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CPA Australia Financial-Accounting-and-Reporting Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Business combinations | 13% | - Impairment and journal entries - Non-controlling interest and control concepts - Goodwill measurement and disclosure - Consolidated financial statements - Accounting issues for business combinations |
| Topic 2: Application of specific accounting standards | 22% | - Intangible assets and journal entries - Current and deferred income tax accounting - Revenue recognition and ledger reconciliation - Foreign currency transactions and translation |
| Topic 3: Analysis of financial statements | 10% | - Limitations of financial statement analysis - Financial ratio calculation and interpretation |
| Topic 4: Financial statements | 15% | - Statement of cash flows - Statement of profit or loss and other comprehensive income - Statement of financial position - Discrepancy detection and correction |
| Topic 5: The accounting theory | 15% | - Recognition criteria per conceptual framework - Historical cost vs other valuation methods - Agency and contracting theories |
| Topic 6: The financial reporting environment | 25% | - Conceptual framework and elements of financial statements - Accounting standards and policies - Users and developments impacting reporting - Types of business entity and structure - Regulatory environment and reporting requirements - Role of International Accounting Standards Board - Accounting regulation and GAAP/IFRS |
CPA Australia CPA Financial Accounting and Reporting Sample Questions:
1. Which one of these concepts suggests that stock prices react to new information almost instantly?
A) bargaining power
B) incentive substitution
C) market power
D) efficient market
2. Which one of the following situations would result in either a new liability being recognised or an existing liability being increased?
A) A company pays only half of an overdue invoice.
B) At the end of the reporting period, there are unpaid wages.
C) A company recognises the depreciation expense for the current period.
D) A company establishes an asset revaluation reserve.
3. When business managers seek detailed information about the profitability or efficiency of different parts of their operations, they would find the most useful information in
A) the annual financial report.
B) financial statements as specified by IAS 1 Presentation of Financial Statements.
C) the company's accounting policies.
D) various management accounting reports.
4. Which one of the following examples would not represent an agency cost?
A) the cost of engaging an external auditor
B) the cost of preparing a financial report for shareholders
C) the cost of preparing a cost-benefit report for a new project
D) the cost of employing an internal auditor
5. You assumed the role as the Chairperson of the Board of Directors of Daylight Ltd. As you start to write your first directors' report, which one of the following areas are you not required to include in your report?
A) Details regarding accounting policies pursued by Daylight in preparation of its financial statements.
B) Details regarding any significant changes to Daylight's state of affairs for the year that just ended.
C) Review of operations of Daylight during the year just ended and any likely developments in the future that may impact Daylight.
D) Details of any dividends paid or proposed.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: A |




