Study Scheme 2018

STRATEGIC LEVEL-1

S1 - ADVANCED FINANCIAL ACCOUNTING & CORPORATE REPORTING

INTRODUCTION  Elucidate Asset valuation and Changing prices;
This course is designed to focus on preparing,  Prepare the full consolidated statements of a
analysing financial statements and developing reports single company and the consolidated statements
thereon, for management decisions. The students are of financial position and comprehensive income
expected to use knowledge and understanding of for a group;
more advanced financial accounting, for preparing  Apply the concept of a joint venture and its
and interpreting financial statements in context of accounting treatment
practice.  Learn foreign currency translation principles,
 Realize pressures for extending the scope and
OBJECTIVE quality of external reports to include prospective
To provide the students with an in-depth knowledge and non-financial matters, and narrative
of financial reporting enabling them to: reporting generally;
 Analyse and interpret financial statements and  Learn how information concerning the
prepare financial reports, and interaction of a business with society and the
 Submit recommendations to the management for natural environment can be communicated in
taking decision. the published accounts;
 Comprehend social and environmental issues
LEARNING OUTCOMES which are likely to be most important to
On completion of this course, students will be able to: stakeholders in an organization;
 Understand the principle of substance over form  Execute the process of measuring, recording and
applied to a range of transactions; disclosing the effect of exchanges between a
 Comprehend the accounting treatment of business and society-human resource
Financial instruments; accounting;
 Understand Employee benefits and Share--
based payments;
INDICATIVE GRID
PART SYLLABUS CONTENT AREA WEIGHTAGE
MATTERS RELATED TO RECOGNITION AND MEASUREMENT
1. Substance over form
2. Financial instruments (IAS 32, IFRS 7 & IFRS 9)
A 3. Employee benefits (IAS 19) 20%
4. Share-based payments (IFRS 2)
5. Asset valuation and Changing prices
GROUP FINANCIAL STATEMENTS
6. Introduction to group accounting
7. Consolidated statement of financial position
8. Consolidated statement of comprehensive income
B 9. IAS 27,IFRS 10, IFRS 3 (Revised), IFRS 13 30%
10. Effect of Non-controlling interests
11. Acquisition of a Subsidiary during its accounting period
12. Consolidated Statement of changes in Equity
13. Associates and Joint ventures
COMPLEX GROUP TOPICS
14. Changes in group structures
15. Complex group structures 25%
C 16. Foreign currency
17. Group statements of cash flows
PERFORMANCE REPORTING
18. Ratios and trend analysis
D 19. Earnings per share ( IAS 33) 15%
20. Segment reporting (IFRS 8)
EXTERNAL REPORTING
E 21. Advancement in Financial Reporting 10%
22. Advancement in Non-Financial Reporting
TOTAL 100%
Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.

DETAILED CONTENTS
PART - A 1. Substance over form
MATTERS RELATED TO RECOGNITION AND  Reporting the Substance of Transactions
MEASUREMENT
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 Examples Where Substance and Form may 9. IAS 27, IFRS 10, IFRS 3 (Revised), IFRS 13
Differ  Definitions
 Separate Financial Statements
2. Financial instruments (IAS 32, IFRS 7 &IFRS 9)  Preparation of Consolidated Financial
 Definitions Statements Treatment of Goodwill
 Classification of Financial Instruments  The basis of a Fair Value Measurement
Recognition and Measurement of Financial  Fair Value Hierarchy
Assets  Specific Application Principles Disclosures
 Recognition and Measurement of financial
Liabilities 10. Effect of Non-controlling interests
 De-recognition of Financial Instruments  Effects of Non-Controlling Interest on:
 Derivatives  On Statement of financial position
 Hedge Accounting  Intra-group trading
 Disclosure of Financial Instruments  Intra-group sales of non-current assets
 Disclosures  Fair Values
 Hybrid Instrument
11. Acquisition of a Subsidiary during its
3. Employee benefits (IAS 19) accounting period
 Types of Employee Benefit  Step Acquisitions
 Post-Employment Benefit Plans  Disposal Scenarios
 Accounting for Post-Employment Benefit  Investing Entity's Accounts
Plans  Group Accounts
 The Asset Ceiling Disclosures  Group Accounts - Entire Disposal
 Other Employee Benefits  Group Accounts Disposal - Subsidiary to
Associate
4. Share-based payments (IFRS 2)  Disposal where Control is not Lost (Increase
 Types of Transaction in NCI) Subsidiaries Acquired Exclusively
 Equity-Settled Share-Based Payment with a View to Subsequent Disposals
Transactions  Further Purchase by Group after Control
 Cash-Settled Share-based Payment Obtained (Decrease in NCI)
Transactions
 Modifications, Cancellations and Settlements 12. Consolidated Statement of changes in Equity
 Recent Developments  Format of Consolidated Statement of
 Disclosures Changes in Equity
 Preparation of Consolidated Statement of
5. Asset valuation and Changing prices Changes in Equity
 Definitions
 Impairment of Financial Assets 13. Associates and Joint ventures
 Accounting Treatment  IAS 28 Investments in Associates and Joint
Ventures
PART - B  IFRS 11 Joint Arrangements
GROUP FINANCIAL STATEMENTS  IFRS 12 Disclosure of Interests in Other
Entities
6. Introduction to group accounting
 Concept of Group Accounts PART - C
 Definitions COMPLEX GROUP TOPICS
 Exemption from Preparation of Group
Financial Statements 14. Changes in group structures
 Non-Coterminous Year Ends  Business Combination achieved in Stages
 Changes in direct ownership
7. Consolidated statement of financial position
 Principles of the Consolidated Statement of 15. Complex group structures
Financial Position  Complex group
 Pre and Post-Acquisition Profits  Consolidating sub-subsidiaries
 Non-Controlling Interest  Direct holding in sub-subsidiaries
 Fair Values  Indirect associates
 Fair Value of Net Assets Acquired Intra-
Group Trading 16. Foreign currency
 Unrealized Profit  Foreign Currency translation
 Mid-Year Acquisitions  IAS 21: Individual company stage
 IAS 21: Consolidated financial statements
8. Consolidated statement of comprehensive stage
income
 Principles of the Consolidated Statement of 17. Group statements of cash flows
Comprehensive Income  IAS 7 Statement of Cash Flows of Single
 Format of Consolidated Statement of Company
Comprehensive Income  Consolidated Statements of Cash Flows
 Intra-Company Trading  Foreign Exchange and Statement of Cash
 Other Consolidated Income Statement Flow
Adjustments Mid year Acquisitions
 Preparation of Consolidated Statement of PART - D
Comprehensive Income PERFORMANCE REPORTING

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 Study Scheme 2018
 Problem Areas in Segmental Reporting
18. Ratios and trend analysis
 Interpreting Financial Information PART - E
 Profitability Ratios EXTERNAL REPORTING
 Return on Capital Employed
 Net Asset Turnover 21. Advancement in Financial Reporting
 liquidity and Working Capital Ratios  International harmonization
 Long-Term Financial Stability  Accounting around the World i.e current
 Investor Ratios issues in financial reporting
 limitations of Financial Statements and  Financial Reporting in USA
Ratio Analysis  IFRS vs US GAAP

19. Earnings per share ( IAS 33) 22. Advancement in Non-Financial Reporting
 The Scope of IAS 33  Management Commentary
 Diluted Earnings per Share (DEPSJ  Environmental Reporting
 The Importance of EPS  Sustainability
 Social and Ethical Environment
20. Segment reporting ( IFRS 8)  Social Responsibility
 Defining Reportable Segments Disclosing  Human Resource Accounting
 Reportable Segments

Recommended Books:
CORE READINGS
TITLE AUTHOR PUBLISHER

Gripping: IFRS Pakistan Edition Cathryune Sowden-Service ICAP / Lexis Nexis

IFRSs/IASs IASB IFRS Foundation
Donald E. Kieso / Jerry J. Weygandt & Terry D.
Intermediate Accounting John Willey & Sons
Warfield