SYLLABUS 2017 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 understanding of the IASB s Conceptual Framework. 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 and apply the key features of IASB Conceptual Framework for Financial Reporting. Explain the scope of IFRS and the main 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 three questions. Candidates will be required to answer two questions from each section. Section A consists of questions of a quantitative nature which may involve: the preparation of extracts from single company financial statements, the preparation of consolidated financial statements; the preparation of statement of cash flows;
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. 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) IASB S CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING Discuss the main features of the IASB Conceptual Framework for Financial Reporting and its impact on the convergence project. Apply the key principles of the Conceptual Framework for Financial Reporting to IFRS. (C) ACCOUNTING STANDARDS: IFRS 1 FIRST-TIME ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS. Discuss the key accounting implications for an entity in adopting IFRS for the first time. IFRS 2 SHARE-BASED PAYMENTS Discuss and apply the general accounting requirements for equity settled and cash settled share based payments. IFRS 3 BUSINESS COMBINATIONS 2 AIA Exams 2017
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 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; IFRS 9 FINANCIAL INSTRUMENTS & IAS 32 PRESENTATION Define financial instruments, financial assets, financial liabilities, equity and compound instruments in accordance with IAS32. Explain and apply the general recognition and measurement rules for financial instruments in accordance with IFRS9. Explain and apply the methods of accounting for financial assets, financial liabilities, equity and compound instruments in accordance with IFRS9. (Note impairments and hedge accounting are not examinable). Discuss the disclosure requirements of IFRS7. 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. 3 AIA Exams 2017
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. Preparation of the Consolidated Statement of Financial Position (Balance Sheet) and Consolidated Statement of Profit or Loss and Other Comprehensive Income (Income Statement); this requires knowledge of accounting for intercompany transactions including intra-company sales and balances, unrealised profits and fair value adjustments. 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. 4 AIA Exams 2017
IFRS 15 REVENUE FROM CONTRACTS WITH CUSTOMERS Discuss and apply the standard s requirements in accounting for revenue from contracts with customers including: the identification of the contract and performance obligations; performance obligations satisfied over time and at a point in time; determining the transaction price and allocating the transaction price to performance obligations; the treatment of contract costs; sale with a right to return; principal versus agent considerations; repurchase agreements and consignment arrangements. 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. Prepare extracts from the financial statements in accordance with IAS 1. IAS 2 INVENTORIES Define the term inventories. Describe the nature of inventory and what the term includes. Calculate inventory amounts using various methods. IAS 7 STATEMENT OF CASH FLOWS Explain and interpret the format and content of the Statement of Cash Flows. Prepare the Statement of Cash Flows for a single entity. 5 AIA Exams 2017
Discuss the usefulness of the Statement of Cash Flows 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 changes in accounting estimates, accounting policies and errors. IAS 10 EVENTS AFTER THE REPORTING PERIOD Explain the meaning of the term events after the reporting period and explain different types of adjusting and non-adjusting events. Calculate the amounts which an entity must recognise in relation to events after the reporting period. IAS 12 INCOME TAXES Explain the meaning of the concepts deferred tax liabilities and deferred tax assets. Calculate deferred tax liabilities and assets. 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 from initial recognition, measurement after recognition, revaluation, depreciation, impairment and disposal. 6 AIA Exams 2017
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 and prepare extracts from the financial statements. IAS 19 EMPLOYEE BENEFITS Distinguish between defined contribution plans and defined benefit plans. Explain and apply the general accounting requirements for employee benefits. Account for defined contribution and defined benefit plans and prepare extracts from the financial statements. IAS 20 ACCOUNTING FOR GOVERNMENT GRANTS AND DISCLOSURE OF GOVERNMENT ASSISTANCE Explain when an entity should recognise government grants. Explain and apply the accounting treatment for both grants relating to assets and grants relating to income. Explain and apply the accounting treatment for the repayment of government grants. Account for government grants and prepare extracts from the financial statements. 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. 7 AIA Exams 2017
IAS 23 BORROWING COSTS Define borrowing costs. Explain and apply the methods of accounting for borrowing costs. Identify which borrowing costs are eligible for capitalisation. IAS 24 RELATED PARTY DISCLOSURES Explain and apply 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. Preparation of the Statement of Financial Position and the Statement of Profit or Loss and Other Comprehensive Income where investments in subsidiaries, joint ventures and associates are accounted for either at cost or in accordance with IFRS 9. 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. 8 AIA Exams 2017
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. Account for impairment losses and prepare extracts from the financial statements. 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 and prepare extracts from the financial statements. IAS 38 INTANGIBLE ASSETS 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. 9 AIA Exams 2017
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 and prepare extracts from the financial statements. IAS 41 AGRICULTURE Explain and apply the concept of Biological Assets. Explain when and how government grants related to biological assets should be recognised in the financial statements. RECOMMENDED READING IFRS Explained: A Guide to International Financial Reporting Standards Publisher: BPP Publishing Learning Media ISBN: 9781445399300 (Printed) 9780751797251 (ebook) Website: http://www.bpp.com/lm-product-details/lmproddetails/10412 Financial Accounting and Reporting (with myaccountinglab) (17th edition) Authors: Elliott, B.J, Elliott, J Publisher: Pearson Education Limited ISBN: 9781292080505 Website: http://www.pearsoned.co.uk/bookshop/detail.asp?item=100000000568118 Financial Accounting: An International Introduction (5 th Edition) Author: Alexander, D, Nobes, C Publisher: Pearson Education Limited ISBN: 9780273773436 10 AIA Exams 2017
International Financial Reporting: A Practical Guide (5 th Edition) Authors: Publisher: Melville, A Pearson Education Ltd Website: http://catalogue.pearsoned.co.uk/educator/product/financial-accounting-an-international- Introduction/9780273773436.page ISBN: 1292086238 Website: http://catalogue.pearsoned.co.uk/educator/product/international-financial-reporting-5thedn-a-practical-guide-5e/9781292086231.page#downlaoddiv IFRS in your Pocket 2015 Publisher: Website: Deloitte http://www.iasplus.com/en/publications/global/ifrs-in-your-pocket/2015 International Financial Reporting Standards IFRS 2015 Authors: The International Accounting Standards Board (IASB). Copies are available from the IFRS Foundation web shop - http://shop.ifrs.org 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: www.iasplus.com/en International Financial Reporting Standards (IFRS) IASC Foundation Education Available through www.iasb.org Visit these websites for additional information: www.iasb.org www.iasplus.com www.ifac.org 11 AIA Exams 2017
ADDITIONAL TEXTS APPLICABLE TO GREECE AS REQUIRED eifrs Online Greek, International Accounting Standards Board (IASB s eifrs Online Subscription Service at http://shop.iasb.org.uk/shop/publications). 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. 12 AIA Exams 2017