AAT Level 3 Advance Diploma in Accounting

The advanced qualification introduces more detailed financial tasks, including maintaining cost accounting records and the preparation of reports and returns. You’ll also master a range of accounting disciplines, from ethical practices for accountants to advanced bookkeeping.


The AAT level 3 advance diploma in accounting consists of six papers which are examined in the following way:

  • Advanced Bookkeeping - unit assessment and synoptic assessment

  • Final Accounts Preparation - unit assessment and synoptic assessment
  • Management Accounting - costing/unit assessment and synoptic assessment
  • Ethics for Accountants - synoptic assessment only
  • Spreadsheets for Accountants - synoptic assessment only
  • Indirect Tax - unit assessment only

The synoptic assessment includes questions that examine the whole syllabus. For AAT level 3 Indirect Tax is not included in the synoptic assessment. Ethics for Accountants and Spreadsheets for Accountants are only examined within the synoptic assessment and do not have their own grades. The synoptic assessment consists of two parts – part 1 is mainly centred around ethics and part 2 around spreadsheets. Both parts include the Advanced Bookkeeping, Management Accounting/Costing and Final Accounts Preparation units.

What will I learn in each AAT Level 3 unit?

Advanced Bookkeeping:

  1. Apply the principles of advanced double-entry bookkeeping
  2. Implement procedures for the acquisition and disposal of non-current assets
  3. Prepare and record depreciation calculations
  4. Record period end adjustments
  5. Produce and extend the trial balance

Final Accounts Preparation

  1. Distinguish between the financial recording and reporting requirements of different types of organisations
  2. Explain the need for final accounts and the accounting and ethical principles underlying their preparation
  3. Prepare accounting records from incomplete information
  4. Produce accounts for sole traders
  5. Produce accounts for partnerships
  6. Recognise the key differences between preparing accounts for a limited company and a sole trader

Management Accounting/Costing

  1. Understand the purpose and use of management accounting within an organisation
  2. Apply techniques required for dealing with costs
  3. Apportion costs according to organisational requirements
  4. Analyse and review deviations from budget and report these to management
  5. Apply management accounting techniques to support decision making

Ethics for Accountants

  1. Understand the need to act ethically
  2. Understand the relevance of the ethical code for professional accountants
  3. Recognise how to act ethically in an accounting role
  4. Identify action to take in relation to unethical behaviour or illegal acts

Spreadsheets for Accountants

  1. Design and structure appropriate spreadsheets to meet customer needs
  2. Use spreadsheet software to record, format and organise data
  3. Use relevant tools to manipulate and analyse data
  4. Use software tools to verify accuracy and protect data
  5. Use tools and techniques to prepare and report accounting information

Indirect Tax

  1. Understand and apply VAT legislation requirements
  2. Accurately complete VAT returns and submit them in a timely manner
  3. Understand the implications for the business of errors, omissions and late filing and payment
  4. Report VAT-related information within the organisation in accordance with regulatory and organisational guidelines
Read more about Level 2 and 4 in our AAT Syllabus page.

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