CONTENT Page

1. The financial reporting framework 1 22

2. Professional and ethical duty of the accountant 23 22
3. Non-current assets 45 32
4. Employee benefits 77 20
SKILLS CHECKPOINT 1: Approaching ethical issues 97 16
5. Provisions, contingencies and events after the reporting 113 12
framework
6. Income taxes 125 22
7. Financial instruments 147 30
8. Leases 177 20
9. Share based payments 197 22
SKILLS CHECKPOINT 2: Resolving financial reporting 219 18
issues
10. Basic groups 237 26
11. Changes in group structures: step acquisitions 263 22
12. Changes in group structures: disposals and group 285 24
reorganisations
13. Non-current assets held for sale and discountinued operations 309 16

14. Joint arrangements and group disclosures 325 10

15. Foreign transactions and entities 335 20
16. Group statements of cash flows 355 26
SKILLS CHECKPOINT 3: Applying good consolidation 381 18
tehniques
17. Interpreting financial statements for different stakeholders 399 36

SKILLS CHECKPOINT 4: Performing financial analysis 435 16

18. Reporting requirements of small and medium-sized entities 451 14

19. The impact of changes and potential changes in accounting 465 22

regulations
SKILLS CHECKPOINT 5: Creating effective discussion 487 18
Appendix 1 - Activity answers 505 66
Appendix 2 - Suplementary reading 571
Read 0
0%
Financial instruments:

Category Category Initial measurement YE mesurement Diff

FVTPL Fair value throough profit oFV FV PL
FVTOCI Fair value throough OCI FV FV OCI
Amortised Amortised cost FV Amortised cost

Year Principal Interest Coef Discounted

1 1000 0.84 840
1 20 2.643 52.86
2 20 0
3 20 0
4 0
5 0
6 0
7 0
8 0
9 0
892.86
 6% 7% 8%
1000 20 20 20
0.864 0.943 1.808 2.577
864 18.86 36.16 51.54 970.56
1. The financial reporting framework

2. Professional and ethical duty of the accountant

3. Non-current assets

4. Employee benefits
 4000 500 2000000 6200000
600000
78864 249998.88 380000
7180000
6680000
500000

PV of future benefits 110

Fair value 150
Contributiions received 7 130
Paid pensions 10 617.5
 Acquisition
Undertake strategic
Start-up
acquisition/ expansion
Joint venture
Invest in core business Capital projects
Sale
Enhance operating
Spin-off
performance Divestitur
Clarify core business mix 100% IPO/ carve-
e
out
Tracking stock
Improve efficiency/ organise personnel
LBO/ recap
Maximise
Fixed-price tender
shareholder Repurchase shares
Partial
value Dutch auction
Optimize capital Open market
structure Debt securities
Equity securities
Raise capital
Convertible or preferred
securities
Change dividend policy
Strengthen dialogue with Special dividend
analysts/ investors; manage
Improve investor Adjust over time
expectations
understanding Partial sale
Highlight segment results
Increased disclosure
Implement appropriate Adopt/ update structural Structural
takeover protection defenses Legal
Section A

I question
consolidated financial statements

II question
to consider the reporting implications and the ethical implications of specific events

Section B

III question

IV question
Consideration 800 1400
NCI 330 -80
FV 1000 -40
130 1280

P S conso
NC assets 500 600 1110
Invest S 120 0 5
C assets 100 200 300
720 800 1415
Share capital 100 100 100
Reserves 220 400 508
NCI 107
320 500 715
C liab 100 50 150
NC liab 300 250 550
400 300 700
720 800 1415

P acquired 80% when S reserve was 40 Share capital

FV of NA was 150 Reserves
FV of NCI at acquisition was 35 Land

Consideration 120
NCI 35
FV of net assets -150
Goodwill 5

1
Consideration 436 20 H acq S 40% 200k
NCI 153 FV of NA is 460k
FV of NA -510 H acq S 30% 216k
Goodwill 79 FV of NA is 510k
FV of pc is 260k

Acquisition 276
After 30
means 60% 306

means 30% 153

P S conso
NC assets STEP 1 Now
Invest S 1000 0 380 Share capital 1000
ONA 4000 3000 7040 Reserves 2000
5000 3000 7420 PPE 60
Share capital 800 1000 800 3060
Reserves 4200 2000 5610
NCI 1468 NCI
5000 3000 7878 NCI at acq
C liab 0 NCI% of re
NC liab 0 Impairment
0 0 0
5000 3000 7878
STEP 2
Consideration 1200
NCI 380 P acq 60% for 1200 reserve 100
FV of NA -1200
Goodwill 380

STEP 3
Acquisition 380
After 744
Less impairment 0
Disposal to NCI 344
1468

STEP 4
FV of consideration 50
Decrease in NCI -344
Differece 294

STEP 5 300
P 4200 64.377682
S 1116
Impairment 0
Gain on reevaluing original 0
MVMT due to disposal 294
5610
NCI
NCI at acq 35
NCI% of re 72 0.2333333
Impairment
107

RE
P 220
S 288
Impairment 0
508

Now at acqusitiopost acquisit

100 100 0
400 40 360
10 10 0

at acqusitiopost acquisit
1000 0
100 1900
100 -40
1200 1860

0
0

FV NCI 380 FV of NA 1200