CA ANZ Core 3: FAR study plan

Explain how the elements of financial statements and recognition criteria in the conceptual framework drive the initial measurement of property, plant and equipment

Apply the cost model and the revaluation model to a set of asset acquisitions, including directly attributable costs and dismantling obligations

Compute depreciation under straight-line, diminishing balance and units-of-production methods and justify the method chosen for a given asset class

Distinguish research from development expenditure and apply the capitalisation criteria to decide which intangible costs are recognised

Identify impairment indicators and calculate the recoverable amount of a cash-generating unit, allocating an impairment loss across goodwill and other assets

Account for the disposal and derecognition of PPE, including gains and losses and the revaluation surplus transfer to retained earnings

Determine whether a transaction is a business combination and identify the acquirer in straightforward and reverse-acquisition fact patterns

Apply the acquisition method to measure consideration transferred, identifiable net assets and goodwill or a bargain purchase gain

Prepare consolidation adjustments for intra-group sales of inventory, including unrealised profit and tax effects

Prepare consolidation entries for intra-group PPE transfers and the resulting depreciation adjustments

Identify the five-step revenue model and determine whether a contract with a customer exists under the criteria for collectability and enforceable rights

Allocate the transaction price to distinct performance obligations using stand-alone selling prices, including discount and variable consideration allocation

Apply the over-time versus point-in-time recognition criteria to construction and service contracts and select an appropriate measure of progress

Account for contract assets, contract liabilities and onerous contract provisions arising from a single contract

Distinguish provisions from contingent liabilities and contingent assets, and apply the recognition threshold to uncertain obligations

Measure provisions using best estimate and expected value, and apply the discounting and reimbursement rules

Account for short-term and long-term employee benefits, including annual leave, long-service leave and defined contribution obligations

Determine whether an arrangement contains a lease and identify the lease term, including extension and termination options that are reasonably certain to be exercised

Measure the lease liability and right-of-use asset at commencement and prepare the subsequent amortisation and interest schedule

Apply the recognition exemptions for short-term and low-value leases and explain the presentation and disclosure consequences

Prepare a complete set of general purpose financial statements from a trial balance, including statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows

Classify items as adjusting or non-adjusting subsequent events and as changes in accounting policy, changes in estimate or errors

Classify financial assets and financial liabilities under the business model and contractual cash flow characteristics tests and apply the resulting measurement categories

Measure financial instruments at amortised cost using the effective interest method and account for expected credit losses

Determine fair value under the market, income and cost approaches and rank inputs within the fair value hierarchy

Calculate current and deferred tax for temporary differences arising from depreciation, provisions, revaluations and unused tax losses

Translate foreign currency transactions and foreign operation balances using the spot rate, closing rate and average rate as appropriate

Evaluate how the qualitative characteristics and the objective of general purpose financial reporting shape disclosure choices in the notes

Compare the conceptual framework definitions of assets, liabilities, income and expenses against the treatment of a doubtful item

Compute and interpret profitability, liquidity, solvency and efficiency ratios from a set of financial statements

Decompose return on equity using a DuPont-style analysis and attribute changes to margin, turnover and leverage

Identify earnings management red flags and limitations of ratio analysis when comparing entities

Integrate knowledge across all domains by working through mixed-topic calculation and journal entry sets under time pressure

Diagnose recurring error patterns from earlier weeks and rework the five weakest calculation types until performed accurately without notes

Practise written responses that justify accounting treatment by reference to the relevant standard's recognition and measurement requirements

Summarise the disclosure requirements most commonly examined across leases, financial instruments, business combinations and provisions