Financial Accounting and Reporting

1.1 Describe the regulatory environment for financial reporting in Australia and the reasons for accounting and reporting requirements
1.2 Discuss the main types of business entity and explain the reasons for selecting each structure
1.3 Identify different types of accounting regulation, including laws, Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards
1.4 Explain how the requirements of users, together with social and environmental developments, impact the underlying principles and requirements of financial reporting and the desire to establish a single set of international accounting standards
1.5 Describe the role of the International Accounting Standards Board in developing a regulatory framework and explain how new policies and standards are established
1.6 Identify the purpose of a conceptual framework and the key characteristics in the GAAP and apply this knowledge to define and recognise the different elements of the financial statements
1.7 Describe and demonstrate the role of accounting standards and accounting policies in fairly presenting the financial performance and financial position of an entity

2.1 Compare historical cost accounting with other methods of valuation and explain the difference
2.2 Explain agency and contracting theories and how they relate to accounting policy choice (positive accounting theory)
2.3 Apply the recognition criteria for the elements of the financial statements according to the conceptual framework (normative theory)

3.1 Prepare and present the statement of profit or loss and other comprehensive income with appropriate disclosure in accordance with relevant accounting standards and policies
3.2 Prepare and present the statement of financial position with appropriate disclosure in accordance with relevant accounting standards and policies
3.3 Prepare and present the statement of cash flows in accordance with relevant accounting standards and policies
3.4 Demonstrate the ability to detect, investigate and correct discrepancies or particular items and events while matching the financial statements to supporting documentation

4.1 Calculate the carrying amounts of different classes of intangible assets and prepare the relevant journal entries
4.2 Interpret contracts to determine the amount and timing of revenue to be recognised in the financial statements and reconcile the differences between ledgers if necessary
4.3 Calculate current and deferred income tax and prepare the relevant journal entries to record the tax effect in the financial statements
4.4 Calculate and account for foreign currency transactions at transaction date and subsequent dates
4.5 Translate financial statements from a functional currency to a presentation currency

5.1 Discuss the accounting issues for various forms of business combinations
5.2 Explain how goodwill is measured and disclosed at the date of acquisition and prepare the relevant journal entries
5.3 Explain how goodwill is measured and impaired subsequent to acquisition and prepare the relevant journal entries
5.4 Discuss the concept of control and calculate the non-controlling interest share of equity
5.5 Prepare consolidated statements of financial position, including the entries for goodwill and non-controlling interests
5.6 Prepare consolidated statements of profit or loss and other comprehensive income, including the entries for non-controlling interests and intra-group transactions

6.1 Calculate, analyse and interpret financial ratios and their interrelationship in the financial statements
6.2 Explain the limitations of financial statement analysis