ACCA FR | Consolidation - Comprehensive Income #2/2 | ‎‎

Syllabus D Preparation of financial
statements:

This is the 24th Lecture of 29 of syllabus area D of the ACCA F7 exam.
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Watch the all lectures in series here:

ACCA F7 [FR] - D: Preparation of financial statements:    • ACCA F7 [FR] - D: Preparation of financial...  

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What you'll Learn:

1. Preparation of single entity financial
statements

a) Prepare an entity’s statement of financial
position and statement of profit or loss
and other comprehensive income in
accordance with the structure and
content prescribed within IFRS
Standards and with accounting
treatments as identified within syllabus
areas A, B and CD

b) Prepare and explain the contents and
purpose of the statement of changes in
equity.[2]

c) Prepare extracts from a statement of
cash flows for a single entity (not a
group) in accordance with relevant IFRS
Standards using the indirect
method only.
[2]

2. Preparation of consolidated financial
statements for a simple group

a) Prepare a consolidated statement of
financial position for a simple group
(parent and up to two subsidiaries
controlled by the parent and one
associate of the parent) dealing with pre-
and post-acquisition profits, non-
controlling interest (at fair value or as a
proportion of net assets at the
acquisition date) and consolidated
goodwill.[2]

b) Prepare a consolidated statement of
profit or loss and consolidated statement
of profit or loss and other comprehensive
income for a simple group dealing with
an acquisition or disposal in the period
and non-controlling interest.[2]

c) Explain and account for other
components of equity (e.g. share
premium and revaluation surplus).[1]

d) Account for the effects in the financial
statements of intra-group trading.[2]

e) Account for the effects of fair value
adjustments (including their effect on
consolidated goodwill) to: [2]

i) depreciating and non-depreciating
non-current assets
ii) inventory
iii) monetary liabilities
iv) assets and liabilities not included
in the subsidiary’s own statement
of financial position, including
contingent assets and contingent
liabilities

f) Account for goodwill impairment.[2]

g) Describe and apply the required
accounting treatment for consolidated
goodwill.[2]

h) Explain and illustrate the effect of the
disposal of a parent’s investment in a subsidiary in the parent’s individual
financial statements and/or those of the
group, including as a discontinued
operation (restricted to disposals of the parent’s entire investment in the
subsidiary).