Financial Reporting

Conceptual and regulatory framework for financial Reporting

The need for a conceptual framework and the characteristics of useful information Recognition and measurement; Regulatory framework; The concepts and principles of groups and consolidated financial statements

Accounting for transactions in financial statements

Tangible non-current assets

Intangible assets

Impairment of assets

Inventory and biological assets

Financial instruments

Leasing

Provisions and events after the reporting period

Taxation

Reporting financial performance

Revenue

Government grants

Foreign Currency Transactions

Analyzing and interpreting financial statements

Limitations of financial statements

Calculation and interpretation of accounting ratios and trends to address users’ and stakeholders’ needs

Limitations of interpretation techniques

Specialized, not-for-profit, and public sector entities

Preparation of financial statements: Prepare an entity’s statement of financial position and statement of profit or loss and other comprehensive income in accordance with the structure prescribed within IFRS and content drawing on accounting treatments as identified within units I, II and III of syllabus;

Prepare and explain the contents and purpose of the statement of changes in equity.

Cash flow Statement: Prepare a statement of cash flows for a Single entity in accordance with relevant accounting standards using both the methods.

Preparation of financial statements

Preparation of consolidated financial statements including an associate: Prepare a consolidated statement of financial position for a simple group (parent and one subsidiary and associate) dealing with pre and post-acquisition profits, non-controlling interests and consolidated goodwill. Prepare a consolidated statement of profit or loss and consolidated statement of profit or loss and other comprehensive income for a simple group dealing with an acquisition in the period and non-controlling interest; Accounting for other reserves including share premium and revaluation reserves; Accounting for intra-group trading; Accounting for the fair value adjustments (including their effect on consolidated goodwill) to: i) depreciating and non-depreciating noncurrent Assets ii) inventory iii) monetary liabilities iv) assets and liabilities not included in the subsidiary’s own statement of financial position, including contingent assets and liabilities; Account for goodwill impairment; Description and application of accounting treatment of consolidated goodwill; Explain and illustrate the effect of the disposal of a parent’s investment in a subsidiary in the parent’s individual financial statements and/or those of the group (restricted to disposals of the parent’s entire investment in the subsidiary).