ISCA PE Singapore

Module Aim 

This course is designed to provide candidates with an overview of the presentation and disclosures of financial statements and an advanced knowledge of selected important accounting standards.

Syllabus Learning Outcomes 

Candidates will be able to: 

 Understand the framework for the preparation and presentation of financial statements and the disclosure issues. 

 Identify the basic and further issues in the preparation of consolidated financial statements.  Understand the basic concepts of deferred tax accounting, the disclosures and presentation issues. 

 Understand the concepts relating to foreign currency transactions and translation. 

 Account for financial instruments. 

 Understand emerging or other accounting issue

Module outline and detailed syllabus

1. Overview of Financial Statements 

 Framework for the preparation and presentation of financial statements 

 Objective of financial statements 

 Qualitative characteristics of financial statements 

 Recognition and measurement of the elements of financial statements 

 Concepts of capital and capital maintenance 

 Financial statements 

 Statement of Financial Position 

 Statement of Comprehensive Income

  Concept of comprehensive income 

 Income Statement 

 Statement of Cash Flows 

 Statement of Changes in Equity 

 Notes to accounts 

 Other disclosure issues in the financial statements 

 Changes in accounting policy and estimates and correction of errors 

 Events after the balance sheet date 

 Provisions, contingent liabilities and contingent assets 

 Operating segments 

 Related party disclosures 

 Earnings per share 

2. Consolidated Financial Statements 

 Basic issues in the preparation of consolidated balance sheet and consolidated income statement 

 The acquisition method  Goodwill on consolidation 

 Fair value adjustments  

 Non-controlling interests 

 Inter-company transactions and unrealised gains/losses 

 Further issues in the preparation of consolidated balance sheet and consolidated income statement 

 Investments in associates and equity accounting 

 Loss of control 

 Re-measurement of previously-held interests on acquisition date 

 Reverse take-overs 

 Complex group structure (e.g. father-son-grandson structure) 

 Interests in joint-ventures 

3. Accounting for Income Taxes 

 Basic concepts in deferred tax accounting 

 Rationale for deferred tax accounting 

 Concept of tax base and temporary differences 

 Taxable and deductible temporary differences 

 Recognition of deferred tax assets/liabilities 

 Accounting for temporary differences 

 Recognized assets and liabilities in separate financial statements 

 Revaluation of recognized assets and liabilities in separate financial statements 

 Initial recognition of assets and liabilities in separate financial statements 

 Fair value adjustments recognized under the acquisition method in consolidated financial statements 

 Goodwill 

 Investment in subsidiaries and associates 

 Accounting for deferred tax assets 

 Accounting for tax losses 

 Deductible temporary differences 

 Measurement issues 

 Measurement of deferred tax assets/liabilities 

 Measurement of tax expense 

 Presentation issues 

 Presentation of current tax payable 

 Presentation of deferred tax assets/liabilities 

 Presentation of tax expense 

 Disclosure requirements 

 Reconciliation of effective tax rate/amount to statutory tax rate/amount 

 Analysis of temporary differences 

 Other disclosures 

4. Foreign Currency Transaction and Translation 

 Foreign currency transactions and balances 

 Concepts relating to functional currency and presentation currency 

 Translation of foreign currency transactions and balances into an entity’s  functional currency

 Monetary items versus non-monetary items 

 Treatment of exchange gains/losses

 Foreign operations

 Re-measurement of foreign currency financial statements to the functional currency 

 Translation of financial statements prepared in an entity’s functional currency to a different presentation currency 

 Translation of foreign currency financial statements of subsidiaries and associates to the presentation currency of the parent 

 Translation gains and losses arising from translation of the separate financial statements of a subsidiary or an associate 

 Translation gains and losses arising from the translation of goodwill and fair value adjustments 

 Allocation of translation gains and losses to non-controlling interests 

5. Accounting for Financial Instruments

 Theoretical and practical considerations underlying the application of FRS 32, FRS 39 and FRS 107 

 Recognition and derecognition 

 Recognition of financial assets: primary instruments and derivative instruments, stand-alone and embedded derivatives 

 Recognition of financial liabilities 

 Derecognition of financial assets and liabilities 

 Measurement 

 Measurement of financial assets: “fair value through profit or loss”, “available-for-sale”, “held-to-maturity”, and “loans and receivables” 

 Measurement of financial liabilities 

 Presentation 

 Substance over form 

 Split accounting for compound instruments 

 Off-setting of financial assets and financial liabilities 

 Disclosure 

 Risk management policy 

 Fair values 

 Other disclosures 

 Hedge accounting 

 Fair value hedge 

 Cash flow hedge 

 Hedge of investment in foreign entity 

6. Emerging or Other Accounting Issues

This topic deals with conceptual and qualitative issues relating to: 

 IFRS 9 Financial Instruments 

 Compensation-related issues including accounting for share-based compensation  

 Issues addressed in exposure drafts (ED/FRS and ED/INT FRS) that have significant impact on future accounting practices 

 Contentious or evolving issues relating to Topics 1- 5 of this syllabus