The Financial Reporting module, part of the ICAG Professional Qualification Syllabus for 2024-2029 at the Application Level (module 2.1), builds on foundational accounting knowledge to develop candidates’ abilities in preparing and evaluating financial statements for single entities and groups. It emphasizes compliance with international standards, analysis of financial performance, and addressing complex transactions in both private and public sector contexts.

Module Aim

The aim of this module is to equip candidates with the skills to prepare single entity and group financial statements in accordance with IFRS, support the evaluation of financial statements, and provide a foundational basis for advanced reporting knowledge.

Core Content Areas

The curriculum is organized around key competencies, with indicative weightings to guide study and align with exam emphasis:

• Regulatory, Legal, and Ethical Frameworks; IASB Conceptual Framework; Current Issues (15%): Covers international regulatory environments, legal obligations, ethical standards (including the IESBA Code of Ethics), the IASB Conceptual Framework for Financial Reporting, and emerging topics like sustainability reporting and climate-related risks.
• Application of Accounting and Financial Reporting Standards (25%): Focuses on applying IFRS and other standards to specialized areas, such as inventories (IAS 2), financial instruments (IFRS 9, IAS 32, IFRS 7), impairment (IAS 36), revenue recognition (IFRS 15), leases (IFRS 16), property/plant/equipment (IAS 16), intangible assets (IAS 38), employee benefits (IAS 19), provisions (IAS 37), and government grants (IAS 20).
• Single Entity Financial Statements (20%): Involves preparing and presenting statements of profit or loss, financial position, changes in equity, cash flows, and disclosure notes for various entities (e.g., private companies, public sector), incorporating adjustments for complex events and sector-specific requirements.
• Business Combinations (20%): Addresses approaches to mergers and acquisitions, calculation of goodwill, treatment of non-controlling interests, consolidation techniques, elimination of intra-group transactions, and preparation of consolidated financial statements under IFRS 3, IFRS 10, IAS 28, and IFRS 11.
• Analysing and Interpreting Financial Statements (20%): Includes ratio analysis, trend evaluation, segment reporting (IFRS 8), limitations of financial analysis, ESG considerations, and providing insights for stakeholders on performance, position, and prospects.

Ethical considerations are embedded throughout, requiring candidates to apply professional skepticism, identify ethical dilemmas (e.g., in reporting choices or conflicts of interest), and evaluate implications for stakeholders, integrity, and compliance.