Exam Guide June 2012 (P2 Corporate Reporting)
Question 1
Topics (a) Consolidated Financial Statements Vertical group Foreign operation (possibility of Integral Operation (Actual Rate Method) Disposal Group cash flows Accounting standards integrated in Consolidated Financial Statements (At least 3 from below): IAS 16 Property, Plant and Equipment IAS 38 Intangible Assets IAS 19 Employee Benefit IFRS 2 Share Based Payment IAS 37 Provisions, Contingent Liabilities and Assets IFRS 9 Financial Instruments IAS 21 The effects of foreign exchange rates IAS 12 Taxation (b) -
Theoretical element on group context IFRS 9 Financial Instruments Explanation on calculation of NCI for vertical group Explanation on how to determine whether the Sub-subsidiary qualify as subsidiary or associate based on the element of control rather than shareholdings (>50%) Explanation on the foreign translation of Integral Operation method (Translation from Foreign currency to Functional currency)
(c) Ethics Explain the difference between being ethical and mere compliance of the Accounting Standards The case mentioned contains element of “Creative accounting� to mislead financial user Student need to address the unethical behavior or accounting treatment proposed by the Director Recommend a proposed solution Question 2 (1 or 2 Accounting standard(s) )
Question 3 (At lease 4 Accounting Standards)
At least 6 of the followings: IAS 16 Property, Plant and Equipment IAS 17 Lease IAS 38 Intangible Assets IAS 36 Impairment of Assets IAS 19 Employee Benefit IFRS 2 Share Based Payment IAS 37 Provisions, Contingent Liabilities and Assets IFRS 9 Financial Instruments (ED Phase II Incurred loss vs expected loss approach) IFRS 5 Assets Held for Sale IFRS 3 Business Combination IAS 12 Taxation
Question 4
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Conceptual Framework a. Differentiate between earlier Framework and revised Conceptual Framework ED Phase III Hedge Accounting a. Differentiate between earlier and ED treatment ED Measurement of Liabilities in IAS 37 IFRS 10 Consolidated Financial Statements IFRS 11 Joint Arrangements IFRS 12 Disclosure of Interest in Other Entities IFRS 13 Fair Value measurement Restructuring a. Transfer of Subsidiary to Sub-subsidiary or vice versa