Study Scheme 2018

(Updated in 2023)

M4 – FINANCIAL ACCOUNTING & CORPORATE REPORTING MANAGERIAL LEVEL-2

INTRODUCTION  Learn the revenue recognition;

This course is designed to focus on preparing, analysing  Explicate related party disclosure;
financial statements and developing reports thereon, for  Elucidate operating segments;
management decisions. The students are expected to use  Understand non-current assets held for sale and
knowledge and understanding of more advanced financial discontinued operations;
accounting, for preparing and interpreting financial  Identify the events after the reporting period;
statements in context of practice.  Comprehend provisions, contingent liabilities and
contingent assets;
OBJECTIVE
 Elucidate property, plant and equipment;
To provide the students with an in-depth knowledge of
 Deal with government grants;
financial reporting enabling them to:
 Understand borrowing cost;
 analyse and interpret financial statements and prepare
 Identify and comprehend intangible assets and
financial reports, and
impairment of assets;
 Submit recommendations to the management for taking
 Record research and development expenditure cost;
decision.
 Apply accounting treatment of goodwill and its
LEARNING OUTCOMES impairment;
On completion of this course, students will be able to:  Perform adequate accounting treatment of leases;
 Comprehend the structure and objectives of regulatory  Prepare and interpret statement of cash flows;
framework and setting of international financial  Prepare and present the financial statements according
reporting standards; to international Accounting Standards (IAS) and
 Understand the meaning of conceptual framework and International Reporting Standards (IFRS);
GAAP;  Identify accounting treatment of inventories and WIP;
 Realize the ways in which IFRS can interact with local  Learn accounting treatment for financial instruments;
regulatory frameworks:  Apply the accounting rules for current and deferred
 Explicate the elements and qualitative characteristics of taxation, including calculation of deferred tax.
financial statements;  Systems audit, control and security practices;
 Implement accounting policies changes in accounting
estimates and errors;
INDICATIVE GRID
PART SYLLABUS CONTENT AREA WEIGHTAGE
REGULATORY AND CONCEPTUAL FRAMEWORK
A 1 The regulatory framework 5%
2 The Conceptual Framework
SINGLE COMPANY FINANCIAL ACCOUNTS
3 IAS 1 (Revised) Presentation of Financial statements
4 Reporting Financial Performance
5 Other Reporting
6 Accounting for non-current assets
B 7 Intangible non-current assets 85%
8 Impairment of Assets
9 Leases
10 Statements of Cash Flows
11 IAS 2 Inventories and Short term WIP
12 Share Based Transactions and Financial instruments
ACCOUNTING FOR TAXATION
C 10%
13 IAS 12: Income taxes
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 PART - B
REGULATORY AND CONCEPTUAL FRAMEWORK SINGLE COMPANY FINANCIAL ACCOUNTS
1. The regulatory framework 3. IAS 1 (Revised) Presentation of Financial
 The International Accounting Standard Board statements
(IASB)  General Features
 Setting of International Financial Reporting  Structure and Detail Contents
Standards  Preparation of Financial Statements
 Companies Act, 2017 Third, Fourth and Fifth
2. The Conceptual Framework
schedules
 Conceptual Framework and GAAP
 The IASB’s Conceptual Framework 4. Reporting Financial Performance
 Qualitative Characteristics of Financial  IFRS 5: Non-Current Assets held for Sale and
Statements discontinued operations.
 The elements of Financial Statements o Scope and definitions:
o Conditions of IFRs 5:
1
 Study Scheme 2018
(Updated in 2023)

o Transfer from IAS 16 to IFRS 5 consolidated statement of comprehensive

 IAS 8 Accounting Policies, Changes in Accounting income involving a single subsidiary
Estimates and Errors
 IFRS 8 Operating Segments. 8. Impairment of Assets
 IFRS 15 Revenue from Contracts with Customers.  IAS 36 Impairment of Assets
o Five steps of Revenue Recognition.  Cash Generating Units
o Construction contacts.  Goodwill and the Impairment of Assets
 IAS 24 Related Part Disclosures  Accounting treatment of an Impairment Loss.
 Reversal of impairment losses.
5. Other Reporting
 IAS 10 Events after the Reporting Period 9. Leases
 IAS 37 Provisions, Contingent Liabilities and  Characteristics of Leases
Contingent Assets (IFRIC 1: Change in Existing  IFRS 16 Lease
Decommissioning, Restoration and Similar  Operating leases
Liabilities.)  Finance leases

6. Accounting for non-current assets 10. Statements of Cash Flows

 IAS 16 Property, Plant and Equipment  IAS 7 Statement of Cash Flow
o Scope and definitions  Preparing a Statement of Cash Flow
o Cost of NCA:  Interpretation of Statements of Cash Flows
o Cost model.
o Disposal of NCA 11. IAS 2 Inventories
o Exchange of NCA.  Definitions
o Revaluation model.  Measurement of Inventories
o Different movements in Revaluation.  Inventory Valuation Method
o Excess depreciation.  Net Realizable Value
o Disposal of Revalued Assets.  Recognition as an Expense
 IAS 20 Accounting for Government Grants and  Disclosures
Disclosure of Government Assistance.
o Scope and definitions: 12. Share based Transactions and Financial
o Government grants and assistance: instruments
o Revenue grant:  Definitions
o Treated as income  Types of Transaction
o Deducted from respective expense  Equity-Settled Share-Based Payment
o Capital grants: Transactions Disclosures.
o Treated as deferred income and deducted  Financial Assets and Financial Liabilities:
from non-current assets IAS 23 Borrowing o Scope and definitions of financial assets and
Costs financial liabilities:
 IAS 40 Investment Properties. o Financial liabilities (Short term, long term,
o Scope and definitions: Convertible loan notes)
o Investment properties. o Indicate for the following categories of
o Transfer from IAS 16 to IAS 40 financial instruments how they should be
measured and how any gains and losses
7. Intangible non-current assets from subsequent measurement should be
 IAS 38 Intangible Assets. treated in the financial statements:
o Internally and externally generated i. Amortized cost
intangibles. ii. Fair value through other
o Infinite and indefinite intangible comprehensive income (including
o SIC 32: Intangible assets – Website costs where an irrevocable election has
 Research & Development Cost been made for equity instruments that
 IFRS 3 Business Combinations are not held for trading)
o Describe the concept of a group as a single iii. Fair value through profit or loss
economic unit
o Define subsidiary, parent and control by PART - C
identifying simple examples ACCOUNTING FOR TAXATION
o Describe situations when control is
presumed to exist 13. IAS 12 Income taxes
o Identify and describe the circumstances in  Current Tax
which an entity is required to prepare and  Deferred Tax
present consolidated financial statements  Taxation in Company Accounts
o Prepare and present simple consolidated  Presentation and Disclosure of Taxation
statements of financial position and simple  SIC-25 Income Taxes—Changes in the Tax Status
of an Entity or its Shareholders