Syllabus of PIPFA Level 3 Financial Accounting

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 of PIPFA Level 3 Financial Accounting

Syllabus GRID:

Here is the grid for syllabus of PIPFA Level 3 Financial Accounting.

GRIDWEIGHTAGE
Preparation of Financial Statements of limited liability companies in accordance with IFRSand Companies Act, 201725 – 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 Accounts20 – 25
Total100

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

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