INTRODUCTION
(iii)
Assessment methods and format of the exam
Examiner: Steve Scott
The examination is a three hour paper and all questions are compulsory. It will contain both computational and
discursive elements and some questions will adopt a scenario/case study approach.
Format of the Exam Marks
Question 1 Preparation of group financial statement and/or extracts thereof, often
including an associate, and normally including a short discussion element
25
Question 2 Preparation/restatement of non-group financial statements, including
adjustments on other areas of the syllabus
25
Question 3 Appraisal of an entity's performance and/or cash flow statements and
interpretation thereof
25
Question 4 15
Question 5
Will test the remainder of the syllabus
10
100
INTRODUCTION
(iv)
Course Aims
Achieving ACCA's Study Guide Outcomes
A A conceptual framework for financial reporting
A1 The need for a conceptual framework Chapter 1
A2 Relevance, reliability, comparability and understandability Chapter 1
A3 Recognition and measurement Chapter 1
A4 The legal versus the commercial view of accounting Chapter 15
A5 Alternative models and practices Chapter 1
A6 The concept of 'faithful representation' ('true and fair view') Chapter 1
B A Regulatory framework for financial reporting
B1 Reasons for the existence of a regulatory framework Chapter 2
B2 The standard setting process Chapter 2
B3 Specialised, not-for-profit and public sector entities Chapter 23
C Financial statements
C1 Cash flow statements Chapter 21
C2 Tangible non-current assets Chapter 5
C3 Intangible assets Chapter 6
C4 Inventory Chapter 12
C5 Financial assets and financial liabilities Chapter 14
C6 Leases Chapter 16
C7 Provisions, contingent liabilities and contingent assets Chapter 13
C8 Impairment of assets Chapter 7
C9 Taxation Chapter 17
C10 Regulatory requirements relating to the preparation of financial statements Chapter 3
C11 Reporting financial performance Chapter 4
D Business combinations
D1 The concept and principles of a group Chapter 8
D2 The concept of consolidated financial statements Chapter 8
D3 Preparation of consolidated financial statements including an associate Chapters 9-11
INTRODUCTION
(v)
E Analysing and interpreting financial statements
E1 Limitations of financial statements Chapter 20
E2 Calculation and interpretation of accounting ratios and trends to address users' and
stakeholders' needs
Chapter 19
E3 Limitations of interpretation techniques Chapter 20
E4 Specialised, not-for-profit and public sector entities Chapter 23
INTRODUCTION
(vi)
Classroom tuition and Home study
Your studies for BPP consist of two elements, classroom tuition and home study.
Classroom tuition
In class we aim to cover the key areas of the syllabus. To ensure examination success you will to spend private
study time reinforcing your classroom course with question practice and reviewing areas of the Course Notes
and Study Text.
Home study
To support you with your private study BPP provides you with a Course Companion which helps you to work at
home and aims to ensure your private study time is effectively used. The Course Companion includes a Home
Study section which breaks down your home study by days, one to be covered at the end of each day of the
course. You will find clear guidance as to the time to spend on various activities and their importance.
You are also provided with progress tests and two course exams which should be submitted for marking as they
become due.
These may include questions on topics covered in class and home study.
BPP Learn Online
Come and visit the BPP Learn Online free at www.bpp.com/acca/learnonline for exam tips, FAQs and syllabus
health check.
ACCA Forum
We have thriving ACCA bulletin boards at www.bpp.com/accaforum. Register and discuss your studies with
tutors and students.
Helpline
If you have any queries during your private study simply contact your class tutor on the telephone number or
e-mail address that they will supply. Alternatively, call +44 (0)20 8740 2222 (or your local training centre if
outside the London area) and ask for a tutor for this paper to speak to you or to call you back within 24 hours.
Feedback
The success of BPP’s courses has been built on what you, the students tell us. At the end of the course for each
subject, you will be given a feedback form to complete and return.
If you have any issues or ideas before you are given the form to complete, please raise them with the course
tutor or relevant head of centre.
If this is not possible, please email ACCAcoursesfeedback@bpp.com.
INTRODUCTION
(vii)
Key to icons
Question practice from the Study Text
This is a question we recommend you attempt for home study.
Real world examples
These can be found in the Course Companion.
Section reference in the Study Text
Further reading is needed on this area to consolidate your knowledge.
Formula to learn
INTRODUCTION
(viii)
1.1
Syllabus Guide Detailed Outcomes
Having studied this chapter you will be able to:
• Describe what is meant by a conceptual framework of accounting.
• Discuss whether a conceptual framework is necessary and what an alternative system might be.
• Discuss what is meant by understandability in relation to the provision of financial information.
• Discuss what is meant by relevance and reliability and describe the qualities that enhance these characteristics.
• Discuss the importance of comparability to users of financial statements.
• Define what is meant by 'recognition' in financial statements and discuss the recognition criteria.
• Apply the recognition criteria to:
(i) assets and liabilities.
(ii) income and expenses
• Discuss what is meant by the balance sheet approach to recognition; indicate when income and expense
recognition should occur.
• Describe what is meant by financial statements achieving a faithful representation.
• Discuss whether faithful representation constitutes more than compliance with accounting standards.
• Indicate the circumstances and required disclosures where a 'true and fair' override may apply.
Exam Context
The conceptual framework is very important for this exam. In most exams you will be required to evaluate an accounting
treatment in the context of the conceptual framework.
Qualification Context
The objectives of financial statements, the qualitative characteristics of financial information and the fundamental bases
of accounting are examined in Paper F3 Financial Accounting. These and the other aspects of the conceptual framework
are explored in more detail this Paper.
Business Context
The conceptual framework allows the evaluation of the adequacy and effectiveness of existing accounting standards in
meeting users' needs. The primary user of financial statements is identified by the International Accounting Standards
Board as being the world's capital markets.
The conceptual
framework
1: THE CONCEPTUAL FRAMEWORK
1.2
Overview
The conceptual framework
Conceptual framework and
GAAP
The IASB's framework
Advantages and
disadvantages
Need for a conceptual
framework
Generally accepted
accounting practice (GAAP)
True and fair view
1: THE CONCEPTUAL FRAMEWORK
1.3
1 Conceptual framework and GAAP
The need for a conceptual framework
Definition
1.1 A conceptual framework is a statement of generally accepted theoretical principles, which
form the frame of reference for a particular field of enquiry.
A conceptual framework for the development of accounting standards has been defined as:
'a constitution, a coherent system of interrelated objectives and fundamentals which can
lead to consistent standards and which prescribe the nature, function and limits of financial
accounting and financial statements' [FASB, 1976].
Purpose
1.2 The purpose of a financial reporting conceptual framework is twofold. Its theoretical
principles provide the basis for:
• The development of new reporting practices, and
• The evaluation of existing ones.
Advantages and disadvantages
1.3 Advantages
(a) A consistent conceptual base should lead to standardised consistent accounting
practices.
(b) The development of standards is less subject to political pressure.
(c) A consistent balance sheet driven or income statement driven approach is used.
(d) Avoids a 'fire-fighting' (or 'patchwork quilt') approach to setting standards.
1.4 Disadvantages
(a) Different users have different needs. The needs of all users cannot be considered.
(b) Different purposes or uses may require different conceptual bases.
(c) A conceptual framework does not necessarily make preparing standards any easier,
and may hamper their development.
1: THE CONCEPTUAL FRAMEWORK
1.4
Generally accepted accounting practice (GAAP)
1.5 In most countries, GAAP does not have any statutory or regulatory authority or definition,
but the major components are normally:
National accounting
standards
Many countries have their own standard setting bodies, e.g. the
Financial Accounting Standards Board (FASB) in the USA and the
Accounting Standards Board (ASB) in the UK.
National company law In some countries accounting is regulated by statute law.
Other countries, e.g. the UK, operate a 'hybrid' system where
some accounting requirements are governed by law while detail is
left to the standard setting body.
Stock exchange
requirements
Companies quoted on a recognised stock exchange must comply
with the requirements of the exchange. Stock exchanges often
require disclosures in addition to those required by local law.
Regional bodies Regional bodies such as the European Union and Mercosur in
Latin America can require implementation of legislation across
member states.
For example, the European Union issues Accounting Directives to
ensure certain issues are accounted for in the same way across
member states, and now requires the use of IFRSs for the
consolidated accounts of listed entities across the Union.
1.6 GAAP is a dynamic concept: it changes constantly as circumstances alter through new
legislation, standards and practice.
2 The IASB's Framework
Intended role
2.1 IFRSs are based on the Framework for the Preparation and Presentation of Financial
Statements, which addresses the concepts underlying the information presented in general
purpose financial statements.
2.2 The objective of the Framework is to facilitate the consistent and logical formulation of
IFRSs.
The Framework also provides a basis for the use of judgement in resolving accounting
issues.
Status
2.3 The Framework is not an International Financial Reporting Standard and hence does not
define standards for any particular measurement or disclosure issue. It does not override
any IFRS, but instead forms the conceptual basis for the development of IFRS.
Section 2.1-2.2
Section 1.3
Không có nhận xét nào:
Đăng nhận xét