To apply knowledge, skills and exercise professional judgement in the application and evaluation of financial reporting principles and practices in a range of business contexts and situations.

DETAILED SYLLABUS

A. The professional and ethical duty of the accountant

• 1. Professional behaviour and compliance with accounting standards
• 2. Ethical requirements of corporate reporting and the consequences of unethical behaviour
• 3. Social responsibility

B. The financial reporting framework

• 1. The contribution and limitations of financial statements in meeting the needs of users’ and capital markets
• 2. The applications, strengths and weaknesses of an accounting framework
• 3. Critical evaluation of principles and practices

C. Reporting the financial performance of entities

• 1. Performance reporting
• 2. Non-current assets
• 3. Financial instruments
• 4. Leases
• 5. Segment reporting
• 6. Employee benefits
• 7. Income taxes
• 8. Provisions, contingencies and events after the balance sheet date
• 9. Related parties
• 10. Share-based payment

D. Financial statements of groups of entities

• 1. Group accounting including cash flow statements
• 2. Continuing and discontinued interests
• 3. Changes in group structures
• 4. Foreign transactions and entities

E. Specialized entities

• 1. Financial reporting in specialised, not-for-profit and public sector entities
• 2. Reporting requirements of small and medium sized entities (SMEs)

F. Implications of changes in accounting regulation on financial reporting

• 1. The effect of changes in accounting standards on accounting systems
• 2. Proposed changes to accounting standards

G. The appraisal of financial performance and position of entities

• 1. The creation of suitable accounting policies
• 2. Analysis and interpretation of financial information and measurement of performance

H. Current developments

• 1. Environmental and social reporting
• 2. Convergence between national and international reporting standards
• 3. Comparison of national reporting requirements
• 4. Current reporting issues

APPROACH TO EXAMINING THE SYLLABUS

Students will be examined on concepts, theories, and principles, and on their ability to question and comment on proposed accounting treatments.
The evaluation of alternative accounting practices and the identification and prioritisation of issues will be a key element of the paper. Professional and ethical judgement will need to be exercised, together with the integration of technical knowledge when addressing corporate reporting issues in a business context.

Global issues will be addressed via the current issues questions on the paper. Students will be required to adopt either a stakeholder or an external focus in answering questions and to demonstrate personal skills such as problem solving, dealing with information and decision making.
The paper also deals with specific professional knowledge appropriate to the preparation and presentation of consolidated and other financial statements from accounting data, to conform to accounting standards.

The paper will comprise two sections.
Section A: Compulsory question - 50 marks
Section B: 2 from 3 questions of 25 marks each - 50 marks
Total Marks - 100 marks

Section A will consist of one scenario based question worth 50 marks. It will deal with the preparation of consolidated financial statements including group cash flow statements and with issues in financial reporting.

Students will be required to answer two out of three questions in Section B, which will normally comprise two questions which will be scenario or case-study based and one question which will be an essay. Section B could deal with any aspects of the syllabus.