Get access to latest and updated syllabus of PIPFA Level 3 Financial Accounting now. Here you will find detailed course content or Syllabus of PIPFA Level 3 Financial Accounting for upcoming attempt.
Unfortunately, PIPFA does not publish it’s own study text. But you need not to worry as you can use study texts of ICAP and/or ICMAP. You will have the advantage on other students. The reason being ICAP and ICMAP study texts are comparatively more difficult than the books recommended by PIPFA examination body.
Syllabus GRID:
Here is the grid for syllabus of PIPFA Level 3 Financial Accounting.
| GRID | WEIGHTAGE |
| Preparation of Financial Statements of limited liability companies in accordance with IFRSand Companies Act, 2017 | 25 – 35 |
| Accounting for Inventories and Property, Plant and Equipment and Provisions, Contingent Liabilities and Contingent Assets (IAS 37) | 20 – 35 |
| Revenue Recognition (IFRS 15) & Event Occurring after balance sheet (IAS 10), Related party transactions (*IAS 24) | 20 – 30 |
| Partnership Accounts | 20 – 25 |
| Total | 100 |
Course Outline:
The course outline for syllabus of PIPFA Level 3 Financial Accounting for upcoming attempt gives an overview of the course .The detailed Syllabus of PIPFA Level 3 Financial Accounting for upcoming attempt is given below the course outline section.
Preparation of Financial Statements in accordance with IFRS:
- Statement of financial position under IAS 1
- Statement of comprehensive income (IAS 1)
- Statement of cash flows (IAS 7) using direct and indirect method
- Analysis of Cash flow and working Capital-New Addition Ration Analysis, Trend Analysis and Cash Flow Analysis-New Addition
Accounting for Inventories (IAS 2):
- Periodic and perpetual inventory systems and the difference between the accounting entries under the two systems.
- Cost of inventories including cost of conversion
- Net Realizable Value
- Presentation of inventories and the related disclosures as per IAS 2
Accounting for Property, Plant and Equipment (IAS 16)
- Initial measurement of property, plant and equipment (components of cost, determining cost in case of exchange of assets)
- Revaluation of property, plant and equipment (basic principles, accounting entries for revaluation, impairment and depreciation after revaluation)
- Disposal (de-recognition) of fixed assets (under cost as well as revaluation method)
- Disclosure requirements as per IAS 16
Provisions, Contingent Liabilities and Contingent Assets (IAS 37):
Revenue from contracts with customers (IFRS-15):
Excluding
- Variable Consideration
- Contingent Consideration
- Rebate & Discounts
- Loyalty Program & Schemes
- Cost associated with obtaining and completing contracts
Event Occurring after balance sheet, (IAS 10):
Related party transactions (IAS 24):
Partnership Accounts:
- Partners’ capital and current accounts
- Allocation of profit and loss and preparation of income statement and balance sheet
- Admission and retirement (death) of partners
- Computation and recording of goodwill
- Amalgamation and dissolution
Detailed Syllabus Contents:
The detailed Syllabus of PIPFA Level 3 Financial Accounting for upcoming attempt is given below.
Preparation of Financial Statements in accordance with IFRS:
- Prepare simple statement of financial position in accordance with the guidance in IAS 1 from data and information provided.
- Prepare simple statement of comprehensive income in accordance with the guidance in IAS 1 from data and information provided.
- Demonstrate thorough understanding of cash and cash equivalents, operating, investing and financing activities
- Calculate changes in working capital to be included in the operating activities
- Compute items which are presented on the statement of cash flows
- Prepare a statement of cash flows of a limited company in accordance with IAS 7 using the indirect method.
Accounting for Inventories (IAS 2):
- Understand and analyze the difference between perpetual and periodic inventory systems
- Understand and analyze the difference between FIFO and weighted average cost formulas and use them to estimate the cost of inventory
- Account for the application of cost formulas ( FIFO/ weighted average cost) on perpetual and periodic inventory system
- Identify the impact of inventory valuation methods on profit.
- Calculate cost of inventory in accordance with IAS-2 using data provided including cost of purchase, cost of conversions, and other costs
- Identify relevant and irrelevant cost from data provided.
- Describe Net Realizable Value (NRV)
- Explain the situation when the cost of inventories may not be recoverable
- Demonstrate the steps in measuring inventory at lower of cost or NRV
- Post journal entries for adjustments in carrying value (excluding reversal of write downs)
- Understand the disclosure requirements and prepare extracts of necessary disclosures (excluding pledged inventories and reversal of write downs).
- Accounting for Property, Plant and Equipment (IAS 16)
- Calculate the cost on initial recognition of property, plant and equipment in accordance with IAS-16 including different elements of cost and the measurement of cost
- Analyze subsequent expenditure that may be capitalized, distinguishing between capital and revenue items.
- Present property, plant and equipment after recognition under cost model and revaluation model using data and information provided.
- Account for de-recognition of property, plant and equipment recognized earlier under cost and revaluation methods
- Post journal entries to account for de-recognition using data provided.
Provisions, Contingent Liabilities and Contingent Assets (IAS 37):
- Identify the requirement of a provision, contingent liability and contingent asset.
- Determine when to recognize a provision and how to measure it.
- Determine when and how a contingent item should be disclosed.
Revenue from contracts with customers (IFRS-15):
- Identify the fundamental concepts related to revenue recognition and measurement.
- Apply the five-step revenue recognition process.
- Apply the five-step process to major revenue recognition issues.
- Identify presentation and disclosure requirements regarding revenue
Event Occurring after balance sheet, (IAS 10)
- Identify the types of events
- Explain the accounting treatment and disclosure requirements
Related party transactions (IAS 24):
- Defining related parties and related parties transactions
- Explaining the disclosure required under IAS 24
Partnership Accounts:
- Make journal entries in the case of the dissolution of a partnership to record:
• Transfer and sale of assets and liabilities to third parties and partners
• Payment of realization expenses closing of the realization account; and settlement of partners’ capital account.
Focus
syllabus of PIPFA Level 3 Financial Accounting syllabus of PIPFA Level 3 Financial Accounting syllabus of PIPFA Level 3 Financial Accounting syllabus of PIPFA Level 3 Financial Accounting syllabus of PIPFA Level 3 Financial Accounting