ACCA exam notes phần 1 potx

student accountant February 200433 exam notes exam notes e CAT Scheme financial accounting and auditing papers 1, 3, 6 and 8 52 management accounting and financial management papers 2, 4, 7 and 10 55 management and IT paper 5 56 tax paper 9 56 Professional Scheme financial accounting and auditing papers 1.1, 2.5, 2.6, 3.1 and 3.6 34 management accounting and financial management papers 1.2, 2.4, 3.3 and 3.7 43 management and IT papers 1.3, 2.1, 3.4 and 3.5 44 law paper 2.2 46 tax papers 2.3 and 3.2 48 student accountant February 200434 exam notes PAPER 1.1 PREPARING FINANCIAL STATEMENTS (INT) INTERNATIONAL ACCOUNTING STANDARDS (IASs) No Title Issue date 1 Presentation of Financial Statements Aug 1997 2 Inventories Dec 1993 7 Cash Flow Statements (excluding groups and foreign currency) Dec 1992 8 Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies Dec 1993 10 Events after the Balance Sheet Date May 1999 16 Property, Plant and Equipment Sept 1998 18 Revenue Dec 1993 35 Discontinuing Operations (Note 2) June 1998 37 Provisions, Contingent Liabilities and Contingent Assets (Note 3) Sept 1998 38 Intangible Assets (Note 4) Sept 1998 OTHER STATEMENTS Title Issue date Framework for the Preparation and Presentation of Financial Statements (Note 1) July 1989 NOTES 1 The IASB’s Framework for the Preparation and Presentation of Financial Statements is examinable at an introductory level. 2 The following paragraphs of IAS 35 are examinable in so far as they relate to disclosures previously in IAS 8 in relation to Discontinuing Operations: 27, 31, 41. 3 The following paragraphs of IAS 37 are examinable in so far as they relate to contingent liabilities and contingent assets: 10, 27- 35, 85-92, appendices A and B. The measurement rules in paragraphs 36-52 are not examinable. 4 The following paragraphs of IAS 38 are examinable in so far as they relate to research and development: 7, 39-47, 55, 79, 88, 107, 115. APPROACH TO EXAMINING THE SYLLABUS The examination is a three-hour paper in two sections. Both sections will draw from all parts of the syllabus and will contain both computational and non-computational elements. Paper 1.1 can also be taken as a three-hour computer-based exam. The Study Guide provides more detailed guidance on the syllabus. Number of marks Section A: 25 compulsory multiple-choice questions (2 marks each) 50 Section B: 5 compulsory questions (8-12 marks each) 50 100 PAPER 1.1 PREPARING FINANCIAL STATEMENTS (GBR) ACCOUNTING STANDARDS STATEMENTS OF STANDARD ACCOUNTING PRACTICE (SSAPs) No Title Issue date 9 Stocks and long-term contracts (excluding long-term contracts) Sept 1988 13 Accounting for research and development Jan 1989 17 Accounting for post balance sheet events Aug 1980 FINANCIAL REPORTING STANDARDS (FRSs) No Title Issue date 1 Cash flow statements (excluding group cash flow statements) Oct 1996 3 Reporting financial performance (excluding group aspects) Oct 1992 12 Provisions, contingent liabilities and contingent assets (Note 1) Sept 1998 15 Tangible fixed assets (Note 2) Feb 1999 18 Accounting policies Dec 2000 NOTES 1 The following paragraphs of FRS 12 are examinable in so far as they relate to contingent liabilities and contingent assets: 2, 3, 27-33, 91, 94, 96, 97 Appendix 2. The measurement rules in paragraphs 36-55 are not examinable. 2 The following paragraphs of FRS 15 are examinable in so far as they relate to tangible fixed assets: 1-7, 34-36, 42-46, 61, 63, 72, 77-82 and 93. In relation to paragraph 2, only the following definitions are examinable: current value; depreciable amount; depreciation; recoverable amount; residual value; tangible fixed assets and useful economic life. OTHER STATEMENTS Title Issue date Statement of Principles for Financial Reporting Dec 1999 For students sitting Paper 1.1, Chapters 1, 2 and 3 of the Statement of Principles are examinable in detail. A detailed knowledge of the remainder of the Statement of Principles is not examinable. APPROACH TO EXAMINING THE SYLLABUS The examination is a three-hour paper in two sections. Both sections will draw from all parts of the syllabus and will contain both computational and non-computational elements. Paper 1.1 can also be taken as a three-hour computer-based exam. The Study Guide provides more detailed guidance on the syllabus. exam notes ACCA applies a six-month rule. Questions requiring an understanding of new legislation will not be set until at least six calendar months after the last day of the month in which the legislation received Royal Assent. For other regulatory pronouncements such as FRSs and SASs, the relevant date is the date of issue. Therefore, for the June 2004 exams the relevant ‘last day’ is 30 November 2003. This may be before the implementation date. student accountant February 200435 exam notes Number of marks Section A: 25 compulsory multiple-choice questions (2 marks each) 50 Section B: 5 compulsory questions (8-12 marks each) 50 100 PAPER 2.5 FINANCIAL REPORTING (INT) INTERNATIONAL ACCOUNTING STANDARDS (IASs)/ INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRSs) No Title Issue date Preface to Statements of IASs IAS 1* Presentation of Financial Statements Aug 1997 IAS 2* Inventories Dec 1993 IAS 7* Cash Flow Statements (Note 2) Dec 1992 IAS 8* Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies Dec 1993 IAS 10* Events after the Balance Sheet Date May 1999 IAS 11 Construction Contracts Dec 1993 IAS 12 Income Taxes Oct 1996 IAS 14 Segment Reporting Aug 1997 IAS 15 Information Reflecting the Effects of Changing Prices Dec 1993 IAS 16* Property, Plant and Equipment Sept 1998 IAS 17 Leases Dec 1997 IAS 18* Revenue Dec 1993 IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Jan 1995 IAS 22 Business Combinations Sept 1998 IAS 23 Borrowing Costs Dec 1993 IAS 24 Related Party Disclosures Jan 1995 IAS 27 Consolidated Financial Statements and Accounting for Investments in Subsidiaries Jan 1995 IAS 28 Accounting for Investments in Associates Sept 1998 IAS 31 Financial Reporting of Interests in Joint Ventures Sept 1998 IAS 32 Financial Instruments: Disclosure and Presentation (Note 3) June 1995 IAS 33 Earnings per Share Feb 1997 IAS 34 Interim Financial Reporting Feb 1998 IAS 35* Discontinuing Operations June 1998 IAS 36 Impairment of Assets June 1998 IAS 37* Provisions, Contingent Liabilities and Contingent Assets Sept 1998 IAS 38* Intangible Assets Sept 1998 IAS 39 Financial Instruments: Recognition and Measurement (Note 3) Dec 1998 IAS 40 Investment Property Apr 2000 IFRS 1 First-time Adoption of International Financial Reporting Standards June 2003 NOTES 1 Statements marked * are also examinable, in whole or part, in Paper 1.1. 2 IAS 7 is examinable for Paper 2.5 but excluding group cash flow statements and cash flow statements involving foreign currency. 3 IAS 32 and IAS 39 are examinable to the extent that they deal with the presentation and measurement of equity, debt and convertible debt only. OTHER STATEMENTS Title Issue date * Framework for the Preparation and Presentation of Financial Statements July 1989 INTERPRETATIONS OF THE INTERNATIONAL FINANCIAL REPORTING INTERPRETATIONS COMMITTEE (IFRIC) No Title Issue date SIC–1 Consistency – Different Cost Formulas for Inventories Dec 1997 SIC–2 Consistency – Capitalisation of Borrowing Costs Dec 1997 SIC–3 Elimination of Unrealised Profits and Losses on Transactions with Associates Dec 1997 SIC–9 Business Combinations – Classification either as Acquisitions or Unitings of Interests July 1998 SIC–10 Government Assistance – No Specific Relation to Operating Activities July 1998 SIC–14 Property, Plant and Equipment – Compensation for the Impairment or Loss of Items Nov 1998 SIC–16 Share Capital – Reacquired Own Equity Instruments (Treasury Shares) Jan 1999 SIC–17 Costs of an Equity Transaction Jan 2000 SIC–18 Consistency – Alternative Methods Jan 2000 SIC–22 Business Combinations – Subsequent Adjustment of Fair Values and Goodwill Initially Reported July 2000 SIC–23 Property, Plant and Equipment – Major Inspection of Overhaul Costs July 2000 APPROACH TO EXAMINING THE SYLLABUS The examination is a three-hour paper in two sections. It will contain a mix of computational and discursive elements. Some questions will adopt a scenario/case study approach. Number of marks Section A: 1 compulsory question 25 Section B: Choice of 3 from 4 questions (25 marks each) 75 100 The Study Guide provides more detailed guidance on the syllabus. You are advised to bring a calculator to the exam hall for all papers. You are permitted to take a noiseless, cordless, pocket-sized, programmable or non-programmable calculator without printout or graphic/word display facilities. It is strongly recommended that you refer to articles published in student accountant as part of your study preparation for the exams. student accountant February 200436 exam notes PAPER 2.5 FINANCIAL REPORTING (GBR) STATEMENTS OF STANDARD ACCOUNTING PRACTICE (SSAPs) No Title Issue date Foreword to Accounting Standards Jan 1993 4 Accounting for government grants July 1990 5 Accounting for Value Added Tax Apr 1974 9* Stocks and long-term contracts Sept 1988 13* Accounting for research and development Jan 1989 17* Accounting for post balance sheet events Aug 1980 19 Accounting for investment properties Nov 1981 21 Accounting for leases and hire purchase contracts Aug 1984 Segmental reporting June 1990 FINANCIAL REPORTING STANDARDS (FRSs) No Title Issue date 1* Cash Flow Statements (excluding group cash flow statements) (Note 2) Oct 1996 2 Accounting for Subsidiary Undertakings June 1992 3* Reporting Financial Performance (excluding group aspects) Oct 1992 4 Capital Instruments Dec 1993 5 Reporting the Substance of Transactions Apr 1994 6 Acquisitions and Mergers Sept 1994 7 Fair Values in Acquisition Accounting Sept 1994 8 Related Party Disclosures Oct 1995 9 Associates and Joint Ventures Nov 1997 10 Goodwill and Intangible Assets Dec 1997 11 Impairment of Fixed Assets and Goodwill July 1998 12* Provisions, Contingent Liabilities and Contingent Assets Sept 1998 14 Earnings per Share Oct 1998 15* Tangible Fixed Assets Feb 1999 16 Current Tax Dec 1999 18* Accounting Policies Dec 2000 19 Deferred Tax Dec 2000 OTHER STATEMENTS No Title Issue date Operating and Financial Review July 1993 Statement of Principles for Financial Reporting* Dec 1999 Financial Reporting Standards for Smaller Entities Dec 2001 IFRS 1 First-time Adoption of International Financial June 2003 Reporting Standards (Note 4) ABSTRACTS No Title Issue date UITF Abstract 4 Presentation of long-term debtors in current assets July 1992 UITF Abstract 5 Transfers from current assets to fixed assets July 1992 UITF Abstract 15 Disclosure of substantial acquisitions Feb 1999 UITF Abstract 37 Purchases and sales of own shares Oct 2003 NOTES 1 Statements marked * are also examinable, in whole or part, in Paper 1.1. 2 FRS 1 is examinable for Paper 2.5 but excluding group cash flow statements and cash flow statements involving foreign currency. 3 Students should note that Chapters 1 and 3 of the Statement of Principles are examinable in Paper 1.1. At Paper 2.5, students are expected to be aware of the issues/reasons which have led to the publication of the Statement of Principles, and to be able to discuss the main thrust of the document. 4 Knowledge of International Accounting Standards other than IFRS 1 will not be examinable. APPROACH TO EXAMINING THE SYLLABUS The examination is a three-hour paper in two sections. It will contain a mix of computational and discursive elements. Some questions will adopt a scenario/case study approach. The Study Guide provides more detailed guidance on the syllabus. Number of marks Section A: One compulsory question 25 Section B: Choice of 3 from 4 questions (25 marks each) 75 100 PAPER 2.6 AUDIT AND INTERNAL REVIEW (INT) ACCOUNTING STANDARDS The accounting knowledge that is assumed for Paper 2.6 is the same as that examined in Paper 2.5. Therefore, students studying for Paper 2.6 should refer to the International Accounting Standards listed under Paper 2.5. However, Paper 2.6 only assumes a detailed knowledge of accounting standards that are examinable in Paper 1.1. INTERNATIONAL STANDARDS ON AUDITING (ISAs) No Title Glossary of terms Preface to International Standards on Auditing and Related Services 100 Assurance Engagements 120 Framework of ISAs 200 Objective and General Principles Governing an Audit of Financial Statements 210 Terms of Audit Engagement 230 Documentation 240 The Auditor’s Responsibility to Consider Fraud and Error in an Audit of Financial Statements 250 Consideration of Laws and Regulations in an Audit of Financial Statements exam notes student accountant February 200437 exam notes 260 Communications of Audit Matters with Those Charged with Governance 300 Planning 310 Knowledge of the Business 320 Audit Materiality 400 Risk Assessments and Internal Control 401 Auditing in a Computer Information Systems Environment 402 Audit Considerations Relating to Entities Using Service Organisations 500 Audit Evidence 501 Audit Evidence – Additional Considerations for Specific Items 505 External Confirmations 510 Initial Engagements – Opening Balances 520 Analytical Procedures 530 Audit Sampling and Other Selective Testing Procedures 540 Audit of Accounting Estimates 560 Subsequent Events 570 Going Concern 580 Management Representations 610 Considering the Work of Internal Auditing 620 Using the Work of an Expert 700 The Auditor’s Report on Financial Statements 710 Comparatives 720 Other Information in Documents Containing Audited Financial Statements 910 Engagements to Review Financial Statements OTHER DOCUMENTS No Title IAPS 1000* Inter-bank Confirmation Procedures IAPS 1005 The Special Considerations in the Audit of Small Entities IAPS 1013 Electronic Commerce Effect on the Audit of Financial Statements IAPS 1014 Reporting by Auditors on Compliance with International Financial Reporting Standards Interim Terms of Reference and Preface to the International Standards on Quality Control, Auditing, Assurance and Related Service * Students will not be examined on the audit of banks. This document is relevant to the extent that it applies to the confirmation of financial and business relationships between banks and their non-bank customers. NOTE 1 Students are advised that questions will be based on the principles and good practice set out in the International Standards on Auditing. OTHER GUIDANCE ACCA’s ‘Rules of Professional Conduct’ Documents under ‘Other Guidance’ are examinable only to the extent that they are relevant to topics specified in the Syllabus and Study Guide. APPROACH TO EXAMINING THE SYLLABUS The examination is a three-hour paper in two sections. The bulk of the questions will be discursive but some questions involving computational elements will be set from time to time. Section A is compulsory. The questions will cover the key elements of the syllabus relevant to both internal and external audit assignments. Section B requires candidates to answer two out of three questions. The questions will cover all areas of the syllabus. The Study Guide provides more detailed guidance on the syllabus. Number of marks Section A: 3 compulsory scenario-based questions (no single question will exceed 25 marks) 60 Section B: Choice of 2 from 3 questions (20 marks each) 40 100 PAPER 2.6 AUDIT AND INTERNAL REVIEW (GBR) ACCOUNTING STANDARDS The accounting knowledge that is assumed for Paper 2.6 is the same as that examined in Paper 2.5. Therefore, candidates studying for Paper 2.6 should refer to the Accounting Standards listed under Paper 2.5. However, Paper 2.6 only assumes a detailed knowledge of accounting standards that are examinable for Paper 1.1. AUDITING STANDARDS AND GUIDELINES THE AUDITING PRACTICES BOARD (APB) Auditing Practices Board pronouncements are issued as Statements of Auditing Standards (SASs) or Practice Notes (PNs), the former being mandatory and the latter for guidance only, though they are indicators of best practice. Publication of SASs and PNs will be preceded by an Exposure Draft (ED), usually with a comment period of three months. EDs are not examinable at Paper 2.6. STATEMENTS OF AUDITING STANDARDS (SASs) No Title Issue date Glossary of terms 010 The Auditing Practices Board – Scope and Apr 2003 Authority of Pronouncements (Revised) 100 Objective and General Principles Governing an Audit of Financial Statements Mar 1995 110 Fraud and Error Jan 1995 120 Consideration of Law and Regulations Jan 1995 130 The Going Concern Basis in Financial Statements Nov 1994 140 Engagement Letters Mar 1995 150 Subsequent Events Mar 1995 160 Other Information in Documents Containing Audited Financial Statements (Revised) Oct 1999 200 Planning Mar 1995 210 Knowledge of the Business Mar 1995 exam notes student accountant February 200438 exam notes 220 Materiality and the Audit Mar 1995 230 Working Papers Mar 1995 300 Accounting and Internal Control Systems and Audit Risk Assessments Mar 1995 400 Audit Evidence Mar 1995 410 Analytical Procedures Mar 1995 420 Audit of Accounting Estimates Mar 1995 430 Audit Sampling Mar 1995 440 Management Representations Mar 1995 450 Opening Balances and Comparatives Mar 1995 470 Overall Review of Financial Statements Mar 1995 480 Service Organisations Jan 1999 500 Considering the Work of Internal Audit Mar 1995 520 Using the Work of an Expert Mar 1995 600 Auditors’ Reports on Financial Statements May 1993 601 Imposed Limitation of Audit Scope Mar 1999 610 Communication of Audit Matters to Those Charged with Governance June 2001 AUDITING GUIDELINES No Title Issue date 405 Attendance at stocktaking Oct 1983 OTHER DOCUMENTS No Title Issue date PN 13 The audit of small businesses July 1997 PN 16 Bank reports for audit purposes Aug 1998 Bulletin 2001/02* Revisions to the wording of auditors’ reports on financial statements and the interim review report Jan 2001 Bulletin 2001/03 E-business: Identifying Financial Statement Risks Apr 2001 Briefing Paper Providing assurance on the effectiveness of internal control July 2001 Briefing Paper Effective communication between audit committees and external auditors Sept 2002 * Students will not be examined on those sections of this document that deal with the review report, or Stock Exchange requirements. NOTE 1 Students are advised that questions will be based on the principles and good practice set out in the Auditing Standards and Guidelines. OTHER GUIDANCE ACCA’s ‘Rules of Professional Conduct’ Documents under ‘Other Guidance’ are examinable only to the extent that they are relevant to topics specified in the Syllabus and Study Guide. APPROACH TO EXAMINING THE SYLLABUS The examination is a three-hour paper in two sections. The bulk of the questions will be discursive but some questions involving computational elements will be set from time to time. Section A is compulsory. The questions will cover the key elements of the syllabus relevant to both internal and external audit assignments. Section B requires candidates to answer two out of three questions. The questions will cover all areas of the syllabus. The Study Guide provides more detailed guidance on the syllabus. Number of marks Section A: 3 compulsory scenario-based questions (no single question will exceed 25 marks) 60 Section B: Choice of 2 from 3 questions (20 marks each) 40 100 PAPER 3.1 AUDIT AND ASSURANCE SERVICES (INT) The accounting knowledge that is assumed for Paper 3.1 is the same as that examined in Paper 2.5. Therefore, candidates studying for Paper 3.1 should refer to the Accounting Standards listed under Paper 2.5. AUDITING STANDARDS AND PRACTICE STATEMENTS INTERNATIONAL STANDARDS ON AUDITING (ISAs) No Title Glossary of Terms Preface to International Standards on Auditing and Related Services 100 Assurance Engagements 120 Framework of ISAs 200 Objective and General Principles Governing an Audit of Financial Statements 210 Terms of Audit Engagement 220 Quality Control for Audit Work 230 Documentation 240 The Auditor’s Responsibility to Consider Fraud and Error in an Audit of Financial Statements 250 Consideration of Laws and Regulations in an Audit of Financial Statements 260 Communications of Audit Matters with Those Charged with Governance 300 Planning 310 Knowledge of the Business 320 Audit Materiality 400 Risk Assessments and Internal Control 401 Auditing in a Computer Information Systems Environment 402 Audit Considerations Relating to Entities Using Service Organisations 500 Audit Evidence 501 Audit Evidence – Additional Considerations for Specific Items student accountant February 200439 exam notes 505 External Confirmations 510 Initial Engagements – Opening Balances 520 Analytical Procedures 530 Audit Sampling and Other Selective Testing Procedures 540 Audit of Accounting Estimates 545 Auditing Fair Value Measurements and Disclosures 550 Related Parties 560 Subsequent Events 570 Going Concern 580 Management Representations 600 Using the Work of Another Auditor 610 Considering the Work of Internal Auditing 620 Using the Work of an Expert 700 The Auditor’s Report on Financial Statements 710 Comparatives 720 Other Information in Documents Containing Audited Financial Statements 800 The Auditor’s Report on Special Purpose Audit Engagements 810 The Examination of Prospective Financial Information 910 Engagements to Review Financial Statements 920 Engagements to Perform Agreed-Upon Procedures Regarding Financial Information 930 Engagement to Compile Financial Information INTERNATIONAL AUDIT PRACTICE STATEMENTS (IAPSs) No Title 1005 The Special Considerations in the Audit of Small Entities 1010 The Consideration of Environmental Matters in the Audit of Financial Statements 1013 Electronic Commerce: Effect on the Audit of Financial Statements 1014 Reporting by Auditors on Compliance with International Financial Reporting Standards EXPOSURE DRAFTS (EDs) Title Issue date Preface to the International Standards on Quality Control, Auditing, Assurance and Related Services Oct 2002 Audit Risk Oct 2002 Amendment to ISA 200 Oct 2002 Understanding the Entity and its Environment and Assessing the Risks of Material Misstatement Oct 2002 The Auditor’s Procedures in Response to Assessed Risks Oct 2002 Audit Evidence Oct 2002 Revised ISA 240 The Auditor’s Responsibility to Consider Aug 2003 Fraud in an Audit of Financial Statements Revision to Code of Ethics for Professional Accountants Nov 2003 OTHER GUIDANCE (Note 3) ACCA’s ‘Rules of Professional Conduct’ IFAC’s ‘Code of Ethics for Professional Accountants’ The Combined Code (of the Committee on Corporate Governance) IAASB Paper ‘Financial Reporting on the Internet: Responsibilities of directors and management’ NOTES 1 Students are advised that questions will be based on the principles and good practice set out in the International Standards on Auditing. 2 Topics of EDs are examinable. However, detailed knowledge of the content of EDs is examinable to the extent that relevant articles are published in student accountant. 3 Documents under ‘Other Guidance’ are examinable only to the extent that they are relevant to topics specified in the Syllabus and Study Guide. APPROACH TO EXAMINING THE SYLLABUS The examination is a three-hour paper in two sections. Questions in both sections will be almost entirely discursive. However, candidates will be expected, for example, to be able to assess materiality and calculate relevant ratios where applicable. The Study Guide provides more detailed guidance on the syllabus. Number of marks Section A: 3 compulsory questions 70 Section B: Choice of 2 from 3 questions (15 marks each) 30 100 PAPER 3.1 AUDIT AND ASSURANCE SERVICES (GBR) The accounting knowledge that is assumed for Paper 3.1 is the same as that examined in Paper 2.5. Therefore, candidates studying for Paper 3.1 should refer to the Accounting Standards listed under Paper 2.5. AUDITING STANDARDS AND GUIDANCE STATEMENTS OF AUDITING STANDARDS (SASs) No Title Issue date Glossary of terms 010 The Auditing Practices Board – Scope and Apr 2003 authority of pronouncements (Revised) 011 The Auditors’ Code Feb 1996 100 Objective and general principles governing an audit of financial statements Mar 1995 110 Fraud and error Jan 1995 120 Consideration of law and regulations Jan 1995 130 The going concern basis in financial statements Nov 1994 140 Engagement letters Mar 1995 150 Subsequent events Mar 1995 160 Other information in documents containing audited financial statements (Revised) Oct 1999 200 Planning Mar 1995 210 Knowledge of the business Mar 1995 exam notes ACCA applies a six-month rule. Questions requiring an understanding of new legislation will not be set until at least six calendar months after the last day of the month in which the legislation received Royal Assent. For other regulatory pronouncements such as FRSs and SASs, the relevant date is the date of issue. Therefore, for the June 2004 exams the relevant ‘last day’ is 30 November 2003. This may be before the implementation date. student accountant February 200440 exam notes 220 Materiality and the audit Mar 1995 230 Working papers Mar 1995 240 Quality control for audit work (Revised) Sept 2000 300 Accounting and internal control systems and audit risk assessments Mar 1995 400 Audit evidence Mar 1995 410 Analytical procedures Mar 1995 420 Audit of accounting estimates Mar 1995 430 Audit sampling Mar 1995 440 Management representations Mar 1995 450 Opening balances and comparatives Mar 1995 460 Related parties Nov 1995 470 Overall review of financial statements Mar 1995 480 Service organisations Jan 1999 500 Considering the work of internal audit Mar 1995 510 The relationship between principal auditors and other auditors Mar 1995 520 Using the work of an expert Mar 1995 600 Auditors’ reports on financial statements May 1993 601 Imposed limitation of audit scope Mar 1999 610 Communication of audit matters to those charged with governance June 2001 PRACTICE NOTES (PNs) No Title Issue date PN 8 Reports by auditors under company legislation in the United Kingdom Aug 1994 PN 13 The audit of small businesses July 1997 PN 16 Bank reports for audit purposes Aug 1998 Statement 913 Access to working papers by investigating accountants DISCUSSION PAPERS (Note 2) No Title Issue date Prospective financial information: challenging the assumptions Apr 1998 Fraud and audit: choices for society Nov 1998 Independent professional review May 2000 Aggressive earnings management June 2001 Briefing Paper Providing assurance on the effectiveness of internal control July 2001 BULLETINS No Title Issue date B99/4 Review of interim financial information July 1999 B99/5 The Combined Code: Requirements of auditors under the listing rules of the London Stock Exchange Nov 1999 B99/6 The auditor’s statement on the summary financial statement Dec 1999 2001/01 The electronic publication of auditors’ reports Jan 2001 2001/02 Revisions to the wording of auditors’ reports on financial statements and the interim review report Jan 2001 2001/03 E-business: Identifying financial statement risks Apr 2001 STATEMENT OF STANDARDS FOR REPORTING ACCOUNTANTS (SSRA) Title Issue date Audit Exemption Reports Oct 1994 EXPOSURE DRAFTS (EDs) Title Issue date Draft Ethical Standards for Auditors Nov 2003 ES1 Integrity, objectivity and independence ES2 Financial, business, employment and personal relationships ES3 Long association with the audit engagement ES4 Fees, economic dependence, remuneration and evaluation policies, litigation, gifts and hospitality ES5 Non-audit services provided to audit clients OTHER GUIDANCE Title Issue date ACCA’s ‘Rules of Professional Conduct’ IFAC’s ‘Code of Ethics for Professional Accountants’ The Combined Code (of the Committee on Corporate Governance) IAPS 1014 – Reporting by Auditors on Compliance with International Financial Reporting Standards Mar 2003 NOTES 1 Students are advised that questions will be based on the principles and good practice set out in APB pronouncements. 2 Topics of Discussion/Consultation Papers/Exposure Drafts are examinable to the extent that relevant articles about them are published in student accountant. 3 Documents under ‘Other Guidance’ are examinable only to the extent that they are relevant to topics specified in the Syllabus and Study Guide. APPROACH TO EXAMINING THE SYLLABUS The examination is a three-hour paper in two sections. Questions in both sections will be almost entirely discursive. However, candidates will be expected, for example, to be able to assess materiality and calculate relevant ratios where applicable. Number of marks Section A: 3 compulsory questions 70 Section B: Choice of 2 from 3 questions (15 marks each) 30 100 exam notes You are advised to bring a calculator to the exam hall for all papers. You are permitted to take a noiseless, cordless, pocket-sized, programmable or non-programmable calculator without printout or graphic/word display facilities. It is strongly recommended that you refer to articles published in student accountant as part of your study preparation for the exams. student accountant February 200441 exam notes PAPER 3.6 ADVANCED CORPORATE REPORTING (INT) * Students should note that items denoted by an asterisk are also examinable in Paper 2.5. INTERNATIONAL ACCOUNTING STANDARDS (IASs)/ INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRSs) No Title Issue date IAS 1* Presentation of Financial Statements Aug 1997 IAS 2* Inventories Dec 1993 IAS 7* Cash Flow Statements (including groups and foreign currency) Dec 1992 IAS 8* Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies Dec 1993 IAS 10* Events after the Balance Sheet Date May 1999 IAS 11* Construction Contracts Dec 1993 IAS 12* Income Taxes Oct 1996 IAS 14* Segment Reporting Aug 1997 IAS 15* Information Reflecting the Effects of Changing Prices Dec 1993 IAS 16* Property, Plant and Equipment Sept 1998 IAS 17* Leases Dec 1997 IAS 18* Revenue Dec 1993 IAS 19 Employee Benefits May 2002 IAS 20* Accounting for Government Grants and Disclosure of Government Assistance Jan 1995 IAS 21 The Effects of Changes in Foreign Exchange Rates (including financial statements of foreign operations) Dec 1993 IAS 22* Business Combinations Sept 1998 IAS 23* Borrowing Costs Dec 1993 IAS 24* Related Party Disclosures Jan 1995 IAS 27* Consolidated Financial Statements and Accounting for Investments in Subsidiaries Jan 1995 IAS 28* Accounting for Investments in Associates Sept 1998 IAS 29 Financial Reporting in Hyperinflationary Economies Jan 1995 IAS 31* Financial Reporting of Interests in Joint Ventures Sept 1998 IAS 32* Financial Instruments: Disclosure and Presentation June 1995 IAS 33* Earnings per Share Feb 1997 IAS 34* Interim Financial Reporting Feb 1998 IAS 35* Discontinuing Operations June 1998 IAS 36* Impairment of Assets June 1998 IAS 37* Provisions, Contingent Liabilities and Contingent Assets Sept 1998 IAS 38* Intangible Assets Sept 1998 IAS 39* Financial Instruments: Recognition and Measurement Dec 1998 IAS 40* Investment Property Apr 2000 IAS 41 Agriculture Feb 2001 IFRS 1* First-time Adoption of International Financial June 2003 Reporting Standards OTHER STATEMENTS Title Issue date *Framework for the Preparation and Presentation of Financial Statements July 1989 INTERPRETATIONS OF THE INTERNATIONAL FINANCIAL REPORTING INTERPRETATIONS COMMITTEE (IFRIC) No Title Issue date SIC–1* Consistency – Different Cost Formulas for Inventories Dec 1997 SIC–2* Consistency – Capitalisation of Borrowing Costs Dec 1997 SIC–3* Elimination of Unrealised Profits and Losses on Transactions with Associates Dec 1997 SIC–5 Classification of Financial Instruments – Contingent Settlement Provisions May 1998 SIC–6 Costs of Modifying Existing Software June 1999 SIC–7 Introduction of the Euro May 1998 SIC–9* Business Combinations – Classification Either as Acquisitions or Unitings of Interest July 1998 SIC–10* Government Assistance – No Specific Relation to Operating Activities July 1998 SIC–11 Foreign Exchange – Capitalisation of Losses Resulting from Severe Currency Devaluations July 1998 SIC–12 Consolidation – Special Purpose Entities Nov 1998 SIC–13 Jointly Controlled Entities – Non-monetary Contributions by Venturers Nov 1998 SIC–14* Property, Plant and Equipment – Compensation for the Impairment or Loss of Items Nov 1998 SIC–15 Operating Leases – Incentives Nov 1998 SIC–16* Share capital – Required Own Equity Instruments (Treasury Shares) Jan 1999 SIC–17* Equity – Costs of an Equity Transaction Jan 2000 SIC–18* Consistency – Alternative Methods Jan 2000 SIC–19 Reporting Currency – Measurement and Presentation of Financial Statements under IAS 21 and IAS 29 July 2000 SIC–20 Equity Accounting Method – Recognition of Losses July 2000 SIC–21 Income Taxes – Recovery of Revalued Non-Depreciable Assets July 2000 SIC–22* Business Combinations – Subsequent Adjustment of Fair Values and Goodwill Initially Reported July 2000 SIC–23* Property, Plant and Equipment – Major Inspection or Overhaul Costs July 2000 SIC–24 Earnings per Share – Financial Instruments and other Contracts that may be Settled in Shares Nov 2000 student accountant February 200442 exam notes SIC–25 Income Taxes – Changes in the Tax Status of an Enterprise or its Shareholders July 2000 SIC–27 Evaluating the Substance of Transactions in the Legal Form of a Lease Feb 2000 SIC–28 Business Combinations – ‘Date of Exchange’ and Fair Value of Equity Instruments Feb 2001 SIC–29 Disclosure – Service Concession Arrangements May 2001 SIC–30 Reporting Currency – Translation from Measurement Currency to Presentation Currency May 2001 SIC–31 Revenue – Barter Transactions Involving Advertising Services Aug 2001 SIC–32 Intangible Assets – Website Costs July 2001 SIC–33 Consolidation and Equity Method – Potential Voting Rights and Allocation of Ownership Interests Aug 2001 EDS, DISCUSSION PAPERS AND OTHER DOCUMENTS Candidates sitting Paper 3.6 are expected to be aware of the issues/ reasons which have led to the publication of the following documents, indicated as examinable in the list below, and to appreciate the main thrust of these documents. Title Issue date ED 2 Share-based Payment Nov 2002 ED 3 Business Combinations Dec 2002 ED 4 Disposal of Non-Current Assets and Presentation of Discontinued Operations July 2003 ED 5 Insurance Contracts July 2003 Improvements to International Accounting Standards May 2002 Amendments to IAS 39, Financial Instruments: Recognition and Measurement, and IAS 32, Financial Instruments: Disclosure and Presentation June 2002 PAPER 3.6 ADVANCED CORPORATE REPORTING (GBR) * Students should note that items denoted by an asterisk are also examinable in Paper 2.5. STATEMENTS OF STANDARD ACCOUNTING PRACTICE (SSAPs) No Title Issue date * Foreword to Accounting Standards Jan 1993 4* Accounting for government grants July 1990 5* Accounting for valued added tax Apr 1974 9* Stocks and long-term contracts Sept 1988 13* Accounting for research and development Jan 1989 17* Accounting for post balance sheet events Aug 1980 19* Accounting for investment properties Nov 1981 Amendment to SSAP 19 July 1994 20 Foreign currency translation (including aspects on consolidation financial statements) Apr 1983 21* Accounting for leases and hire purchase contracts Aug 1984 25* Segmental reporting June 1990 FINANCIAL REPORTING STANDARDS (FRSs) No Title Issue date 1* Cash Flow Statements (including group cash flow statements) Oct 1996 2* Accounting for Subsidiary Undertakings June 1992 3* Reporting Financial Performance (including group aspects) Oct 1992 4* Capital Instruments Dec 1993 5* Reporting the Substance of Transactions Apr 1994 6* Acquisitions and Mergers Sept 1994 7* Fair Values in Acquisition Accounting Sept 1994 8* Related Party Disclosures Oct 1995 9* Associates and Joint Ventures Nov 1997 10* Goodwill and Intangible Assets Dec 1997 11* Impairment of Fixed Assets and Goodwill July 1998 12* Provisions, Contingent Liabilities and Contingent Assets Sept 1998 13 Derivatives and other Financial Instruments: Disclosures Sept 1998 14* Earnings per Share Oct 1998 15* Tangible Fixed Assets Feb 1999 16* Current Tax Dec 1999 17 Retirement Benefits Nov 2000 18* Accounting Policies Dec 2000 19* Deferred Tax Dec 2000 OTHER STATEMENTS Title Issue date *Operating and Financial Review July 1993 *Statement of Principles for Financial Reporting Dec 1999 Interim reports Sept 1997 Financial Reporting Standards for smaller entities (FRSSE) Dec 2001 URGENT ISSUES TASK FORCE (UITF) ABSTRACTS Students sitting Paper 3.6 are expected to be aware of the issues/ reasons which have led to the publication of a UITF abstract indicated as examinable in the list below, and their principal requirements. * Documents denoted by an asterisk are also examinable in Paper 2.5. No Title Issue date Foreword to UITF Abstracts Feb 1994 UITF Abstract 4* Presentation of long-term debtors in current assets July 1992 UITF Abstract 5* Transfers from current assets to fixed assets July 1992 UITF Abstract 9 Accounting for operations in hyperinflationary economies June 1993 UITF Abstract 11 Capital Instruments: issuer call options Sept 1994 UITF Abstract 13 Accounting for ESOP Trusts June 1995 exam notes . Policies Dec 19 93 IAS 10 * Events after the Balance Sheet Date May 19 99 IAS 11 Construction Contracts Dec 19 93 IAS 12 Income Taxes Oct 19 96 IAS 14 Segment Reporting Aug 19 97 IAS 15 Information. Accounting Policies Dec 19 93 IAS 10 * Events after the Balance Sheet Date May 19 99 IAS 11 * Construction Contracts Dec 19 93 IAS 12 * Income Taxes Oct 19 96 IAS 14 * Segment Reporting Aug 19 97 IAS 15 * Information. Nov 19 94 14 0 Engagement Letters Mar 19 95 15 0 Subsequent Events Mar 19 95 16 0 Other Information in Documents Containing Audited Financial Statements (Revised) Oct 19 99 200 Planning Mar 19 95 210