Syllabus of advanced financial reporting PDF

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Detailed Syllabus of Chartered Accountancy Professional (CAP-111) Paper 1: Advanced Financial Reporting (One Paper-Three Hours-100 Marks) Level of Knowledge : Expert Objectives

: i.

To build on the basic knowledge gained during CAP- , and

ii. To enable the candidates to understand the purpose and context of financial reporting, to interpret financial statements and other data for the benefits of users (internal as well as external), to prepare financial statements for limited liabilities companies and other specialized entities applying national and international standards and to explain their preparations.

Detailed Course Contents 1.

Accounting principles, concepts and theory a. Fundamental Accounting Concepts and their relevance in preparation of financial statements b. Moving towards realizable (fair) value concept from conventional historical cost concept of preparation of financial statements

2.

National and International Accounting and/or International Financial Reporting Standards. a. Accounting and reporting standards and interpretations (including mandatory, voluntary and exposure drafts) issued by Nepal Accounting Standards Board and nternational Accounting Standards Committee. b. National and nternational Accounting Framework and recognition and measurement of elements of financial statements and significant departure of current corporate practices therefrom. c. The legitimacy of current accounting practices and its relevance to the users of general purpose financial statements. d.

ssues and problems associated in general purpose financial reporting with the adoption of accounting and/or reporting standards.

e. The effect of current business decisions and proposed changes or adoption of accounting and/ or reporting standards. f. 3.

Comparative study of national and international financial/accounting standards or GAAPs.

Preparation and presentation of financial statements a. Advanced problems in preparation and presentation of financial statements of limited liabilities companies, bank and other financial institutions (finance companies, mutual funds, merchant banker), insurance companies, stock broker and electricity company in accordance withapplicable national and international standards and relevant acts and rules. b. Valuation of goodwill and shares c. Disclosure of •

Accounting policies

•

Segment information

•

Related parties transactions

•

Significant ratios (including Earning per Share)

CAP-III/Paper 1: Advanced Financial Reporting

1

•

Current and deferred taxation

•

Human Resource Accounting

•

Corporate Social Reporting

•

Environmental Accounting

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Other as per the relevant acts or rules or directives from regulating

authorities. d. Understanding of recent development in accounting: •

4.

Interim and group reporting

•

Value added statement

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Economic value added statement

Preparation of consolidated financial statements •

Definitions of subsidiary and controlled companies

•

Financial issues related to subsidiary and controlled companies for their inclusion and exclusion like intra-group transactions, fair value adjustments, minority interest

•

Preparation of consolidated accounts of holding and group companies

• Accounting for amalgamation using purchase and pooling of interest methods of accounting. •

Preparation of group cash flow statements.

•

Accounting for foreign currency transactions and entities.

•

Accounting issues related to corporate restructuring including de-mergers take over and group chemes.

5.

Analysis and interpretation of financial statements and related information •

Appraisal of financial and related information by vertical and horizontal analysis, ratio analysis, common size statement, cash flow statement.

•

Appraisal of the impact of changes in accounting policies and the regulatory framework on shareholders fund.

•

The assessment of the impact of price level changes and available methods of valuation on business decisions and performance.

6.

Accounting treatments for specialized transactions •

Accounting treatment of transactions under lease, contract, intangible assets, financial instruments, taxes, business combinations in line with applicable national and international accounting standards.

Reference Books: 1. 2.

Nepal Accounting Standards (NAS)/Nepal Public Sector Accounting Standards (NPSAS) International Financial Reporting Standards ( IFRS)

3.

Advanced Accounting, R.L. Gupta & M. Radhaswamy, S. Chand & Sons, New Delhi

4.

Advanced Financial Accounting, R.E. Baker, V.C. Lembke & T.E. King, McGraw Hill Book Co.

5.

First Lessons in Financial Reporting - M.P. Vijay Kumar-Snow White Publications Pvt. Ltd....