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ACCA · Level

Applied Skills

The ACCA Applied Skills level develops deeper technical expertise across six subjects: law, performance management, taxation, financial reporting, financial management, and audit. These subjects build the core professional skills you'll use throughout your career.

6 subjects 6 exams Level 2 of 3
Get Access to Applied Skills

How you're assessed

Objective Test

Session-Based Exams (LW, PM, TX, FR, FM, AA)

Sat in ACCA exam sessions (March, June, September, December). LW is a 2-hour CBE; all others are 3-hour paper-based or CBE exams.

60

Questions

90

Minutes

50%

Pass Mark

Subjects in this level

TX Objective Test £199

Taxation

Learn more

Taxation (TX) covers UK income tax, corporation tax, capital gains tax, VAT, and inheritance tax — focusing on the computations and compliance requirements you'll encounter in practice. It's a highly practical subject with significant calculation content.

Key topics

  • Income tax: employment, trading, investment income
  • Corporation tax: computation and group relief
  • Capital gains tax for individuals and companies
  • Value Added Tax (VAT) — registration and computation
  • Inheritance tax and national insurance
  • Tax administration and self-assessment

Exam details

60

Questions

180

Minutes

50%

Pass mark

4

Sessions/yr

March, June, September & December

LW Objective Test £199

Corporate and Business Law

Learn more

Corporate and Business Law (LW) covers the English legal system, contract law, company law, employment law, and insolvency. It provides the legal foundation every finance professional needs to operate ethically and compliantly within corporate structures.

Key topics

  • English legal system and sources of law
  • Contract law: formation, terms, breach
  • Company formation and constitution
  • Company directors and shareholders
  • Employment law and contract of employment
  • Insolvency and corporate rescue procedures

Exam details

60

Questions

120

Minutes

50%

Pass mark

4

Sessions/yr

March, June, September & December

PM Objective Test £199

Performance Management

Learn more

Performance Management (PM) develops advanced management accounting techniques: throughput accounting, environmental accounting, lifecycle costing, transfer pricing, and performance measurement frameworks. It builds on MA to provide a comprehensive toolkit for management decision-making.

Key topics

  • Throughput accounting and theory of constraints
  • Environmental and lifecycle costing
  • Transfer pricing in divisional structures
  • Divisional performance measurement (ROI, RI)
  • Balanced Scorecard and performance pyramid
  • Risk and uncertainty in decision-making

Exam details

60

Questions

180

Minutes

50%

Pass mark

4

Sessions/yr

March, June, September & December

FR Objective Test £199

Financial Reporting

Learn more

Financial Reporting (FR) builds on FA, covering the preparation and interpretation of financial statements under IFRS for single entities and groups. You'll study consolidations, accounting standards, and financial statement analysis in depth.

Key topics

  • Preparation of financial statements (IFRS)
  • Group consolidations: subsidiaries and associates
  • IFRS 16 Leases, IFRS 15 Revenue
  • Accounting for financial instruments (IFRS 9)
  • Financial performance analysis
  • Ethical and conceptual framework issues

Exam details

60

Questions

180

Minutes

50%

Pass mark

4

Sessions/yr

March, June, September & December

AA Objective Test £199

Audit and Assurance

Learn more

Audit and Assurance (AA) develops your understanding of the audit process, from planning and risk assessment through to evidence gathering and reporting. You'll learn the principles of external audit, internal audit, and other assurance engagements under ISAs.

Key topics

  • External audit framework and regulation
  • Audit risk model (inherent, control, detection)
  • Audit planning and materiality
  • Internal controls and testing
  • Audit evidence and procedures
  • Audit reporting and completion

Exam details

60

Questions

180

Minutes

50%

Pass mark

4

Sessions/yr

March, June, September & December

FM Objective Test £199

Financial Management

Learn more

Financial Management (FM) covers investment appraisal, business finance, working capital management, business valuations, and risk management techniques. It equips you with the tools to make and evaluate financial decisions at a corporate level.

Key topics

  • Investment appraisal: NPV, IRR, payback
  • Sources of finance and capital structure
  • Working capital management
  • Business valuations: DCF and market-based methods
  • Foreign exchange risk management
  • Interest rate risk management

Exam details

60

Questions

180

Minutes

50%

Pass mark

4

Sessions/yr

March, June, September & December

Where this fits in the qualification

Applied Knowledge
2
Applied Skills
3
Strategic Professional
ACCA Member

Prerequisites

Completion of ACCA Applied Knowledge (BT, FA, MA) or accredited exemptions

On completion

Progress to ACCA Strategic Professional level

Frequently asked questions

In what order should I sit the ACCA Applied Skills papers?

ACCA doesn't mandate an order, but most students follow a logical sequence: LW → MA/FA (already done) → PM → TX → FR → FM → AA. FR builds on FA; AA builds on FR and LW. PM and TX can be sat alongside FR. FM is often sat later as it requires more technical maturity.

How difficult is the ACCA Applied Skills level?

The Skills level is a significant step up from Knowledge. Papers like FR, FM, and AA are technically demanding and require strong exam technique, not just knowledge. The pass rates for Skills papers are typically in the 40–55% range, so solid preparation is essential.

How VIVA teaches Applied Skills

Step 1

Learn

Grasp the Applied Skills syllabus fast.

6 subjects. Expert-led video lessons covering every examinable area for TX, LW, PM, FR, AA, FM — no filler, nothing that isn't in the exam.

Expert-led video lessonsDownloadable course notesAI video assistantStructured for spaced retention

Step 2

Practise

Sit the Applied Skills exams before you sit them for real.

Exam-realistic mocks replicating official ACCA conditions. Same format, same timing, same pressure — with worked explanations for every answer.

Exam-realistic mocksWorked explanationsUnlimited attemptsPerformance tracking

Step 3

Diagnose

Stop revising Applied Skills topics you already know.

After every mock, VIVA maps your strengths and weaknesses across all Applied Skills subjects and rebuilds your study path around what actually needs work. Instant AI-enhanced marking with expert oversight — the speed of technology, the judgement of real experts.

Instant markingStrength & weakness mapSmarter sequencingExpert oversight

Not sure what to buy?

Find exactly what to buy next.

Tell us how far through ACCA you are. We'll show you whether the Applied Skills bundle or individual subjects are right for you — in 30 seconds.

Access options

Applied Skills access

Full level bundle

£449 all subjects included
  • All video lessons and resources for every subject
  • Unlimited practice questions and mock exams
  • Pass guarantee on eligible subjects

Or buy individually

TX — Taxation £199
LW — Corporate and Business Law £199
PM — Performance Management £199
FR — Financial Reporting £199
AA — Audit and Assurance £199
FM — Financial Management £199

Get Full Access

Applied Skills Level in ACCA