ffaf3_syllandsg_2011

8/4/2019 ffaf3_syllandsg_2011

1/13

1

al Accounting

ed to help

is intended to

could be

any examination session.

LLABUS AND

inks

eding o

nne

olid l

here there is

t link and no required underpinnin

are shown as dotted line arrows. The relational

cates where you are expect

here it wo

efore

f the syllabus

the broadest sense the

capabilities to be developed within the paper.

ral mai

the syllabus and study

guide into discrete sections.

betwe

the syllabus an

should be used as an aid to planning teaching an

learning in a structured way.

Syllabus rationale

This is a narrative explaining how the syllabus is

structured and how the main capabilities are linked.

The rationale also explains in further detail what theexamination intends to assess and why.

Detailed syllabus

main capabilities

to subject areas. This is

detailed study guide.

llabus

This section briefly explains the structure of the

examination and how it is assessed.

ts and

ould use as the

ion and materials

detail of theively identifies what

ation session.

ection and

vided into sections

entified in the

ivided into subject

capabilities included

bject areas are broken

hich describe the detailed

outcomes that could be assessed in examinations.

outcomes are described using verbsnts to

ctual level at

e demonstrated

rtner - content (ALP-

e programme through which ACCA approves

learning materials from high quality content

ned to support study towards ACCAs

ed Learning Partner

Media. In addition,

ved Learning

For information about ACCA's

Approved Learning Partners - content, please go

ACCA's Content Provider Directory.

The Directory also lists materials by Subscribers,these materials have not been quality assured by

ACCA but they may be useful reading. You will also

find details here of Additional Reading which the

Financi(F3/FFA)December 2011

This syllabus and study guide is design

with teaching and learning and

provide detailed information on what

assessed in

THE STRUCTURE OF THE SY

STUDY GUIDE

Relational diagram with other papers

This diagram shows direct and indirect l

between this paper and other papers prec

following it. Some papers are directly underpi

by other papers. These links are shown as s

arrows. The links between papers w

only an indirec

rstudy guide which comprehend s

ine could be assessed in any examin

g breakdown of the syllabus. It is di

diagram therefore indi ed re d

to have underpinning knowledge and w uld areas which relate to the sub-

be useful to review previous learning b

undertaking study.

Overall aim o

of theThis explains briefly the overall objective

paper and indicates in

Main capabilities

This papers aim is broken down into seve n ACCA's Approved Learning Pa

capabilities which divide

Relational diagram of main capabilities

This diagram illustrates the flows and links en ACCA has one Platinum Approv

the main capabilities (sections) of d content which is BPP Learning

dPartners - content.

This shows the breakdown of the

(sections) of the syllabus in

the blueprint for the

Approach to examining the sy

Study Guide

This is the main document that studen

learning and content providers sh

basis of their studies, instruct

respectively.

Examinations will be based on the

The study guide is a precise refl

based on the main capabilities id

syllabus. These sections a

in the detailed syllabus. Su

down into sub-headings w

Theseindicating what exams may require stude

demonstrate, and the broad intelle

which these may need to b

(*see intellectual levels below).

Learning Materials

c) is th

providers desig

qualifications.

there are a number of Gold Appro


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2

e useful

supplementary reading for students.

h

http://www.accaglobal.com/learningproviders/alpc/c

Examiner has suggested may b

ACCA's Content Provider Directory can be

ere

found

ontent_provider_directory/search/.

Relevant articles will also be published in Studen

TUAL

progressively

ills

f levelsrelate

) and ot

ark, thes

t the

Accounta

valent, at

Intermediate level and to first year degree level at

Diploma (the

le)

to

uides assess both

knowledge and skills. Therefore a clear distinction

n assess

ir

usiness

denoted

is

K

For this syllabus the approximate number of

standard learning hours that a candidate needs to

commit to each examination is based on the credit

value of the Qualifications and Credit Framework

(QCF) UK, units which make up the syllabus. For

FFA or F3, Financial Accounting, the total learning

hours or credit value of the syllabus is 18 credits or

180 hours which includes direct tuition time, selfstudy, revision and assessment time.

ngland, Wales and

xam related to the

above syllabus gives credit for the following QCF

inancial statements

accounts preparation

sole traders

s

TRUCTURE

ries within and

% compulsory

tes to study across

the breadth of each syllabus.

ssed by two-hour paperexaminations.

ination papers is 50%.

ESSMENT

ludes knowledge,

s, and concepts as

, ACCA will

nce a year to

gulations and legislation

ed within identified

ions.

issuedor legislation passed

annually, will be

llowing year to May

to the

paper (where.

passed in

dates may be

examinable even if the effectivedate is in the

future. The term issued or passed relates to when

regulation or legislation has been formally approved.

The term effective relates to when regulation or

legislation must be applied to entity transactions

and business practices.

The study guide offers more detailed guidance on

the depth and level at which the examinable

t

Accountant.

LEVEL OF ASSESSMENTS INTELLEC

DEMAND

ACCA qualifications are designed to

broaden and deepen the knowledge and sk

demonstrated by the student at a range otheir way through each qualification. These

intellectual levels as designated by the UK

qualifications and credit framework (QCF

qualifications frameworks. As a benchm

levels progress from GCSE equivalent a

Introductory level of the Foundations in

(FIA) programme, to A level, or its equi

questions to encourage candida

on All examinations are asseto based and computer based

am

her

e

The pass mark for all ex

GUIDE TO EXAMINATION ASS

ncy

the

ACCA reserves the right to examine anything

contained within any study guide at any

examination session. This inc

techniques, principles, theorie

specified.the Advanced level. The Advanced

Skills module plus professional Ethics Modu

within the ACCA Qualification is equivalentundergraduate degree level and the Professional

level is benchmarked at Masters level.

Throughout, the study g

is

g

For the financial accounting, audit and tax papers,

except where indicated otherwise

publish examinable documents o

indicate exactly what re

could potentially be assess

examination sessdrawn, within each subject area, betwee

knowledge and skills and in assessing the

in

application within an accounting or b

context. The assessment of knowledge is

a superscriptK and the assessment of skills

denoted by the superscriptS.

VALUE OF ASSESSMENTS (BASED ON U

FRAMEWORKS) GUIDED LEARNING HOURS

by

Examinations regulation

on or before 30th September

assessed from June 1st of the fo

31st of the year after. Please refer

For QCF registered learners in E

Northern Ireland, passing the e

units:

Principles of drafting f Principles of Preparing final accounts for Drafting financial statement

GUIDE TO EXAM S

The structure of examinations va

between modules and levels.

The examinations contain 100

examinable documents for therelevant) for further information

Regulation issued or legislation

accordance with the above


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3

guide

d in conjunction with the

ructure requires candidates who wish to be awarded the Diploma in Accounting and Business

to pass the F1/FAB, F2/FMA and the F3/FFA examinations and successfully complete the Foundations in

Professionalism module

Syllabus Structure

The FIA syllabus is designed at three discrete levels,but students can enter at any point. Students are

recommended to enter FIA at the level which is

most appropriate to their needs and to take

examinations in order, but this is not a mandatoryrequirement

documents will be examined. The study

should therefore be rea

examinable documents list.

Qualification Structure

The qualification st

Diploma in

Accounting

and Business

F3/FFAF1/FAB F2/FMAFiP*+ + + =

* Foundations in Professionalism

P2

F7

F3

FA1

FA2

FFA

ACCA

FIA


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4

Syllabus

f the

to

oficiency in the

uble-entry accounting techniques includi

n of basic financial statements

ions of

idate t

work

e

tion. T e

T

re o di g

ans

of the tr l

nts for

incorporated and unincorporated entities. The

syllabus then moves in tw

requiring candidates to be able to conduct a basic

interpretation of financial statements; and secondly

req ion of simple consolidated

the individual financial

statements of group incorporated entities

On successful completion of this paper, candidates

d purpose of financial

ng

aracteristics of

information

and events

ce (including identifying

and correcting error

F. Prepare basic financial statements forncorporated entities.

re simple consolidated financial

statements

H. Interpretation of financial statements

RELATION L DIAGRAM OF MAIN CAPABILITIES

AIM

To develop knowledge and understanding o

underlying principles and concepts relating

financial accounting and technical pr

use of do

the preparatio

ngshould be able to:

.

RATIONALE

The syllabus for Paper FFA/F3, Foundat

Financial Accounting, introduces the cand

the fundamentals of the regulatory frame

relating to accounts preparation and to th

qualitative characteristics of useful informa

syllabus then covers drafting financial stateand to principles of accounts preparation.

syllabus then concentrates in depth on

processing, and reporting business tr

events. The syllabus then covers the use

balance and how to identify and correct er

then the preparation of financial stateme

o

haccounting systems

mentshe

D. Record transactions

c r n ,

actions andE. Prepare a trial balan

ia

rors, and incorporated and uni

o directions, firstlyG. Prepa

financial statements from

MAIN CAPABILITIES

A. Explain the context an

reporti

B. Define the qualitative ch

financial

C. Demonstrate the use of double-entry and

uiring the preparat

A

Th

of financial reporting

(A)

e context and purpose The qualitative

characteristics

of financial information (B)

Recording

transactionsand events (D)

The use of double-entry and accounting systems (C)

Preparing a trial balance (E)

Preparing basic financial statements (F)

Preparing simple consolidated statements (G)

Interpretation ofFinancial

statements (H)


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5

DETAILED SYLLABUS

1. The scope and purpose of, financial statements

3. ts

4. The regulatory framework (legislation and

nc

standards)

esponsibilities of those charged

with governance.

iv acteristics of financial

1. The qualitative characteristics of financial

C d accounting

1. Double-entry book-keeping principles includ g

ng records andng information

ger accounts, books of prime entry, and

journals

and events

purchases

4. Tangible non-current assets

5. Depreciation

6. Intangible non-current assets and amortisation

7. Accruals and prepayments

8. Receivables and payables

9. Provisions and contingencies

10. Capital structure and finance costs

reparing a trial balance

lance

3. Control accounts and reconciliations

4. Bank reconciliations

s

ncial statements

1. Statements of financial position

nts and statements of

comprehensive income

Disclosure notes

4 Events after the reporting period

Statements of cash flows (excluding

partnerships)

ncomplete records

solidated financial

statements

ubsidiaries

2. AssociatesH Interpretation of financial statements

1. Importance and purpose of analysis of financialstatements

2. Ratios3. Analysis of financial statements

A The context and purpose of financial reporting

for external reporting

2. Users and stakeholders needs

The main elements of financial repor

regulation, reasons and limitations, releva

of accounting

e

5. Duties and r

B The qualitat e char

information

information

The use of double-entry an

systems

in

the maintenance of accounti 6. Isources of accounti

2. Led

D Recording transactions

1. Sales and

2. Cash

3. Inventory

E P

1. Trial ba

2. Correction of errors

5. Suspense account

F Preparing basic fina

2. Income stateme

3.

5.

G Preparing simple con

1. S


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APPROACH TO EXAMINING THE SYLLABUS

Y A TWO HOUR

D OR COMPUTER-BASED

er-based

ons will

ill include both

l elements.

mark

tyle

ed

t materials will contain some of

these longer style questions. ACCA will provide

sufficient notice on when the longer style questions

will be introduced.

THE SYLLABUS IS ASSESSED B

PAPER-BASE

EXAMINATION.

The syllabus is assessed by a two hour pap

or computer-based examination. Questi

assess all parts of the syllabus and w

computational and non-computationa

The examination will consist of 50 two

questions. ACCA will introduce longer s

questions in the future and as such approv

learning conten


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7

Study Guide

A PURPOSE OF

1. The scope and purpose of, financial

) g,

ncial data.[K]

b) Identify and define types of business entity

ty

) een a so

ility

d antages and disadvantages o

operating as a limited liability company, sole

) d scope

) ts and

3. The main elements of financial reports

) of each of

b s, equity,

a) Understand the role of the regulatory system

dation

(IFRSF), the International Accounting

Standards Board (IASB), the IFRS Advisory

Council (IFRS AC) and the IFRS Interpretations

Committee (IFRS IC).[K]

b) Understand the role of International Financial

Reporting Standards.

[K]

5. Duties and responsibilities of those charged

with governance

vernance

lly in the context of the preparation of

responsibilities of

statements. [K]

RACTERISTICS OF

FINANCIAL INFORMATION

ristics of financial

fine, understand and apply accounting

pts and qualitative characteristics:[K]air presentation

g concern

cy

Materiality

ce

bility

representation

ver form

x) Neutrality

Completeness

standability

xv) Business entity concept

between qualitative

characteristics.[K]

-ENTRY AND

ACCOUNTING SYSTEMS

principles

f accounting

a) Identify and explain the function of the main

data sources in an accounting system.[K]

b) Outline the contents and purpose of different

types of business documentation, including:

quotation, sales order, purchase order, goods

received note, goods despatched note, invoice,

statement, credit note, debit note, remittanceadvice, receipt.[K]

THE CONTEXT AND

FINANCIAL REPORTING

statements for external reporting

a Define financial reporting recordin

analysing and summarising fina B THE QUALITATIVE CHA

sole trader, partnership, limited liabili

company.[K]

c Recognise the legal differences betw

trader, partnership and a limited liabcompany.[K]

le a) De

) Identify the adv f iii) Accruals

iv) Consistentrader or partnership.[K]

e Understand the nature, principles an

financial reporting.[K]

ofRelevan

2. Users and stakeholders needs

a Identify the users of financial statemen

state and differentiate between their

information needs.[K]

a Understand and identify the purpose

the main financial statements.[K]

) Define and identify assets, liabilitie

revenue and expenses.[K]

4. The regulatory framework

including the roles of the IFRS Foun

a) Explain what is meant by go

specifica

financial statements[K]

b) Describe the duties and

directors and other parties covering the

financialpreparation of the

1. The qualitative characte

ationinform

concei) F

ii) Goin

v)

vi)

vii) Relia

viii)Faithful

ix) Substance o

xi) Prudencexii)

xiii) Comparability

xiv) Under

b) Understand the balance

C THE USE OF DOUBLE

1. Double-entry book-keeping

including the maintenance o

records


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8

c) of double

concept.[K]

d) Understand and apply the accounting

e) em

iding useful accounting

tiona

transactions

ales, purchases, payments, receipts.[K]

2 ntry and

) unts an

r

nature and function.[K]

b) Understand and illustrate the uses of journa

to ledger[S]

c) Identify correct journals from given narrative.[S]

d) Illustrate how to balance and close a ledger

D EVENT

1. Sales and purchases

a) se transactions in

b) Understand and record sales and purchase

c) Understand the general principles of the

ation of a sales tax.[K]

d) Calculate sales tax on transactions and record

the consequent accounting entries.[S]

e) Account for discounts allowed and discounts

received.[S]

2. Cash

a) Record cash transactions in ledger accounts.[S]

nderstand the need for a record of petty cash

transactions.[K]

g financial statements.[K]

Record opening and closing inventory.[S]

ods of valuing

ry.[K]

stand and apply the IASB requirements

for valuing inventories.[S]

ise which costs should be included in

f) Understand the use of continuous and period

end inventory records.[K]

e of closing inventory using

nd AVCO (average

he impact of accounting conceptsof inventory.[K]

tory valuation

ds on profit and on assets.[S]

ets

ts.[K]

b) Recognise the difference between current and

between capital and

d) Classify expenditure as capital or revenue

expenditure.[S]

e) Prepare ledger entries to record the acquisition

and disposal of non-current assets.[S]

f) Calculate and record profits or losses on

disposal of non-current assets in the income

Understand and apply the concept -

b) Uentry accounting and the duality

equation.[S]

Understand how the accounting syst

contributes to prov

information and complies with organisa

policies and deadlines.[K]l

b)

f) Identify the main types of business

e.g. s

. Ledger accounts, books of prime e

journals

a Identify the main types of ledger acco

books of prime entry, and understand thei

d

ls

and the posting of journal entries in

accounts.

g) Calculate the valu

account.[S]

D RECORDING TRANSACTIONS AN S i) Identify the impact of inven

metho

Record sale and purcha

ledger accounts.[S]

returns.[S]

oper

3. Inventory

a) Recognise the need for adjustments for

inventory in preparin

c) Identify the alternative meth

invento

d) Under

e) Recogn

valuing inventories.[S]

FIFO (first in, first out) a

cost).[S]

h) Understand ton the valuation

4. Tangible non-current ass

a) Define non-current asse

non-current assets.[K]

c) Explain the difference

revenue items. [K]


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9

including part exchange

transactions.[S]

g) t asse

s, the statement of

comprehensive income and in the statement of

l of a

i) Illustrate how non-current asset balances an

l

ents.[S]

j) Explain the purpose and function of an asse

a) Understand and explain the purpose of

b e the charge for depreciation using

e methods.

c) ircumstances where different

methods of depreciation would be

d

accumulated depreciation are recorded in

e) lued non-

sset including the transfer of excess

reserve

ion

on-

g) Record depreciation in the income statement

and statement of financial position.[S]

6. Intangible non-current assets and amortisation

a) Recognise the difference between tangible and

intangible non-current assets.[K]

b) Identify types of intangible assets.[K]

treatment of

development costs in

ance with International Financial[K]

amounts to be capitalised as

development expenditure or to be expensed

t n.[S]

xplain the purpose of amortisation.[K]

account for the charge for

amortisation.[S]

prepayments

tching concept applies

als and prepayments.[K]

djustments needed

for accruals and prepayments in preparing

financial statements.[S]

justing for accruals

ring financial

ournal entries and ledger entries

for the creation of an accrual or prepayment.[S]

Understand and identify the impact on profit

d prepayments.[S]

8. Receivables and payables

a) Explain and identify examples of receivables

s of offering credit

es to customers.[K]

of an aged receivables

analysis.[K]

d) Understand the purpose of credit limits.[K]]

e) Prepare the bookkeeping entries to write off an

irrecoverable debt.[S]

f) Record an irrecoverable debt recovered.[S]

statement

Record the revaluation of a non-curren

ledger account

t in Reporting Standards.

d) Calculate

financial position.[S]

h) Calculate the profit or loss on disposa

revalued asset.[S]

d f) Calculate and

movements are disclosed in financia

statem

t

a) Understand how the ma

to accru

register.[K]

5. Depreciation

depreciation.[K]

) Calculat

straight line and reducing balanc

Identify the c

[S]

appropriate.[K]

) Illustrate how depreciation expense and

ledger accounts.[S]

Calculate depreciation on a reva

current a

depreciation between the revaluation

and retained earnings.[S]and payables.[K]

f) Calculate the adjustments to depreciat

necessary if changes are made in the estimated

useful life and/or residual value of a n

current asset.[S]

c) Identify the definition and

research costs and

accord

from given informa io

e) E

7. Accruals and

b) Identify and calculate the a

c) Illustrate the process of ad

and prepayments in prepa

statements.[S]

d) Prepare the j

e)

and net assets of accruals an

b) Identify the benefits and cost

faciliti

c) Understand the purpose


10/13

10

g) bts on

tement and on the statement of[S]

h) Prepare the bookkeeping entries to create and

.[S]

i) in the

statement and how the closing balance of the

ent o

sition.[S]

eivables

k) tand the purpose

lier statements.[S]

) non-current

ncial

a) Understand the definition of provision,

sset.

b en and classify items astingen

) methods

accounting for provisions, contingent liabilities

d) Calculate provisions and changes in

vement in provisions.[S]

sions in the final accounts.[S]

10. Capital structure and finance costs

a) Understand the capital structure of a limited

liability company including: [K]

i) Ordinary shares

ii) Preference shares (redeemable and

irredeemable)

iii) Loan notes.

ements in the share capital and

share premium accounts.[S]

reserves which

may appear in the company statement of

n) issue and its

ages.[K]

nd its advantages and


and show the effects of a rights issue insition.[S]

h) Record dividends in ledger accounts and the

r[S]

j) Identify the components of the statement of

ALANCE

1. Trial balance

entify the purpose of a trial balance.[K]

balances into a trial balance.[S]

extracts of an opening trial balance.[S]

limitations of a

2. Correction of errors

a) Identify the types of error which may occur in

bookkeeping systems.[K]

b) Identify errors which would be highlighted by

the extraction of a trial balance.[K]

c) Prepare journal entries to correct errors.[S]

Identify the impact of irrecoverable de

the income sta

financial position.

adjust an allowance for receivables

Illustrate how to include movements

allowance for receivables in the income

allowance should appear in the statem

financial po

f e) Define a rights issue a

disadvantages.[K]

j) Account for contras between trade rec

and payables.[S]

Prepare, reconcile and unders

of supp

l Classify items as current or

liabilities in the statement of fina

position.[S]

9. Provisions and contingencies

contingent liability and contingent a

) Distinguish betwe

[K]

provisions, contingent liabilities or con

assets.[K]t E PREPARING A TRIAL B

c Identify and illustrate the different of

a) Id

and contingent assets.[K]

provisions.[S]

e) Account for the mo

f) Report provi

b) Record mov

c) Identify and record the other


d) Define a bonus (capitalisatio

advantages and disadvant

f) Record and show the effects of a bonus

(capitalisation) issue in the statement of

g) Recordthe statement of financial po

financial statements.[S]

i) Calculate and record finance costs in ledge

accounts and the financial statements.

changes in equity.[K]

b) Extract ledger

c) Prepare

d) Identify and understand the

trial balance.[K]


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11

d pact of errors

ent of

v income and statement of

) counts for

ounts payable.[K]

relate to t

try system.[K]

) given

d ns for

accounts receivable and accounts payable.[S]

e) ich would be highlighted by

rol account reconciliation.[K

in control account

ccounts.[S]

a) Understand the purpose of bank

fferences

) ions.[S]

onciliation statements.[S]

) h book balan

ven information.[S]

ported in the

.[S]

5. Suspense accounts

a) Understand the purpose of a suspense

account.[K]

b) Identify errors leading to the creation of a

suspense account.[K]

c) Record entries in a suspense account.[S]

Make journal entries to clear a suspense

account.[S]

ING BASIC FINANCIAL

sition

nd

vention underlie the

statement of financial position.[K]

nature of reserves.[K]

n a company

statement of financial position.[S]

ncial position orextracts as applicable from given information.[S]

nd why the heading retained earnings

appears in a company statement of financial

and statements of

a) Prepare an income statement and statement of

xtracts asrmation.[S]

g concepts apply to

nd expenses.[K]

les, gross profit,

d total comprehensive

income from given information.[S]

me and expenditure in

come statement of

g the under and

overprovision of tax in the prior year.[S]

f) Understand the interrelationship between the

statement of financial position, income

statement and statement of comprehensive

income. [K]

g) Identify items requiring separate disclosure on

the face of the income statement.[K]

) Calculate and understand the im

on the income statement, statem

comprehensi e


3. Control accounts and reconciliations

a Understand the purpose of control ac

accounts receivable and acc

b) Understand how control accounts

double-en

he business entity con

c Prepare ledger control accounts from

information.[S]

) Perform control account reconciliatio

Identify errors wh

performing a cont ]

f) Identify and correct errors

and ledger a

s

4. Bank reconciliations

reconciliations.[K]

b) Identify the main reasons for di

between the cash book and the bank

statement.[K]

c Correct cash book errors and/or omiss

d) Prepare bank rec

e Derive bank statement and cas

from gi

ces

d) Disclose items of inco

the income statement. [S]

f) Identify the bank balance to be re

final accounts

d)

F PREPAR

STATEMENTS

1. Statements of financial po

a) Recognise how the accounting equation a

b) Understand the

c) Identify and report reserves i

d) Prepare a statement of fina

e) Understa

position.[K]

2. Income statements

comprehensive income

comprehensive income or eapplicable from given info

b) Understand how accountin

revenue a

c) Calculate revenue, cost of sa

profit for the year, an

e) Record income tax in the in

a company includin


12/13

12

3. Disclosure notes

[K]

b wing disclosure notes

t assets including tangible and in

ions

ng period

iv) Inventory

4 d

c

b vents as adjusting or non-adjusting

c) ng and non-

adjusting events are reported in the financia

ing

a) h flow.[K]

b) Understand the need for management to

) s to users

ments of a statement of

d)

e) te the figures needed for the statement

of cash flows including:[S]

es

es

iii) Cash flows from financing activities

f) Calculate the cash flow from operating

activities using the indirect and direct

method.[S]

g) Prepare statements of cash flows and extracts

from statements of cash flows from given

information.[S]

t of given transactions in a

companys statement of cash flows.[K]

d apply techniques used in

: [S]

on

ts to calculate missing

res

iii) Use of cash and/or bank summaries

ges to calculate

s.

REPARING SIMPLE CONSOLIDATED

ubsidiaries

g terms in the

accounting: [K]

ii) Subsidiary

financial statements

imple investment

a group structure.[K]

and prepare a

statement of financial position or

ng: [S]

ts at acquisition on

transferred from

sh and shares (excluding deferred and

contingent consideration)

iii) Elimination of inter-company trading

balances (excluding cash and goods in

transit)

iv) Removal of unrealised profit arising on

inter-company trading

v) Acquisition of subsidiaries part way through

the financial year

a) Explain the purpose of disclosure notes

) Draft the follo [S]

i) Non curren

tangible assets

ii) Provis

iii) Events after the reporti

. Events after the reporting perio

a) Define an event after the reporting period in

accordance with International Finan ial

Reporting Standards.[K]

) Classify e .[S] 1. S

Distinguish between how adjusti

l context of group

statements.[K]

5 Statements of cash flows (exclud

partnerships)

Differentiate between profit and cas

control cash flow.[K]

c Recognise the benefits and drawback

of the financial state extracts thereof includi

i) Fair value adjustmencash flows. [K]

Classify the effect of transactions on cash

flows.[S]

Calcula

i) Cash flows from operating activiti

ii) Cash flows from investing activiti

h) Identify the treatmen

6. Incomplete records

a) Understand an

incomplete record situations

i) Use of accounting equati

ii) Use of ledger accoun

figu

iv) Use of profit percenta

missing figure

G P

FINANCIAL STATEMENTS

a) Define and describe the followin

i) Parent

iii) Control

iv) Consolidated or group

v) Non-controlling interest

vi) Trade / s

b) Identify subsidiaries within

c) Describe the components of

consolidated

land and buildings (excluding depreciation

adjustments)

ii) Fair value of consideration

ca


13/13

13

d ment of

using the full goodwill method on

X

controlling inter X

ss fair value of net assets at acquisition (X

) Calculate goodwill (excluding impair

goodwill) ly

as follows: [S]

Fair value of consideration

Fair value of non- est

Le )

XGoodwill at acquisition

e) prepare a

hensive

or extracts thereof including: [S]

rading

ing cash and goods in

nrealised profit arising on

ompany trading

iii) Acquisition of subsidiaries part way through

2. Associa

) ignificant

tions where

icipating interest

b) Describe the key features of a parent-associate

entify an

ithin a group structure.[K]

accounting[K]

H L

ENTS

1. Importance and purpose of analysis ofcial statements

) nalysis of

ments is used in a business[K]

b) Explain the purpose of interpretation of ratios[K].

2. Ratiosa) Calculate key accounting ratios [S]

i) Profitability

ii) Liquidity

iii) Efficiency

iv) Position

b) Explain the interrelationships between ratios[K]

tements

lationship

s of the financial

statements with regard to profitability, liquidity,

d financial

lid conclusions from the information

contained within the financial statements and

present these to the appropriate user of the

financial statements. [S]

Describe the components of and

consolidated statement of compre

income

i) Elimination of inter-company t

balances (exclud

transit)

ii) Removal of u

inter-c

the financial year

tes

a Define and identify an associate and s

influence and identify the situa

significant influence or part

exists. [K]

relationship and be able to id

associate w

c) Describe the principle of equity

INTERPRETATION OF FINANCIA

STATEM

finan

a Describe how the interpretation and a

financial state

environment.

3. Analysis of financial sta

a) Calculate and interpret the re

between the element

efficient use of resources an

position[S].

b) Draw va

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