ACCA paperF3.docx

1、ACCA paperF3ACCA paperF3 Part A The context and purpose of financial reportingChapter 1 Introduction to accounting 1 The purpose of financial reporting 1.1 What is financial reporting?2 Types of business entity 2.1 What is a business 2.2 Types of business entity 2.3 Advantages of trading as a limite

2、d liability 2.4 Disadvantages of trading as a limited liability company3 Nature, principles and scope of financial reporting 3.1 Financial accounting 3.2 Management accounting 4 Users and stakeholders needs 4.1 The need for financial statements 4.2 Users of financial statements and accounting inform

3、ation 4.3 Needs of different users 5 The main elements of financial reports 5.1 Statement of financial position 5.1.1 Assets5.1.2 Liabilities5.1.3 Capital or equity5.1.4 Form of statement of financial position 5.2 Income statement5.1.1 Revenue and expenses5.1.2 Form of income statement 5.3 Purpose o

4、f financial statementsChapter2 The regulatory framework 1 The regulatory system 1.1 Introduction 1.2 Nation/local legislation 1.3 Accounting concepts and individual judgement 1.4 Accounting standards 1.4.1 International Financial Reporting Standards and the IASB 1.4.2 Standards Advisory Council (SAC

5、) 1.4.3 International Financial Reporting Interpretations Committee (IFRIC) 1.4.4 The International Accounting Standards Committee Foundation (IASCF) 1.4.5 The use and application of IASs and IFRSs 1.4.6 Benchmark and allowed alternatives 1.5 Generally Accepted Accounting Practice (GAAP) 1.6 Fair pr

6、esentation 1.6.1 Fair presentation override 2 The International Accounting Standards Board (IASB) 2.1 International harmonization 2.2 Current position of the IASB 3 International Financial Reporting Standards (IFRSs) and International Accounting Standards (IASs) 3.1 Standard setting process3.1.1 Cur

7、rent IASs/IFRSs 3.2 Interpretation of IASs/IFRSs-IFRIC 3.3 Scope and application of IASs and IFRSs3.3.1 Scope3.3.2 Application 3.4 Worldwide effect of international standards and IASB 3.5 Accounting standards and choicePart B The qualitative characteristics of financial information and the fundament

8、al bases of accountingChapter 3 Accounting conventions 1 Background 2 IAS 1 Presentation of financial statements 2.1 Objectives and scope 2.2 Purpose of financial statements 2.3 Fair presentation and compliance with IASs/IFRSs 2.4 Accounting policies 2.5 Going concern 2.6 Example: Going concern 2.7

9、Accruals basis of accounting 2.8 Example: Accrual 2.9 Consistency of presentation 2.10 Materiality and aggregation 2.11 Offsetting 2.12 Comparative information 2.13 Prudence 2.14 Example: Prudence 2.15 Substance over form 2.16 Presentation of accounting policies 3 The IASBs Framework 3.1 Preface 3.2

10、 Introduction 3.2.1 Purpose and status 3.2.2 Scope 3.2.3 Users and their information needs 3.3 The objective of financial statements 3.3.1 Financial position, performance and changes in financial position 3.4 Underlying assumptions 3.5 Qualitative characteristics of financial statements 3.6 Understa

11、ndability 3.7 Relevance 3.8 Reliability 3.9 Faithful representation 3.10 Substance over form 3.11 Neutrality 3.12 Prudence 3.13 Completeness 3.14 Comparability 3.15 Constraints on relevant and reliable information 3.15.1 Timeliness 3.15.2 Balance between benefits and cost 3.15.3 Balance between qual

12、itative characteristics 3.16 The elements of financial statements 3.17 Recognition of the elements of financial statements 3.18 Measurement of the element of financial statements 3.19 Concepts of capital and capital maintenance 4 Criticisms of accounting conventions 4.1 Criticisms of the prudence co

13、ncept 4.2 Criticisms of the accruals assumption 5 Bases of valuation 5.1 Historical cost 5.2 Replacement cost 5.3 Net realizable value 5.4 Economic value 5.5 Advantages and disadvantages of historical cost accounting 5.5.1 Non-current asset values are unrealistic 5.5.2 Depreciation is inadequate to

14、finance the replacement of non-current assets 5.5.3 Holding gains on inventories are included in profits 5.5.4 Profits (or loss) on holding of net monetary items are not shown 5.5.5 The true effect of inflation on capital maintenance is not shown 5.5.6 Comparisons over time are unrealistic 6 IAS 8 A

15、ccounting policies, changes in accounting estimates and errors 6.1 Definitions 6.2 Changes in accounting policies 6.2.1 Adoption of an IFRS 6.2.2 Other changes in accounting policy:Part C The use of double entry and accounting systemsChapter 4 Sources, records and books of prime entry 1 The role of

16、source documents 1.1 Types of source documents 1.2 Invoices 1.2.1 What does an invoice show? 1.2.2 Uses of multi-part invoices 1.3 The credit note 1.4 Other documents 2 The need for books of prime entry 3 Sales and purchase day books 3.1 The sales day book 3.2 The purchase day book 3.3 The sales ret

17、urns day book 3.4 The purchase returns day book 4 Cash book 4.1 The cash book 4.2 Example: Cash book 4.3 Bank statements 5 Petty cash 5.1 What is petty cash? 5.2 Security 5.2.1 Authorization 5.2.2 Evidence 5.3 The petty cash book 5.4 Imprest system 5.5 Example: petty cash and the imprest systemChapt

18、er 5 Ledger accounts and double entry 1 Why do we need ledger accounts? 2 The nominal ledger 2.1 The format of a ledger account 3 The accounting equation 3.1 Example: The accounting equation 3.2 Example continued 3.3 Profit introduced into the accounting equation 3.4 Drawings 3.5 Example continued 3

19、.6 Payables and receivables 3.6.1 Trade accounts payable and trade accounts receivable 3.6.2 Example continued 3.7 Matching 4 Double entry bookkeeping 4.1 Dual effect (duality concept) 4.2 The rules of double entry bookkeeping 4.3 Example: Double entry for cash transactions 4.4 Credit transactions 4

20、.5 Example: Credit transactions 4.5.1 When cash is paid to suppliers or by customers 5 The journal 5.1 Examples: Journal entries 5.2 The correction of errors 6 Day book analysis 6.1 Sales day book 6.2 Sales returns day book 6.3 Purchase day book and purchase returns day book 6.3.1 Purchases 6.3.2 Pu

21、rchase returns 7 The imprest systems 8 The receivables and payables ledgers 8.1 Impersonal accounts and personal accounts 8.2 The receivables ledger 8.3 The payables ledgerChapter 6 From trial balance to financial statements 1 The trial balance 1.1 The first step 1.2 Balancing ledger accounts 1.3 Co

22、llecting the balances 1.4 What if the trial balance shows unequal debit and credit balances? 1.5 Example: Trial balance 2 The income statement 3 The statement of financial position 4 Balancing accounts and preparing financial statementsPart D Recording transactions and eventsChapter 7 Sales tax 1 Th

23、e nature of sales tax and how it is collected 1.1 How is sales tax levied? 1.2 Example 1.3 Input and output sales tax 1.4 Irrecoverable sales tax 2 Accounting for sales tax 2.1 Income statement 2.2 Sales tax in the cash book, sales day book and purchase day book 2.3 Payable for sales taxChapter 8 In

24、ventory 1 Cost of goods sold 1.1 Unsold goods in inventory at the end of an accounting period 1.2 Example: Closing inventory 1.3 Example continued 1.4 The cost of goods sold 1.5 Example: Cost of goods sold and variations in inventory levels 1.6 The cost of carriage inwards and outwards 1.7 Example:

25、Carriage inwards and carriage outwards 1.8 Goods written off or written down 1.9 Example: Inventories written off and written down 2 Accounting for opening and closing inventories 2.1 Recap 2.2 Ledger accounting for inventories3 Counting inventories 4 Valuing inventories 4.1 The basic rule 4.2 Apply

26、ing the basic valuation rule 4.3 Determining the purchase cost 4.4 FIFO (first in, first out) 4.5 AVCO (average cost) 4.6 Inventory valuations and profit 4.7 Example: Inventory valuations and profit 5 IAS 2 Inventories 5.1 Scope 5.2 Definitions 5.3 Measurement of inventories 5.4 Cost of inventories

27、5.4.1 Costs of purchase 5.4.2 Costs of conversion 5.4.3 Other costs 5.4.4 Techniques for measurement of cost 5.5 Cost formulas 5.6 Net realizable value (NRV) 5.7 Recognition as an expenseChapter 9 Tangible non-current assets 1 Capital and revenue expenditure1.1 Capital income and revenue income 1.2

28、Capital transactions 1.3 Why is the distinction between capital and revenue items important? 2 Depreciation accounting 2.1 Depreciation 2.2 Useful life 2.3 Residual value 2.4 Depreciation methods 2.5 Disclosure 2.6 What is depreciation? 3 Depreciation: the mechanics 3.1 Methods of depreciation 3.2 T

29、he straight line method 3.3 Example: Straight line depreciation 3.4 Assets acquired in the middle of an accounting period 3.5 Example: Assets acquired in the middle of an accounting period 3.6 The reducing balance method 3.7 Applying a depreciation method consistently 3.8 Charge in the middle of dep

30、reciation 3.9 Example: Change in method of depreciation 3.10 A fall in the value of a non-current asset 3.11 Example: Fall in asset value 3.12 Change in expected useful life or residual value of an asset 3.13 Depreciation is not a cash expense 3.14 Accumulated depreciation 3.15 Example: Depreciation

31、 3.16 Example: Allowance for the depreciation with assets acquired part-way through the year 4 Revaluation of non-current assets 4.1 Example: The revaluation of non-current assets 4.2 Accounting entries 4.3 Depreciation on revalued assets 4.4 Revaluation downwards 5 Non-current asset disposals 5.1 The disposal of non-current assets 5.2 The principles behind calculating the period or loss on disposal 5.3 Example: Disposal o