Concepts of profit or loss and other comprehensive income
This article explains the current rules and the conceptual debate as to where in the statement of comprehensive income, profits and losses should be recognised – ie when should they be recognised in profit or loss and when in the other comprehensive income. Further, it explores the debate as to whether it is appropriate to recognise profits or losses twice.
Profit, loss and OCI
This article looks at what differentiates profit or loss from other comprehensive income and where items should be presented.
Impairment of financial assets
This article considers the International Accounting Standards Board’s proposals of new regulations for the impairment of financial assets. This is a current issue that is examinable in Paper P2.
The Integrated Report framework
In 2013, the International Integrated Reporting Council (IIRC) released a framework for integrated reporting. The framework establishes principles and concepts that govern the overall content of an integrated report.
The article explains the basic principles of hedging and the current accounting regulations as set out in IAS 39, Financial Instruments: Recognition and Measurement. It concludes by considering the weaknesses of IAS 39 and how those weaknesses are addressed by the proposed changes issued by the International Accounting Standards Board in September 2012.
When does debt seem to be equity?
The difference between debt and equity in an entity’s statement of financial position is not easy to distinguish for preparers of financial statements. Many financial instruments have both features with the result that this can lead to inconsistency of reporting. This article explains the distinction between debt and equity and the key factors that determine whether an instrument is classified as debt or equity.
This article explains how IAS 18 and IAS 11 define ‘revenue’ and the principles that underpin the recognition and measurement of revenue. It also reviews some of the implementation examples provided as an accompaniment to IAS 18 and outlines likely changes to the method of accounting for revenue in the future.
Lease - operating or finance?
Complex lease terms mean that it is often difficult to determine how they should be classified. We shed some light on the matter.
Bin the clutter
The effects of clutter have typically come in for little consideration by the preparers of annual reports. However, we discover how the phenomenon is increasingly under discussion, with initiatives recently launched to combat it.
What is a financial instrument? - part 1
The first part of two articles considers the definition of accounting for financial instruments. It establishes how those issuing financial instruments need to classify these as either financial liabilities (for example, loans and bonds) or equity instruments (for example, ordinary shares).
What is a financial instrument? - part 2
The second part of this article considers accounting for financial assets, and includes a focus on debt instruments and equity instruments.
IFRS 9, Financial Instruments
This article focuses on the accounting requirements relating to financial assets and financial liabilities only.
Corporate reporting case studies
This article provides some advice on how to attempt the Paper P2 case study questions, and features an illustrative question example based on a past exam question.
With IFRS-related questions featuring regularly in the Paper P2 exam, this article provides a case study guide on how to approach such questions.
IASB's Conceptual Framework for Financial Reporting
This article takes a look at how the framework points the way for the development of new accounting standards.
How to account for property
While this article was written specifically for students in Hong Kong, it is also relevant to all Paper F7 and Paper P2 students and those studying for the DipIFR.
The industry question
Techniques to answer industry questions in the corporate reporting paper.
An outline of the amendments to the UK financial reporting papers from June 2011.
Corporate reporting - current issues
This article covers the issues of leasing, income tax and management commentary.
Advice on how to look at questions about revenue in Paper P2 exams.
An outline of the treatment of a past exam question on complex group accounting.
IFRS for SMEs (relevant to INT, SGP, MYS, HK)
The new International Financial Reporting Standard for small to medium-sized entities.
Convergence between IFRS and US GAAP
IFRS and US GAAP convergence is a topic which has been periodically examined in Paper P2 exams.
Not-for-profit organisations - part 1
Although many of the principles of management and organisation apply to most business models, not-for-profit organisations have numerous features that distinguish them from the profit maximising organisations often assumed in conventional economic theory. This article explains some of these features.
Not-for-profit organisations - part 2
The second part of this article takes a specific and deeper look at charities, which are one of the more important types of not-for-profit organisations.
Impairment of goodwill
This article discusses and shows both ways of measuring goodwill following the acquisition of a subsidiary, and how each measurement of goodwill is subject to an impairment review.
This article starts by considering aspects of deferred tax that are relevant to Paper F7, before moving on to the more complicated situations that may be tested in Paper P2.
Use hot topics in financial reporting to formulate answers.
This article tackles complex groups calculations, focusing on IFRS 3 (Revised).
Objective Business combinations - IFRS 3 (revised)
This first article in a two-part series provides an introduction to IFRS 3 and IAS 27, including piecemeal acquisitions and disposals.
Testing your knowledge of share-based payment transactions.
Groups with accounting standards
Lindsay Hoyle from Kaplan Financial focuses on the compulsory Question 1 about groups with accounting standards, looking at how to approach Part A (the technical requirement) and Parts B and C (the written requirements).
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Changes to the ACCA Qualification Skills module and Professional level in 2014–15
This article explains the planned updates to the ACCA Qualification syllabuses taking place as part of the process of continuous syllabus refreshment and improvement. The article highlights structural changes to exams, including the latest syllabus changes.
ACCA embeds integrated reporting
Gareth Owen, ACCA qualifications development manager, outlines how the ACCA Qualification embraces the underlying principles of integrated reporting (IR). IR is a different way of presenting information about the business to its stakeholders and, as such, is a new and exciting development in financial reporting.
Studying Paper P2 (UK)?
This article focuses on the UK stream, which is based on the international syllabus but includes extra detail relevant to UK candidates.
Exam technique for Paper P2
The article focuses on issues of poor exam technique that often appear in the answers students submit for Paper P2.
Passing the Professional level papers
This article outlines what candidates can do to ensure they are well prepared for Professional level exams.
Last updated: 30 Mar 2015