No.

Topics Description Pages Note

Introduction
1.0 Method of Assesment Corporate Reporting 4
2.0 Objective of Financial Statement 5
3.0 IASB Conceptual Framework SOFP/ SOPL/ SOCIE Format 6-9

4) IFRS 13: Fair Value Measurement

4.1 Definition Unrelated knowledgeable and willing parties - Market
4.2 Measurement Participants 10
4.3 Transcation Cost
4.4 Transport Cost
4.5 Fair Value of Non-Financial Asset Highest and Best Use 11
4.6 Fair Value Hierachy Level 1/ Level 2/ Level 2
4.7 Valuation Approach Market vs Income vs Cost Approach 12
4.8 Fair Value of Liabilities Repeat of IFRS 9 12-13

5) IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors

5.1 Accounting Policies Application/ Change in Accouting Policies - Retrospective
Application
5.2 Errors Prior period errors/ Retrospective 14
5.3 Accounting Estimates Change in Accounting Estimate is not correction of errors -
Prospective Application
5.4 Audit Risk and Audit Procedures 15

6) IFRS 8: Operating Segments

6.1 Definition Component of a business
6.2 Aggregation Two or more Operating Segements can aggregate
6.3 Quantitative Thresholds Segment Rev ≥ 10% of Total Rev/ Segment Profit or Loss ≥ 10% 16
PL of all segment/ Segment Asset ≥ Total Assets
6.4 Non-Reportable Segments
6.5 Segment Disclosures External revenues/ Geographical areas/ Reliance on Major
Customer 17
6.6 Audit Evidence ISA (UK) 501
6.7 Examples 18

7) IFRS 5: NCA Held for Sale

7.1 Classification of NCA HFS Recognition criteria - 5 RC
7.2 Measurement of NCA HFS S1: Cost Model vs Revaluation Model
S2: Carrying Amount vs FV less CTS
19
S3: After HFS Classification - No Depreciation
S4: Gain/Loss Recognised in Profit or Loss
7.3 Presentation of NCA HFS Seperately from other assets
7.4 Disposal Group Subsidiary/ CGU with Goodwill/ Single Operfation
20
7.5 Abandoned Assets Not classified as NCA HFS
7.6 Audit Risk and Audit Procedures Incorrect classification of asset as HFS 21

8) IAS 24: Related Party Disclosures

8.1 Definition of Related Party Person or close family member/ Entity
8.2 Not Related Parties Common Director/ Venturers in JV/ Providres of…/ Enttiy that
22
transacts significnat amount of business
8.2 Definition of RPT Transfer between Related Parties
8.3 Disclosures 5 Disclosures 23
8.4 Audit Risk and Audit Procedures - ISA (UK) 550 Responsbilities: Management & Auditor/ Audit risks/ Risk
25
assessment procedures/ Auditors Response to RP or RPT

9) IFRS 1: First time adoption of IFRS

9.1 Guidance/ Opening FIRS SOFP 26

10) IAS 34: Interim Financial Reporting

10.1 Recognition and Measurement 27
11) IFRS 15: Revenue
11.1 Defnition: Contract Example: How to use 5 step of revenue recognition 28
11.2 Step 1 - Identify the contract 5 Criteria of contracts with customer
29
11.3 Step 2 - Idenfity Performance Obligation
11.4 Step 3 - Determine Transaction Price Definition of Transactino price/ Approaches for variable
30
consideration
11.5 Step 4 - Allocate TP to PO Stand alone selling price 31
11.6 Step 5 - Recognise Revenue as PO is satisfied Over time/ At Point in time 32-33
11.7 Contract Cost Example of service contract 34
11.8 Others Deferred consideration/ Interest Free Credit/ Significant
35
financing component
11.9 Sales with Right of Return
36
11.10 Warranties Assurance Warranty/ Service Warranty
11.11 Principal vs Agent Pricipal/ Agent/ Indicator for agent 37
11.12 Licences Distinct/ Not Distinct
38
11.13 Royalty
11.14 Consignment Arrangment Indicator of existence 39
11.15 Repurchase agreement Obligation to repurchase asset [Forward Contract]
Right to repurchase asset [Call option]
39-41
Seller has obligaton to repurchase asset at customer request
[Put Option]
11.16 Bill and Hold Arrangments Criteria of Bill and Hold sales of goods 42
11.17 Options for additional goods or services Revenue recognition criteria 43
11.18 Audit risk and Audit Procedures 5 Steps/ Warranties/ Bundled services, Licences, Royalties,
45-46
Repurchase agreement/ Consiignment arrangements

12) IAS 33: Earnings Per Share

12.1 Basic Earnings Per Share Formulae/ Issue of shares for cash at full market price/ Bonus
47-48
Issue/ Rights Issue
12.2 Diluted Earnings Per Share Convertible instruments/ Options or warrants/ Employee Share
49-50
Options/ Contingently Issuable Shares

13) IAS 16: Property Plant and Equipment

13.1 Definition/ Recognition Criteria/ Measurement 51-52
13.2 Excess Depreciation Adjustment - EDA EDA -> SOCIE 53
13.3 Audit Procedures Freehold Property/ Plant and Machinery and Motor Vehicles/
54
Audit procedures for Revaluation

14) IAS 38: Intangible Assets

14.1 Definition Identifability/ Control
14.2 Recognition
55
14.3 Measurement at recognition Separate acquisition/ Avquired IA/ Internally generated
goodwill/ Interally generated intangibles
14.4 Measurement after recognition Cost model/ Revaluation model/ Amortisation/ Impariment/
56
Derecognition
14.5 Website Cost Capitalsatoin and expense 57
14.6 Audit Risk and Procedures Assertions 59
15) IAS 36: Impairment of Assets
15.1 Application of Impairment Does not apply to:IAS 2, IFRS 9, IAS 12, IAS 19, IAS 40, IFRS 5, IAS
41
60
Applies to: IFRS 3, IAS 38, IAS 16 and IAS 40 (individual asset or
Cash Generating Unit)
15.2 Measurement of recoverable amount FV less CTS and Value in Use 60-61
15.3 Cash Generating Unit Definition
62
15.4 Goodwill
15.5 Accounting Treatment for Imp Loss Individual assets: Cost model vs Revaluation model
62-63
Cash Generating Unit (Example)
15.6 Reversal of Impairment Asset Individual assets: Cost model vs Revaluation model
64
Cash Generating Unit
15.7 Audit risk and procedures Indicator of impairment/ Impairment review/ Recoverable
65
amount - FV less CTS or Value in Use

16) IAS 2, Inventories

16.1 Measurement Lower of Cost and Net Realisable Value 66

17) IAS 40: Investment Properties

17.1 Definition Criteria for IP, Examples of not IP
17.2 Clasification issues Support Services (auxiliary services)/ Portions of buildings/ 67
Leased to Parent or Subsidiary
17.3 IAS 40 Recognition Criteria/ Initial Measurement/ Subseuqent
68
Measurement - Cost Model or FV Model/ Derecognition
17.4 Transfers following Change in Use End of transfer -> Commecement of Transfer to -> Accounting
69
Treatment at the date of change in use
17.5 Audit Procedures Classification of IP/ Valuation/ Disclosure 70

18) IAS 41: Agriculture

18.1 Definition Biological assets/ Agricultural produce/ Products result of
processing harvest
71-72
18.2 Recognition Control/ Past events/ Probable FEB/ Fair Value or Cost
18.3 Measurement Fair Value/ Estimated Cost to sell

19) IFRS 6: Exploration for and Evaluation of Mineral Resources

19.1 Expenditure/ Measurement 73

20) IFRS 7: Insurance Contract

20.1 Recognition and Measurement Asset/ Liability 74

21) IAS 10: Events after Reporting Period

21.1 Adjusting Event Condition existed at end of reporting period
75
21.2 Non-Adjusting Event Condition arise after end of reporting period

22) iAS 37: Provisions, Contingent Liabilities and Contingent Assets

22.1 Recognition Probable > 50%/ Not Probable < 50%
22.2 Measurement 76
22.3 Decommisionning/ Dismantling Provisions Plant -> PPE/ Operations -> Expenses
22.4 Future Operating Losses No Past Event = No Provision
22.5 Onerous Contracts Unavoidable cost > Ecnomic benefit expected 77
22.6 Restructuring Costs Criteria
22.7 Contingent Liability Definition
22.8 Contingent Asset 78
22.9 Reimbursements Recognition Criteria
22.10 Audit Risk and Procedures Company has present obligation/ Probable Transfer of Economic
78-79
Benefit
22.11 Procedures regarding Litigation and Claims ISA (UK) 501, Audit Evidence 79
23) IFRS 16: Leases
23.1 Lessee Accounting Definition/ Identifying a lease - Identified asset, Right to obtain
substantially all the economic benefit, Right to direct the use of
81-84
asset/ Seperating components of a contract/ Recognition
Exemptions - Short term leases, Low value asset
23.2 Measurement of ROU asset and Lease Liability ROU Asset - Initial measurement, Subsequent measurement
85-88
Lease Liability - IM, SM
23.3 Lessor Accounting Definition/ Finance Lease - indicator, Acc treament/Operating
89-91
Lease
23.4 Sale and Leaseback Transfer is a sale/ Transfer is not a sale 92-95
23.5 Audit risk and Audit Procedures Lessee - ROU asset/ Right accoutnign treamtent/ Lease
liabilities/ Disclosure 96
Lessor - Operating leases/ Finance leases

24) IAS 20: Accounting for Government Grants and Disclosure of Government Assistance
24.1 Government Grant Definition/ Recognition/ Measurement
97
24.2 Grant related to Assets Conditions/ Example
24.3 Grants related to Income Disclosure/ Accouting Treatments/ Further notes 98

25) IAS 23: Borrowing Costs

25.1 Accounting Treatment Commencement of Capitalisation 99

26) Financial Instrument

26.1) IAS 32: FI Presentation
i) Definition
101
ii) Financial Asset vs Finanical Liability vs Equity Instrument CRRC vs CODC vs Equity
iii) Preference Shares Redeemable/ Irredeemable
iv) Covnvertible Debt Definition/ Initial Measurement/ Subsequent Measurement - 102-103
Upon conversion or Upon repayment
v) Treasury Shares Purchase of own shares
vi) Interest, Dividends, Losses and Gains Treatement for FL and Equity
104
vii) Offsetting Rights of Set-off
viii) Settlement in entity's own Equity Instrument Non-derivative contrract using own equity instrument: FL or Eq
ix) Contingent Settlement Provision Repayment in event of uncertain future event 105
26.2) IFRS 7: FI Disclosures
i) Types of Risk Market Risk/ Credit Risk/ Liquidity Risk/ Past Due
ii) Qualitative Analysis For each type of risk must disclsoe …
106
iii) Quantitative Analysis Fo each financial instrument risk, quantitative data about risk
exposure must be disclosed
26.3) IFRS 9: FI Recognition and Measurement
(a) Issuer's Book: Financial Liabilities Initial recognition/ Measurement 107-108
i) Option to designate a financial liability at FVtP/L Accounting Treatmennt 109
ii) Derecognition of Financial Liabilities Extinguishing Financial Liability/ Exchange or Modification of
110-113
Debt (>10% or < 10% - 10% Test)

(b) Investor's Book: Financial Asset Investment in Debt Instruent/ Investent in Equity instrument -
Initial Recognition, Initial Measureent, Transcation costs, 115
Subsequent remeasurement
(i) Investor's Book: FA investment in Equity Initial recognition/ Measurement/ Derecognition
- FVTP/L or FVTOCI FVTP/L = Default/ FVTOCI = Irrevocable election 116-117
- IFRS 13 Fair Value Bid price and Ask Price
(ii) Investor's Book: FA investment in Debt Initial Recognition/ Classification - Detailed Table 118
- Measurement Intiail FV = PV of Future Cash Flows/ Subsequent measurement =
Amortised cost method (HTC) & FVTOCI (HTC and Sell) & FVTP/L 119-122
- Derecognition Criteria/ Accounting Treatment/ Repurchase agreement/
123
Factoring (with recourase and without recourse)
- Reclassification FVTP/L -> ACM or FVTOCI// FVOCI-> ACM or FVTPL//
124
ACT -> FVTPL or FVOCI
- Expected Credit Loss General Approach - 3 Stages/ Simplified Approach/ Purchased or
125-127
Originated Credit-Impaired Approach
- FA Invesmtent in Debt at ACM (ECL - Stage 1 2 3) Initial/ Subsequent Measurement/ Examples 127-131
- FA Invesmtent in Debt at FVTOCI Accounting Treatmennt/ Example 132
- Simplified Apprroach (Short-term asset) Example 133

(c) Derivatives Definition/ Accounting Treatment 134

(d) Embedded Derivatives Non-derivative Host Contract = Financial Asset vs Not Financial
135
Asset
Examples Converitble bonds/ Lease/ Contract in foreign currencies 136

(e) Hedging Qualifying Criterias 137

- Eligible Hedging Instrument and Hedge Item Qualifying HI - Derivative & Non Derivative FA/FL
Qualifying Hi/ Examples 137-138

- Formal Designation and Documentation Must Document for Hedge Accounting 138
- Effectiveness Testing Effectiveness Criteria
139
- Rebalancing Risk Management Objective
- Types of Hedge FV Hedge vs Cash Flow Hedge vs Hedge of net investment in
140
foreign operation
- FV Hedge Risk Exposure/ Definition/ Accting Treatement/ Discontinuance 140-141
= Example of FV Hedge Hedge Item is Inventory - with vs without Hedge Accounting/
Hedged Item is Equity Investment at FVTOCI 141-144
Hedging Instrument is Options (Derivative)
- Cash Flow Hedge Risk Exposure/ Definition/ Accting Treatement/ Discontinuance 145-146
= Examples of Cash Flow Hedge Hedge effectiveness 147-148
- Firm Commitment as Hedged Item FV Hedge vs Cash Flow Hedge/ Example 149-150
- Swap as Hedging Instrument Issue of Variable Rate Loan, Issue of Fixed Rate Debt 151-152
- Hedge of a Net Investment Accounting Treatment 153
- Audit Issues Around Fiar Value ISA (UK) 540/ Auditing Fair Values 154
- Auditing Financial Instruments Background Information about Financial Instruments/
155
Audit considerations relating to Financial Instruments
- Areas of Significant Judgement Audit Procedures
156
- Valiation of Financial Instrument Audit Procedures
- Audit for Hedging Risks Tests/ Procedures 157
27) IAS 19: Employee Benefit
27.1 Short-term Employee Benefits
- Salaries/ Short Term Compensated Absences/ Profits EE benefits that fall due within 12 months of end of period
159
and bonus
27.2 Post-employment Benefit
- Overview Contirbution/ Benefits paid out/ Invesment risk/ Acturial risk 160
- Defined Contribution Plan Accounting Treatment 161
- Defined Benefit Plan Accounting Treatment (pg 164-165) 162-169
- Asset Ceiling Test Defined Benefit Asset is no more than the Recoverable Amount 170
27.3 Other Long-term Employee Benefits
- Accounting Treatment Employee benefit that doesn ot fall due within 12 months 170
27.4 Termination Benefit
Accounting Treatment Measurement: based on expected level of take up, if uncertain
170
disclose under IAS 37
27.5 Audit Focus
- Key Audit Risk and Audit Procedures 171-172

28) IFRS 2: Share Based Payment

28.1 Equity-settled Share-based Payment Transaction
- Definition Goods/service exchange for equity instrument 174
- Measurement Direct Method (3rd party)/ Indirect Method (employee) 175
- Indirect Method Recognition Criteria - Vest immediately or Vesting conditions
176
= Vesting Conditions Non-makret based conditoins vs market based conditions
= Examples Sercice Condition/ Market Condition/ Non-market vs market 177-179
- Exercising option (vested) Accounting Treatment 179
- Modification Re-pricing of share options 180
- Cancellations and settlements Accounting Treatment 181
28.2 Cash settled Share Based Payment Transaction
- Definition Goods/ service exchange for cash based on price of shares 182
- Measurement Accounting Treatment 183
28.3 Share-based Payment with Choice of Settlement
- Counterparty has a choice Purchase of Goods & Services/ Employee Services 184-185
- Entity has a choice Obligation to Deliver Cash = Treat as cash settled
185
No Obligation to Deliver Cash = Treat as equity settled
28.4 Audit
- Audit Risk and Procedures 187

29) Groups
29.1 IAS 27 Separate Financial Statements
- Accounting for Subsidiary and Associates in Parent's Investment in Sub & Asscociate are accounting either:
Separate Financial Statements = at cost/ IFRS 9 FV/ IAS 28 Equity method 188
If Subsidiareis are classified as HFS accountusing IFRS 5
29.2 IFRS 10 Consolidated Financial Statements
- Control Definition Rights/ Potential Voting Rights/ Power/ Relevant Activities
189
- Exemption from Preparing Group Accounts Conditions
- Exclusion of Subsidiary from Consolidation Held for sale
- Different Reporting Dates
190
- Uniformm accounting policies
- Dates of inclusion/ exclusion
29.3 IFRS 3 Business Combination
- Acquisition Method of Accounting Consideration/ Net Assets of Subsidiary 191-192
- Goodwill/ Gain on Bargain Purhcases
193
- Provisional Value
- FV of Consideratoin paid by NCI FV basis vs NA basis for NCI 194-196
29.4 IFRS 13 Fair Value Measurement
 - Non-Financial Asset
197-198
- Decommissioning Liability
- Post Period adjusments Intercompany sale of inventory (PURP) - P sells ot S, S sells to P 199
- Intercompany NCA transfer/ sale
- Dividends 200
- Interest and Management Charges
- CSOFP & COSPL Format 201-204
29.5 IFRS 11 Joint Arrangements
- Joint Operations vs Joint Venture Definition/Structure/ Accounting Treatment 205-206
29.6 IAS 28 Investment in Associate and Joint Ventures
- Associate vs Joint Ventures Definition/ Criteria/ Accounting Treatment 207
- CSOFP Investment in JV or A/ Equity method/ Group RE
- COSPL Profit or Loss of investor/ OCI of investor/ Dividend Income 208
- Transactions between investor and A/JV P sells to A or JV/ A or JV sells to P
29.7 Step Acquisition
- Achieving Control Accounting Treatment - FA to Subsi/ Associate to Subsi 210-212
- Remeasure the original investment at acq date 213
- No change in control 214-216
29.8 Disposals
- Control is Lost Full disposal/ Partial disposal 217-219
- Associate to Investnet 220
- Control is Not Lost 221
29.9 Consolidated Statement of Cash Flows
- NCI/ Associates
223
- Reconciliation Acquisition and disposal of subsidiaries
29.10 Group Audit
- Definition Group engagement partner/ Group engagement team/
Component/ Component auditor/ Component materiality 224
- Objective of auditor
- Acceptance/ Continuance of group auditor
225
- Overall audit strategy and audit plan
- Group wide controls/ Consolidation process 226
- Instruction issued by group management to components
227
- Fraud Informatino used for assessment of risk of fraud/ risk factors
- Using work of another auditor
228
- Understanding the component auditor Placing reliance on other audito
- Responding to appropriate risks 229
- Type of work to be performed Significant components/ Components that are not significant
230
components
- Nature,timing and extent of involvement in the work Significant components - risk assessmet/ rights of gorup
231
performaed by component auditors auditors/ consolidation process
- Communication with component auditor Matters included in the GET's letter of instruction 232
- Evaluating the sufficiency and appropriateness of audit
233
evidence obtained
- Communication with Group management/ with TCWG of the group
234
- Documentation
- Acquisition Newly acquired subsidiary 235
- Audit Procedures for Disposal 236
- Auditing an ongoing group of companies Issue and audit consequence
237
- Consolidation: Audit Procedures Audit steps involved in consolidation
- Intra-group balances
238
- Unrealised Profit
30) IAS 21: Foreign Currency Translation and Hyperinflation
30.1 Functional Currency Primary indicators/ Seconday indicators/ Additional facors
30.2 Change of Functional Currency Primary economic environment changes 239
30.3 Initial Recognition
30.4 Subseuqnecy Measurement Non-monetary Items: Initial/ Subsequent
240-241
Eg: Inventory/ PPE cost model & reval model/ IP FV model
Monetary items: Initial/ Subsequent
242
Eg: When settled/ remainds outstanding
30.5 Consolidation of Foreign Subsidiary *pg246* SOPL/ SOFP/ Total exchange difference in OCI 244-247
30.6 Disposal of Foreign Operations
248
30.7 Net investment in Foreign Operation (Loan)
30.8 Audit risk and Audit procedures Individual Transactions/ Translating overseas subsidiary 250

31) IAS 12 Income Taxes

31.1 Current Tax Liability and Assets Recognition: Current Tax Payable & Current Tax Recoverable/
251
Measurement/ Presentation
31.2 Deferred Tax Liability and Assets
252-253
- IAS 16 PPE Cost Model Example
- Types of Temporary Differences Permanent Differences/ Temporary Differences 254
- IAS 16 Revaluation of PPE/
255
IFRS 9 Investment at FVTOCI
- IAS 38 Intangible Asset: Development Cost
- IAS 37 Provisions 256
- IAS 19 Employee Benefit
- IFRS 2 Share Based Payment Accounting Base vs Tax Base 257-258
- IFRS 16 Lease 259
- IAS 20 Government Grant
260
31.3 Summary TTD = DTL/ DTD = DTA
31.2 Deferred Tax Asset Unused Tax Losses
31.3 Temporary Difference with no Deferred Tax impact Initial recognition of goodwill/ asset or liability in transaction
which is not a business combination and at the time of 261
transcation affects neither accounting nor taxable profit
31.4 Tax rate Use Tax Rate that has been Enacted
31.5 Group Scenario Example 262
- IFRS 3 Fair Value Adjustments Accounting Treatment 263
- Goods purchased from subsidiary (PURP) Accounting Treatment 264
- Profits from Foreign Subsidiary Accounting Treatment 265
31.6 Example R&D/ PPE/ Retirement benefit obligation/ Goodwill 266-269
31.7 More fkin examples 270-272
31.8 Changes in exchange rates in Foreign Operation Accounting Treatment (refer IQ 11) 272
31.9 Audit Audit Risks/ Use of Tax specialist/ Audit Procedures: Current Tax
273-274
& Deferred Tax/ Transfer Pricing

32) Financial Statement Analysis

32.1 Performance Ratios ROCE/ GPM/ OPM/ Return on Shareholder Funds:
275
Purpose/ Interpretation/ Limitation
32.2 Efficiency Ratios Net Asset Turnover/ Rec days/ Inventory days/ Payable days 276
32.3 Liquidity/ Gearing Ratios Current Ratio/ Quick Ratio/ Gearing/ Interest Cover 277
32.3 Investor Ratios Net Asset Value/ PE Ratio/ Dividend cover/ Dividend yield/
278
Dividend per share
32.4 Non-Current Analysis Capex to Depreciation/ Ageing of NCA
32.5 Cash Flow Ratios Cash return on capital employed/ Cash generated from
279
operations/ Cash interest cver/ Cash flow per share/ Cash
dividend cover/ Cash flow for Ordinary Shareholders
32.6 Fiancial Ratio Interpretations EBITDA/ EBIT/ EBITDA over Interest/ Total Debt over EBITDA 280