1. 5-1 ACCA F7 Financial Reporting Chen Jie 1204529046@qq.com 北区综合楼 502CPA 中心

2. 5-2 Introduction of paper AIM OF PAPER To develop knowledge and skills in understanding and applying accounting standards and the theoretical framework in the preparation of financial statements of entities, including groups an how to analyze and interpret those financial statements.

3. MAIN CAPABILITIES On successful completion of this paper, students should be able to: A. Discuss and apply a conceptual and regulatory framework for financial reporting B. Accounting for transactions in accordance with international accounting standards C. Analyze and interpret financial statements D. Prepare and present financial statements for single entities and business combinations in accordance with international accounting standards 5-3

4. Linking to other papers Syllabus Copyright © 2007 Pearson Addison-Wesley. All rights reserved.5-4 CL (F4) BA (P3)CR (P2) FR (F7)AA (F8) FA (F3)

5. DETAILED SYLLABUS AND STUDY GUIDE A. Conceptual and regulatory framework for financial reporting 1.The need for a conceptual framework and the characteristics of useful information 2.Recognition and measurement 3.Specialized, not-for-profit, and public sector entities 4. Regulatory framework 5.The concepts and principles of groups and consolidated financial statements 5-5

6. DETAILED SYLLABUS AND STUDY GUIDE B. Accounting for transactions in financial statements 1. Tangible non-current assets 2. Intangible assets 3. Impairment of assets 4. Inventory and biological assets 5. Financial Instruments 6. Leases 7. Provisions and events after the reporting period 8. Taxation 9. Reporting financial performance 10. Revenue 11. Government grants 5-6

7. DETAILED SYLLABUS AND STUDY GUIDE C. Analyzing and interpreting financial statements 1. Limitation of financial statements 2. Calculation and interpretation of accounting ratios and trends to address users’ and stakeholders’ needs 3. Limitations of interpretation techniques 4. Specialized, not-for- profit, and public sector entities 5-7

8. DETAILED SYLLABUS AND STUDY GUIDE D. Preparation of financial statements 1. Preparation of single entity financial statements 2. Preparation of consolidated financial statements including an associated 5-8

9. Exam Format The syllabus is assessed by a three-hour paper based examination. All questions are compulsory. It will contain both MCQ and Cases. Some questions will adopt a scenario/case study approach. 5-9

10. Exam Format 5-10

11. Exam Format

12. Course Design 1.Accounting Standards (Part A) 2.Financial Statements --Single Company financial statement --Consolidate financial statements --Statement of Cash Flow 3. Analyze and interpret financial statements. 4. 1.Accounting Standards (Part B)

13. Accounting Standards (Part A)

14. Good luck! Copyright © 2007 Pearson Addison-Wesley. All rights reserved.5-14