Month: March 2021

Frameworks The professional and ethical duty of the accountant Performance reporting and performance appraisal Revenue Non-current assets, agriculture and inventories Foreign currency in individual financial statements Leases Employee benefits Share-based payment Events after the reporting period, provisions and contingencies Financial… Read More

Test your understanding 1 – Cookie   Cookie, a company, prepares its financial statements in accordance with International Financial Reporting Standards. It has investments in two other companies, Biscuit and Cracker. The statements of financial position of all three companies… Read More

1 Purpose of chapter     The P2 UK paper   This chapter contains the additional syllabus content required for those who are sitting the P2 UK paper.   If you are sitting the P2 INT paper then you do… Read More

Objective of statements of cash flows   IAS 7 Statement of Cash Flows provides guidance on the preparation of a statement of cash flows. The objective of a statement of cash flows is to provide information on an entity’s changes… Read More

Definition of a group reorganisation   A group reorganisation (or restructuring) is any of the following:   the transfer of shares in a subsidiary from one group entity to another   the addition of a new parent entity to a… Read More

Key definitions   Foreign currency transactions in the individual financial statements of a company were covered earlier in this text.   Below is a reminder of some key definitions:   The functional currency is the currency of the ‘primary economic… Read More

Acquisition of a subsidiary   There are two acquisition scenarios that need to be considered in more detail:   mid-year acquisitions   step acquisitions.   Mid-year acquisitions   A parent entity consolidates a subsidiary from the date that it achieves… Read More

Complex group structures   Complex group structures exist where a subsidiary of a parent entity owns a shareholding in another entity which makes that other entity also a subsidiary of the parent entity.   Complex structures can be classified under… Read More

Overview of interests in other entities   The following diagram presents an overview of the varying types of interests in other entities, together with identification of applicable reporting standards. The standards referred to in the diagram above cover a range… Read More

1 Introduction     What is meant by a ‘current issue’?   In relation to ‘current issues’, the ACCA P2 study guide says that candidates need to be able to discuss:   recent IFRS Standards   practice and regulatory issues… Read More