SYLLABUS 2015 INTERNATIONAL FINANCIAL REPORTING STANDARDS

Transcription

1 SYLLABUS 2015 INTERNATIONAL FINANCIAL REPORTING STANDARDS AIMS To develop candidates understanding of the main features of the structure of the International Accounting Standards Board (IASB). To develop candidates knowledge and understanding of the development and scope of Financial Reporting Standards (IFRS). To develop candidates ability to apply International Financial Reporting Standards. LEARNING OUTCOMES By the end of the course students should be able to: explain the main features of the structure of the IASB. Explain the scope of IFRS and the man processes by which the standards are developed and adopted. evaluate and apply relevant International Financial Reporting Standards. STRUCTURE OF THE PAPER A three-hour 15 minute paper consisting of two sections each of which contains 3 questions. Candidates will be required to answer 2 questions from each Section. Section A includes questions of a quantitative nature. Section B contains discursive and theoretical questions. Questions in Section A carry 30 marks each and questions in Section B carry 20 marks each. All topics carry an equal topic weighting.

2 SYLLABUS (a) Structure of the IASB and development of IFRS Explain the main features of the structure of the IASB (e.g. Funding arrangements, membership of IASB). Explain the main processes which the IASB follows in developing and adopting accounting standards. Explain the scope of IFRS. (b) Accounting Standards IFRS 1 FIRST-TIME ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS. Explain which accounting standards an entity is required to adopt in the first annual financial statements in which it adopts IFRS. IFRS 2 SHARE-BASED PAYMENT Discuss and apply the general accounting requirements for share-based payment transactions. IFRS 3 BUSINESS COMBINATIONS Describe the nature of business combinations. Explain the meaning of the concepts of goodwill and non-controlling interests. Explain and apply the standard s requirements concerning the recognition and measurement of assets acquired, liabilities assumed, non-controlling interests and consideration transferred. Explain and apply the acquisition method of accounting for business combinations. IFRS 5 NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS 2 AIA Exams 2015

3 Explain the nature of non-current assets held for sale and discontinued operations. Explain and apply the accounting treatment required for non-current assets held for sale and discontinued operations. IFRS 7 FINANCIAL INSTRUMENTS: DISCLOSURES; IAS 32 FINANCIAL INSTRUMENTS: PRESENTATION & IAS 39 FINANCIAL INSTRUMENTS: RECOGNITION AND MEASUREMENT Define financial instruments, financial assets, financial liabilities and derivatives. Describe the four basic categories of financial instruments. (Note: IFRS 9 Financial Instruments will not be examined). Explain and apply the general recognition and measurement rules for financial instruments. Explain and apply the methods of accounting for each of the different categories of financial instruments. IFRS 8 OPERATING SEGMENTS Define operating segments. Discuss and apply the criteria for determining whether a segment is reportable. Discuss the basic disclosures required for reportable segments. IFRS 10 CONSOLIDATED FINANCIAL STATEMENTS Candidates should be able to Explain the meaning of the term consolidated financial statements. Explain the concepts of, "control of an investee", and power over an investee (including relevant activities, existing rights, voting rights, contractual arrangements and removal rights), "decision maker", "group",, "parent", "related party", "significant influence", "associate", and subsidiary company. Prepare Consolidated Balance Sheets and Consolidated Income Statements: this requires knowledge of accounting for intercompany transactions. 3 AIA Exams 2015

4 IFRS 11 JOINT ARRANGEMENTS Explain the concepts of Joint Arrangement, Joint Control and Contractual Arrangement. Define and explain the types of Joint Arrangements (namely Joint Operation and Joint Venture) IFRS 12 DISCLOSURE OF INTERESTS IN OTHER ENTITIES Explain the conditions under which IFRS 12 applies and describe the provisions of the standard that explain when it does not. Explain the concepts of "Interest in Another Entity" and "Structured Entity" IFRS 13 FAIR VALUE MEASUREMENT Define and explain the concept of Fair Value. Describe and explain IFRS 13 s provisions, regarding the Conceptual Framework and the process of fair value measurement. Explain and apply IFRS 13 s "Market Valuation Method", "Income Valuation Method" and "Adjusted Net Assets Valuation Method ", as well as their respective valuation techniques. IAS 1 PRESENTATION OF FINANCIAL STATEMENTS Identify the components of financial statements. Explain the accounting principles which must be used in the preparation of financial statements. Explain the structure and content of financial statements. IAS 2 INVENTORIES Define the term inventories. 4 AIA Exams 2015

5 Describe the nature of inventory and what the term includes. Calculate inventory amounts using various methods. IAS 7 STATEMENTS OF CASH FLOW Explain the format and content of Cash Flow Statements. Prepare Cash Flow Statements. Discuss the usefulness of Cash Flow Statements to report users. IAS 8 ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS Explain the meaning of the terms accounting policies and accounting estimates and errors and explain the accounting treatment of the relevant changes. Account for accounting estimates and errors. IAS 10 EVENTS AFTER THE REPORTING PERIOD Explain the meaning of the term events after the balance sheet date and explain different types of post-balance sheet events. Calculate the amounts which an entity must recognise in relation to events after the balance sheet date. IAS 11 CONSTRUCTION CONTRACTS Discuss the nature of construction contracts. Explain when revenues of construction contracts must be recognised in the financial statements. Explain and apply the percentage of completion method. IAS 12 INCOME TAXES 5 AIA Exams 2015

6 Explain the meaning of the concepts deferred tax liabilities and deferred tax assets. Calculate deferred taxes. Evaluate the need to account for deferred taxes. IAS 16 PROPERTY, PLANT AND EQUIPMENT Describe the nature of property, plant and equipment. Describe the nature of depreciation. Describe the nature of revaluation of property, plant and equipment Account for property, plant and equipment (i.e. account for productive assets at the time of acquisition and measurement subsequent to their initial acquisition revaluation etc.). IAS 17 LEASES Define operating and financial leases. Determine whether a lease is an operating or a financial lease. Account for operating and financial leases. IAS 18 REVENUE Discuss the nature of transactions which require the application of IAS 18. Explain the meaning of the terms Revenue and Fair Value. Account for transactions using the accounting requirements of IAS 18. IAS 19 EMPLOYEE BENEFITS Distinguish between defined contribution plans and defined benefit plans. Explain and apply the general accounting requirements for employee benefits. 6 AIA Exams 2015

7 IAS 20 ACCOUNTING FOR GOVERNMENT GRANTS AND DISCLOSURE OF GOVERNMENT ASSISTANCE Explain when an entity should recognise government grants. Explain how repayments of government grants should be accounted for. IAS 21 THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES Explain and apply the methods of accounting for transactions and balances in foreign currency. Explain and apply the methods of accounting for the results and financial position of foreign operations that are included in an entity s consolidated financial statements. IAS 23 BORROWING COSTS Define borrowing costs. Explain and apply the methods of accounting for borrowing costs. Explain which borrowing costs are eligible for capitalisation. IAS 24 RELATED PARTY DISCLOSURES Explain the meaning of the term related party. Discuss the basic disclosures required for related party transactions. IAS 27 SEPARATE FINANCIAL STATEMENTS Explain the meaning of the term separate financial statements. Describe and explain the criteria that need to be satisfied for the establishment of a new parent company. Prepare separate Balance Sheets and separate Income Statements where investments in subsidiaries, joint ventures and associates are accounted for either at cost or in accordance with IAS AIA Exams 2015

8 IAS 28 INVESTMENTS IN ASSOCIATES AND JOINT VENTURES Determine whether an entity meets the criteria of an associated company. Explain and apply the equity method of accounting for associates and joint ventures. IAS 33 EARNINGS PER SHARE Calculate an entity s basic and diluted Earnings per Share. IAS 34 INTERIM FINANCIAL REPORTING Define interim financial reports. Explain the form and content of interim financial statements. Discuss the usefulness of interim financial statements to report users. IAS 36 IMPAIRMENT OF ASSETS Explain when an asset may be considered impaired. Explain and apply the accounting requirements for impaired assets. IAS 37 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Distinguish between provisions and contingent liabilities. Describe the nature of contingent assets. Account for provisions, contingent liabilities and contingent assets. IAS 38 INTANGIBLE ASSETS 8 AIA Exams 2015

9 Define intangible assets. Discuss the nature of intangible assets. Explain the criteria which an intangible asset must meet in order to be recognised in the financial statements. Apply the recognition and measurement criteria for intangible assets. IAS 40 INVESTMENT PROPERTY Explain the nature of investment property. Explain the criteria for recognising investment property. Account for investment property using the fair value model and the cost model. IAS 41 AGRICULTURE Explain the concept of Biological Assets Explain when and how government grants related to biological assets should be recognised in the financial statements. 9 AIA Exams 2015

10 RECOMMENDED READING IFRS Explained: A Guide to International Financial Reporting Standards Publisher: BPP Publishing Learning Media ISBN: (Printed) (ebook) Website: Financial Accounting and Reporting (with myaccountinglab) (16th edition) Authors: Elliott, B.J, Elliott, J Financial Accounting: An International Introduction (5 th Edition) Author: Alexander, D, Nobes, C International Financial Reporting: A Practical Guide (4 th Edition) Authors: Publisher: Melville, A Pearson Education Ltd Publisher: Pearson Education Limited ISBN: Website: Reporting/ page Publisher: Pearson Education Limited ISBN: Website: Introduction/ page ISBN: Website: Practical-Guide/ page IFRS in your Pocket 2013 (12 th Edition) Publisher: Deloitte 10 AIA Exams 2015

11 Website: International Financial Reporting Standards IFRS 2014 Authors: The International Accounting Standards Board (IASB). Copies are available from the IFRS Foundation web shop - This RED book is presented in two parts: Part A (the Conceptual Framework and requirements) Part B the accompanying documents. Free website providing comprehensive information about IFRS: International Financial Reporting Standards (IFRSS) IASC Foundation Education Available through Visit these websites for additional information: ADDITIONAL TEXTS APPLICABLE TO GREECE AS REQUIRED eifrs Online Greek, International Accounting Standards Board (IASB s eifrs Online Subscription Service at Georgiou, A. (2003) International Accounting Standards, Sakkoula Publishers, Athens-Thessaloniki. Grant Thornton (2006) International Financial Reporting Standards (Διεθνή Πρότυπα Χρηματοοικονομικής Πληροφόρησης I.F.R.S.) Αναλυτική παρουσίαση, 2 nd Edition, Athens. Κarayiannis, D. (2012) International Accounting Standards. Examples Applications IAS & IFRS, 3rd. Edition, Thessaloniki. 11 AIA Exams 2015