Last Updated: Aug 20, 2026
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Role and Regulatory Framework of Financial Reporting | 15% | - Business entities and reporting obligations - Regulatory environment and standards setting - Conceptual framework and qualitative characteristics |
| Topic 2: Presentation of Financial Statements | 15% | - Statement of cash flows and notes - Statement of profit or loss and OCI - Statement of financial position |
| Topic 3: Business Combinations and Group Accounting | 20% | - Business combinations and goodwill - Non-controlling interests - Consolidation principles and procedures |
| Topic 4: Income Taxes | 18% | - Tax effects in financial statements - Current and deferred tax calculation |
| Topic 5: Financial Instruments | 12% | - Classification and measurement - Recognition, derecognition and disclosure |
| Topic 6: Revenue, Provisions and Liabilities | 14% | - Revenue from contracts with customers - Provisions, contingent liabilities and assets |
| Topic 7: Impairment of Assets | 6% | - Impairment testing and recognition - Impairment indicators and recoverable amount |
1. Which one of the following includes social reporting guidelines?
A) Global Reporting Initiative (GRI)
B) Generally Accepted Accounting Principles (GAAP)
C) International Accounting Standards (IAS)
D) International Financial Reporting Standards (IFRS)
2. Which one of these is a disadvantage of a conceptual framework?
A) It increases the chances of political interference in the development of accounting standards.
B) It replaces the established principles.
C) A single framework is not suitable for all users of financial statements.
D) It mandates the formats of various financial statements.
3. Current cost accounting reflects an approach to capital maintenance based on maintaining which one of the following?
A) cost of assets in the business
B) profitability of the business
C) financial capability of the business
D) operating capability of the business
4. The IASB evaluates the merits of adding a potential item to its agenda mainly by reference to the needs of
A) tax agencies.
B) suppliers.
C) regulatory authorities.
D) investors.
5. Which one of the following is a benefit of developing financial reporting standards using a conceptual framework?
A) The interpretation of non-financial information is made easier.
B) The interpretation of financial reporting standards by anybody would be easy.
C) The financial statements based on these standards would be error-free.
D) A financial reporting environment based on standardised principles would be created.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: D |
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