Aim
To
ensure that candidates can exercise judgement
and technique in corporate reporting matters
encountered by accountants and can evaluate
and react to current developments or new practice.
Objectives
On completion of this paper candidates should
be able to:
-
explain and evaluate the implications of
an accounting standard or proposed accounting
standard for the content of published financial
information
-
explain and evaluate the impact on the financial
statements of business decisions
-
explain the legitimacy and acceptability
of an accounting practice proposed by a
company
-
prepare financial statements for complex
business situations
-
analyse financial statements and prepare
a report suitable for presentation to a
variety of users
-
evaluate whether current practice is acceptable
and consistent with the needs of users and
the objectives of financial reporting
-
evaluate current developments in corporate
reporting in the context of their practical
application, implications for corporate
reporting, and their support in the accounting
literature and
-
demonstrate the skills expected in Part
3.
Content
Framework International Accounting Standards,
Exposure Drafts, Framework for the Preparation
and Presentation of Financial Statements, Standing
Interpretation Committee pronouncements, their
developments, content and application in a given
range of situations, problems with current accounting
standards, including measurement and recognition
issues, and the regulatory environment, and
their impact on the business entity.
Preparation
of the financial statements complex business
entities and transactions, including groups
of combinations, foreign entities, demergers,
business combinations and re-organisation of
companies.
Preparation
of reports suitable for presentation to
external users and internal management, including
financial analysis, purchase of business entities,
share valuation and the impact of changes in
accounting policy on shareholder value, impact
of changes in the regulatory framework, the
implications of the reorganisation of an entity
and the potential for corporate failure.
Current
issues and developments environmental and
social accounting and reporting, corporate governance,
impact of culture on accounting, the communication
and design of corporate reports, changes to
International Accounting Standards, proposed
changes in the structure of the International
Accounting Standards Committee, applicability
of International Accounting Standards to small
entities, and global harmonisation issues.
Ethical
considerations professional ethical framework.
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