Financial Reporting and Analysis kasneb new syllabus notes



This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to account for more complex financial transactions and to prepare as well as analyse financial statements in the private and public sectors.


A candidate who passes this paper should be able to:

  • Account for various assets and liabilities
  • Prepare financial statements including published financial statements for various types of organisations
  • Account for specialised transactions
  • Prepare group financial statements
  • Analyse and interpret financial statements
  • Apply International Financial Reporting Standards (IFRSs) and International Public Sector Accounting Standards (IPSASs) in preparing non-complex financial statements.


  1. Accounting for Assets and Liabilities [Assets and liabilities as covered in Financial Accounting (Foundation Level) are also relevant here]

    • Investment Property
    • Assets used in exploring for and evaluation of mineral resources
    • Non-current assets held for sale
    • Financial Assets and Financial Liabilities (Recognition, Classification, Initial measurement, subsequent measurement, reclassifications and de-recognition)
    • Leases (Exclude Sale and Leaseback and dealers in leasing assets)
    • Current and Deferred tax
    • Government grants
    • Provisions, contingent liabilities and assets
  1. Accounting for Specialized Transactions

    • Revenue recognition (Basic application of revenue recognition principles to Hire Purchase, Consignment sales, construction contracts and joint arrangements)
    • Effects of changes in exchange rates (Only foreign currency denominated transactions)
    • Borrowing Costs
  1. Preparation of Financial Statements for different entities/Transactions

    • Conversion of a partnership into a company
    • Professional firms (Accountants, Lawyers, doctors, engineers)
    • Agricultural activities and farming
    • Pension plans
    • Cooperative Societies
  1. Preparation of Published Financial Statements

    • Presentation of Financial Statements (Statement of Profit or Loss, other comprehensive incomes, Statement of Financial Position and Statement of cash flows)
    • Accounting Policies, Changes in Accounting Estimates and Errors
    • Events after the Reporting Period
    • Discontinued Operations

  1. Accounting and Financial Statements for Interests in Other Entities

    • Subsidiaries (Basic Consolidated Financial Statements with one subsidiary -excluding disposals and statement of cash flows)
    • Associates and Joint ventures
    • Accounting treatment of investments in subsidiaries, associates and jointly controlled entities in the financial statement of the investor (Separate financial statements)
    • Branches (Only autonomous and local branches)
  1. Public Sector Accounting Standards

    • Presentation of Financial Statements
    • Accounting Policies, Changes in Accounting Estimates and Errors
    • Effects of Changes in Foreign Exchange Rates
    • Revenue from exchange transactions and revenue from non-exchange transactions
    • Property, plant and equipment, investment property and intangible assets
    • Provisions, contingent liabilities and contingent assets
    • Presentation of budget information in Financial Statements
  1. Analysing Financial Statements

    • Analysing financial statements using ratios covered in Financial Accounting
    • Analysing Financial Statements using common size approach for the statement of profit or loss and statement of financial position

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