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The most important are FA syllabus areas:
B1a – key principles and concepts – going concern, accrual basis, materiality, etc
C – double entry
D – recording transactions and events
E – reconciliations
E1 – trial balance
All the above are part of how transactions and events get to be recorded in the financial statementsThen:
G – preparing the financial statements – SoFP, SOPL & OCI including events after the reporting period (IAS 10)You don’t need to bother about suspense accounts (F3), statements of cash flows (G5), consolidated financial statements (H) or interpretation (I) – however, you need to be able to calculate ratios (H2) which is a topic that comes up in MA, PM, FR, FM …. SBR …. so they’re useful throughout the qualification.
You don ‘t have to learn IFRS Standards (they don’t have to be quoted in exam answers) but you need to know the main provisions that affect financial statements and therefore the RISK of material misstatement:
IAS 1 – obviously
IAS 2 – lower of cost and NRV
IAS 10 – adjusting (adjust FS) v non-adjusting (disclose in notes to FS)
IAS 16 – components of cost, depreciate everything except land, how to account for a revaluation
IAS 37 – provisions are liabilities (recognise in SoFP), contingent liabilities (disclose in notes if less than probable), contingent assets (disclose if probable) – see page 118 of the notes for full summary
IAS 38 – specific recognition criteria for internally generated assets, some things can never be recognised as an asset (e.g. own brands, training costs)_
IFRS 15 – e.g. when to recognise revenue (timing has implication for “cut-off” assertion)The other examinable docs for FA are not relevant because group audits and the cash flows statement are not examinable topics in AA.
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