Financial Accounting and Reporting (FAR)

Study lessons

1. 1

   The Conceptual Framework and the accounting for assetsFree sample

   The Conceptual Framework's qualitative characteristics and PAS 1 presentation basics, then the rules for cash, receivables, inventories under PAS 2, and PPE under PAS 16, with a worked depreciation example.

   15 min
2. 2

   Liabilities, equity, and the financial statements

   Provisions under PAS 37, bonds and notes payable basics, the components of equity, and how PAS 1 and PAS 7 tie the financial statements together, with a worked cash flow example.

   15 min
3. 3

   Cash, receivables, and inventories

   The rules boards test most on current assets: cash composition and bank reconciliation, receivables measurement and expected credit losses, and inventory cost formulas, lower of cost and NRV, and the estimation methods, with worked examples.

   15 min
4. 4

   Property, plant, and equipment

   PAS 16 initial cost and subsequent measurement, the cost and revaluation models, the four depreciation methods and change in estimate, plus PAS 23 borrowing costs, PAS 36 impairment, PAS 40 investment property, PFRS 5 held for sale, and PAS 20 grants, with worked examples.

   15 min
5. 5

   Intangibles, biological assets, and impairment

   Recognize and measure intangible assets under PAS 38, biological assets and agricultural produce under PAS 41, and apply the impairment test of PAS 36, with worked examples.

   14 min
6. 6

   Revenue from contracts with customers (PFRS 15)

   Apply the PFRS 15 five-step model to identify performance obligations, set and allocate the transaction price, and recognize revenue over time or at a point in time, with a worked allocation.

   14 min
7. 7

   Leases (PFRS 16)

   Apply the PFRS 16 lessee right-of-use model, measure the lease liability and right-of-use asset, and classify lessor leases as finance or operating, with a worked amortization.

   15 min
8. 8

   Income Taxes (PAS 12)

   Separate permanent from temporary differences, compute a tax base and read the sign of the difference, recognise deferred tax liabilities and assets at the enacted rate, reconcile current and deferred tax to total income tax expense, and know why deferred taxes are never discounted.

   18 min
9. 9

   Employee Benefits (PAS 19)

   Tell a defined contribution plan from a defined benefit plan, build the net defined benefit liability, split the defined benefit cost into service cost, net interest, and remeasurements, roll forward the obligation and the plan assets, and know why remeasurements never recycle to profit or loss.

   18 min
10. 10

    Earnings per Share (PAS 33)

    Build the numerator by stripping preference dividends, weight ordinary shares by time while treating bonus issues retroactively, apply the treasury share method to options and the if-converted method to convertible instruments, rank potential ordinary shares by incremental earnings per share, and discard the antidilutive ones.

    18 min
11. 11

    Share-based Payment (PFRS 2)

    Measure an equity-settled award once at grant date and never again, true up only for service and non-market performance conditions, remeasure a cash-settled award to fair value at every reporting date and at settlement, and place market and non-vesting conditions inside the grant-date fair value where no true-up can reach them.

    17 min
12. 12

    Events after the Reporting Period (PAS 10) and Accounting Policies, Estimates, and Errors (PAS 8)

    Ask whether a condition existed at the reporting date to sort adjusting from non-adjusting events, know why dividends declared afterwards are never a liability and why abandoning going concern always adjusts, and route policy changes and prior period errors retrospectively while changes in estimate go forward only.

    17 min
13. 13

    Non-current Assets Held for Sale, Discontinued Operations (PFRS 5), and Borrowing Costs (PAS 23)

    Apply the held-for-sale criteria and measure at the lower of carrying amount and fair value less costs to sell, stop depreciating, cap any reversal at cumulative impairment, present a discontinued operation as one post-tax line, and capitalise borrowing costs on a qualifying asset using specific borrowings net of investment income and a capitalisation rate for general ones.

    18 min

Section practice test

5 test sets covering the whole Financial Accounting and Reporting (FAR) section, 150 original questions with explanations. After you finish the lessons above, prove it here. Randomized every run.