The Financial Reporting module (Paper 2.1) is part of the Skills Level (Level 2) in the ICAG professional qualification syllabus. It builds on foundational concepts from the Knowledge Level, focusing on preparing single entity and group financial statements in accordance with IFRS, supporting the evaluation of financial statements, and providing a basis of knowledge for regulatory, legal, ethical frameworks, application of standards, business combinations, and analysis.
Below is the syllabus coverage in tabular form, including main topics and their approximate weightings (guiding study time and exam mark allocations).
| Syllabus Topic | Description | Weighting (%) |
|---|---|---|
| A. Regulatory, legal and ethical frameworks, the International Accounting Standards Board (IASB) Conceptual Framework for Financial Reporting; current issues | Identifies the role of the IASB and describes the standards setting process, including the work of the IASB and the IFRS Interpretations Committee (IFRIC), the role of the IFRS Advisory Council and the Global Preparers Forum (GPF). Identifies and explains ethical and professional issues for a professional accountant undertaking work in financial accounting and reporting, and identifies appropriate action. Explains and applies the provisions of the IESBA Code of Ethics, the Ghana Corporate Governance Code, and the provisions of the Companies Act 2019 relating to corporate governance. Discusses the impact of sustainability and climate-related risks and opportunities on the preparation of financial statements, actions taken by the IASB in respect of sustainability, and applies the requirements of the IASB Conceptual Framework for Financial Reporting, including the objective of general purpose financial reporting, qualitative characteristics, financial statements and the reporting entity, elements, recognition and de-recognition, measurement, presentation and disclosure, and concepts of capital and capital maintenance. | 15 |
| B. Application of accounting and financial reporting standards | Explains and applies appropriate accounting and financial reporting standards in the preparation of financial statements, including inventories, accounting policies and changes in accounting estimates and errors, events after the reporting period, accounting for government grants and disclosure of government assistance, effects of changes in foreign exchange rates, borrowing costs, financial instruments (recognition, presentation, and measurement of financial assets and liabilities, excluding derivatives and hedge accounting), impairment of assets, intangible assets, provisions, contingent liabilities and contingent assets, agriculture, income tax, property, plant and equipment, investment property, non-current assets held for sale and discontinued operations, revenue from contracts with customers, leases, statement of cash flows, related party disclosures, earnings per share, disclosure of interests in other entities, and fair value measurement. | 25 |
| C. Single entity financial statements | In accordance with appropriate financial reporting standards, prepares prescribed financial statements and relevant disclosure notes for entities in the trading, manufacturing, mining, insurance, and banking sectors, including statement of profit or loss and other comprehensive income, statement of changes in equity, statement of financial position, statement of cash flows, and disclosure notes. | 20 |
| D. Business combinations | Explains and applies appropriate accounting and financial reporting standards in the preparation of financial statements for a group of companies, including separate financial statements, investment in associates and joint ventures, business combinations, consolidated financial statements, and joint arrangements. Determines the entities for inclusion in group accounts, including definition of a business combination and methods of accounting for business combinations (investments in subsidiaries, associates, and joint ventures). Explains the treatment of intangible assets in group accounts and on the acquisition of new businesses, including identification of intangible assets acquired and implications of fair value and other adjustments and related disclosures. Prepares simple group financial statements of a parent with one subsidiary, including definition of ‘control’, pre- and post-acquisition profits, non-controlling interests, goodwill (full and proportionate approaches), treatment of intra-group transactions and balances, goodwill impairment, and disclosures. Prepares simple group financial statements (excluding group cash flow statement) with one associate and/or one joint venture, including definition of significant influence, application of equity accounting and exceptions, impairment losses, and disclosures. | 20 |
| E. Analysing and interpreting financial statements | Identifies the users of financial statements and their needs, including environmental, social, and governance needs. Recognises the limitations of published financial information in meeting users’ needs, including limitations of historical cost accounting. Explains the scope of financial statement analysis in providing decision-useful information regarding financial position, financial performance, and cash flow. Prepares ratio analyses appropriate to various users, covering profitability and return, efficiency, short-term solvency and liquidity, long-term solvency and stability, shareholder investment, and working capital ratios. Compares the role, strengths, weaknesses, and practical uses of accounting ratios, key performance indicators, and benchmarking exercises. Demonstrates the importance of professional scepticism. Interprets financial statements and prepares appropriate reports for relevant stakeholders. Prepares simple value-added statements. | 20 |
