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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Analysis of financial statements | 10% | - Limitations of financial statement analysis - Financial ratio calculation and interpretation |
| Topic 2: Application of specific accounting standards | 22% | - Intangible assets and journal entries - Foreign currency transactions and translation - Revenue recognition and ledger reconciliation - Current and deferred income tax accounting |
| Topic 3: Business combinations | 13% | - Goodwill measurement and disclosure - Accounting issues for business combinations - Consolidated financial statements - Non-controlling interest and control concepts - Impairment and journal entries |
| Topic 4: The financial reporting environment | 25% | - Accounting standards and policies - Role of International Accounting Standards Board - Conceptual framework and elements of financial statements - Regulatory environment and reporting requirements - Accounting regulation and GAAP/IFRS - Users and developments impacting reporting - Types of business entity and structure |
| Topic 5: Financial statements | 15% | - Discrepancy detection and correction - Statement of financial position - Statement of cash flows - Statement of profit or loss and other comprehensive income |
| Topic 6: The accounting theory | 15% | - Recognition criteria per conceptual framework - Historical cost vs other valuation methods - Agency and contracting theories |
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.
Correct Answer: A 🗳️
The International Accounting Standards Board's Conceptual Framework for Financial Reporting for the preparation and presentation of financial statements is concerned with the information needs of most users, but not for each possible user.
Which one of the following stakeholders would not be one of the users that the Conceptual Framework is concerned about?
Correct Answer: D 🗳️
Which one of the following statements regarding the IASB's Conceptual Framework for Financial Reporting is correct?
Correct Answer: D 🗳️
Which one of the following would be recognised in the statement of profit or loss and other comprehensive income?
Correct Answer: A 🗳️
The IASB evaluates the merits of adding a potential item to its agenda mainly by reference to the needs of
Correct Answer: D 🗳️
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