The Contemporary Issues in Financial Accounting segment is an elective segment offered in the CPA Program.
Contemporary Issues in Financial Accounting addresses contemporary financial accounting areas and issues. The objective of this segment is to provide candidates with a working knowledge of the current and emerging financial reporting issues in a globalised environment. The focus is on a broad range of resources, which incorporates accounting standards and literature from both Australia and other jurisdictions. The unifying theme throughout the segment is measurement.
The content of the Contemporary Issues in Financial Accounting segment covers the following areas:
Module 1: Accounting measurement
measurement in accounting
the nature of measurement in accounting
why accounting measurement is problematic
choosing the appropriate measurement attribute
measurement perspectives
measurement at initial recognition vs. subsequent to initial recognition
market vs subsequent to measurement objectives
fair value and present value
fair value
fair value and transaction based models: tensions is present practice
present value
attitudes towards measurement
present value measurement: the ideal
net market value: the ideal and only attribute
fair value preferred with current market value or present value as an acceptable surrogate
fair value and financial instruments
value to the owner / deprival value
capital maintenance
measuring profit
capital maintenance concepts and net asset measurement bases
financial capital
operating capability
Module 2: Financial performance reporting
current approach to performance reporting
importance of performance measurement
measurement of financial performance
performance reporting research
matrix format for performance reporting
IAAER research program
Module 3: Revenue
conceptual issues
nature of revenue
definition of revenue
recognition of revenue
measurement of revenue
IAS 18 Revenue
scope and definition
measurement of revenue
recognition
disclosure
industry specific issues
construction contracts
technology companies (software)
real estate
financial services
current issues and future directions
introduction
multiple element/delivery contracts
barter transactions
bill and hold sales
goods sold subject to conditions
instalment sales
sale and leaseback
membership fees
franchise fees
customer loyalty programs
emerging issues and future developments
Module 4: Provisions, contingent liabilities and contingent assets
background to the regulation
background and conceptual development
provisions
recognition of provisions
measurement of provisions
specific applications
restructuring
accounting for decommissioning, restoration and similar liabilities
subsequent measurement
IFRIC 1 Changes in existing decommissioning, restoration and similar liabilities
contingent liabilities and contingent assets
overview of requirements
contingent assets
contingent liabilities
recognition of contingent liabilities in a business combination
exclusions from the application of IAS 37
future developments
exposure draft of proposed amendments to IAS 37
Module 5: Leases
overview of lease accounting
importance of lease accounting
major lease accounting pronouncements
IASB / FASB joint leasing project
lease definition and scope issues
what is a lease
scope
application to other right to use arrangements
recognition and classification issues
recognition and classification models
right of use mode
IAS 17 Leases
timing of recogniton
measurement and disclosure issues
accounting for finance leases by lessees
accounting for finance leases by lessors
operating leases
Module 6: Corporate social responsibility reporting
corporate social responsibility reporting
financial accounting and reporting
social accounting and reporting
environmental accounting and reporting
incentives for triple bottom line reporting
costs and benefits of reporting the triple bottom line
the issues for accountants
corporate social responsibility and the conceptual framework
applying accounting definitions to corporate responsibility disclosure
reporting problems
ethical issue
responding to the issues
the global reporting initiative
available techniques: a brief overview
Module 7: Differential reporting
different reporting for different entities
background
diverse bases for differential reporting
size-based criteria for differential reporting
sector-based criteria for differential reporting
reporting for small to medium-sized entities (SMEs)
SME definition and implications
public accountability in the Australian context
proposed reporting requirements for SMEs
financial reporting issues for private sector not-for-profit entities
background
definition
financial reporting
possible future directions in differential reporting
Module 8: Public sector accounting
introduction to public sector reporting
background information
what information should be reported by a public sector entity?
concept of control: government reporting entities
economic entities in the public sector
control concepts at the government reporting entity level
dissimilar activities
administered items
trust funds
impact of international accounting standards
budget of whole-of-government reporting
government finance statistics (GFS)
differences between Australian Accounting Standards and GFS
scope of the reporting entity
harmonisation with GFS
quality and comparability across Australia
public sector assets
What is a public sector assets?
control of assets
measurement of assets
application of fair value to the public sector
cultural, heritage and community collection assets
land under roads
depreciation, capital and maintenance
impact of International Accounting Standards (IASs)
private sector provision of public infrastructure
accounting standards for service concession arrangements
measurement issues
disclosure requirements
impact of IASs
accounting for contributions
reciprocal or non-reciprocal transfers
contributions other than contributions by owners
contributions by owners / distributors to owners
impact of IASs public sector
the future of public sector accounting
public and private sector accounting standard setting in Australia
