Financial Reporting and Analysis KASNEB Notes

Download Financial Reporting & Analysis KASNEB Notes



This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to account for more complex financial transactions and to prepare as well as analyse financial statements in the private and public sectors.


A candidate who passes this paper should be able to:

  • Account for various assets and liabilities
  • Prepare financial statements including published financial statements for various types of organisations
  • Account for specialised transactions
  • Prepare group financial statements
  • Analyse and interpret financial statements
  • Apply International Financial Reporting Standards (IFRSs) and International Public Sector Accounting Standards (IPSASs) in preparing non-complex financial statements.


Accounting for Assets and Liabilities [Assets and liabilities as covered in Financial Accounting (Foundation Level) are also relevant here]

  • Investment Property
  • Assets used in exploring for and evaluation of mineral resources
  • Non-current assets held for sale
  • Financial Assets and Financial Liabilities (Recognition, Classification, Initial measurement, subsequent measurement, reclassifications and de-recognition)
  • Leases (Exclude Sale and Leaseback and dealers in leasing assets)
  • Current and Deferred tax
  • Government grants
  • Provisions, contingent liabilities and assets

Download Financial Reporting & Analysis KASNEB Notes

Accounting for Specialized Transactions

  • Revenue recognition (Basic application of revenue recognition principles to Hire Purchase, Consignment sales, construction contracts and joint arrangements)
  • Effects of changes in exchange rates (Only foreign currency denominated transactions)
  • Borrowing Costs

Preparation of Financial Statements for different entities/Transactions

  • Conversion of a partnership into a company
  • Professional firms (Accountants, Lawyers, doctors, engineers)
  • Agricultural activities and farming
  • Pension plans
  • Cooperative Societies

Preparation of Published Financial Statements

  • Presentation of Financial Statements (Statement of Profit or Loss, other comprehensive incomes, Statement of Financial Position and Statement of cash flows)
  • Accounting Policies, Changes in Accounting Estimates and Errors
  • Events after the Reporting Period
  • Discontinued Operations

Download Financial Reporting & Analysis KASNEB Notes

Accounting and Financial Statements for Interests in Other Entities

  • Subsidiaries (Basic Consolidated Financial Statements with one subsidiary -excluding disposals and statement of cash flows)
  • Associates and Joint ventures
  • Accounting treatment of investments in subsidiaries, associates and jointly controlled entities in the financial statement of the investor (Separate financial statements)
  • Branches (Only autonomous and local branches)

Public Sector Accounting Standards

  • Presentation of Financial Statements
  • Accounting Policies, Changes in Accounting Estimates and Errors
  • Effects of Changes in Foreign Exchange Rates
  • Revenue from exchange transactions and revenue from non-exchange transactions
  • Property, plant and equipment, investment property and intangible assets
  • Provisions, contingent liabilities and contingent assets
  • Presentation of budget information in Financial Statements

Analysing Financial Statements

  • Analysing financial statements using ratios covered in Financial Accounting
  • Analysing Financial Statements using common size approach for the statement of profit or loss and statement of financial position

Download Financial Reporting & Analysis KASNEB Notes

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5 thoughts on “Financial Reporting and Analysis KASNEB Notes”

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