Financial Reporting

ACCA Financial Reporting (FR) is categorized under the Applied Skill Level papers. This course delves extensively into the process of crafting financial statements, encompassing both individual and group companies. In addition to the preparation aspect, the subject places significant emphasis on the analysis of financial statements.

Syllabus Contents

1. Conceptual and Regulatory Framework: These form the foundational principles upon which the accounting standards are made and using which financial statements are crafted. In this context, we explore the qualitative attributes of effective financial statements, the constituent elements therein, fundamental terminologies, and the key concepts underpinning the process of financial statement preparation. Additionally, we delve into the regulatory authorities tasked with establishing and revising accounting standards.

2. Accounting Standards: These provide the direction on how to deal with various transactions based on IAS and IFRS. To put it technically, it deals with Initial Recognition, Subsequent measurement and Derecognition of items in the financial statement (You will get to know about them soon!)

3. Preparation of Single Entity Financial Statements: Once all principles and accounting standards are ready, now we start preparing the financial statement for Individual companies. Here we will learn to prepare:

              a) Statement of Financial Position (SOFP)

              b) Statement of Profit and Loss and Other Comprehensive Income (SOPL & OCI)

              c) Statement of Changes in Equity (SOCIE)

              d) Statement of Cashflows (SOCF)

4. Preparation of Consolidated Financial Statements: This area deals with the preparation of Financial Statements, but now for Group companies. We will learn how to prepare:

a) Consolidated Statement of Financial Position

b) Consolidated Statement of Profit and Loss and Other Comprehensive Income

5. Interpretation of Financial Statements: Subsequently, following the preparation of financial statements, we delve into the art of interpreting these figures and conducting a comprehensive analysis that extends beyond mere numerical data. This segment focuses on the practice of financial statement analysis.

Exam Format:

The examination will have a duration of 3 hours and will consist of three distinct sections:

Section A: 30 Marks (Comprising 15 Objective Test Questions, each worth 2 marks)

Section B: 30 Marks (Comprising 3 cases, with each case containing 5 Objective Test Questions, each worth 2 marks, totaling 10 marks per case)

Section C: 40 Marks (Comprising 2 Constructed Response Questions, worth 20 marks each)

The passing score for all ACCA papers is 50.

Once again, welcome to Financial Reporting, and welcome to ATOMIC ACCA!

We look forward to seeing you in our lectures soon!