Paper 2.5 - Financial Reporting (International)

Aim

To develop knowledge and understanding of accounting principles and concepts and their application in a practical context.

Objectives

On completion of this paper candidates should be able to:

• describe and evaluate the role and authority of the International Accounting Standards Committee
• prepare financial statements for different entities to comply with current lnternational Accounting Standards and related pronouncements
• prepare simple group financial statements
• analyse, interpret and report on financial statements and related information to a variety of user groups
• evaluate and apply the requirements of other specified International Accounting Standards and
• demonstrate the skills expected in Part 2.

Content

Accounting principles, concepts and theory including price level changes, agency theory.

Framework the structure and processes of the IASC, appraisal and application of ‘The Framework for the Preparation and Presentation of Financial Statements’, the role of IOSCO.

Preparation and presentation of financial statements for limited liability companies and other entities accounting for capital and capital instruments, net current assets, tangible and intangible non-current assets, earnings per share, taxation in company accounts, revenue recognition and the concept of distributable profit, other specified IAS’s and pronouncements of the Standing Interpretations Committee (SIC).

Preparation of consolidated income statements and balance sheets intra- group transactions, basic fair value adjustments, associated companies, joint ventures, substance of, and accounting for, a Uniting of Interests.

Analysis and interpretation financial statements and related information performance reports for various user groups, reporting financial performance, cash flow statements of a single company, analysis of corporate information, related party transactions.

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