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CPA Australia Financial-Accounting-and-Reporting Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Business Combinations and Group Accounting | 20% | - Consolidation principles and procedures - Non-controlling interests - Business combinations and goodwill |
| Topic 2: Revenue, Provisions and Liabilities | 14% | - Revenue from contracts with customers - Provisions, contingent liabilities and assets |
| Topic 3: Financial Instruments | 12% | - Classification and measurement - Recognition, derecognition and disclosure |
| Topic 4: Income Taxes | 18% | - Current and deferred tax calculation - Tax effects in financial statements |
| Topic 5: Presentation of Financial Statements | 15% | - Statement of profit or loss and OCI - Statement of financial position - Statement of cash flows and notes |
| Topic 6: Impairment of Assets | 6% | - Impairment indicators and recoverable amount - Impairment testing and recognition |
| Topic 7: Role and Regulatory Framework of Financial Reporting | 15% | - Conceptual framework and qualitative characteristics - Regulatory environment and standards setting - Business entities and reporting obligations |
CPA Australia CPA Financial Accounting and Reporting Sample Questions:
1. Which one of the following would be recognised in the statement of profit or loss and other comprehensive income?
A) employee wages
B) inventory
C) retained earnings
D) prepayment of expenses
2. The ability of a company to pay its bills when and as they fall due is a measure of
A) solvency.
B) the true and fair view of the financial report.
C) economic value.
D) compliance with the conceptual framework.
3. Which one of the following financial statements helps provide information about factors that might affect an entity's liquidity or solvency?
A) statement of changes in equity
B) notes to the financial statements
C) statement of profit or loss and other comprehensive income
D) statement of cash flows
4. Which one of the following includes social reporting guidelines?
A) Generally Accepted Accounting Principles (GAAP)
B) International Financial Reporting Standards (IFRS)
C) International Accounting Standards (IAS)
D) Global Reporting Initiative (GRI)
5. Which one of these is a key principle of good corporate governance?
A) effective communication with shareholders
B) restriction of shareholders' rights in decision-making
C) non-disclosure of directors' agency relationship with the company
D) effective management of the employees of the company
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: A |




