Technical articles and topic explainers

A library of articles and bite-sized videos to help you improve your understanding of areas you find more difficult, or develop broader insight into the subject.

Discuss and apply a conceptual and regulatory frameworks for financial reporting (A)

Extreme makeover – IASB edition

The International Accounting Standards Board has now published a new version of the Conceptual Framework, and this article considers some of the more significant changes to the Conceptual Framework that the Board has made.

Account for transactions in accordance with International IFRS Standards (B)

IFRS® 5, Non-current Assets Held for Sale and Discontinued Operations
This article specifically addresses discontinued operations. The identification of and, more importantly, presentation of a discontinued operation is an area where candidates struggle in exam questions. 

Intangible assets – can’t touch this 
(listen to the podcast)
IAS® 38, Intangible Assets is one of the key standards in the FR exam, covering how companies should account for intangible assets. This standard can be examined in all sections of the exam. A well-prepared candidate needs to be able to understand and explain the key principles of the standard, in addition to preparing calculations.

IFRS 15 – Contract Assets and Contract Liabilities
Application of IFRS® 15, Revenue from Contracts with Customers became mandatory for annual reporting periods beginning on or after 1 January 2018. For many entities, the introduction of IFRS 15 has had little effect on how revenue is accounted for. However, some industry sectors have felt a much greater impact. 

Financial instruments
International Financial Reporting Standard (IFRS®) 9, Financial Instruments, is a complex standard, especially for users and preparers of financial statements. It is relevant to the Financial Reporting syllabus, so this article takes a high-level review of its application to financial assets, financial liabilities, and convertibles.

IAS 37 – Provisions, contingent liabilities and contingent assets
This article considers the aims of the IAS® 37, followed by the key specific criteria which must be met for a provision to be recognised. Finally, it will examine some specific issues which are often assessed in relation to the standard.

IFRS 16, Leases
The purpose of this article is to summarise the key changes introduced by IFRS 16 from the perspective of the lessee and how these impact on the Financial Reporting exam.

Revenue revisited
This article considers the application of IFRS 15, Revenue from Contracts with Customers using the five-step model.

Deferred tax
Deferred tax is a topic that is regularly tested in Financial Reporting (FR) and is often tested in further detail in Strategic Business Reporting (SBR). This article will consider the aspects of deferred tax that are relevant to FR.

Property, plant and equipment – part 1: Measurement and depreciation
In the first of three articles, we look at the main features of IAS 16, Property, Plant and Equipment (PPE).

Property, plant and equipment – part 2: Revaluation and derecognition
In the second of three articles, we consider revaluation of property, plant and equipment and its derecognition.

Property, plant and equipment – part 3: Summary and detailed examples
The final part of three articles summarises some of the key issues outlined in the previous two articles and provide further examples for you to attempt, including some more detailed requirements.

Accounting for goodwill
Accounting for goodwill is a key part of business combinations and is therefore regularly examined as part of the FR exam. (Covers B & D)

Topic explainer video: Financial instruments
In this video, expert tutor Cara Barrett tackles the topic of 'Financial Instruments' (YouTube).

Topic explainer video: Deferred tax
In this video, expert tutor Fatima Omarjee unpacks the topic of 'Deferred tax' (YouTube).

Topic explainer video: Revenue from contracts with customers
In this video, expert tutor Fatima Omarjee unpacks the topic of 'Revenue from contracts with customers' (YouTube).

Topic explainer video: Leases
In this video, expert tutor Cara Barett unpacks the topic of 'Leases' (YouTube).

Topic explainer video: Recognition and measurement
In this video, expert tutor Aleena Kareem unpacks the topic of 'Recognition and measurement' (YouTube).

Topic explainer video: Impairment of assets
In this video, expert tutor Fatima Omarjee unpacks the topic of 'Impairment of assets ' (YouTube).

Analyse and interpret financial statements (C)

Analysing a statement of cash flows
A key part of the Financial Reporting exam is the ability to analyse a set of financial statements. The statement of cash flows is one of the primary financial statements, and Financial Reporting candidates must be able to explain the performance of an entity based on all of the financial statements including the cash flows given.

Tell me a story
This article looks at what the Financial Reporting exam is looking for in the answer to an interpretation question, along with the key weaknesses that are consistently noted in candidate answers. It then examines some of the different types of scenario that candidates might face in the exam, and some key recommendations of items to consider for each.

How to improve your answer to FR interpretation exam questions
This article contains useful advice to help improve your answers to analysis questions whether in the context of a group or a single entity.

Topic explainer video: Analysis and interpretation
In this video, expert tutor Cara Barrett unpacks the topic of 'Analysis and interpretation' (YouTube).

Prepare and present financial statements for single entities and business combinations in accordance with International IFRS Standards (D)

Watch your step
The preparation of consolidated financial statements can be an area where candidates either perform very well or make simple mistakes, which could prove costly in the exam. This article looks at the most common errors made. 

The use of fair values in the goodwill calculation
A central part of the Financial Reporting syllabus is accounting for the acquisition of a subsidiary, which will test the concept of fair value; this is the value that the consideration paid for the subsidiary must be recorded. In addition to this, the assets, liabilities and contingent liabilities of the subsidiary must also be consolidated at their fair value. This article considers these values in each element of the calculation.

Accounting for goodwill
Accounting for goodwill is a key part of business combinations and is therefore regularly examined as part of the FR exam. (Covers B & D)

Topic explainer video: Accounting for goodwill - consolidation adjustments
In this video, expert tutor Cara Barrett unpacks the topic of 'Accounting for goodwill - consolidation adjustments' (YouTube).

Topic explainer video: Preparation of single company accounts
In this video, expert tutor Cara Barrett unpacks the preparation of single company accounts (YouTube).

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