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Extra info for ACCA - P2 Corporate Reporting
In the exam, you will often be required to consider the impact of proposed changes to IFRS. Any such proposals are dealt with in this Study Text within the topic to which they relate. 3 Study guide Intellectual level A1 Professional behaviour and compliance with accounting standards (a) B1 Appraise the ethical and professional issues in advising on corporate reporting Assess the relevance and importance of ethical and professional issues in complying with accounting standards Ethical requirements of corporate reporting and the consequences of unethical behaviour Appraise the potential ethical implications of professional and managerial decisions in the preparation of corporate reports The applications, strengths and weaknesses of an accounting framework (a) Evaluate the valuation models adopted by standard setters C1 Performance reporting (a) Prepare reports relating to corporate performance for external stakeholders B2 The applications, strength and weaknesses of an accounting framework (a) Evaluate the valuation models adopted by standard setters 3 (b) Discuss the use of an accounting framework in underpinning the production of accounting standards 3 (c) Assess the success of such a framework in introducing rigorous and consistent accounting standards 3 (b) A2 (a) 3 3 3 3 Exam guide This chapter is partly background knowledge to set the scene about the reporting framework before you look at ethical issues.
I) The qualitative characteristic of 'verifiability' is problematic. (j) In the proposed 'Reporting Entity' chapter, the entity perspective and the definitions of control have been insufficiently thought through. In addition, the 'risks and rewards' model is not adopted, thereby losing a useful concept. 12 Recent developments So far the other parts of the Framework are still at the discussion stage. Below is a summary of progress at the time of writing (October 2012): 12 1: Financial reporting framework Part A Regulatory and ethical framework (a) Objectives and qualitative characteristics – see above.
1 International Financial Reporting Standards (IFRSs) One of the competences you need to fulfil Objective 10 of the Practical Experience Requirement (PER) is to recognise and apply the external legal and professional framework and regulations to financial reporting. You can apply the knowledge you obtain from this section of the Text to demonstrate this competence. To date the IASB has the following standards in issue. 1 Current accounting standards and documents examinable at P2 The documents listed as being examinable are the latest that were issued before 30 September 2012, and will be examinable in sittings up to June 2014.