Download Advanced Financial Reporting and Analysis Notes
CPA ADVANCED LEVEL NOTES
GENERAL OBJECTIVE
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her account for complex accounting transactions and prepare advanced financial reports.
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
- Prepare financial statements for subsidiaries, associates and jointly controlled entities in compliance with International Financial Reporting Standards (IFRSs) and International Public Sector Accounting Standards (IPSASs) as applicable
- Analyse financial statements for public and private sector entities
- Account for complex accounting transactions
- Apply ethical standards in accountancy work and practice
CONTENT
Framework for preparation and presentation of financial statement
- Importance of the accounting framework
- Steps in developing international financial reporting interpretations by IFRIC (excluding detailed IFRICS)
- Ethical and legal issues in financial reporting
Assets and liabilities of financial statement
- Inventories
- Non-current assets held for sale and discontinued operations
- Impairment of assets
- Exploration for and evaluation of mineral resources
- Income taxes – including group aspects
- Share based payments
- Employee benefits with emphasis on post-employment benefits
Preparing financial statements and other reports
- Published financial statements (including group statement of cash flows where a subsidiary is acquired or sold during the year)
- Interim financial statements
- Financial statements of pension schemes/retirement benefit plans
- Operating segment reports
- Earnings per share
- IFRS for small and medium sized entities
- Related parties disclosures
- Effects of inflation and hyper inflationary economies (exclude inflation adjusted financial statements)
- Business combinations and corporate restructuring
- Management commentary (management discussion and analysis)
- Integrated reporting
Accounting and reporting of financial instruments
- Nature and scope of financial instruments
- Equity and financial liabilities
- Recognition and de-recognition of financial instruments
- Hedge accounting
- Other disclosures
Download Advanced Financial Reporting and Analysis Notes
Consolidated and separate financial statements
- Accounting for subsidiaries including piece-meal acquisitions, several subsidiaries and sub-subsidiaries
- Investments in associates and jointly controlled arrangements
- Foreign entities (subsidiary, associate and jointly controlled entities)
- Disposal of investment in subsidiary (partial and full disposal)
Public sector accounting
Provisions of the following IPSASs (emphasis on distinctions with equivalent IASs/IFRSs)
- Effects of changes in foreign exchange rates
- Revenue from exchange and non-exchange transactions
- Hyperinflationary economies (ignore inflation adjusted financial statements)
- Segment reports
- Related party disclosures
- Impairment of cash generating and non–cash generating assets
- Disclosure of information about the general government sector
Current trends
- Reporting on corporate social responsibility
- Reporting on environmental matters
- Corporate governance reports (Directors reports and Chairman’s statements
– contents only)
- Sustainability reporting
Advanced financial reporting and analysis
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