KASNEB CPA Financial Reporting and Analysis Revision Kits

Description

GENERAL OBJECTIVE
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable
him/her to prepare financial statements for various entities and account for specialised transactions in
both the public and private sectors
9. 0LEARNING OUTCOMES
A candidate who passes this paper should be able to:
 Account for various assets and liabilities
 Prepare financial statements including published financial statements for various types of
organizations
 Account for specialized transactions
 Prepare group financial statements
 Apply International Financial Reporting Standards (IFRSs) and International Public Sector
Accounting Standards (IPSASs) in preparing non-complex financial statements.
CONTENT
9.1 Assets and liabilities
– Assets and liabilities covered in Paper No.1: Financial Accounting still examinable (in
the context of published financial statements)
– Non- current assets held for sale
– Borrowing costs
– Investment property
– Financial instruments (presentation, recognition, classes, measurement, de-recognition and
disclosures) (excluding impairment, hedging and embedded derivatives)
– Leases (all aspects including dealers and sale and leaseback)
– Income tax (current and deferred tax but not deferred tax in the case of groups)
– Provisions, contingent liabilities and contingent assets
9.2 Further aspects of partnerships
– Dissolutions (including piece-meal)
– Conversion of a partnership into a company
9.3 Specialized transactions
– Contracts with customers (revenue recognition): Hire Purchase/ Installment sales (split
of hire purchase profit into interest and gross profit and using actuarial method and sum of
digits to account for interest); sale of goods; construction contracts and real estate,
provision of services.Page 2
– Government grantsPage 3
9.4 Financial statements of various types of organizations
– Farming
– Insurance
– Banks
– Professional firms (lawyers and accountants)
– Independent local, dependent and foreign branches
– Co-operative societies
9.5 Published financial statements
– Presentation of financial statements (income statement, statement of comprehensive incomes,
statement of changes in equity, statement of financial position and the notes to financial
statements)
– Accounting policies, changes in accounting estimates and errors (prior period errors)
– Events after the reporting period
– Discontinued operations (exclude disposal of subsidiaries)
9.6 Subsidiaries (groups), associates and jointly controlled entities
– Accounting for one subsidiary (consolidated income statement, consolidated statement of
financial position and a statement of cash flows – group financial statements); consolidated
statement of cash flows also covers associate companies and jointly controlled entities but
excludes acquisition and disposal of subsidiaries during the year
– Accounting treatment of associate companies
– Jointly controlled entity
9.5 Financial statements of public sector entities
(Provisions of the following IPSAS (emphasis on distinctions with equivalent IASs/IFRS)
– Presentation of financial statements
– Accounting policies, changes in accounting estimates and errors
– Borrowing costs
– Consolidated and separate financial statements
– Investments in associates
– Interests in joint ventures
– Events after the reporting date
– Construction contracts, leases and inventories
– Provisions, contingent liabilities and contingent assets
9.8 Emerging issues in financial reporting