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FinancialReporting (FR)

Syllabus and study guide

September 2018toJune 2019

Financial Reporting (FR)

© ACCA 2018-2019 All rights reserved.

Guide to structure of thesyllabus and study guide

Overall aim of the syllabus

This explains briefly the overall objectiveof the syllabus and indicates in thebroadest sense the capabilities to bedeveloped within the exam.

Relational diagram linking FinancialReporting with other ACCAexams

This diagram shows direct and indirectlinks between this exam and otherexams preceding or following it. Itindicates where you are expected tohave underpinning knowledge andwhere it would be useful to reviewprevious learning before undertakingstudy.

Main capabilities

The aim of the syllabus is broken downinto several main capabilities whichdivide the syllabus and study guide intodiscrete sections.

Relational diagram of the maincapabilities

This diagram illustrates the flows andlinks between the main capabilities(sections) of the syllabus and should beused as an aid to planning teaching andlearning in a structured way.

Syllabus rationale

This is a narrative explaining how thesyllabus is structured and how the maincapabilities are linked. The rationalealso explains in further detail what theexamination intends to assess and why.

Detailed syllabus

This shows the breakdown of the maincapabilities (sections) of the syllabusinto subject areas. This is the blueprintfor the detailed study guide.

Approach to examining the syllabus

This section briefly explains thestructure of the examination and how itis assessed.

Study GuideThis is the main document that students,education and content providers shoulduse as the basis of their studies,instruction and materials. Examinationswill be based on the detail of the studyguide which comprehensively identifieswhat could be assessed in anyexamination session. The study guide isa precise reflection and breakdown ofthe syllabus. It is divided into sectionsbased on the main capabilities identifiedin the syllabus. These sections aredivided into subject areas which relate tothe sub-capabilities included in thedetailed syllabus. Subject areas arebroken down into sub-headings whichdescribe the detailed outcomes thatcould be assessed in examinations.These outcomes are described usingverbs indicating what exams mayrequire students to demonstrate, and thebroad intellectual level at which thesemay need to be demonstrated(*see intellectual levels below).



Intellectual Levels

The syllabus is designed toprogressively broaden and deepen theknowledge, skills and professionalvalues demonstrated by the student ontheir way through the qualification.

The specific capabilities within thedetailed syllabuses and study guides areassessed at one of three intellectual orcognitive levels:

Level 1: Knowledge andcomprehension

Level 2: Application and analysisLevel 3: Synthesis and evaluation

Very broadly, these intellectual levelsrelate to the three cognitive levels atwhich the Applied Knowledge,the Applied Skills and the StrategicProfessional examsare assessed.

Each subject area in the detailed studyguide included in this document is givena 1, 2, or 3 superscript, denotingintellectual level, marked at the end ofeach relevant line. This gives anindication of the intellectual depth atwhich an area could be assessed withinthe examination. However, while level 1broadly equates with AppliedKnowledge , level 2 equates to AppliedSkills and level 3 to StrategicProfessional, some lower level skills cancontinue to be assessed as the studentprogresses through each level. Thisreflects that at each stage of study therewill be a requirement to broaden, as wellas deepen capabilities. It is alsopossible that occasionally some higherlevel capabilities may be assessed atlower levels.

Learning Hours andEducation Recognition

The ACCA qualification does notprescribe or recommend any particularnumber of learning hours forexaminations because study andlearning patterns and styles vary greatlybetween people and organisations. Thisalso recognises the wide diversity ofpersonal, professional and educationalcircumstances in which ACCA studentsfind themselves.

As a member of the InternationalFederation of Accountants, ACCA seeksto enhance the education recognition ofits qualification on both national andinternational education frameworks, andwith educational authorities and partnersglobally. In doing so, ACCA aims toensure that its qualifications arerecognised and valued by governments,regulatory authorities and employersacross all sectors. To this end, ACCAqualifications are currently recognisedon the education frameworks in severalcountries. Please refer to your nationaleducation framework regulator forfurther information.

Each syllabus contains between 20 and35 main subject area headingsdepending on the nature of the subjectand how these areas have been brokendown.



Guide to ACCAExamination Structure

The structure of examinations varieswithin and between levels.

The Applied Knowledge examinationscontain 100% compulsory questions toencourage candidates to study acrossthe breadth of each syllabus. These areassessed by a two-hour computer basedexamination.

The Corporate and Business Law examis a two-hour computer-based objectivetest examination for English and Global,and available as a paper based versionfor all variants.

The other Applied Skills examinations(PM, TX-UK, FR, AA, and FM)contain a mix of objective and longertype questions with a duration of threehours for 100 marks, these questionsdirectly contribute towards the candidateresult. These exams are available incomputer-based and paper-basedformats. Prior to the start of each examthere will be time allocated for studentsto be informed of the exam instructions.

Computer-based exams

For the Applied Skills (PM, TX-UK, FR,AA and FM) computer-based examscandidates will be delivered an extra 10marks of objective test content (eitherfive single OT questions or five OTquestions based around a singlescenario), for which candidates aregiven an extra 20 minutes. Thesequestions are included to ensurefairness, reliability and security ofexams. These questions do not directlycontribute towards the candidate’sscore. Candidates will not be able todifferentiate between the questions thatcontribute to the result and those that donot. All questions have been subject to

ACCA’s regulatory approved qualityassurance process.

The total exam time is therefore 3 hoursand 20 minutes. Prior to the start of theexam candidates are given an extra 10minutes to read the exam instructions.

Paper-based exams

For paper-based exams 15 minutes areadded to the three hours to reflect themanual effort required as compared tocomputer-based exams. All paper-based and computer-based questionshave been subject to the same qualityassurance process. There will be timeawarded by the invigilator to read theexam instructions.

Strategic Business Leader is ACCA’scase study examination at the StrategicProfessional level and is examined as aclosed book exam of four hours,including reading, planning andreflection time which can be usedflexibly within the examination. There isno pre-seen information and all examrelated material, including caseinformation and exhibits are availablewithin the examination. StrategicBusiness Leader is an exam based onone main business scenario whichinvolves candidates completing severaltasks within which additional materialmay be introduced. All questions arecompulsory and each examination willcontain a total of 80 technical marks and20 Professional Skills marks. The detailof the structure of this exam is describedin the Strategic Business Leadersyllabus and study guide document.

The other Strategic Professional examsare all of three hours and 15 minutesduration. All contain twoSections and all questions arecompulsory. These exams all containfour professional marks. The detail of



the structure of each of these exams isdescribed in the individual syllabus andstudy guide documents.

ACCA encourages students to take timeto read questions carefully and to plananswers but once the exam time hasstarted, there are no additionalrestrictions as to when candidates maystart writing in their answer books.

Time should be taken to ensure that allthe information and exam requirementsare properly read and understood.

The pass mark for all ACCAQualification examinations is 50%.



Guide to ACCAExamination Assessment

ACCA reserves the right to examineanything contained within the studyguide at any examination session. Thisincludes knowledge, techniques,principles, theories, and concepts asspecified. For the financial accounting,audit and assurance, law and tax examsexcept where indicated otherwise,ACCA will publish examinabledocuments once a year to indicateexactly what regulations and legislationcould potentially be assessed withinidentified examination sessions.

For examinations, regulation issued orlegislation passed on or before 31August annually, will be examinablefrom 1 September of the following yearto 31 August of the year after that.Please refer to the examinabledocuments for the exam (whererelevant) for further information.

Regulation issued or legislation passedin accordance with the above dates maybe examinable even if the effective dateis in the future.

The term issued or passed relates towhen regulation or legislation has beenformally approved.

The term effective relates to whenregulation or legislation must be appliedto an entity transactions and businesspractices.

The study guide offers more detailedguidance on the depth and level atwhich the examinable documents will beexamined. The study guide shouldtherefore be read in conjunction with theexaminable documents list.



Syllabus

Financial Reporting (FR) Syllabus and study guide

This syllabus and study guide is designed to help with planning study and to providedetailed information on what could be assessed in any examination session.

Aim

To develop knowledge and skills inunderstanding and applying accountingstandards and the theoretical frameworkin the preparation of financial statementsof entities, including groups and how toanalyse and interpret those financialstatements.

Relational diagram linking FinancialReporting (FR) with other ACCAexams

This diagram shows direct and indirectlinks between this exam and otherexams preceding or following it. Some exams are directly underpinned by otherexams such as Strategic Business Reporting by Financial Reporting . These linksare shown as solid line arrows. Other exams only have indirect relationships witheach other such as links existing between the accounting and auditing exams. Thelinks between these are shown as dotted line arrows. This diagram indicates whereyou are expected to have underpinning knowledge and where it would be useful toreview previous learning before undertaking study.



Main capabilities

On successful completion of this exam, candidates should be able to:

A Discuss and apply a conceptual and regulatory frameworks for financialreporting

B Account for transactions in accordance with International accounting standards

C Analyse and interpret financial statements.

D Prepare and present financial statements for single entities and businesscombinations in accordance with International accounting standards

This diagram illustrates the flows and links between the main capabilities (sections)of the syllabus and should be used as an aid to planning teaching and learning in astructured way.



Rationale

The financial reporting syllabusassumes knowledge acquired inFinancial Accounting (FA), and developsand applies this further and in greaterdepth.

The syllabus begins with the conceptualframework for financial reporting withreference to the qualitativecharacteristics of useful information andthe fundamental bases of accountingintroduced in the Financial Accounting(FA) syllabus within the Knowledgemodule. It then moves into a detailedexamination of the regulatory frameworkof accounting and how this informs thestandard setting process.

The main areas of the syllabus cover thereporting of financial information forsingle companies and for groups inaccordance with generally acceptedaccounting principles and relevantaccounting standards.

Finally, the syllabus covers the analysisand interpretation of information fromfinancial reports.



Detailed syllabus

A The conceptual and regulatoryframework for financial reporting

1. The need for a conceptualframework and the characteristics ofuseful information

2. Recognition and measurement

3. Regulatory framework

4. The concepts and principles ofgroups and consolidated financialstatements

B Accounting for transactions infinancial statements

1. Tangible non-current assets

2. Intangible assets

3. Impairment of assets

4. Inventory and biological assets

5. Financial instruments

6. Leasing

7. Provisions and events after thereporting period

8. Taxation

9. Reporting financial performance

10. Revenue

11. Government grants

12. Foreign currency transactions

C Analysing and interpreting thefinancial statements of singleentities and groups

1. Limitations of financial statements

2. Calculation and interpretation ofaccounting ratios and trends toaddress users’ and stakeholders’needs

3. Limitations of interpretationtechniques

4. Specialised, not-for-profit, and publicsector entities

D Preparation of financialstatements

1. Preparation of single entity financialstatements

2. Preparation of consolidated financialstatements including an associate



Approach to examining the syllabus

The syllabus is assessed by a three-hour examination available in both computer-based and paper-based formats.*

*For paper-based exams there is an extra 15 minutes to reflect the manual effortrequired.

All questions are compulsory. The exam will contain both computational anddiscursive elements.

Some questions will adopt a scenario/case study approach.

Computer-based exams

*For computer-based exams an extra 20 minutes is provided to candidates to reflectthe additional content as per below. The total exam time is therefore 3 hours and 20minutes. Prior to the start of the exam candidates are given an extra 10 minutes toread the exam instructions.

Section A of the computer-based exam comprises 15 objective test questions of 2marks each plus additional content as per below.

Section B of the computer-based exam comprises three questions each containingfive objective test questions plus additional content as per below.

For the computer-based exam candidates will be delivered an extra 10 marks ofobjective test content (either five single OT questions OR five OT questions basedaround a single scenario), for which candidates are given an extra 20minutes. These questions are included to ensure fairness, reliability and security ofexams. These questions do not directly contribute towards the candidate’sscore. Candidates will not be able to differentiate between the questions thatcontribute to the result and those that do not.

Section C of the exam comprises two 20 mark constructed response questions.

Paper-based exams

*For paper-based exams an extra 15 minutes is provided to candidates to reflect themanual effort required as compared to the time needed for the computer-basedexams. The total exam time is therefore three hours and 15 minutes. Prior to thestart of the exam candidates are given an extra 10 minutes to read the examinstructions.

Section A of the paper-based exam comprises 15 multiple choice questions of 2marks each



Section B of the paper-based exam comprises three questions containing fivemultiple choice questions.

Section C of the exam comprises two 20 mark questions.

The 20 mark questions will examine the interpretation and preparation of financialstatements for either a single entity or a group. The section A questions and theother questions in section B can cover any areas of the syllabus.

An individual question may often involve elements that relate to different subjectareas of the syllabus. For example the preparation of an entity’s financial statementscould include matters relating to several accounting standards.

Questions may ask candidates to comment on the appropriateness or acceptabilityof management’s opinion or chosen accounting treatment. An understanding ofaccounting principles and concepts and how these are applied to practical exampleswill be tested.

Questions on topic areas that are also included in Paper F3 will be examined at anappropriately greater depth in this paper.

Candidates will be expected to have an appreciation of the need for specifiedaccounting standards and why they have been issued. For detailed or complexstandards, candidates need to be aware of their principles and key elements.



Study Guide

A. the conceptual andregulatory framework forfinancial reporting

1. The need for a conceptualframework and the characteristicsof useful information

a) Describe what is meant by aconceptual framework for financialreporting.[2]

b) Discuss whether a conceptualframework is necessary and what analternative system might be.[2]

c) Discuss what is meant by relevanceand faithful representation anddescribe the qualities that enhancethese characteristics.[2]

d) Discuss whether faithfulrepresentation constitutes more thancompliance with accountingstandards.[1]

e) Discuss what is meant byunderstandability and verifiability inrelation to the provision of financialinformation.[2]

f) Discuss the importance ofcomparability and timeliness tousers of financial statements.[2]

g) Discuss the principle ofcomparability in accounting forchanges in accounting policies.[2]

2. Recognition and measurement

a) Define what is meant by ‘recognition’in financial statements and discussthe recognition criteria.[2]

b) Apply the recognition criteria to: [2]

i) assets and liabilities.ii) income and expenses.

c) Explain and compute amounts usingthe following measures : [2]

i) historical costii) current costiii) net realisable valueiv) present value of future cash

flowsv) fair value

d) Discuss the advantages anddisadvantages of historical costaccounting.

e) Discuss whether the use of currentvalue accounting overcomes theproblems of historical costaccounting.[2]

f) Describe the concept of financialand physical capital maintenanceand how this affects thedetermination of profits.[1]

3. Regulatory framework

a) Explain why a regulatory frameworkis needed including the advantagesand disadvantages of IFRS over anational regulatory framework.[2]

b) Explain why accounting standardson their own are not a completeregulatory framework.[2]

c) Distinguish between a principlesbased and a rules based frameworkand discuss whether they can becomplementary.[1]

d) Describe the IASB’s Standardsetting process including revisions toand interpretations of Standards.[2]

e) Explain the relationship of nationalstandard setters to the IASB in



respect of the standard settingprocess.[2]

4. The concepts and principles ofgroups and consolidated financialstatements

a) Describe the concept of a group as asingle economic unit.[2]

b) Explain and apply the definition of asubsidiary within relevant accountingstandards.[2]

c) Using accounting standards andother regulation, identify and outlinethe circumstances in which a groupis required to prepare consolidatedfinancial statements. [2]

d) Describe the circumstances when agroup may claim exemption from thepreparation of consolidated financialstatements.[2]

e) Explain why directors may not wishto consolidate a subsidiary andwhen this is permitted by accountingstandards and other applicableregulation.[2]

f) Explain the need for usingcoterminous year ends and uniformaccounting polices when preparingconsolidated financial statements.[2]

g) Explain why it is necessary toeliminate intra group transactions. [2]

h) Explain the objective of consolidatedfinancial statements. [2]

i) Explain why it is necessary to usefair values for the consideration foran investment in a subsidiarytogether with the fair values of asubsidiary’s identifiable assets andliabilities when preparingconsolidated financial statements. [2]

j) Define an associate and explain theprinciples and reasoning for the useof equity accounting. [2]

B Accounting fortransactions in financialstatements

1. Tangible non-current assets

a) Define and compute the initialmeasurement of a non-current asset(including borrowing costs and anasset that has beenself-constructed).[2]

b) Identify subsequent expenditure thatmay be capitalised, distinguishingbetween capital and revenueitems.[2]

c) Discuss the requirements of relevantaccounting standards in relation tothe revaluation of non-currentassets.[2]

d) Account for revaluation and disposalgains and losses for non-currentassets.[2]

e) Compute depreciation based on thecost and revaluation models and onassets that have two or moresignificant parts (complex assets).[2]

f) Discuss why the treatment ofinvestment properties should differfrom other properties.[2]

g) Apply the requirements of relevantaccounting standards to aninvestment property.[2]

2. Intangible non-current assets

a) Discuss the nature and accountingtreatment of internally generated andpurchased intangibles.[2]



b) Distinguish between goodwill andother intangible assets.[2]

c) Describe the criteria for the initialrecognition and measurement ofintangible assets.[2]

d) Describe the subsequent accountingtreatment, including the principle ofimpairment tests in relation togoodwill.[2]

e) Indicate why the value of purchaseconsideration for an investment maybe less than the value of theacquired identifiable net assets andhow the difference should beaccounted for.[2]

f) Describe and apply the requirementsof relevant accounting standards toresearch and developmentexpenditure.[2]

3. Impairment of assets

a) Define, calculate and account for animpairment loss.[2]

b) account for the reversal of animpairment loss on an individualasset

c) Identify the circumstances that mayindicate impairments to assets.[2]

d) Describe what is meant by a cashgenerating unit.[2]

e) State the basis on which impairmentlosses should be allocated, andallocate an impairment loss to theassets of a cash generating unit.[2]

4. Inventory and biological assets

a) Describe and apply the principles ofinventory valuation.[2]

b) Apply the requirements of relevantaccounting standards for biologicalassets.[2]

5 Financial instruments

a) Explain the need for an accountingstandard on financial instruments.[1]

b) Define financial instruments in termsof financial assets and financialliabilities.[1]

c) Explain and account for the factoringof receivables.

d) Indicate for the following categoriesof financial instruments how theyshould be measured and how anygains and losses from subsequentmeasurement should be treated inthe financial statements: [1]

i) amortised costii) fair value through other

comprehensive income( including where an irrevocableelection has been made forequity instruments that are notheld for trading)

iii) fair value through profit or loss [2]

e) Distinguish between debt and equitycapital.[2]

f) Apply the requirements of relevantaccounting standards to the issueand finance costs of: [2]

i) equityii) redeemable preference shares

and debt instruments with noconversion rights (principle ofamortised cost)

iii) convertible debt

6. Leasing

a) Account for right of use assets andlease liabilities in the records of thelessee.[2]



b) Explain the exemption from therecognition criteria for leases in therecords of the lessee.[2]

c) Account for sale and leasebackagreements.[2]

7. Provisions and events after thereporting period

a) Explain why an accounting standardon provisions is necessary.[2]

b) Distinguish between legal andconstructive obligations.[2]

c) State when provisions may and maynot be made and demonstrate howthey should be accounted for.[2]

d) Explain how provisions should bemeasured.[1]

e) Define contingent assets andliabilities and describe theiraccounting treatment and requireddisclosures.[2]

f) Identify and account for:[2]

i) warranties/guaranteesii) onerous contractsiii) environmental and similar

provisionsiv) provisions for future repairs or

refurbishments.

g) Events after the reporting periodi) distinguish between and account

for adjusting and non-adjustingevents after the reportingperiod [2]

ii) Identify items requiring separatedisclosure, including theiraccounting treatment andrequired disclosures.[2]

8. Taxation

a) Account for current taxation inaccordance with relevant accountingstandards.[2]

b) Explain the effect of taxabletemporary differences on accountingand taxable profits.[2]

c) Compute and record deferred taxamounts in the financialstatements.[2]

9. Reporting financial performance

a) Discuss the importance of identifyingand reporting the results ofdiscontinued operations.[2]

b) Define and account for non-currentassets held for sale anddiscontinued operations.[2]

c) Indicate the circumstances whereseparate disclosure of material itemsof income and expense is required.[2]

d) Account for changes in accountingestimates, changes in accountingpolicy and correction of prior perioderrors

e) Earnings per share (eps)i) calculate the eps in accordance

with relevant accountingstandards (dealing with bonusissues, full market value issuesand rights issues) [2]

ii) explain the relevance of thediluted eps and calculate thediluted eps involving convertibledebt and share options(warrants) [2]



10. Revenue

a) Explain and apply the principles ofrecognition of revenue:(i) Identification of contracts(ii) Identification of performance

obligations(iii) Determination of transaction

price(iv) Allocation of the price to

performance obligations(v) Recognition of revenue

when/as performanceobligations are satisfied.

b) Explain and apply the criteria forrecognising revenue generated fromcontracts where performanceobligations are satisfied over time orat a point in time.[2]

c) Describe the acceptable methods formeasuring progress towardscomplete satisfaction of aperformance obligation.[2]

d) Explain and apply the criteria for therecognition of contract costs. [2]

e) Apply the principles of recognitionof revenue, and specifically accountfor the following types oftransaction:[2]

i) principal versus agentii) repurchase agreementsiii) bill and hold arrangementsiv) consignments

f) Prepare financial statement extractsfor contracts where performanceobligations are satisfied over time.[2]

11. Government grants

a) Apply the provisions of relevantaccounting standards in relation toaccounting for government grants.[2]

12. Foreign currency transactions

a) Explain the difference betweenfunctional and presentation currencyand explain why adjustments forforeign currency transactions arenecessary.

b) Account for the translation of foreigncurrency transactions andmonetary/non-monetary foreigncurrency items at the reporting date.

C Analysing and interpretingthe financial statements ofsingle entities and groups

1. Limitations of financialstatements

a) Indicate the problems of usinghistoric information to predict futureperformance and trends.[2]

b) Discuss how financial statementsmay be manipulated to produce adesired effect (creative accounting,window dressing).[2]

c) Explain why figures in a statement offinancial position may not berepresentative of average valuesthroughout the period for example,due to:[2]

i) seasonal tradingii) major asset acquisitions near the

end of the accounting period.

d) Explain how the use of consolidatedfinancial statements might limitinterpretation techniques

2 Calculation and interpretation ofaccounting ratios and trends toaddress users’ and stakeholders’needs

a) Define and compute relevantfinancial ratios.[2]



b) Explain what aspects ofperformance specific ratios areintended to assess.[2]

c) Analyse and interpret ratios to givean assessment of an entity’s/group’sperformance and financial position incomparison with: [2]

i) previous period’s financialstatements

ii) another similar entity/group forthe same reporting period

iii) industry average ratios.

d) Interpret financial statements to giveadvice from the perspectives ofdifferent stakeholders.[2]

e) Discuss how the interpretation ofcurrent value based financialstatements would differ from thoseusing historical cost basedaccounts.[1]

3. Limitations of interpretationtechniques

a) Discuss the limitations in the use ofratio analysis for assessingcorporate performance.[2]

b) Discuss the effect that changes inaccounting policies or the use ofdifferent accounting polices betweenentities can have on the ability tointerpret performance.[2]

c) Indicate other information, includingnon-financial information, that maybe of relevance to the assessment ofan entity’s performance.[1]

d) Compare the usefulness of cashflow information with that of astatement of profit or loss or astatement of profit or loss and othercomprehensive income.[2]

e) Interpret a statement of cash flows(together with other financial

information) to assess theperformance and financial position ofan entity.[2]

f) i) explain why the trend of eps maybe a more accurate indicator ofperformance than a company’sprofit trend and theimportance of eps as astock market indicator [2]

ii) discuss the limitations of usingeps as a performancemeasure.[3]

4. Specialised, not-for-profit andpublic sector entities

a) Explain how the interpretation of thefinancial statement of a specialised,not-for-profit or public sectororganisations might differ from thatof a profit making entity by referenceto the different aims, objectives andreporting requirements.[1]

D Preparation of financialstatements

1. Preparation of single entityfinancial statements

a) Prepare an entity’s statement offinancial position and statement ofprofit or loss and othercomprehensive income inaccordance with the structure andcontent prescribed within IFRS andwith accounting treatments asidentified within syllabus areas A, Band C.[2]

b) Prepare and explain the contentsand purpose of the statement ofchanges in equity.[2]

c) Prepare a statement of cash flowsfor a single entity (not a group) inaccordance with relevant accountingstandards using the indirectmethod .[2]



2. Preparation of consolidatedfinancial statements including anassociate

a) Prepare a consolidated statement offinancial position for a simple group(parent and one subsidiary andassociate) dealing with pre and postacquisition profits, non-controllinginterests and consolidatedgoodwill.[2]

b) Prepare a consolidated statement ofprofit or loss and consolidatedstatement of profit or loss and othercomprehensive income for a simplegroup dealing with an acquisition inthe period and non-controllinginterest.[2]

c) Explain and account for otherreserves (e.g. share premium andrevaluation surplus).[1]

d) Account for the effects in thefinancial statements of intra-grouptrading.[2]

e) Account for the effects of fair valueadjustments (including their effect onconsolidated goodwill) to: [2]

i) depreciating and non-depreciating non-current assets

ii) inventoryiii) monetary liabilitiesiv) assets and liabilities not included

in the subsidiary’s own statementof financial position, includingcontingent assets and liabilities

f) Account for goodwill impairment.[2]

g) Describe and apply the requiredaccounting treatment of consolidatedgoodwill.[2]

h) Explain and illustrate the effect ofthe disposal of a parent’s investmentin a subsidiary in the parent’sindividual financial statementsand/or those of the group (restrictedto disposals of the parent’s entireinvestment in the subsidiary).



Summary of changes to Financial Reporting (FR)

ACCA periodically reviews its qualification syllabuses so that they fully meet theneeds of stakeholders such as employers, students, regulatory and advisory bodiesand learning providers.

Note of significant changes to study guide:

Table 1 – Deletions

Section and subjectarea

Syllabus content

D1c) Prepare a statement ofcash flows for a singleentity (not a group) inaccordance with relevantaccounting standardsusing the indirect method

The direct method has beenexcluded from the FinancialReporting (FR) syllabus as it isexamined in FinancialAccounting (FA)

financial reporting (fr) - acca global · financial reporting (fr) syllabus and study guide this...

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