These are my own personal outline notes for FR2. They are in line with the learning objectives that were given per module. All abbreviations used are on the last page
Table of Contents
Week One: Intro, CF, and presentation of FS ................................................................................. 2
Week Two: PPE .............................................................................................................................. 2
Week Three & Four: Inventories .................................................................................................... 4
Week Five: Investment property, intangible assets, and leasing .................................................... 5
Week Seven: Prior period errors ..................................................................................................... 7
Week Eight: Equity ......................................................................................................................... 7
Week Nine: Financial Instruments – Part 1 .................................................................................... 9
Week Eleven – Twelve: Group Accounting (part A) ................................................................... 10
Week Thirteen: Financial Analysis ............................................................................................... 11
Weeks Fourteen – Fifteen: Liabilities ........................................................................................... 13
Week Sixteen: Financial instruments – part 2 .............................................................................. 15
Week Seventeen: Accounting policies and changes in accounting policies ................................. 16
Week Eighteen: Revenue from contracts with customers ............................................................ 17
Week Nineteen: Events after the reporting period ........................................................................ 19
Week Twenty: Group accounting (Part B) ................................................................................... 19
Week Twenty-one – Twenty-four: Group accounting (Part B) .................................................... 19
1
,Maziko Kagoli
Week One: Intro, CF, and presentation of FS
Mainly just recap work from last year. Nothing I would consider examinable or not already basic
knowledge for us at this point.
Week Two: PPE
• What: tangible items held for production of g/si, or renting to others, or used for admin.
Used for more than one period.
• Recognise when recognition criteria is met
o Existence uncertainty is not high
o Probability of inflow of economic benefits is not low
o Measurement uncertainty is not high.
• How much: Initially measured at cost
o Cost = purchase price + any cost directly attributed to bringing item to location
and condition for year + initial estimate for dismantling/restoration costs (PVii)
o If item is exchanged: cost is the FViii
o If only paid for later, then use PV of amount paid if beyond normal credit terms.
• Subsequent expenditure. If for enhancement = capitalise, if for maintaining = expense.
o Check the impact of EULiv, helpful to show if it is enhancing or maintaining.
• Accounting policies choice
o Cost: CAv = Cost – acc deprvi – acc impvii
o Revaluation model: CA = FV @ reporting date
▪ Revaluations go to OCI UNLESS reversing previous impairments. Loss
goes to P/L unless you utilise a revaluation surplus.
• Depreciation
o Systematic allocation of the depreciable amount over the EUL
o You can depreciate the components separately.
o Goes to p/l UNLESS it is included as part of the cost of another asset i.e.,
Manufacturing another asset.
• Changes in accounting estimates:
o Adjustment to CA or the amount of periodic consumption as a result of new
information NOT an error.
▪ Recognised prospectively: only for future periods.
▪ Changes recognised in p/lid change affects that year only or in the period
it affects
o Note disclosure – disclose:
▪ Nature and mount of change and effect expected for the current and future
periods
2
, Maziko Kagoli
o Structure of note:
▪ Heading: note to FSviii of company for yeix…
▪ Subheading: change in estimate
▪ Explanation: the RVx of PPE was revised from … to … on …The effect of
this change is …
• Derecognition: CA is derecognised on disposal.
o Gain/loss is recognised in p/l
3
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 EFT, 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller mazikokagoli. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R250,00. You're not tied to anything after your purchase.
