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ZICAZICA ACCOUNTANCY PROGRAMME

PAPER P1

ADVANCED FINANCIAL REPORTING

TEXTBOOK

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Published by the Zambia Institute of Chartered Accountants (ZICA)24 Joseph Mwilwa RoadRhodesParkP.o Box 32005

LusakaZambia

2007

Acknowledgements

We are grateful to the Zambian Government through the Ministry of Finance andNational Planning under PEMFA project for funding the printing of these books.

Furthermore we are grateful to the Professionals and specialists for undertaking theprocess of writing these study materials.

Finally, we also acknowledge the Association of Chartered Certified Accountants, theChartered Institute of Management Accountants, and the Institute of CharteredAccountants of England & Wales and Other Accountant Professional bodies forpermission to reproduce some of the past Examination questions.

All rights reserved. No past of this publication may be reproduced, stored in a retrievalsystem or transmitted, in any form or by any means, electronic, mechanical,photocopying, recording or otherwise without the prior written permission of the Zambia

Institute of Chartered Accountants (ZICA).

CONTENTS

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SYLLABUS V

THE SYLLABUS

PURPOSE

This paper will give the student the opportunity to acquire knowledge in advancedaspects of financial accounting and corporate reporting. It will also help the student toprepare and interpret the financial statements of groups or undertakings of local orinternational setting.

General Learning Objectives

On completion of this paper the student should be able to:

1. Prepare financial statements for groups of undertakings, for publication inaccordance with the International Financial Reporting Standards andInternational Accounting Standards.

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Element 2.8 Financial Instruments, IAS 32: Financial Instruments: Disclosure andPresentation; IAS 29: Financial Reporting in HyperinflationaryEconomies;

Element 2.9 Leasing contracts including sale and leasebackElement 2.10 Reporting Financial Performance, IFRS 5: Non Current Assets Held for

Sale and Discontinued Operations; IAS 8: Accounting Policies, Changesin Accounting Estimates and Errors;Element 2.11 Employee Benefits including pension schemes.

UNIT 3.0 DEVELOPMENTS IN FINANCIAL REPORTING (10%)

Element 3.1 Environmental, social and ethical reporting issues.Element 3.2 Corporate GovernanceElement 3.3 Related Party Transactions, IAS 24: Related Party Disclosure;Element 3.4 Major differences between IASs, UK GAAP and US GAPPElement 3.4 Current Issues and developments including Exposure Drafts, Discussion

Papers, Standing Interpretations Committee and International FinancialReporting Interpretations Committee pronouncements.

UNIT 4.0 ANALYSIS OF FINANCIAL STATEMENTS (15%)

Element 4.1 Advanced aspects of the interpretation of financial statements with thehelp of liquidity, profitability, gearing, efficiency and investor ratios.

Element 4.2 Segmental Analysis, IAS 14: Segment Reporting;Element 4.3 Corporate Failure PredictionElement 4.4 Inter-firm and International Comparisons.

UNIT 5.0 PUBLIC SECTOR ACCOUNTING (10%)

Element 5.1 Documents usedElement 5.2 Accounting books usedElement 5.3 Accounting for ImprestElement 5.4 Receipts and Payments AccountsElement 5.5 Income and Expenditure AccountsElement 5.6 Balance SheetElement 5.7 Cash flow statementElement 5.8 Analysis of Financial StatementsElement 5.9 Departmental Budget preparation

UNIT 6.0 REGULATORY FRAMEWORK (5%)

Element 6.1 IASB Regulatory FrameworkElement 6.2 The Zambia Companies ActElement 6.3 Securities and Exchange Commission (SEC)Element 6.3 The Lusaka Stock Exchange RegulationsElement 6.4 Zambia Institute of Certified Accountants (ZICA)

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UNIT 7.0 ACCOUNTING UNDER THE INSURANCE INDUSTRY (5%)

Element 7.1 Introduction to Accounting under the Insurance industryElement 7.2 Ledger Account under the Insurance industryElement 7.3 Accounting for Final Statements of Insurance industry

Element 7.4 Accounting for NAPSA funds under the Insurance industry

UNIT 8.0 ACCOUNTING UNDER THE BANKING INDUSTRY (5%)

Element 8.1 Introduction to legal framework of Bank AccountingElement 8.2 Double Entry Book keeping under Banking industryElement 8.3 Accounting for Investment Management for BanksElement 8.4 Preparation of Financial StatementsElement 8.5 Performance Evaluation under the Banking industry

STRUCTURE OF THE EXAMINATION

The paper will be a three (3) hour examination consisting of five (5) questions.Candidates will be required to attempt any four (4) questions.

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