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b02 - Financial Reporting..
b02 - Financial Reporting..
(a) Define impairment losses and identify circumstances that may indicate that an impairment of
an asset has occurred.
(b) Recognize, measure and present an impairment loss and make relevant disclosure related to
impairment of assets.
(c) Define a cash-generating unit and allocate impairment loss to the assets belonging to a cash-
generating unit.
(d) Conduct an appropriate accounting treatments for reversal of impairment losses.
(d) Leases
(e) Revenue from contracts with customers Learners will be able to:
(a) Describe the key terms and definitions in the contextof financial instruments.
(b) Describe the initial recognition, classification and subsequent measurement of financial assets
and financial liabilities.
(c) Describe and account for de-recognition of financial instruments and impairment of financial
assets.
(d) Apply the accounting treatment for debt instruments and equity instruments.
(e) Describe the accounting of fixed interest rate and compound financial instrument.
(f) Apply relevant presentation and disclosure requirements of financial instruments
inaccordance with IFRSs.
(g) Provisions, contingent assets and liabilities Learners will be able to:
(a) Discuss when provisions may and may not be made, and how they should be accounted for.
(b) Describe the measurement of provisions in accordance with international accounting
standards.
(c) Describe:
(i) Legal obligations
(ii) Constructive obligations
(iii) Restructuring provisions
(d) Define contingent assets and liabilities – give examples and describe their accounting
treatment.
(e) Identify and account for:
(i) Onerous contracts
(ii) Environmental and similar provisions
(a) Define and apply the definitions of ‘fair value’ measurement and ‘active market including the
fair value hierarchy in accordance with relevant IFRS.
(b) Apply relevant principles used to determine the fair value in accordance with relevant IFRS.
(c) Explain the relevant scenarios allowing an entity to use a valuation technique
(i) Inventories
(a) Define the terms such as tax expense, current tax, and losses carried back and losses carried
forward in accordance with international accounting standards.
(b) Account for current taxation in accordance with relevant accounting standards.
(c) Account for deferred tax in accordance with international accounting standards.
(d) Measure and record deferred tax liabilities and assets in the financial statements.
(c) Reporting financial performance and events after the reporting period
(b) Intra-group adjustments and fair value adjustments Learners will be able to:
(a) Explain the need to eliminate intra-group transactions in the consolidation process.
(b) Analyze internal transactions requiring eliminations.
(c) Account for the effects of fair value adjustments to:
- Depreciating and non-depreciating non-current assets
- Inventory
- Monetary liabilities
- Assets and liabilities not included in the subsidiary’s own statement of financial position,
including contingent assets and liabilities.
7.7 Financial statements analysis and evaluation Learners will be able to:
(a) Calculate basic financial ratios and assess the financial results and position of a single entity.
(b) Explain financial statement analysis and its objectives.
(c) Describe the focus of financial statement analysis.
(d) Identify techniques for financial statements analysis and evaluation
(e) Explain the limitation of using ratio analysis.