Self-assessment

Booklet 3 of 3

FINANCIAL REPORTING
SEMESTER 2, 2018

To be used in conjunction with Financial Reporting, 4th edition. © Copyright CPA Australia unless otherwise indicated.
FINANCIAL REPORTING Page 3

Use this booklet alongside the ‘Exam Practice Questions’ and ‘Exam Practice Answers’
(booklets 1 and 2) to record your correct responses, total your marks and determine your
performance by module.

You can complete your self-assessment electronically within this interactive PDF, or you may prefer
to print it and use it alongside your completed question booklet to mark your responses.

This booklet also highlights the module and learning outcome being assessed—so if you answered
incorrectly you’ll know which module you may need to revisit in your Study guide.

Section A—Multiple-choice questions

Location in Study
Learning guide—module and
Question Key Correct Mark Module objective assessed section(s)
1 B 1 1 1.4. explain the Module 1:
definitions of • ‘Defining the
the elements of elements
financial statements of financial
and recognition statements’ >
criteria adopted ‘Assets’.
by the Conceptual
Framework;
2 A 1 1 1.5. explain the Module 1:
application of the • ‘Application of
standards to the measurement
financial reporting principles in
process and apply the International
specific standards; Financial
Reporting
Standards
> ‘Leases’ >
‘Recognition
criteria for the
lessee’.
3 D 1 1 1.8. explain how Module 1:
materiality is assessed • ‘Fundamental
and determine qualitative
the materiality of characteristics’ >
transactions; ‘Materiality’.

Subtotal for Module 1 3

Page 4 FINANCIAL REPORTING

Location in Study
Learning guide—module and
Question Key Correct Mark Module objective assessed section(s)
4 D 1 2 2.2. outline Module 2:
and explain the • ‘Changes in
requirements of IAS 8 accounting
for the selection of policies’.
accounting policies;
5 C 1 2 2.3. explain Module 2:
and apply the • ‘Changes in
accounting treatment accounting
and disclosure policies’
requirements of IAS 8 • ‘Revision of
in relation to changes accounting
in accounting policies, estimates and
and changes in correction
accounting estimates of errors’ >
and errors; ‘Changes in
accounting
estimates’.

Subtotal for Module 2 2

FINANCIAL REPORTING Page 5

Location in Study
Learning guide—module and
Question Key Correct Mark Module objective assessed section(s)
6 C 1 3 3.1 explain and apply Module 3:
the requirements of • ‘Recognition
IFRS 15 with respect of revenue’ >
to contract(s) with ‘Step 1: Identify
customers the contract(s)
with the customer’
> ‘Contract
modifications’.
7 B 1 3 3.2. determine Module 3:
and allocate the • ‘Step 3:
transaction price Determine the
of a contract to transaction price
the performance of the contract’
obligation(s) of > ‘Variable
the contract consideration’ >
Estimating variable
consideration’.
8 C 1 3 3.3. understand, Module 3:
and be able to apply, • ‘Contingent
IAS 37 as it relates to assets’.
a provision, contingent
liability and contingent
asset, and recognise
how they relate to
the Framework;

Subtotal for Module 3 3

Page 6 FINANCIAL REPORTING

Location in Study
Learning guide—module and
Question Key Correct Mark Module objective assessed section(s)
9 C 1 4 4.1. explain the terms Module 4:
‘taxable temporary • ‘Step 2: Compare
differences’ and the tax base to the
‘deductible temporary carrying amount
differences’; to determine
temporary
differences’.
10 C 1 4 4.2. apply the Module 4:
requirements of IAS 12 • ‘Deferred tax’.
with respect to current
and deferred tax
assets and liabilities;
11 B 1 4 4.3. apply the tax rates Module 4:
and tax bases that are • ‘Step 3: Measure
consistent with the deferred tax assets
manner of recovery and deferred tax
or settlement of an liabilities’.
asset or liability.
12 C 1 4 4.6. determine Module 4:
the deferred tax • ‘Recognition
consequences of of deferred tax
revaluing property, on revaluation’
plant and equipment. > ‘Recovery of
assets through
use or through
sale’.

Subtotal for Module 4 4

FINANCIAL REPORTING Page 7

Location in Study
Learning guide—module and
Question Key Correct Mark Module objective assessed section(s)
13 A 1 5 5.8. determine Module 5:
whether significant • ‘Identifying
influence exists in associates’.
specific scenarios
and evaluate whether
consolidation is
required;
14 C 1 5 5.8. determine Module 5:
whether significant • ‘Identifying
influence exists in associates’.
specific scenarios
and evaluate whether
consolidation is
required;
15 D 1 5 5.6. explain the Module 5:
concept of ‘non- • ‘Non-controlling
controlling interest’ interest’ >
and prepare a ‘1. Pre‑acquisition
consolidation elimination entry’.
worksheet that
includes the
appropriate
adjustment entries
and allows for
non‑controlling
interests;

Subtotal for Module 5 3

Page 8 FINANCIAL REPORTING

Location in Study
Learning guide—module and
Question Key Correct Mark Module objective assessed section(s)
16 B 1 6 6.1. identify a ‘financial Module 6:
instrument’ and • ‘Definition of
explain the difference a financial
between primary and instrument’.
derivative financial
instruments.
17 A 1 6 6.3. explain and Module 6:
apply the approach • ‘Types of
to the classification, hedges’ > ‘Fair
reclassification and value hedges’ >
measurement of ‘Extension of fair
financial assets and value option’.
financial liabilities.
18 D 1 6 6.6. explain how Module 6:
compound financial • ‘Compound
instruments are to financial
be measured and instruments’.
recognised;
19 C 1 6 6.7. explain the Module 6:
key disclosures • ‘Significance
required for financial of financial
instruments under instruments for
IFRS 7. financial position
and performance’
• ‘Statement of
financial position’.

Subtotal for Module 6 4

FINANCIAL REPORTING Page 9

Location in Study
Learning guide—module and
Question Key Correct Mark Module objective assessed section(s)
20 C 1 7 7.2. identify the types Module 7:
of assets to which • ‘Scope of IAS 36
IAS 36 applies; Impairment of
Assets’.
21 B 1 7 7.4. explain and apply Module 7:
the requirements of • ‘Part B:
IAS 36 in relation to: Impairment of
• the calculation individual assets’
of recoverable > ‘Measurement
amount; of recoverable
• recognising and amount’ and
measuring an ‘Fair value less
impairment loss costs of disposal’.
for an individual
asset; and
• the reversals of
impairment losses.
22 B 1 7 7.5. explain and apply Module 7:
the requirements of • ‘Identifying
IAS 36 in relation to: and allocating
• the identification an impairment
of CGUs; loss for a cash-
• recognising and generating unit’.
measuring an
impairment loss
for CGUs and
goodwill.

Subtotal for Module 7 3

Page 10 FINANCIAL REPORTING

Section B—Extended-response questions

Location in Study
Learning guide—module and Marks Marks
Question Module objective assessed section(s) allocated scored
23 2 2.5. explain and apply Module 2: 2
(Case 1) the requirements of IAS 7 • ‘Classification of
with respect to preparing cash flows’
a statement of cash flows; • ’Common methods
adopted on how to
prepare a statement
of cash flows’ >
‘Formula method’.
24 4 4.6. determine the deferred Module 4: 2
(Case 2) tax consequences of • ‘Recognition of
revaluing property, deferred tax on
plant and equipment. revaluation’ >
‘Recovery of assets
through use or
through sale’.
25 5 5.5. explain and prepare Module 5: 4
(Case 3) consolidation worksheet • ‘Preparation of
entries, including the consolidated financial
revaluation of assets statements’ >
subject to depreciation ‘Transactions within
and transactions within the group’.
the group;
Subtotal for
Module 2
Subtotal for
Module 4
Subtotal for
Module 5
FINANCIAL REPORTING Page 11

Now add all the marks you scored for each module in Sections A and B.

Module totals

Marks
Module Marks scored
allocated

1 3

2 4

3 3

4 6

5 7

6 4

7 3
Page 12 FINANCIAL REPORTING

Preparing for your final exam

While performing well in the exam practice questions provides an indication of your subject knowledge,
it is not a guarantee of your success in the final exam.

The exam practice questions represent approximately half of a final CPA Program exam. Your final
exam will use different questions to those included in booklet 1, contain more questions, and will
assess learning objectives that may not be have been assessed in the exam practice questions.

There are additional resources on My Online Learning that will help you to prepare for your final
exam. The ‘Study Companion and Exam Mark Allocation’ resource will help you to determine your
personal study preferences, and will provide valuable information on the exam, including the mark
allocations and guidelines for answering extended-response questions. If you are sitting your exam in
a computer-based environment, watch ‘What to expect on the day of your exam’—this video will help
you familiarise yourself with the check-in process and on-screen exam experience.

Improving your performance

Along with the specific Study guide sections referred to earlier in this booklet, the following additional
resources are available to assist you with your revision.

Take note of your weaker areas and direct your study towards the resources that will provide you with
additional learning and practice in those areas.

You can also use the Exam Practice Questions Peer-to-Peer Forum in My Online Learning to share
your responses with other candidates, and to compare how you approached your responses. You will
not receive technical feedback in this forum, so remember to post any technical questions in the
appropriate Ask the Expert module forums.

Module Resources available for revision

1 Module 1: ‘The role and importance of financial reporting’
Knowledge checks
2017 IFRS Standards (Red Book)
2 Module 2: ‘Presentation of financial statements’
Knowledge checks
Learning Task: Statement of profit or loss and OCI
Learning Task: Statement of cash flows
2017 IFRS Standards (Red Book)
3 Module 3: ‘Revenue from contracts with customers; Provisions, contingent liabilities
and contingent assets’
Knowledge checks
2017 IFRS Standards (Red Book)
4 Module 4: ‘Income taxes’
Knowledge checks
Learning Task: Income taxes
2017 IFRS Standards (Red Book)
FINANCIAL REPORTING Page 13

Module Resources available for revision

5 Module 5: ‘Business combinations and group accounting’
Knowledge checks
Learning Task: Determination of goodwill
Learning Task: Intra-group transactions
Learning Task: Measurement of NCI
Learning Task: Pre-acquisition elimination
2017 IFRS Standards (Red Book)
6 Module 6: ‘Financial instruments’
Knowledge checks
2017 IFRS Standards (Red Book)
7 Module 7: ‘Impairment of assets’
Knowledge checks
2017 IFRS Standards (Red Book)