CPA Financial Reporting study guide
CPA Financial Reporting · Work through your exam, one topic at a time.
Financial Reporting is one of the education segments within the CPA Program, the professional qualification pathway offered by CPA Australia. It is aimed at candidates progressing towards CPA membership who need a working command of external financial reporting under Australian accounting standards and the international framework they are based on. The CPA Financial Reporting study guide has 5 sections and about 2,988 words.
01The Financial Reporting Environment and Conceptual Framework
General purpose financial reporting exists to give existing and potential investors, lenders and other creditors information useful for resource-allocation decisions. The Conceptual Framework builds everything from that objective.
339 words, about 2 min02Presentation of Financial Statements and Fair Value Measurement
A complete set of financial statements comprises the statement of financial position, statement(s) of profit or loss and other comprehensive income, statement of changes in equity, statement of cash flows and notes, with comparatives. The going concern and accrual assumptions underpin everything; presentation must reflect materiality and aggregation, prohibit offsetting and be consistent period to period.
347 words, about 2 min03Revenue, inventory, property plant and equipment, intangibles and impairment
Identify the contract - approval, identifiable rights, payment terms, commercial substance and collection probable. Identify performance obligations - a promised good or service is distinct if the customer can benefit from it on its own (or with readily available resources) and it is separately identifiable within the contract.
639 words, about 3 min04Provisions, leases, employee benefits and financial instruments
Inventory is measured at the lower of cost and net realisable value , item by item or by groups of similar items. NRV is the estimated selling price in the ordinary course of business less estimated costs of completion and costs to sell - an entity-specific figure, not fair value.
653 words, about 3 min05Business combinations, consolidation, equity and disclosure
Capitalise when future economic benefits are probable and cost is reliably measurable. Cost includes the purchase price net of discounts, non-recoverable duties and taxes, directly attributable costs of bringing the asset to the location and condition for its intended use, the initial estimate of dismantling and restoration costs, and capitalised borrowing costs for qualifying assets.
1,010 words, about 5 min