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ISCA Foundation

Advanced Financial Reporting_CAS'Pore_Foundation

THE MODULE AT A GLANCE 

A Explain the importance of ethical behaviour in the context of Financial Reporting and be able to apply ethical guidelines for professional accountants. 

B Describe and apply the appropriate measurement and recognition criteria for the elements of the financial statements, as required by the Singapore Financial Reporting Standards and related pronouncements and interpretations (e.g. Illustrative Examples, Guidance on Implementing, Interpretation of SFRS(I)) issued by the Accounting Standards Council. 

C Demonstrate the appropriate treatment and disclosure relating to derivatives, hedge accounting, financial instruments and fair value measurement. 

D Prepare consolidated financial statements with subsidiaries and associates under a business combination, including basic notes to the accounts. 

E Account for the effects of changes in foreign exchange rates for groups with foreign operations.

Specific exclusions              

The following specific SFRS(I) are specifically excluded.

Std NoStd Name
SFRS(I) 1-20Accounting for government grants and disclosure of government assistance
SFRS(I) 1-26Accounting and reporting by retirement benefit plans 
SFRS(I) 1-29Financial reporting in hyperinflationary economies
SFRS(I) 1-33 Earnings per share
SFRS(I) 1-34Interim financial reporting
SFRS(I) 1-41Agriculture
SFRS(I) 4Insurance contracts
SFRS(I) 6Exploration for and evaluation of mineral resources
SFRS(I) 8 Operating segments

Learning Outcomes


Sl NoLearning Outcome

A - Financial Reporting Framework

A1
Compliance and Ethics in Financial Reporting
1Assess the relevance and importance of ethical and professional issues in complying with accounting standards.
2Appraise the potential ethical implications of professional and managerial decisions in the preparation of financial reports, in line with Ethics Pronouncement 100 (EP 100) the ISCA Code of Professional Conduct and Ethics
3Identify and recommend an appropriate course of action arising from ethical dilemmas in financial reporting.
4Assess the consequences of not upholding ethical principles in the preparation of financial reports.
A2
Emerging Trends and Current Issues
5Demonstrate awareness of both domestic and international current developments.

B

Recognition of the Elements of Financial Statements

B1
Impairment of Assets (SFRS (I) 1-36
6Evaluate the impairment test for all classes of assets under the relevant accounting standard appropriate to that class of asset.
7Calculate the impairment losses for all classes of assets under the relevant accounting standard appropriate to that class of asset
8Evaluate sensitivity of an impairment analysis to the exercise of professional judgment, use of assumptions and critical estimates
9Identify and explain the concept of a cash-generating unit.
10Explain the need for impairment testing to be done at the smallest cash-generating unit level.
11Allocate impairment losses for a cash-generating unit.
B2
Construction Contracts (under SFRS(I) 15 Revenue from Contracts with Customers)
12Explain the concept of satisfying a performance obligation and the recognition of corresponding revenue and costs over time
13Identify the relevant revenue and costs to be recognised in a construction contract.
14Calculate the amount of revenue and costs to be recognised where the expected contract outcome is a profit, loss or unknown.
B3
Intangible assets (including Goodwill under SFRS(I) 1-38)
15Identify the recognition and measurement issues for Intangible Assets under SFRS(I) 1-38.
16Account for the impairment of Intangible Assets under SFRS(I) 1-36.
17Account for the amortization of Intangible Assets under SFRS(I) 1-38.
18Present and disclose Intangible Assets in the financial statements.
B4  Non-current assets held for sale and Discontinued Operations (SFRS(I) 5) 19
19Explain the difference between non-current assets held for sale or distribution to owners and discontinued operations.
20 Determine when to classify noncurrent assets as being held for sale or distribution to owners
21Apply the measurement criteria to non-current assets held for sale or distribution to owners and discontinued operations
22Present and disclose non-current assets held for sale or distribution to owners and discontinued operations.
B5
 Related Parties (SFRS(I) 1-24)
23Identify the parties considered to be related to an entity.
24Identify the implications of related party transactions and the need for disclosure.

C 

FINANCIAL ASSETS AND FINANCIAL LIABILITIES

C1
Derivatives and Hedging (including SFRS(I) 7, 9, 13 and SFRS(I) 1-32, 1-39)
25Account for derivative financial instruments and simple embedded derivatives.
26Outline the principles of hedge accounting.
27Assess hedge accounting criteria including qualifying hedging instruments, qualifying hedged items and hedge effectiveness.
28Account for fair value hedges, cash flow hedges, hedges of investments in foreign operations.
29Assess and account for financial liabilities and equity under SFRS(I) 1-32.
30Evaluate and determine the impairment for financial assets under SFRS(I) 9
31Identify and disclose risks related to financial instruments within scope of SFRS(I) 7.
32Apply fair value measurement standard SFRS(I) 13.
C2 
Share-Based Payment Transactions and Arrangements (SFRS(I) 2)
33 Discuss the recognition criteria for share-based payment transactions and arrangements.
34 Apply the measurement criteria for share-based payment transactions and arrangements.
35Account for modifications, cancellations, and settlements of share-based payment transactions and arrangements.

D 

CONSOLIDATED FINANCIAL STATEMENTS (SFRS(I) 3, 10, 11, 12, and 1-28)

D1
 Introduction to Business Combinations
36Describe the role and purpose of consolidated financial statements.
37 Identify and outline the circumstances in which a group is required to prepare consolidated financial statements in relation to the concept of control as per SFRS(I) 10.
38 Identify and apply the criteria used to distinguish between a subsidiary and an associate
D2 
Consolidation of financial statements
39Apply the acquisition method of accounting for business combinations (SFRS(I) 3).
40 Explain and calculate the determination of goodwill.
41Apply the principles in determining the fair value of consideration transferred.
42Prepare acquisition date consolidation adjustments relating to the elimination of investment.
43Prepare consolidation adjustments to account for noncontrolling interests.
44 Prepare the Proof of balances (analytical check) for Noncontrolling Interests and Retained earnings.
45 Determine and apply appropriate consolidation procedures to be used in preparing group financial statements, including statements of cash flows.
 D3
  Post-Acquisition and IntraGroup Transactions
 46 Prepare post-acquisition consolidation adjustments on acquisition date fair value differentials.
 47 Prepare the necessary consolidation adjustments relating to deferred tax adjustments.
 48 Distinguish how pre-acquisition and post-acquisition reserves affect the consolidation process.
 49 Prepare consolidation adjusting entries for intragroup transactions and balances
 50 Apply the recognition and measurement criteria for identifiable acquired assets and liabilities and goodwill on business combinations, excluding situations where business combinations are achieved in stages.
  D4 
Associates and equity accounting
  51 Explain the concept of significant influence.
  52 Apply the equity method of accounting for associates.
  53 Prepare the equity accounting entries for an entity's investment in associate.
  54 Prepare a Proof of balances (analytical check) for investment in associate.
  55Outline and apply the key definitions and accounting methods, which relate to interests in joint arrangements.

E 

 FOREIGN OPERATIONS

E1 
Foreign Operations
 56  Outline the concepts and foreign exchange rates used in the translation of foreign operations into the group’s presentation currency.
 57 Apply the translation of foreign operations into the group’s presentation currency
 58  Account for the consolidation of foreign operations and their disposal.

Financial Management_CAS'Pore_Foundation

Module Objective 

The Financial Management module develops skills and techniques to assist in short-term and long-term financial planning. The long-term financial plan consists of decisions relating to investments (including acquisitions and mergers), finance and dividend decisions. Long-term decision often seek to maximise shareholder wealth, although the module briefly examines other possible scenarios. The short-term focuses on working capital and liquidity management. An underpinning concept throughout is the identification and management of risk. Upon successful completion of this module, Candidates will have gained practical knowledge through the application of various financial management tools and techniques.

Module Assessment 

The Foundation Programme is assessed by way of centralised examinations. Each module will be assessed by way of a 3-hour and 15 minutes restricted open-book written examination. There will be four questions, and each question may have multiple parts requiring structured responses. 

THE MODULE AT A GLANCE 

A Describe the nature and purpose of financial management, and how the objectives relate to an entity’s corporate strategy, both financially and non-financially, in different types of organisations. For each type of business, outline the economic environment faced by the business and consider the role of financial markets and institutions. 

B Discuss the importance of working capital management and describe the different management approaches relating to inventory, accounts receivable, accounts payable, and cash appropriate to the business entity, for working capital needs and funding strategies. 

C Describe the different sources of short and long-term finance that are appropriate and available to different business entities in different industries and size, including small-and medium-sized entities. Consider the implications of an existing or proposed finance structure on gearing, cost of capital (debt and equity), and the capital structure. 

D Describe Identify the purpose of investment appraisal and apply the non-discounted and discounted cash flow techniques, adjusting for the effects of risk and uncertainty. Effects of inflation and taxation are also considered under the discounted cash flow techniques, as appropriate. Consider the impact of the cost of capital in investment appraisal. Describe and apply the different business valuation models available to value an organisation with debt and/or equity. Outline the efficient market hypothesis and state how this affects the valuation of shares.

 E Identify the different types of risk that may be contained within a defined business environment and apply appropriate monitoring and mitigation strategies. 

WEIGHTAGE 


Introduction to Financial Management4Hrs7%
Cash and Working Capital Management12Hrs20%
Financing Decision – Capital Structure (including dividend decision)12Hrs20%
Investment Decision24Hrs40%
Risk Management8Hrs13% 


ASSUMED KNOWLEDGE 

It is assumed that Candidates have acquired a basic understanding of financial management issues from their prior tertiary studies, and have a good working knowledge of the Singapore economy, including its position in the region and internationally



Principles of Financial Reporting_CAS'Pore_Foundation

Module Objective

The Principles of Financial Reporting module provides Candidates with knowledge of the Conceptual Framework and the Singapore Financial Reporting Standards (International) (SFRS(I)) to produce a complete set of financial statements for single entities, including basic notes to the accounts. Candidates will also be able to explain and advise on the application of the SFRS(I)s, demonstrating appropriate professional judgment. The Principles of Financial Reporting module provides foundation accounting knowledge for the Advanced Financial Reporting module and the Assurance module.

Module Assessment

The Foundation Programme is assessed by way of centralised examinations. Each module will be assessed by way of a 3-hour and 15 minutes restricted open-book written examination. There will be four questions, and each question may have multiple parts requiring structured responses.

Module Outline

A Explain the objectives of Financial Reporting, the standard setting process, as well as the need for and apply the components of the Conceptual Framework. 

B Describe and apply the appropriate measurement and recognition criteria for the elements of the financial statements (Assets and Liabilities), as required by the Singapore Financial Reporting Standards and related pronouncements and interpretations. 

C Describe and apply the appropriate measurement and recognition criteria for the elements of the financial statements (Revenue, Expenses, Equity and Other Comprehensive Income), as required by the Singapore Financial Reporting Standards and related pronouncements and interpretations. 

D Prepare a complete set of financial statements, including basic notes to the accounts, for a retail entity, a service entity, and a manufacturing entity.

E Demonstrate the appropriate presentation and disclosure of accounting policies, changes in estimates and errors, and events after the reporting date.

Weightage

Financial Reporting Framework4 Hrs7% 
Recognition of the Elements of Financial Statements32 Hrs53%
Preparation of Financial Statements for a Single Entity10 Hrs17%
Other Standards on Presentation and Disclosure of Financial Statements14 Hrs23%

ASSUMED KNOWLEDGE
It is assumed that Candidates have acquired basic knowledge base in relation to accounting from their prior tertiary studies

Accounting for Decision Making_CAS'Pore_Foundation

Module Objective

 The Accounting for Decision Making module develops cost accounting techniques for planning, control, and decision making. The key focus is on analysis of relevant information for decision making by management. Upon successful completion of this module, Candidates will have gained practical knowledge through the application of various strategic management accounting tools and techniques. 

Module Assessment 

The Foundation Programme is assessed by way of centralised examinations. Each module will be assessed by way of a 3-hour and 15 minutes restricted open-book written examination. There will be four questions, and each question may have multiple parts requiring structured responses. 

THE MODULE AT A GLANCE 

A Explain managerial accounting and its primary responsibilities in organisations and classify costs used in managerial accounting. 

B Apply various cost management tools for analysis and decision making. 

C Prepare master and flexible budgets and apply standard costs to compute and interpret the cost variances. 

D Identify various types of responsibility centres and evaluate various types of short-term. 

E Analyse various types of strategic models in managerial accounting. 

F Discuss the application of balanced scorecard and performance measurements for strategic planning and control for sustainable business. 

WEIGHTAGE 

Introduction to Management Accounting4 Hrs6%
Cost Management and Cost Analysis10 Hrs17% 
Budget Planning and Control9 Hrs15%
Responsibility Accounting and Business Decision Making14 Hrs23%
Strategic Management10 Hrs

Module Objective

 The Accounting for Decision Making module develops cost accounting techniques for planning, control, and decision making. The key focus is on analysis of relevant information for decision making by management. Upon successful completion of this module, Candidates will have gained practical knowledge through the application of various strategic management accounting tools and techniques. 

Module Assessment 

The Foundation Programme is assessed by way of centralised examinations. Each module will be assessed by way of a 3-hour and 15 minutes restricted open-book written examination. There will be four questions, and each question may have multiple parts requiring structured responses. 

THE MODULE AT A GLANCE 

A Explain managerial accounting and its primary responsibilities in organisations and classify costs used in managerial accounting. 

B Apply various cost management tools for analysis and decision making. 

C Prepare master and flexible budgets and apply standard costs to compute and interpret the cost variances. 

D Identify various types of responsibility centres and evaluate various types of short-term. 

E Analyse various types of strategic models in managerial accounting. 

F Discuss the application of balanced scorecard and performance measurements for strategic planning and control for sustainable business. 

WEIGHTAGE 

Introduction to Management Accounting4 Hrs6%
Cost Management and Cost Analysis10 Hrs17% 
Budget Planning and Control9 Hrs15%
Responsibility Accounting and Business Decision Making14 Hrs23%
Strategic Management10 Hrs17% 
Performance Evaluation and Sustainability Issues13 Hrs22%


ASSUMED KNOWLEDGE 

1. Basic application of common costing techniques and associated terminology; 

2. Basic application of budgeting techniques; and 

3. The ability to identify variances and possible causes.