Summary

Summary Summarized Financial Accounting year 3

0 purchase

Course
ICB FINANCIAL ACCOUNTING

Institution
Damelin (DCC)

 Understand the financial risks, categorise the financial assets, financial liabilities;  Be able to compound financial Instruments;  Know derivatives, and reclassification of financial instruments;  Understand the impairment of financial instruments, and be able to make disclosure...

[Show more]

Preview 4 out of 72 pages

View example

Uploaded on January 24, 2023
Number of pages 72
Written in 2021/2022
Type Summary

depreciation
lease
amortization
and reclass
 understand the financial risks
categorise the financial assets
financial liabilities  be able to compound financial instruments  know derivatives

Institution
Damelin (DCC)
Course
ICB FINANCIAL ACCOUNTING

$2.80

Add to cart

Add to wishlist

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

B.com in Accounting

Module: Financial Accounting 3A
Module Code: FNA310

STUDY GUIDE

,Table of Contents
STUDY UNIT 1: FINANCIAL INSTRUMENTS.................................................................... 3
[IFRS 9], [IFRS 7], [IAS 32] ................................................................................................. 3
1.1 Introduction ................................................................................................................... 3
1.2 Module overview ........................................................................................................... 3
1.3 Objective of IAS 32, IFRS 7and IFRS 9 32 ................................................................... 3
1.4 Definitions ..................................................................................................................... 4
1.5 Recognition of financial assets ..................................................................................... 5
1.6 Classification of financial assets ................................................................................... 5
1.6.1 Financial assets measured at amortised cost ............................................................ 5
1.6.2 Financial assets measured at fair value ..................................................................... 6
1.7 Financial Asset De-recognition ..................................................................................... 9
1.8 Financial Liability ........................................................................................................... 9
1.9 Definitions ..................................................................................................................... 9
1.10 Financial liabilities recognition .................................................................................... 9
1.11 Financial liabilities classification .................................................................................. 9
1.11.1 Financial liabilities classified at amortisation ......................................................... 10
1.11.2 Financial liabilities classified at fair value through profit or loss ............................ 11
1.12 Financial Liabilities de-recognition ............................................................................ 11
1.13 Reclassification of financial assets ........................................................................... 12
1.14 Impairment of financial assets .................................................................................. 12
1.15 Financial Risks .......................................................................................................... 12
1.15.1 Liquidity risk ........................................................................................................... 13
1.15.3 Credit risk ............................................................................................................... 13
1.15.4 Market risk .............................................................................................................. 13
1.16 Summary ................................................................................................................... 13
1.17 Self-assessment questions ....................................................................................... 13
STUDY UNIT 2: LEASES: LESSEE ACCOUNTING: IFRS 16 ......................................... 21
1.1 Introduction ................................................................................................................. 21
1.2 Overview ..................................................................................................................... 21
2.3 Scope .......................................................................................................................... 21
2.4 Definitions ................................................................................................................... 21
2.5 Identifying if we have a lease or not ............................................................................ 22
2.6 Recognition and measurement ................................................................................... 23
2.6.1 Recognition and measurement using the simplified approach ................................ 26
2.6.2 Recognition and measurement using the general approach ................................... 26
2.7 Subsequent measurement of the lease liability .......................................................... 26
2.8 Tax consequences ...................................................................................................... 27
2.9 Presentation and Disclosure ....................................................................................... 27
2.10 Disclosure ................................................................................................................. 28

,STUDY UNIT 3: LEASES: LESSOR ACCOUNTING IFRS 16 ......................................... 29
3.1 Introduction ................................................................................................................. 29
3.2 Overview ..................................................................................................................... 29
3.3 Definitions ................................................................................................................... 29
3.4 lease classification ...................................................................................................... 31
3.4.1 Finance Lease .......................................................................................................... 31
3.4.2 Operating Lease ....................................................................................................... 32
3.5 Disclosure ................................................................................................................... 32
STUDY UNIT 4: DEFERRED TAXATION [IAS 12] ........................................................... 35
4.1 Introduction ................................................................................................................. 36
4.2 Overview ..................................................................................................................... 36
4.3 Objective of IAS 12 ..................................................................................................... 36
4.4 Scope .......................................................................................................................... 36
4.5 Definitions ................................................................................................................... 37
4.6 Income tax ................................................................................................................... 37
5.7 Measurement of income tax ........................................................................................ 37
4.8 Deferred Tax ............................................................................................................... 39
4.8.1 Deferred tax measurement ...................................................................................... 40
4.9 Summary ..................................................................................................................... 44
4.10 Self evaluation questions .......................................................................................... 44
STUDY UNIT 5: GROUP OF ENTITIES & ITS FINANCIAL STATEMENTS: THEORY &
BACK GROUP .................................................................................................................. 50
5.1 Introduction ................................................................................................................. 50
5.2 Overview ..................................................................................................................... 50
5.3 Definitions ................................................................................................................... 50
5.5 Types of group structures ........................................................................................... 52
5.6 Accounting for a business combination ...................................................................... 54
5.7 Summary ..................................................................................................................... 56
STUDY UNIT 6: CONSOLIDATION AT DATE OF ACQUISITION ................................... 57
6.1 Introduction ................................................................................................................. 57
6.2 Basic consolidation procedures .................................................................................. 57
STUDY UNIT 7: CONSOLIDATION AFTER DATE OF ACQUISITION ........................... 66
7.1 Introduction ................................................................................................................. 66
7.2 Overview ..................................................................................................................... 66
7.3 Objective of IFRS 10 ................................................................................................... 66
7.4 Consolidation procedures ........................................................................................... 66
7.5 Summary ..................................................................................................................... 69

, Module Information

Name of programme B.com in Accounting
Type of programme Contact (Full Time & Part Time)
NQF Level 7
Name of module Financial Accounting 3A
Credits 20
Notional hours 200
Module purpose The purpose of this module is to continue developing student’s
mental power to be able to identify, recognize, present and
disclose financial transactions with regards to the International
Financial Reporting Standards.
Learning Outcomes: At the end of this module learners should be able to:
 Understand the financial risks, categorise the financial assets,
financial liabilities;
 Be able to compound financial Instruments;
 Know derivatives, and reclassification of financial instruments;
 Understand the impairment of financial instruments, and be
able to make disclosures regarding them
 Define the objective of leases, classify leases, calculate
transaction taxes;
 Make accounting practices of lessees and disclose them;
 Know the different types of taxation;
 Compute secondary tax on companies;
 Know normal tax; and make estimation of current normal tax
and payment of current normal tax;
 Be able to disclose tax;
 Know the difference between current tax and deferred tax;
 Be able to measure deferred normal tax and disclose in the
financial statements;
 Have a theoretical background of a group of entities and its
financial statements;
 Be able to consolidate financial statements of wholly owned
subsidiary and partly owned subsidiary at the date of
acquisition;
 Be able to consolidate financial statements of partly owned
subsidiary at the date of acquisition;
 Consolidate wholly owned subsidiary after the date of
acquisition;
 Be able to Consolidation partly owned subsidiary after the
date of acquisition;

Prescribed textbooks Textbook Author Year Publisher ISBN
and other sources
Gripping
Cathrynne S 2018 LexisNexis 9780409128345
GAAP

Group
Binnekade,
Statements 2017 LexisNexis 9780409128475
C.S.
Volume 1

1
Financial Accounting 3A – Study Guide 2018

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller dyonaseludumo. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $2.80. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69411 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling