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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Business combinations | 13% | - Goodwill measurement and disclosure - Accounting issues for business combinations - Non-controlling interest and control concepts - Impairment and journal entries - Consolidated financial statements |
| Topic 2: The financial reporting environment | 25% | - Conceptual framework and elements of financial statements - Accounting standards and policies - Users and developments impacting reporting - Regulatory environment and reporting requirements - Types of business entity and structure - Accounting regulation and GAAP/IFRS - Role of International Accounting Standards Board |
| Topic 3: Application of specific accounting standards | 22% | - Foreign currency transactions and translation - Revenue recognition and ledger reconciliation - Current and deferred income tax accounting - Intangible assets and journal entries |
| Topic 4: Financial statements | 15% | - Statement of profit or loss and other comprehensive income - Discrepancy detection and correction - Statement of financial position - Statement of cash flows |
| Topic 5: Analysis of financial statements | 10% | - Financial ratio calculation and interpretation - Limitations of financial statement analysis |
| Topic 6: The accounting theory | 15% | - Recognition criteria per conceptual framework - Historical cost vs other valuation methods - Agency and contracting theories |
According to the IASB Conceptual Framework, income is an increase in economic benefits in the form of I)inflows.
II)decreases of liabilities.
III)enhancements of assets.
IV)contributions from equity holders.
As per the International Accounting Standards Board conceptual framework, which of the following holds the primary responsibility for preparing and presenting financial statements?
I)owners
II)auditors
III)directors
According to IASB's Conceptual Framework, an expense is a decrease in economic benefits in the form of
I.
outflows.
II.
decreases of assets.
III.
incurrences of liabilities.
IV.
contributions to equity holders.
Which one of the following statements is not correct in respect of manual accounting systems?
An element is recognised in the statement of financial position or statement of comprehensive income if
I.
the value of the item can be measured reliably.
II.
the value of the item can be measured accurately.
III.
it is certain that there will be future economic benefits associated with the item.
IV.
it is probable that there will be future economic benefits associated with the item.
Which of the above options are correct?
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