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CPA INTERMEDIATE LEVEL NOTES
FINANCIAL REPORTING AND ANALYSIS UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to account for more complex financial transactions and to prepare as well as analyse financial statements in the private and public sectors.
FINANCIAL REPORTING LEARNING OUTCOMES
A candidate who passes this paper should be able to:
• Account for various assets and liabilities
• Prepare financial statements including published financial statements for various types of organisations
• Account for specialised transactions
• Prepare group financial statements
• Analyse and interpret financial statements
• Apply International Financial Reporting Standards (IFRSs) and International Public Sector Accounting Standards (IPSASs) in preparing non-complex financial statements.
Contents
- 1 Accounting for Assets and Liabilities [Assets and liabilities as covered in Financial Accounting (Foundation Level) are also relevant here]
- 2 Accounting for Specialized Transactions
- 3 Preparation of Financial Statements for different entities/Transactions
- 4 Preparation of Published Financial Statements
- 5 Accounting and Financial Statements for Interests in Other Entities
- 6 Public Sector Accounting Standards
- 7 Analysing Financial Statements
Accounting for Assets and Liabilities [Assets and liabilities as covered in Financial Accounting (Foundation Level) are also relevant here]
- Investment Property
- Assets used in exploring for and evaluation of mineral resources
- Non-current assets held for sale
- Financial Assets and Financial Liabilities (Recognition, Classification, Initial measurement, subsequent measurement, reclassifications and de-recognition)
- Leases (Exclude Sale and Leaseback and dealers in leasing assets)
- Current and Deferred tax
- Government grants
- Provisions, contingent liabilities and assets
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Accounting for Specialized Transactions
- Revenue recognition (Basic application of revenue recognition principles to Hire Purchase, Consignment sales, construction contracts and joint arrangements)
- Effects of changes in exchange rates (Only foreign currency denominated transactions)
- Borrowing Costs
Preparation of Financial Statements for different entities/Transactions
- Conversion of a partnership into a company
- Professional firms (Accountants, Lawyers, doctors, engineers)
- Agricultural activities and farming
- Pension plans
- Cooperative Societies
Preparation of Published Financial Statements
- Presentation of Financial Statements (Statement of Profit or Loss, other comprehensive incomes, Statement of Financial Position and Statement of cash flows)
- Accounting Policies, Changes in Accounting Estimates and Errors
- Events after the Reporting Period
- Discontinued Operations
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Accounting and Financial Statements for Interests in Other Entities
- Subsidiaries (Basic Consolidated Financial Statements with one subsidiary -excluding disposals and statement of cash flows)
- Associates and Joint ventures
- Accounting treatment of investments in subsidiaries, associates and jointly controlled entities in the financial statement of the investor (Separate financial statements)
- Branches (Only autonomous and local branches)
Public Sector Accounting Standards
- Presentation of Financial Statements
- Accounting Policies, Changes in Accounting Estimates and Errors
- Effects of Changes in Foreign Exchange Rates
- Revenue from exchange transactions and revenue from non-exchange transactions
- Property, plant and equipment, investment property and intangible assets
- Provisions, contingent liabilities and contingent assets
- Presentation of budget information in Financial Statements
Analysing Financial Statements
- Analysing financial statements using ratios covered in Financial Accounting
- Analysing Financial Statements using common size approach for the statement of profit or loss and statement of financial position