Advanced 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 transactions, prepare advanced financial statements and reports in the private and public sectors and demonstrate awareness of trends in accounting practice.

LEARNING OUTCOMES

A candidate who passes this paper should be able to:

• Prepare financial statements for subsidiaries, associates and jointly controlled entities in compliance with International Financial Reporting Standards (IFRSs) and International Public Sector Accounting Standards (IPSASs) as applicable
• Analyse financial statements for public and private sector entities
• Account for complex accounting transactions
• Apply ethical standards in accountancy work and practice

CONTENT

1. Accounting for Assets and Liabilities
   • (Assets and Liabilities as covered in Financial Accounting and Financial Reporting are also relevant here)
   • Leases Including Sale and leaseback and dealers in leased assets
   • Deferred Tax (With group aspects)
   • Employee Benefits
   • Share Based Payments
   • Financial Assets and Financial Liabilities (Impairment, Hedging, Embedded Derivatives and Disclosures)
   • Fair Value Measurement
   • Impairment of Assets

2.   Preparation of Financial Statements for Interests in Other entities

• Subsidiaries (Including foreign subsidiaries, piecemeal acquisitions, reduction in shareholding and disposals as well as statement of cash flows)
• Accounting for Associates and Joint Ventures (Including foreign entities)
• Disclosures of interests in other entities

3.  Preparation of Financial Statements for other entities

• Financial Statements for Banks
• Financial Statements for Insurance Companies
• Interim Financial Statements
• Financial Statements in a hyperinflationary economy (including the preparation of financial statements)
• Financial Statements complying with IFRS for

4.   Analysing Financial Statements

• Earnings Per Share
• Related Party Disclosures
• Operating Segments
• Financial Reorganisations and reconstructions

6. Other Reports and Emerging Issues in Financial Reporting

• The conceptual Framework and the process of developing new accounting standards
• Proposals to revise/update existing standards and recommendations to issue new ones (Discussions Papers and Exposure drafts)

(The Examinations Board shall provide guidelines on which Discussion Papers and Exposure drafts are examinable for specific years)

• Management Commentary (Management Discussion and Analysis)
• Capital Markets Authority Corporate Governance Reporting Requirements
• Global Reporting Initiatives Guidelines on Sustainability Reporting
• Integrated Reporting
• Materiality Guidelines for Financial Reporting
• Legal and Ethical issues in Financial

Sample reading and reference material

1. Collins, , & McKeith, J. (2013). Financial Accounting and Reporting (2nd edition). McGraw-Hill Education.
2. Elliott, , & Elliott, J. (2019). Financial Accounting and Reporting (19th edition). Harlow: Pearson.
3. Cotter, D, (2012) Advanced Financial Reporting: A Complete Guide to Harlow. Financial Times / Prentice Hall.
4. Kasneb e-learning resources (link on the Kasneb website).
5. Kasneb approved study