The Financial Reporting and Disclosure segment is an elective segments offered in CPA Program.

Financial Reporting and Disclosure is designed to provide candidates with an advanced knowledge of selected financial reporting standards and to provide the necessary skills for their application.

In various modules within the Financial Reporting and Disclosure segment, it is assumed a specified level of knowledge has been achieved by candidates on completion of their undergraduate degree.

The materials build on this stated assumed knowledge in order for candidates to achieve an advanced level of financial reporting competency.

Candidates must have access to an up-to-date version of the CPA Australia Members' Handbook.

The content of the Financial Reporting and Disclosure segment is as follows:

Module 1: Primary financial statement disclosures

• presentation of financial statements
  • components of financial statements
  • revision of accounting estimates and correction of errors
• statement of comprehensive income
  • presentation of comprehensive income
  • determination of comprehensive income
  • classification and disclosures
• statement of changes in equity
  • disclosure
• statement of financial position (balance sheet)
  • presentation of assets and liabilities
  • classification of assets, liabilities and equity
  • disclosure
• IAS 7 Statements of cash flows
  • information to be disclosed
  • preparation of a cash flow statement using a worksheet
  • consolidated financial statements

Module 2: Accounting for income tax

• background to tax effect accounting
• calculating income tax expense
• deferred tax assets and deferred tax liabilities
• recognition of deffered tax assets and deferred tax liabilities
• assets carried at fair value or revalued amounts
• financial statement presentation and disclosure
• comprehensive example

Module 3: Accounting for financial instruments

• what are financial instruments
  • definition of a financial instruments
  • non-financial assets and liabilities
  • derivative financial instruments
• recognition measurement and derecognition
  • measurement issues: initial and subsequent measurement
  • fair value measurement consideration
  • reclassifications of gains and losses
  • impairment of financial assets
  • hedging
  • hedging instruments and items
  • hedge accounting
  • fair value hedges and cash flow hedges
  • foreign currency denominated liability
  • assessing hedge effectiveness
  • embedded derivatives
  • derecognition of financial assets and liabilities
• presentation issues
  • classification as liabilities or equity
  • compound financial instruments
  • transactions in an entity's own equity instruments
  • classification of interest, dividends, gains and losses
  • set off of a financial asset and a financial liability
• disclosure issues
  • scope and level of disclosure
  • significance of financial instruments for financial position and performance

Module 4: Employee benefits

• overview of recognition issues associated with employee benefit expenses, liabilities, assets and revenues
• short term employee benefits
• long term employee benefits including long service leave and superannuation
• termination benefits
• equity compensation benefits
• accounting for share based remuneration

Module 5: Business combinations and impairment of goodwill

• IFRS 3 Business combinations
  • forms of business combinations
  • the purchase method
  • acquisitions involving an investment in a subsidiary
  • disclosures
  • business combinations and income taxes
• impairment
  • impairment: basic principles
  • levels of recoverable amount assessment
  • identification of CGUs
  • determination of recoverable amount
  • fair value less costs to sell
  • value in use
  • discount rate
  • impairment losses and reversals of impairment losses
  • allocating goodwill to CGUs
  • intangible assets

Module 6: Group, associate and joint venture reporting

• IAS 27 Consolidated and separate financial statements
  • the group
  • preparation of consolidated financial statements
  • disclosure
• IAS 28 Investments in associates
  • identifying associates
  • use of equity method
  • basis of equity method
  • application of the equity method
  • disclosure
• IAS 31 Interests in joint ventures
  • characteristics of a joint venture
  • types of joint venture
  • accounting for jointly controlled operations and jointly controlled assets
  • accounting for jointly controlled entities
  • disclosure requirements

Module 7: Foreign currency translation

• introduction to IAS 21 The effect of changes in foreign exchange rates
• translating foreign currency transactions
• treatment of exchange differences in the absence of hedging
• translating to the presentation currency
• objectives of translation
• the IAS 21 translation method
• addition considerations: translation of foreign operation
• disclosure