CPA 115 Financial Reporting

Module 1

Part A

1. Limitations of Inductive/Deductive approach p1.6

2. Key factors driving globalization of financial markets p1.7

3. Role of Framework p1.8

4. Limitations of framework p1.10

a. Economic and legal constraints (Miller & Redding 1986)

p1.10

b. Social and political constraints (Hines) p1.10

c. Human resource constraints p1.11

d. Professional judgment (Booth 2003) p1.12

Part B

1. Objective of General purpose financial statements p1.19

2. Reporting entities p1.20

3. Underlying assumptions (accrual basis/going concern)

p1.22

4. Qualitative characteristics p1.23-28

a. Reliability 种类 p1.25

b. Trade-off between qualitative characteristics p1.28

5. Definition elements of financial statements p1.30-34

6. Recognition criteria p1.34

6.1. Accounting for leases p1.37-40

6.2. Accounting for revenue

a. Construction contracts p1.41

Critical event approach (Coombes and Martin 1982)

Stage of completion method p1.43

b. IAS 18 revenue (sale of goods) p1.47

c. IFRIC 15 Agreement for the construction of Real Estate

p1.49

7. Measurement of element (Campbell 1938, physical

measurement) p1.51

a. Cost-based vs. value based (HC/FVLCTS/VIU) p1.52-61

b. Present value measurement (current rates) p1.62

7.1. Accounting for finance leases by lessees p1.66

7.2. Employee benefits p1.71

a. Short-term employee benefits (sick/annual leave)

b. Long-term employee benefits

Long service leave p1.73

superannuation (Net/Partial capitalization approach)

p1.78

7.3. Customer loyalty program p1.84

8. Capital maintenance (Hicks 1939) p1.87

a. Financial capital (money capital/ purchasing power)

p1.88

b. Physical capital p1.91

Module 2

Part A

1. Purpose of financial statement p2.7

2. F/S types p2.8

3. Overall considerations p2.4

a. Fair presentation (departure allowed) p2.8

b. Materiality and aggregation p2.10

c. Offsetting

4. Selection of accounting policies p2.11

5. Disclosure of accounting policies p2.12

6. Changes in accounting policies p2.13

7. Accounting estimate & Errors p2.14

8. Events after the reporting period p2.16

Part B Statement of comprehensive income

1. Components and presentation p2.21

(Examples P2.22)

2. Determination p2.22

3. Disclosures p2.22

4. Expenses by function A2.7

Part C Statement of changes in equity

1. Disclosures p2.26

2. 格式 A2.7

Part D Statement of financial position

1. Define current asset/ current liabilities p2.29

2. Disclosures p2.30

3. 格式 A2.8

Part E Statement of cash flow

1. Disclosures p2.33

2. 格式 A2.11

3. Acquisitions and disposals of entities p2.40

Module 3

Part A

1. Provisions (accrual and provision 区别) p3.5

2. Scope of IAS 37 p3.6

3. Recognition (3 criteria) p3.7

4. Measurement / Disclosure

Part B

1. Restructuring p3.14

2. Future operating losses p3.17

3. Onerous contracts

4. Dividend

5. IFRIC 1: Changes in existing decommissioning p3.19

a. Cost model p3.20

b. Revaluation model p3.21

Part C

1. Contingent assets p3.25

2. Contingent liabilities p3.27

Module 4

Part A

1. Fundamental principle p4.6

2. Calculating tax expense p4.7

3. Determining the tax base p4.11

4. Preparation of journal entries p4.16

Part B

1. DTL recognition P4.21

2. DTA recognition p4.22

3. Entities with a history of recent losses p4.25

4. Tax losses and unused tax credits p4.27

5. Recoupment of tax losses p4.29

Part C

1. Recognition of deferred tax on revaluation p4.36

2. Recovery of CA by using the asset p4.38

3. Recovery of CA by selling the asset p4.39

a. Capital gains tax not applicable

b. Capital gains tax applicable

Part D

1. Relationship between tax expense and accounting profit

p4.45

2. Disclosures for tax losses p4.47

Module 5

Part A

1. Definition of financial instrument p5.4

a. Financial asset/liabilities/equity instrument

b. Type of financial instruments

(primary/Derivatives/Combinations) p5.7

2. Non-financial assets p5.7

3. Derivative financial instruments p5.8

a. Characteristics p5.8

b. Forward exchange contract p5.8

c. Futures contract p5.9

d. Option contract (American/European type option) p5.10

e. Swap contract (interest rate/ cross-currency swaps)

p5.11

f. Embedded derivative (closely related/ not closely

related) p5.12

Part B

1. Measurement

a. Financial assets p5.15

b. Financial liabilities p5.17

2. Determine FV p5.18
3. Reclassification (held-to-maturity) p5.19

4. Impairment

a. Financial assets carried at amortized cost p5.22

b. Available-for-sale financial assets p5.23

5. Hedging

a. Hedged items p5.24

b. Hedge accounting (criteria)

FV hedges treatment p5.25

Cash flow hedges p5.26

Hedges of a net investment in a foreign entity p5.32

6. Derecognition of financial assets and liabilities

a. Pass-through arrangement (conditions) p5.36

b. Gain/loss (if have new financial asset/lib) p5.38

c. Continuing involvement p5.40

Part C

1. Classification as liabilities or equity p5.44

2. Compound financial instruments p5.46

3. Set-off of a FA/FL (master netting arrangement) p5.50

Part D

1. The G-20 leaders summit in London 4/2009 P5.55

2. Disclosure in statement of financial position p5.56

3. Disclosure in comprehensive income statement p5.58

4. Other disclosures p5.59

5. Risk (Sub-prime mortgage market) p5.61

6. Credit risk (counter parties) p5.62

7. Liquidity risk p5.65

8. Market risk (value at risk measure) p5.67

Module 6

Part A

1. Obtain control 方式 p6.6

2. Business combination 方式 p6.7

3. Acquisition methods p6.8

4. Determine acquirer p6.9

5. Intangible assets 能否独立 recognized p6.12

6. NCI measured method (full/partial goodwill) p6.14

7. Consideration transferred (acquisition costs) p6.15

8. Deferred tax p6.17

9. Specific disclosure requirement p6.22

Part B

1. Control 定义 p6.28

2. Special purpose entities p6.29

3. Revaluation of assets p6.31

4. Pre-acquisition elimination entry p6.33

5. Intra-group transaction p6.36

6. Entity concept p6.40

7. NCI p6.42

Part C

1. Associate (significant influence) p6.58

2. Equity method (3 exception) p6.59

3. Cost method vs. equity method p6.61

4. Subsequent adjustment

a. Changes in post-acquisition R/E p6.66

b. Post-acquisition reserve changes p6.67

c. 两种方法计算 investment p6.70

5. Transaction between associate and investor p6.70

6. Investor’s share of losses p6.72

Module 7

Part A

1. IAS 36 不包括的 Assets p7.6

2. Two step test p7.7

3. Impairment indicators (external/ internal) p7.8

Part B

1. FVLCTS p7.14

a. Costs of disposal

b. IAS 36 FV hierarchy p7.15

2. VIU p7.16

a. Estimating expected future cash flows

 Five components

 Traditional approach vs. expected cash flow approach

b. Composition of estimates of future cash flow

 Three element p7.18

 计算 VIU 不包括 p7.19

c. Determining an discount rate p7.20

3. Impairment loss and reversals of impairment losses p7.22

Part C

1. Identification of CGUs p7.24

2. Impairment of CGUs

a. CA of CGU p7.26

b. Allocating goodwill to CGU p7.27

3. Testing CUGs with G/W for impairment p7.29

4. Corporate assets

a. Examples and key characteristics p7.30

b. Procedures

5. Impairment loss for a CGU

6. Level at which to perform an impairment test

7. Intangible assets p7.34

Part D

1. Two broad categories p7.36