ACCA Pakistan Financial Accounting (FA) and Financial Reporting (FR) Syllabus

Financial Accounting (FA) and Financial Reporting (FR) syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Financial Accounting (FA) and Financial Reporting (FR) in ACCA Pakistan, not a summary of it.

1. 1

   The Conceptual and Regulatory Framework

   3 topics

   • The IASB Conceptual Framework
   • Regulatory Framework and IFRS
   • Accounting Concepts and Conventions
2. 2

   Double Entry Bookkeeping and Recording Transactions

   4 topics

   • The Accounting Equation
   • Ledger Accounts and Trial Balance
   • Sales, Purchases and Cash
   • Accruals and Prepayments
3. 3

   Accounting for Assets

   4 topics

   • Property, Plant and Equipment (IAS 16)
   • Intangible Assets (IAS 38)
   • Impairment of Assets (IAS 36)
   • Inventories (IAS 2)
4. 4

   Accounting for Liabilities and Provisions

   3 topics

   • Provisions and Contingencies (IAS 37)
   • Leases (IFRS 16)
   • Taxation (IAS 12)
5. 5

   Revenue and Financial Instruments

   2 topics

   • Revenue from Contracts (IFRS 15)
   • Financial Instruments (IFRS 9)
6. 6

   Preparation of Single Entity Financial Statements

   4 topics

   • Statement of Financial Position
   • Statement of Profit or Loss
   • Statement of Changes in Equity
   • Statement of Cash Flows (IAS 7)
7. 7

   Group Financial Statements

   3 topics

   • Consolidated Statement of Financial Position
   • Consolidated Statement of Profit or Loss
   • Associates and Joint Ventures (IAS 28)
8. 8

   Interpretation of Financial Statements

   2 topics

   • Ratio Analysis
   • Limitations of Ratio Analysis

Financial Accounting (FA) and Financial Reporting (FR) flashcards for ACCA Pakistan

18 of 51 cards from the Financial Accounting (FA) and Financial Reporting (FR) deck — real questions with worked answers.

1. Under the IASB Conceptual Framework, what is the objective of general purpose financial reporting?

   To provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity.

2. What are the two fundamental qualitative characteristics of useful financial information in the IASB Conceptual Framework?

   Relevance (information capable of making a difference to decisions, including materiality) and Faithful representation (complete, neutral and free from error).

3. Name the four enhancing qualitative characteristics in the Conceptual Framework.

   Comparability, Verifiability, Timeliness and Understandability.

4. How does the Conceptual Framework define an asset?

   A present economic resource controlled by the entity as a result of past events, where an economic resource is a right that has the potential to produce economic benefits.

5. How does the Conceptual Framework define a liability?

   A present obligation of the entity to transfer an economic resource as a result of past events.

6. What are the two recognition criteria for an element under the Conceptual Framework?

   The item meets the definition of an element (asset, liability, etc.) and recognising it provides users with relevant information and a faithful representation (subject to cost constraint).

7. What is the difference between the going concern and break-up basis of preparing financial statements?

   Going concern assumes the entity will continue operating for the foreseeable future; the break-up basis is used when the entity intends or needs to liquidate or cease trading, with assets typically measured at net realisable values.

8. List four measurement bases recognised in the Conceptual Framework.

   Historical cost, current value comprising fair value, value in use (assets) / fulfilment value (liabilities), and current cost.

9. What is the purpose of a regulatory framework for financial reporting?

   To ensure financial statements are reliable, comparable and consistent across entities, protecting users by setting required standards, formats and disclosures.

10. Outline the standard-setting due process steps used by the IASB to issue an IFRS Standard.

    Identify/research the issue, publish a Discussion Paper (optional), issue an Exposure Draft for public comment, consider feedback, then issue the final IFRS Standard.

11. What is the difference between the accruals concept and the cash basis of accounting?

    Accruals recognises income and expenses when they are earned or incurred, regardless of cash flow; the cash basis recognises them only when cash is received or paid.

12. What does the prudence concept require in financial reporting?

    The exercise of caution under uncertainty so that assets and income are not overstated and liabilities and expenses are not understated; it supports neutrality.

13. What is the substance over form concept?

    Transactions should be accounted for and presented in accordance with their economic reality (commercial substance) rather than merely their legal form.

14. State the basic accounting equation.

    Assets = Capital (Equity) + Liabilities.

15. State the expanded accounting equation including profit and drawings.

    Assets = (Opening Capital + Capital Introduced + Profit - Drawings) + Liabilities.

16. In double-entry bookkeeping, what is the effect of a debit on assets, expenses, liabilities, income and capital?

    A debit increases assets and expenses, and decreases liabilities, income and capital.

17. What is the purpose of a trial balance?

    To check the arithmetical accuracy of the double-entry bookkeeping by confirming total debits equal total credits, and to provide a basis for preparing the financial statements.

18. Name three types of error that a trial balance will NOT detect.

    Errors of omission, errors of commission, errors of principle, compensating errors, errors of original entry, and complete reversal of entries (any three).

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