PIPFA Intermediate cheat sheet

IFRS/IAS framework: financial statements comprise statement of financial position, statement of profit or loss and OCI, statement of changes in equity, statement of cash flows, and notes; IAS 1 requires fair presentation, going concern, accrual basis, materiality and comparability.

IAS 16 PPE: initially at cost including directly attributable costs; depreciation over useful life; revaluation surplus goes to OCI and is not recycled to profit or loss on derecognition (transferred to retained earnings).

IAS 36 impairment: carrying amount vs recoverable amount (higher of fair value less costs of disposal and value in use); impairment loss to profit or loss unless it reverses a prior revaluation surplus.

IFRS 15 five-step model: identify contract, identify performance obligations, determine transaction price, allocate price to obligations, recognise revenue on satisfaction (point in time or over time).

IFRS 16 lessee: recognise right-of-use asset and lease liability at present value of lease payments discounted at implicit rate or incremental borrowing rate; depreciation plus interest replaces rent expense.

IAS 12 deferred tax: temporary differences between carrying amount and tax base; deferred tax asset recognised only if probable future taxable profit exists; measured at rates expected to apply when reversed.

Ratio formulas: current ratio = current assets / current liabilities; quick ratio = (current assets − inventory) / current liabilities; gearing = debt / (debt + equity); interest cover = EBIT / finance cost.

Working capital cycle = inventory days + receivable days − payable days, where inventory days = (average inventory / cost of sales) × 365 and receivable days = (average receivables / revenue) × 365.

IAS 7 cash flows: operating, investing and financing categories; interest and dividends paid may be classified as operating or financing but must be applied consistently; non-cash transactions are excluded.

Fund accounting: resources are segregated by purpose or restriction; each fund is a separate accounting entity with its own assets, liabilities and fund balance, and interfund transfers are disclosed separately.

Modified accrual (governmental funds): recognise revenue when measurable and available; recognise expenditure when the liability is incurred, except long-term debt principal and interest, which are recorded when due.

Budget types: line-item (input control), programme (outputs), performance (outputs and outcomes) and zero-based (each activity rejustified from a zero base); appropriations authorise spending limits.

Budget variance = actual − budget; favourable where expenditure is below appropriation or revenue above estimate; report material variances with explanations and corrective action.

Public procurement principles: transparency, competition, value for money, fairness and accountability; thresholds trigger open tender, and single-source awards require documented justification and approval.

Internal control: segregation of duties between authorisation, custody and recording; commitment control prevents expenditure exceeding appropriation; the accounting officer is accountable for regularity and probity.

Public audit: regularity (compliance with authority), propriety (standards of conduct) and value for money (economy, efficiency, effectiveness); auditors issue opinions or reports to the legislature.

Public debt and fiscal indicators: debt-to-GDP ratio, deficit as a percentage of GDP, and operating balance; fiscal rules may cap borrowing or require balanced recurrent budgets.

Performance reporting: inputs, outputs, outcomes and impact; service delivery is assessed against predetermined targets, and accrual-based financial statements are consolidated across government entities.