Syllabus of CAF Financial Accounting and Reporting 1


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Syllabus of CAF Financial Accounting and Reporting 1

Syllabus GRID

Here is the grid of Syllabus of CAF Financial Accounting and Reporting 1.

Preparation of Financial Statements35-45
Conceptual Framework and Interpretation of Financial Statements20-30
Accounting for Financial Transactions30-40

Course Outline

The course outline gives an overview of Syllabus of CAF Financial Accounting and Reporting 1. The detailed Syllabus of CAF Financial Accounting and Reporting 1 for Spring 2022 attempt is given below.

Preparation of Financial statement:

  • Prepare the statement of changes in equity.
  • Prepare the statement of cash flows.
  • Analyze  the  impact  of  errors  on  the  financial  statements within a reporting period.
  • Apply the principles and concepts of selecting and applying accounting policies, accounting for changes in estimates and reflecting corrections of prior period errors.
  • Compare the usefulness of cash flow information with that of a statement of profit or loss or a statement of profit or loss and other comprehensive income.
  • Prepare financial statements for non-profit organizations.

Conceptual framework and interpretation of financial statements:

  • Apply   and   discuss   the   requirements   of   the   conceptual framework for financial reporting.
  • Calculate  and  interpret  ratios  to  give  an  assessment  of  an entity’s  performance  and  financial  position  with  different benchmarks   and   discuss   window   dressing   of   financial statements to produce the desired effect.
  • Apply the principles and concepts concerning measurement, retrospective  adjustments,  presentation  and  disclosure  of basic and diluted earnings per share.

Accounting for financial transactions:

  • Apply     the     principles    and     concepts     of     recognition, measurement   at   recognition   and   after   recognition   and disposal of property plant and equipment, the determination of their carrying amounts, and the depreciation charges and impairment losses to be recognized in relation to them.
  • Apply  the principles and concepts   of   accounting   and disclosure    of    Government    grants,    other Government assistance and loans granted by the government (subsidized and forgivable).
  • Apply the principles and  concepts of recognition, measurement and disclosure of borrowing costs.
  • Apply the principles  and concepts of carrying assets (other than  cash-generating  unit  and  goodwill)  at  no  more  than their recoverable amount and recognition of impairment loss and reversal thereof.
  • Apply the principles    and     concepts  0f     recognition, measurement, transfer, disposal  and     disclosure  of Investment Property

Detailed syllabus:

The detailed Syllabus of CAF Financial Accounting and Reporting 1 for upcoming attempt is given below.

Accounting and Reporting Concepts:

The conceptual framework of IASB:

  • Overview of the Conceptual Framework of IASB
  • Recognition of elements of the financial statements
  • Measurements of elements of financial statements
  • Concept of capital and capital maintenance

IAS 1: Preparation of Financial Statements:

Statement of changes in equity:

  • Overview
  • IAS 1 Preparation of Financial Statements
  • Purpose and Importance
  • The contents of a statement of changes in equity

IAS 7: Statement of cash flows:


  • Introduction
  • What are cash flows?
  • What cash flow does not indicate
  • Importance of cash flow for business
  • Purpose of statements of cash flows
  • Profit and cash flow
  • Statement of cash flows
  • The sections of a statement of cash flows
  • Cash flows from operating activities
  • Cash flows from investing activities
  • Cash flow from financing activities
  • Gross or net
  • Non-cash transactions


  • Format
  • The indirect method
  • The direct method

Cash flows from operating activities: The indirect method:

  • Profit before taxation
  • Non-cash items
  • Accruals based figures
  • Presentation of interest, taxation and dividends cash flows

Indirect method: Adjustments for working capital:

  • Working capital adjustments: introduction
  • Working capital
  • Changes in trade and other receivables
  • Possible complication: Allowances for doubtful debts
  • Changes in inventory
  • Changes in trade payables
  • Lack of detail

Cash flows from operating activities: The direct method:

  • Cash from sales
  • Cash paid for materials
  • Cash paid for wages and salaries
  • Cash paid for other expenses

Cash flows from investing activities:

  • Cash paid for the purchase of property, plant and equipment
  • Cash from disposals of property, plant and equipment
  • Cash paid for the purchase of investments and cash received from the sale of investments
  • Non-cash purchases

Cash flows from financing activities:

  • Examples of cash flows from financing activities
  • Cash from new share issues
  • Cash from new loans/cash used to repay loans
  • Dividend payments to equity shareholders
  • Financing of a sole proprietor or a partnership

Income and expenditure account:

Not for profit organisations:

  • Introduction
  • Receipt and payment account

Income and expenditure account:

  • Format
  • Subscriptions account
  • Life membership fee
  • Donations
  • Surplus from running an operation
  • Surplus from running an event

Statement of financial position:

  • Format
  • Special funds

Preparation of accounts from incomplete records:

The nature of incomplete records:

  • The meaning of incomplete records
  • Dealing with incomplete records

Techniques for incomplete records:

  • The accounting equation
  • Memorandum control accounts
  • Memorandum cash and bank account
  • Cost structures
  • Missing inventory figure

Introduction to Cost of production:

Accounting for management:

  • Introduction to accounting information
  • Data and information
  • Qualities of good information
  • Purpose of management information

Cost and management accounting versus financial accounting:

  • Purpose and role of cost accounting, management accounting and financial accounting
  • Comparison of financial accounting and cost and management accounting
  • Cost accounting cycle
  • Factory ledger

Introduction to costs:

  • Types of organization
  • Cost classification: Introduction

Cost classification by type and function:

  • Cost classification by type
  • Cost classification by function
  • Production or non-production?
  • Usefulness of classifying costs by function
  • The importance of separating production and non-production costs
  • Reporting profit
  • Preparation of manufacturing account

Fixed and variable costs:

  • Cost behaviour
  •  Fixed costs
  •  Variable costs
  •  Semi-variable costs
  •  Stepped costs

Direct and indirect costs:

  • Introduction
  • Direct costs
  • Indirect costs (overheads)
  • Full cost
  • Journal entries

Product costs and period costs:

  • Production cost and period cost

IAS 16: Property, plant and equipment:


  • Revaluation and the entity’s accounting policy
  • Accounting for revaluation
  • Changing the carrying amount of an asset
  • Depreciation of a revalued asset
  • Realisation of the revaluation surplus
  • The frequency of revaluations

Disclosure requirements:

  • Disclosure requirements of IAS-16

Non-Current Assets: Sundry standards:

IAS 20: Accounting for government grants and disclosure of government assistance:

  • Introduction and definitions
  • Accounting treatment of government grants
  • Repayment of government grants
  • Government assistance
  • Disclosure requirements

IAS 23: Borrowing costs:

  • Introduction
  • Borrowing costs eligible for capitalisation
  • Period of capitalisation
  • Disclosures

IAS 40: Investment property:

  • Definitions
  • Accounting treatment of investment property
  • Why investment properties are treated differently from other properties
  • Transfers and disposals of investment property
  • Disclosure requirements

IAS 36: Impairment of assets:

IAS 36: Impairment of assets:

  • Objective and scope of IAS 36
  • Identifying impairment or possible impairment
  • Measuring recoverable amount
  • Accounting for impairment
  • Summary of the approach

IFRS 15: Revenue from contracts with customers:

IFRS 15: Revenue from contracts with customers:

  • Introduction
  • Core principle and the five step model

IFRS 15: The five step model:

  • Step 1: Identify the contract(s) with a customer
  • Step 2: Identify the separate performance obligations in the contract
  • Step 3: Determine the transaction price
  • Step 4: Allocate the transaction price to the performance obligations
  • Step 5: Recognise revenue when or as an entity satisfies performance obligations

Other aspects of IFRS 15:

  • Contract costs
  • Presentation

Interpretation of financial statements:

Purpose of financial ratio analysis:

  • Obtaining information from the financial statements: financial ratios
  • Uses of ratios
  • Categories of financial ratios
  • Users of the financial statements and their information needs

Return on capital, profitability and asset turnover:

  • Return on capital employed
  • Return on shareholder capital (equity)
  • Return on assets
  • Analysing return: profitability and asset utilisation
  • Profit/sales ratio (and cost/sales ratios)
  • Sales/capital employed ratio
  • Percentage annual growth in sales

Working capital efficiency ratios:

  • Purpose of working capital efficiency ratios
  • Average time to collect (receivables days or days sales outstanding)
  • Average time for holding inventory
  • Average time to pay suppliers
  • Cash operating cycle/working capital cycle
  • Turnover (multiples) ratios

Liquidity ratios:

  • The meaning of liquidity
  • Current ratio
  • Quick ratio or acid test ratio

Debt ratios:

  • Gearing (debt to equity) ratio

Financial Statement Analysis:

  • Overview
  • Horizontal analysis
  • Vertical analysis

Limitations of financial statements and ratio analysis:

  • Limitations of financial statements and ratio analysis

Syllabus of CAF Financial Accounting and Reporting 1 mno.

Syllabus of CAF Financial Accounting and Reporting 1 pqr.

Syllabus of CAF Financial Accounting and Reporting 1 stu.

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Syllabus of CAF Financial Accounting and Reporting 1 yz1.


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