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CPA Australia Financial-Accounting-and-Reporting Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Application of specific accounting standards | 22% | - Current and deferred income tax accounting - Intangible assets and journal entries - Revenue recognition and ledger reconciliation - Foreign currency transactions and translation |
| Topic 2: Business combinations | 13% | - Non-controlling interest and control concepts - Consolidated financial statements - Accounting issues for business combinations - Impairment and journal entries - Goodwill measurement and disclosure |
| Topic 3: Analysis of financial statements | 10% | - Limitations of financial statement analysis - Financial ratio calculation and interpretation |
| Topic 4: The accounting theory | 15% | - Historical cost vs other valuation methods - Agency and contracting theories - Recognition criteria per conceptual framework |
| Topic 5: Financial statements | 15% | - Discrepancy detection and correction - Statement of cash flows - Statement of profit or loss and other comprehensive income - Statement of financial position |
| Topic 6: The financial reporting environment | 25% | - Types of business entity and structure - Accounting standards and policies - Conceptual framework and elements of financial statements - Users and developments impacting reporting - Regulatory environment and reporting requirements - Accounting regulation and GAAP/IFRS - Role of International Accounting Standards Board |
CPA Australia CPA Financial Accounting and Reporting Sample Questions:
1. The accounting policies used by companies must result in financial reports that are
A) comparable with previous years' reports.
B) independently audited.
C) signed by the CEO or equivalent.
D) easy to read.
2. In a stock market that displays strong efficiency, share prices reflect all available
A) information about past changes in share prices.
B) public and inside information.
C) public information.
D) information about future expansion plans.
3. In the context of a regulatory framework, a principles-based system
A) attempts to cover specific eventualities.
B) is a rule-driven approach.
C) provides a theoretical basis with broad terms of reference.
D) removes any element of judgement by providing clear requirements.
4. JK Ltd intentionally over-valued its closing inventories to increase profitability for the year 20X8. This would help them to better price a planned share issue in 20X9. By doing this they have breached the concept of
A) completeness.
B) neutrality.
C) understandability.
D) substance over form.
5. The International Accounting Standards Board's Conceptual Framework for Financial Reporting for the preparation and presentation of financial statements is concerned with the information needs of most users, but not for each possible user.
Which one of the following stakeholders would not be one of the users that the Conceptual Framework is concerned about?
A) potential investors in the company
B) governments and regulatory bodies
C) a company's executive management
D) members of the public who have small investment holdings in the company
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: C |
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