CPA Section 3 – Financial Reporting (KASNEB)

About Course

This unit is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to prepare financial statements for various entities and account for specialised transactions in both the public and private sectors

A candidate who passes this paper should be able to:
 Account for various assets and liabilities
 Prepare financial statements including published financial statements for various types of organisations
 Account for specialised transactions
 Prepare group financial statements
 Analyze and interpret financial statements
 Apply International Financial Reporting Standards (IFRSs) and International Public Sector Accounting Standards (IPSASs) in preparing non-complex financial statements

Course Content

Assets of Financial Statements
Assets of financial statements

Assets and liabilities covered in Paper No. 1: Financial Accounting still examinable (in the context of published financial statements)
Inventories
Borrowing costs
Investment property
Financial Instruments (presentation, recognition, classes, measurement, de-recognition and disclosures) (excluding impairment, hedging and embedded derivatives)
Leases (all aspects including dealers and sale and leaseback)

Liabilities of Financial Statements
Liabilities of financial statements

Further Aspects of Partnerships
Further aspects of partnerships

Special Transactions
special transactions

Financial Statements for Various Types of Businesses
Financial statements for various types of businesses

Published Financial Statements
Published financial statements

Consolidated Financial Statements
Consolidated financial statements

Financial Statements Under IPSASs
Financial statements under IPSASs

Presentation of financial statements
Accounting policies, changes in accounting estimates and errors
Borrowing costs
Consolidated and separate financial statements
Investments in associates
Interests in joint ventures
Events after the reporting date
Construction contracts, leases and inventories
Provisions, contingent liabilities and contingent assets

CPA Section 3 – Financial Reporting (KASNEB)

About Course

What Will You Learn?

Course Content

Assets of Financial Statements Assets of financial statements

Assets and liabilities covered in Paper No. 1: Financial Accounting still examinable (in the context of published financial statements)

Inventories

Borrowing costs

Investment property

Financial Instruments (presentation, recognition, classes, measurement, de-recognition and disclosures) (excluding impairment, hedging and embedded derivatives)

Leases (all aspects including dealers and sale and leaseback)

Liabilities of Financial Statements Liabilities of financial statements

Employee Benefits

Provisions, contingent liabilities and contingent assets

Income tax (current and deferred tax but not deferred tax in the case of groups)

events after reporting date

Further Aspects of Partnerships Further aspects of partnerships

Dissolutions (including piece-meal)

Amalgamation Conversion and sale of partnership firms 9.4 Special transactions

Special Transactions special transactions

Government grants

Revenue recognition

Contracts with customers

Hire purchase and installment sales transactions (split of hire purchase profit into interest and gross profit and using actuarial method and sum of digits to account for interest); sale of goods, construction contracts and real estate, provision of services

Financial Statements for Various Types of Businesses Financial statements for various types of businesses

Inventory and biological assets in agriculture

Insurance

Banks

Professional firms (lawyers and accountants)

Accounting for branches including foreign branches

Co-operative societies

Published Financial Statements Published financial statements

Presentation of financial statements (income statement, statement of comprehensive incomes, statement of changes in equity, statement of financial position and the notes to financial statements)

Accounting policies, changes in accounting estimates and errors (prior period errors)

Fair value measurement

Consolidated Financial Statements Consolidated financial statements

Investments in associates and joint ventures

Financial Statements Under IPSASs Financial statements under IPSASs

Presentation of financial statements

Accounting policies, changes in accounting estimates and errors

Borrowing costs

Consolidated and separate financial statements

Investments in associates

Interests in joint ventures

Events after the reporting date

Construction contracts, leases and inventories