skills level is a pivotal stage in your qualification journey, focusing on practical skills highly valued by employers. Good performance in the Applied Skills exams builds a strong foundation for future success, particularly as you advance to the Strategic Professional level. With a structured preparation plan and the right resources, you can successfully clear this stage and progress toward completing your ACCA qualification.

FAQs

How can I effectively prepare for the ACCA Skill Level exams?

Focus on a mix of theory and application, practice mock exams and use ACCA-approved study materials.

Can I take ACCA Skill Level exams at my own pace, or do I have to follow a schedule?

You can take Skill Level exams at your convenience, as they are available on-demand.

What is the passing rate of ACCA applied knowledge and applied skill exams?

The passing rates for Skill Level exams vary by subject but typically range between 40–60%.

Will I be able to choose my preferred time slot for ACCA Skill Level Exams?

Yes, for Computer-Based Exams, you can select a time slot that fits your schedule.

Where can I take the ACCA exams?

ACCA exams can be taken at designated exam centers or online through remote invigilation.