The ACCA Qualification is being redesigned in 2027, and one of the biggest changes is happening at the entry stage of the qualification. Under the current ACCA Qualification, students begin with the Applied Knowledge level, which consists of Business and Technology (BT), Management Accounting (MA), and Financial Accounting (FA).
From 2027, the redesigned qualification will have a Knowledge level with three exams:
- K1 Financial Accounting
- K2 Management Accounting
- K3 Business Law
Business and Technology (BT) will no longer be a separate exam in the redesigned Knowledge level. Instead, ACCA’s transition arrangements determine how completed BT and Foundations in Professionalism (FiP) affect the Responsible Business Management Essential Employability Module (EEM).
The redesigned Knowledge level is scheduled to become available from July 2027. Students already studying ACCA will receive credit for equivalent elements they have completed under the current qualification.
This guide explains the current Applied Knowledge subjects, the new 2027 Knowledge structure, what happens to BT, MA, FA, and LW, the transition rules, and what students receive after completing the level.
ACCA Knowledge Level 2027: What Is Changing?
One of the main changes is that ACCA is replacing the current Applied Knowledge structure with a redesigned Knowledge level.
The current and future structures are not simple one-to-one renamings. The main transition mapping is:
| Current element | What happens in the new structure |
|---|---|
| Financial Accounting (FA) | Credit for K1 Financial Accounting |
| Management Accounting (MA) | Credit for K2 Management Accounting |
| Corporate and Business Law (LW) | Credit for K3 Business Law |
| Business and Technology (BT) | Handled through the Responsible Business Management EEM under the transition arrangements |
| FiP + incomplete BT | Credit for the first 12 units of the Responsible Business Management EEM |
The important point is that K3 Business Law is not a replacement for BT.
The correct transition mapping is:
FA to K1 Financial Accounting
MA to K2 Management Accounting
LW to K3 Business Law
BT to Responsible Business Management EEM under the transition arrangements
ACCA’s transition arrangements are designed to give students credit for equivalent elements they have already completed.
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Join NowWhat Are the Current ACCA Applied Knowledge Subjects?
Until the transition to the redesigned qualification, the current ACCA Applied Knowledge level consists of three exams.
1. Business and Technology (BT)
BT introduces students to the business environment and the role of accounting professionals within organisations.
Key areas include:
- Business structures and organisational functions
- Governance
- Internal controls
- Ethics
- Technology
- The role of finance and accounting professionals
Business and Technology will no longer be a separate exam in the redesigned Knowledge level. Its arrangements for the transition are handled through the Responsible Business Management EEM.
2. Management Accounting (MA)
Management Accounting focuses on how accounting information supports internal business decisions.
Students learn areas such as:
- Costing
- Budgeting
- Performance measurement
- Planning and control
- Management decision-making
Management Accounting continues into the redesigned qualification as K2 Management Accounting.
3. Financial Accounting (FA)
Financial Accounting covers the fundamentals of financial accounting and reporting.
Students learn:
- Double-entry bookkeeping
- Accounting records
- Adjustments
- Preparation of financial statements
- Basic financial accounting principles
Financial Accounting continues into the redesigned qualification as K1 Financial Accounting.
What Are the New ACCA Knowledge Level Subjects in 2027?
From 2027, the redesigned Knowledge level will contain three mandatory exams:
| Exam | Subject |
|---|---|
| K1 | Financial Accounting |
| K2 | Management Accounting |
| K3 | Business Law |
Students must also complete the Responsible Business Management Essential Employability Module.
The Knowledge level develops technical knowledge alongside professional communication, evidence-based analysis, scepticism, and an ethical mindset.
K1 Financial Accounting
K1 develops students’ understanding of the principles and concepts behind financial accounting. It also helps students develop technical proficiency in areas such as double-entry bookkeeping and the preparation of non-complex financial statements.
K2 Management Accounting
K2 focuses on how management accounting information supports:
- Planning
- Control
- Decision-making
It continues the management accounting foundation provided by the current MA paper.
K3 Business Law
K3 Business Law is the new Knowledge-level law exam.
It is important to understand where it comes from: Corporate and Business Law (LW) currently belongs to the Applied Skills level. Under the redesigned qualification, it moves to the Knowledge level as K3.
Therefore:
Current LW to Future K3 Business Law. It is not a replacement for BT.
What Happens to BT in the ACCA 2027 Changes?
Business and Technology is one of the most important transition points for existing students. There is no direct exam equivalent for BT in the redesigned Knowledge level. Instead, ACCA’s transition arrangements determine how a student’s completed BT and FiP requirements affect the Responsible Business Management Essential Employability Module.
The transition works as follows:
- Students who have completed BT receive credit for the Responsible Business Management EEM.
- Students who have not passed BT but have completed Foundations in Professionalism (FiP) receive credit for the first 12 units of the Responsible Business Management EEM.
This means students should not consider BT as a direct replacement for K3 Business Law. BT is handled through the Responsible Business Management EEM, while LW becomes K3 Business Law.
This difference is particularly important for students planning their remaining exams before the 2027 transition.
What Happens to MA and FA in 2027?
The transition for Management Accounting and Financial Accounting is clearer because both have direct equivalents in the redesigned Knowledge level. If you complete MA before the transition, you will receive credit for K2 Management Accounting. If you complete FA before the transition, you will receive credit for K1 Financial Accounting. Students who have already passed MA and FA will therefore not have to repeat the equivalent exams under the redesigned qualification.
What Happens to Corporate and Business Law (LW)?
Corporate and Business Law (LW) is currently an Applied Skills exam. Under the redesigned qualification, it becomes:
K3 Business Law
Students who have not completed LW before the transition will be required to enter K3 Business Law before or at the same time as entering for the Expertise exams. This creates an unusual transition situation: a student may have completed the current Applied Knowledge level but still needs to complete K3 later because LW becomes part of the redesigned Knowledge level.
If you are currently studying ACCA, this is one of the transition points worth considering when planning your remaining exams.
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Join NowWhat Is the Responsible Business Management Essential Employability Module?
The redesigned ACCA Qualification introduces Essential Employability Modules alongside the exams.
At the Knowledge level, the mandatory module is:
Responsible Business Management
The module is designed to complement the technical exams with broader professional and business skills.
The Knowledge level, therefore, consists of:
- K1 Financial Accounting
- K2 Management Accounting
- K3 Business Law
- Responsible Business Management EEM
ACCA states that Essential Employability Modules are mandatory components of the redesigned qualification at each level.
What Is the Recommended Order for the New Knowledge Exams?
The new exams are numbered K1, K2, and K3 to indicate ACCA’s recommended order. ACCA says the numbering is based on analysis of past exam performance. However, the order is not compulsory, and students can still choose to take the exams in a different sequence.
The recommended sequence is:
K1 Financial Accounting, then K2 Management Accounting, followed by K3 Business Law
Following the suggested order can help students develop their knowledge progressively as they move through the Knowledge level.
When Will the New ACCA Knowledge Level Start?
The redesigned Knowledge level is scheduled to become available from July 2027.
According to ACCA’s transition timeline:
- April 2027: Updated ACCA X becomes available for Foundations and Knowledge
- May 2027: Exam entry opens for Foundations and Knowledge exams
- June 2027: Final sitting of the current Applied Skills and Strategic Professional exams
- July 2027: Foundations and Knowledge exams begin
- July 2027: Foundations and Knowledge Essential Employability Modules become available
- September 2027: First Expertise and Strategic Professional exam session
The exact availability of certain variant exams can differ, so students taking a variant paper should check the relevant ACCA timetable.
Should You Complete BT Before the 2027 Transition?
If you are currently studying BT, the transition rules make this worth considering.
Completing BT before the transition gives you credit for the Responsible Business Management EEM. If BT is not completed but FiP has been completed, ACCA says you will receive credit for the first 12 units of the EEM instead.
ACCA also notes that the Responsible Business Management EEM will be a chargeable module under the redesigned qualification, with its price to be confirmed in January 2027. Therefore, students should look at their remaining papers and transition position rather than assuming that every current paper should simply be left until after 2027.
What Is the Deadline for Completing the Current Applied Knowledge Level?
Students who want to receive the current ACCA Diploma in Accounting and Business (RQF Level 4) before the transition need to complete:
- FA
- MA
- BT
- Foundations in Professionalism
by mid-July 2027, with the exact dates to be confirmed by ACCA.
Students can progress to Applied Skills without completing FiP, but they will not receive the current Diploma until the module is completed.
There is also an important transition rule: students who have completed all the exam elements but not FiP at transition will not receive the current Diploma until they subsequently complete the K3 Business Law exam.
What Qualification Do You Get After Completing the Current Applied Knowledge Requirements?
Under the current ACCA Qualification, students can receive the:
ACCA Diploma in Accounting and Business – RQF Level 4
after completing:
- BT
- MA
- FA
- Foundations in Professionalism
The redesigned qualification introduces changes to the qualification structure.
What Qualification Do You Get After the New Knowledge Level?
Under the redesigned ACCA Qualification, successful completion of the Knowledge level leads to the:
Higher Diploma in Accounting and Business – RQF Level 4
To receive the Higher Diploma, students need to complete K1 Financial Accounting, K2 Management Accounting, K3 Business Law, and Responsible Business Management EEM. The Higher Diploma is the redesigned qualification’s Level 4 award corresponding to the current Diploma in Accounting and Business.
What Comes After the Knowledge Level?
The redesigned ACCA Qualification will have three main levels:
- Knowledge
- Expertise
- Strategic Professional
Students who meet ACCA’s minimum entry requirements will begin at Knowledge. Those who do not meet the entry requirements will first complete the redesigned Foundations level before progressing to Knowledge.
Expertise Level
The Expertise level develops broader and more practical finance skills. It will include five exams covering areas such as taxation, financial reporting, audit, risk and control, finance and investment, and performance with data analysis.
Students will also complete an Essential Employability Module at this level.
The Expertise level is aligned with RQF Level 6 and leads to the Advanced Diploma in Accounting and Business after the required exams and EEM are completed.
Strategic Professional Level
The Strategic Professional level is the final stage of the redesigned ACCA Qualification. Students will complete the required Strategic Professional exams, an Essential Employability Module, and the Practical Experience Requirement (PER).
Completing the Strategic Professional requirements and PER allows students to progress to ACCA membership.
Current ACCA Applied Knowledge vs 2027 Knowledge Level
| Feature | Current structure | Redesigned structure |
|---|---|---|
| Level | Applied Knowledge | Knowledge |
| Financial Accounting | FA | K1 Financial Accounting |
| Management Accounting | MA | K2 Management Accounting |
| Business and Technology | BT | No direct exam equivalent |
| Business Law | LW – Applied Skills | K3 Business Law |
| Employability module | Foundations in Professionalism | Responsible Business Management EEM |
| Award after completing the level | Diploma in Accounting and Business | Higher Diploma in Accounting and Business |
| New Knowledge exams | Current exams | Available from July 2027 |
What Should ACCA Students Do Before 2027?
If you are already studying ACCA, do not assume that you need to finish every possible paper before the transition just because the qualification is changing.
Instead, identify:
- Which current exams you have already passed
- Whether you have completed FiP
- Whether BT is still outstanding
- Whether you have completed FA and MA
- Whether you have completed LW
- Which transition credits you will receive
- Which remaining requirements you will have after July 2027
For example, a student who has completed Financial Accounting and Management Accounting will receive credit for K1 and K2. A student who has not completed BT will have the Responsible Business Management EEM requirement handled under the transition arrangements. A student who has not completed LW will need to complete K3 Business Law as part of the redesigned qualification. For a better understanding of the qualification and its requirements, refer to our ACCA Course Details guide. The right strategy, therefore, depends on your current progress rather than on a single rule that applies to every ACCA student.
FAQ's
The redesigned ACCA Knowledge level has three mandatory exams: K1 Financial Accounting, K2 Management Accounting, and K3 Business Law. Students must also complete the Responsible Business Management Essential Employability Module.
Corporate and Business Law (LW), currently an Applied Skills exam, moves to the redesigned Knowledge level as K3 Business Law. Students who have not completed LW before transition will need to enter K3 before or at the same time as entering for Expertise exams.
Business and Technology (BT) will no longer be a separate exam in the redesigned Knowledge level. It does not have a direct exam equivalent. Under the transition arrangements, students who have completed BT receive credit for the Responsible Business Management EEM.
The redesigned Knowledge level exams are scheduled to become available from July 2027. The Responsible Business Management EEM will also become available for the Knowledge level from July 2027.
Students who successfully complete K1, K2, K3, and the Responsible Business Management Essential Employability Module will receive the Higher Diploma in Accounting and Business, benchmarked at RQF Level 4.