ACCA P2 : CORPORATE REPORTING NOTES

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…

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Questions & Answers

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 as at 30 April 20X4 are presented below:     Cookie Biscuit Cracker   Non-current…

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UK GAAP

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 not need to study this chapter.       2 UK GAAP     UK…

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Change in a group structure

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 control. If this happens partway through the reporting period then it will be necessary to…

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Complex groups

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 two headings:   Vertical groups   Mixed groups.   2 Vertical groups   Definition  …

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Group accounting – basic groups

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 of group accounting issues:   IFRS 10 Consolidated Financial Statements   IFRS 11 Joint Arrangements…

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Current issues

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   proposed changes to IFRS Standards   problems with extant standards.   2 Recent IFRS…

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