F7 and P2 2013 INT and UK examinable …

1 1 examinable Documents2013 and June 2014 FINANCIAL REPORTINGThe examinable documents below are applicable tothe International and UK papers as indicated at thestart of each tableKnowledge of new examinable regulations issued by30thSeptember will be required in examinationsessions being held in the following calendar may be examinable even if theeffectivedate is in the documents listed as being examinable are thelatest that wereissuedprior to 30th September2012 and will be examinable in June andDecember 2013 and June 2014 study guide offers more detailed guidance onthe depth and level at which the examinabledocuments will be examined. The study guideshould be read in conjunction with the examinabledocuments TO INTERNATIONAL AND UKTitleF7P2 International Accounting Standards (IASs)/InternationalFinancial Reporting Standards (IFRSs)IAS 1 Presentation of Financial Statements IAS 2 Inventories IAS 7 Statement of Cash Flows IAS 8 Accounting Policies, Changes in Accounting Estimates andErrors IAS 10 Events after the Reporting Period IAS 11 Construction Contracts IAS 12 Income Taxes IAS 16 Property, Plant and Equipment IAS 17 Leases IAS 18 Revenue IAS 19 Employee Benefits IAS 20 Accounting for Government Grants and Disclosure ofGovernment Assistance IAS 21 The Effects of Changes in Foreign Exchange Rates IAS 23 Borrowing Costs IAS 24 Related Party Disclosures IAS 27 Separate Financial Statements IAS 28 Investments in Associates and Joint Ventures IAS 32 Financial Instruments.

2 Presentation IAS 33 Earnings per Share IAS 34 Interim Financial Reporting IAS 36 Impairment of Assets IAS 37 Provisions, Contingent Liabilities and Contingent Assets IAS 38 Intangible Assets IAS 39 Financial Instruments: Recognition and Measurement IAS 40 Investment Property IFRS 1 First-time Adoption of International Financial ReportingStandards IFRS 2 Share-based Payment IFRS 3(revised)Business Combinations 2 IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations IFRS 7 Financial Instruments: Disclosures IFRS 8 Operating Segments IFRS 9 Financial Instruments IFRS 10 Consolidated Financial Statements IFRS 11 Joint Arrangements IFRS 12 Disclosure of interests in Other Entities IFRS 13 Fair Value Measurement IFRS for SMEsIFRS for Small and Medium sized Entities Other StatementsThe Conceptual Framework for Financial Reporting Practice StmtManagement Commentary EDs, Discussion Papers and Other DocumentsED2009/12 Financial Instruments: Amortised Cost and Impairment (incexpected loss approach) ED 2011/06 Revenue from contracts with customers ED 2010/09 Leases DraftIFRS 9 Chapter 6 -Hedge Accounting ED 2012/1 Improvements to IFRSs ED 2011/4 Investment Entities NoteThe accounting of financial assets and financial liabilities is accounted for in accordance withIFRS9 to the extent that this standard was in issue as at 30 September 2012.

3 For any elementsof the study guide deemed as examinable and not covered by IFRS9, these elements should bedealt with by studying examinable FOR UK and IRISH PAPERS ONLYI ndicated below are the main areas of difference between IFRS and UK standards/legislation. Some differencesare examinable in only F7 or P2 UK papers, both or neither UK StdUK differenceDifferenceexaminablein F7?Differenceexaminablein P2?IAS1Co ActDifference in terminologyNoNoFRS3 Disclosure of certain exceptional items on face ofstatement of profit or loss not specified by IAS1although some picked up by IFRS5 YesNoFRS3 Separate presentation of STRGL and statement ofprofit or loss whereas International combinesstatementsNoNoFRS18 Less extensive disclosure requirements forestimation techniquesNoNoIAS2 SSAP9 Slight wording differences which mean that LIFO could be allowable whereas this doesn't appearwithin InternationalNoNoIAS7 FRS1 Format more detailedYesNoFRS1 Cash and cash equivalents more strictly definedYesNo3 FRS1 Exemptions available from preparing cash flowNoYesIAS8 FRS3 Fundamental errors vs.

4 International's materialerrors although broadly similarNoNoIAS10 FRS21No examinable differencesNoNoIAS11 SSAP9 Services fall within scope whereas International thisis addressed by IAS18, although principle broadlythe sameNoNoSSAP9 Disclosure of year end balance split intorecoverable on contracts and long term contractbalancesYesNoIAS12 FRS19 Timing differences rather than temporarydifferencesYesYesFRS19 Permits discountingYesYesFRS19 Revaluation less likely to create deferred taxbalanceYesYesIAS16 FRS15 Revaluation frequency specified by time (every 5years) whereas International solely based onmaterial changes in fair value as frequencyindicatorYesYesFRS15 Different methods of revaluation dependent on theasset typeYesYesFRS15 Treatment of revaluation gains and lossesespecially with reference to clear consumption ofeconomic benefitYesYesIAS17 SSAP2190% test included as part of guidance in leaseclassificationYesYesSSAP21 Encourages land and buildings to be accounted and finance leaseback requires asset to bedisposed with new finance lease created anddisposal profit to be deferred over lease UK rules allow funds to be treated as asecured loan per FRS5 NoYesSSAP21 Operating lease incentives to be spread overshorter of lease term and period of next rent spreads over lease termNoYesIAS18 FRS5In principle similarNoNoIAS19 FRS17 Restricted scope as only covers retirement benefitswhereas International covers various short term andlong term employee

5 BenefitsNoYesFRS17 Deferred tax balances netted off net pensionasset/liability, whereas shown separately underInternationalNoNoIAS20 SSAP4 Cannot net off grant against non current asset towhich it relates (although CoAct disallows not thestandard)NoNoIAS21 FRS23No examinable differencesNoNoIAS23 FRS15 Choice as to whether capitalise borrowing costsYesYesIAS24 FRS8 Materiality considered from perspective of companyand related partyNoYesFRS8 Requires disclosure of names of related partywhere transaction has occurredNoYes4 FRS8 Wholly owned UK subs exempt from disclosing intheir own accounts transactions with parentNoYesIAS26No UK equivalentNoNoIAS27No equivalent standard in UKNoNoIAS28 FRS9 Equity accounting in statement of profit or lossshows associate split out across a number of lineswhereas International show associate as onebalanceNoNoFRS9UK standard requires gross equity method for jointventures, but International requires equityaccounting for examinable differencesNoNoIAS32 FRS25No examinable differencesNoNoIAS33 FRS22No examinable differencesNoNoIAS34 Stmt onInterimreportsNo examinable differencesNoNoIAS36 FRS11 Impairment on IGU specifically allocated tospecifically damaged asset then to goodwill,intangibles and then tangible assets.

6 Internationaldoes not separate intangibles from tangiblesNoYesIAS36 FRS11 Allocation of impairment loss on clear consumptionto profit or loss irrespective of revaluation balancerelating to assetYesYesIAS36 FRS11 Reversals of goodwill and intangibles only ifexternal event clear demonstrates reversal ofimpairing event. UK standard more impairments will realistically not bereversed whereas International specificallydisallows reversals of goodwill future cash flows to be monitored for next5 years to ensure that asset not further examinable differencesNoNoIAS38 SSAP13 Choice as to whether capitalise development costsor write off to profit or lossYesYesFRS10 Only separable intangibles can be capitalisedwhereas International allows capitalisation if nonseparable but legal or contractual rights are heldYesYesIAS39 FRS26 Treatment of financial asset differences due toIFRS9 otherwise no examinable differences.

7 SeeIFRS9 NoNoIAS40 SSAP19No choice between cost model or fair value modelNoYesSSAP19 Treatment of revaluation gains and losses torevaluation reserve unless permanent diminutionNoYesIAS41No UK equivalentNoNoIFRS1No UK equivalentNoNoIFRS2No examinable differencesNoNoIFRS3 FRS6 Merger accounting where applicableNoNoFRS6 Merger accounting on reconstructionsNoYesFRS7 NCI only calculated under partial methodYesYesFRS7 Acquisition costs capitalisedYesYes5 Changes in contingent consideration capitalisedwithin cost of investmentYesYesFRS7 Only separable intangibles can be capitalisedYesYesFRS10 Goodwill amortised with rebuttable assumption oflife not exceeding 20 yearsYesYesFRS10 Negative goodwill capitalised and amortised overlife of assets to which they relateYesYesFRS7 Goodwill calculation difference on piecemealacquisitionsNoYesIFRS4 FRS27 Covers life assurance businesses althoughprinciples are similarNoNoIFRS5 FRS3 Discontinued criteria difference meaning that UKlikely to show discontinuance later that InternationalYesYesFRS3 Both continuing and discontinued must be analysedon face of P&LYesYesFRS3 Encourages separate disclosure of acquisitionsNoNoIFRS6 SORPC overs oil and gas.

8 With similar principles ofcapitalisation and impairmentNoNoIFRS7 FRS29No examinable differencesNoNoIFRS8 SSAP25 Identification of segments based on risks andreturns approach whereas International based onmanagement information and decision makingprocessNoYesSSAP25 Disclosure for both business and geographicalsegments unlike International which is based onmanagement decision making processNoYesSSAP25 Segment information prepared in accordance withaccounting policies whereas International basedmanagement informationNoYesSSAP25 Seriously prejudicial exemption availableNoYesIFRS9 FRS26 Not yet updated to changes in financial assetclassification categories and therefore recognitiondifferencesNoNoIFRS 10 FRS 2 Disposals not resulting in a loss of control, gain orloss to be shown in statement of profit or losswhereas under International this is shown in equityas an owners transactionNoYesFRS 2 Partial disposals resulting in loss of control ,remaining shareholding not required to be valuedat fair valueNoYesFRS 2 FRS 2 definition of control aligned with CompaniesAct, some differences in detailYesYesIFRS 10 IFRS 11 FRS 9 Differences in definitions of joint ventures and jointarrangementsNoNoIFRS 12 Disclosures of interests in other entities do not havea separate standard in 13No UK equivalentNoNoIFRS forSMEsFRSSED ifferences in principle not actual accountingdifferences examinable between FRSSE and IFRSfor SMENoYes6 Additionally for both F7 and P2 UK papers the following basic Companies Act requirements surrounding when single and group entity financial statements are required and when exemptions may be claimed from thepreparation.

9 A subsidiary may be excluded from the group financial statementsare also examinable .