General Learning Objective

The purpose of this paper is to equip the candidate with knowledge and skills to enable him/her to account for more complex transactions, prepare advanced financial statements and reports in the private and public sectors and be aware of trends in accounting practice.

Learning Outcomes

A candidate who passes this paper should be able to:

(a)Prepare financial statements for subsidiaries, associates and jointly controlled entities in compliance with International Financial Reporting Standards (IFRSs) and International Public Sector Accounting Standards (IPSASs) as applicable

(b) Analyze financial statements for public and private sector entities

(c) Account for complex accounting transactions

(d) Apply ethical standards in accountancy work and practice


1.Accounting for Assets and Liabilities

(Assets and Liabilities as covered in Financial Accounting and Financial Reporting are also relevant here)

1.1 Leases Including Sale and leaseback and dealers in leased assets

1.2 Deferred Tax (With group aspects)

1.3 Employee Benefits

1.4 Share Based Payments

1.5 Financial Assets and Financial Liabilities (Impairment, Hedging, Embedded Derivatives and Disclosures)

1.6 Fair Value Measurement

1.7 Impairment of Assets


2.Preparation of Financial Statements For Interests in Other entities

2.1Subsidiaries (Including foreign subsidiaries, piecemeal acquisitions, reduction in shareholding and disposals as well as statement of cash flows)

2.2 Accounting for Associates and Joint Ventures (Including foreign entities)

2.3 Disclosures of interests in other entities

3.Preparation of Financial Statements for other entities

3.1 Financial Statements for Banks

3.2 Financial Statements for Insurance Companies

3.3 Interim Financial Statements

3.4 Financial Statements in a hyperinflationary economy (including the preparation of financial statements)

3.6 Financial Statements complying with IFRS for SMEs.

4.Analyzing Financial Statements

4.1 Earnings Per Share

4.2 Related Party Disclosures

4.3 Operating Segments

4.4 Financial Reorganizations and reconstructions

  1. Public Sector Accounting Standards


5.1 Segment Reporting

5.2 Related Party Disclosures

5.3 Impairment of cash generating assets and non-cash generating assets

5.4 Disclosure of information about the general government sector

5.5 Consolidated Financial Statements

5.6 Investments in Associates and Joint Ventures


6.Other Reports and Emerging Issues in Financial Reporting

6.1 The conceptual Framework and the process of developing new accounting standards

6.2 Proposals to revise/update existing standards and recommendations to issue new ones (Discussions Papers and Exposure drafts).


KASNEB will provide guidelines which Discussion Papers and Exposure drafts are examinable for specific years.

6.3 Management Commentary (Management Discussion and Analysis)

6.4 Capital Markets Authority Corporate Governance Reporting Requirements

6.3 Global Reporting Initiatives Guidelines on Sustainability Reporting

6.4 Integrated Reporting

6.5 Materiality Guidelines for Financial Reporting

6.7 Legal and Ethical issues in Financial Reporting.


  1. John McKeith and Bill Collins 2013, Financial Accounting and Reporting, McGraw-Hill Education
  2. Barry Elliott and Jamie Elliott 2008, Financial Accounting and Reporting, 12 Ed, Prentice Hall
  3. Derry Cotter, Advanced Financial Reporting, A Complete Guide to IFRS, Financial Times/ Prentice Hall


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