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 instruments Tax Segment reporting Related parties Adoption of International Financial Reporting Standards Specialised entities and…
Read MoreTest 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 as at 30 April 20X4 are presented below: Cookie Biscuit Cracker Non-current…
Read MoreObjective 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 in cash and cash equivalents during the period. The statement of financial position and…
Read MoreDefinition 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 group the transfer of shares in one or more subsidiaries of a group to…
Read MoreKey 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 environment where the entity operates’ (IAS 21, para 8). In most cases this will…
Read MoreAcquisition 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 control. If this happens partway through the reporting period then it will be necessary to…
Read MoreComplex 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 two headings: Vertical groups Mixed groups. 2 Vertical groups Definition …
Read MoreOverview 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 of group accounting issues: IFRS 10 Consolidated Financial Statements IFRS 11 Joint Arrangements…
Read More1 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 proposed changes to IFRS Standards problems with extant standards. 2 Recent IFRS…
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