ACCA FR (F7) Financial Reporting - Complete Course

Introduce IFRS 15 revenue from contracts with customers, replacing IAS 18 and IAS 11, to curb accrued revenue manipulation and outline the five-step model and key concepts like performance obligations.

Apply the five-step IFRS 15 model for revenue recognition: identify contracts and parties, define performance obligations, determine and allocate the transaction price, and recognize revenue as obligations are satisfied.

Review IFRS 15 revenue from contracts with customers, recap five step model, and distinguish over time versus point in time satisfaction, incremental costs of obtaining contracts and costs to fulfill.

Explain IFRS 15 treatment for right of return, including prudence in revenue, refund liabilities, and period-end adjustments, plus warranties, principal versus agent, and non-refundable upfront fee.

Explain IFRS 15's significant financing component by recognizing revenue at present value, recording finance income on the receivable, and unwinding the balance with an 8% discount rate.

Master contract asset, contract liability, and receivable concepts with over time revenue recognition and progress measurement, including input and output methods for construction contracts.

Explore IFRS 15 contract assets and revenue recognition with MCQs on work performed, invoicing, and project certified as completed using the output method.

Under IFRS 15, allocate 810,000 price with 30,000 discount to equipment 675,000 and service 135,000; recognize 675,000 on delivery and 5,625 service revenue in Sept 2015, rest deferred.

Apply IFRS 15 to real questions on revenue recognition, agency sales, performance obligations, ongoing service revenue, and significant financing components with discounting, ahead of IFRS 16 considerations.

Explain how to determine contract assets and liabilities under the percentage-of-completion method, compute profit to date, and reconcile costs incurred, invoiced amounts, and accrued income under IFRS 15.

Explore tangible non-current assets from recognition to measurement, including initial cost, dismantling costs, borrowing costs, depreciation, maintenance vs capital expenditure, complex assets, impairment, and investment property distinctions.

Explain depreciation concepts for non-current assets, comparing straight-line and reducing balance methods, cost and revaluation models, and their impact on net book value under IFRS.

Analyze MCQs on borrowing costs and capitalization under IFRS, focusing on qualifying assets, cost of capital calculations, and investment property treatment in consolidated financial statements.

Explain how IAS 16 permits cost and revaluation models for plant and owner-occupied property, and IAS 40 investment property, including depreciation, impairment, and fair value changes.

Apply IAS 16 to a foreign currency purchase, distinguishing monetary and non-monetary items, recognizing initial asset at transaction rate, remeasuring payables at closing rate, and capitalizing a modification before depreciation.

Apply IFRS 13 fair value measurement to value assets and liabilities using market-based exit prices, market participants, and level 1–3 inputs across valuation techniques.

Explore IFRS 13 fair value measurement by identifying principal and most advantageous markets, calculating fair value through market inputs, and handling decommissioning liabilities with expected cash flows, inflation, and discounting.

Explore how IAS 40 treats investment property: recognize when future benefits are probable and costs reliable, choose between cost model with depreciation or fair value model with remeasurements.

Explore how government grants and assistance are recognized and disclosed under IAS 20, including conditions, capital vs income approaches, asset-related grants, and contingencies under IAS 37.

Explore government grants and compliance conditions, including recognizing grants as revenue or liability, handling unfulfilled conditions, and returning funds when conditions are not fulfilled.

Capitalize borrowing costs for qualifying assets during construction using weighted average or specific rates. Apply suspension during interruptions and cease capitalization when the asset is substantially complete.

Calculate the net of interest expense and interest income during the construction period, and capitalize that net amount to assets while recognizing the impact on the income statement.

Explore initial recognition and subsequent measurement of intangible non-current assets, distinguishing acquired versus internally generated assets, and the six criteria for capitalization of development costs, including amortization and impairment.

Explain how goodwill arises from acquiring a business, calculate it as the difference between consideration transferred and net assets at acquisition, distinguish purchased from internally generated goodwill, and address impairment.

Explore IFRS 3 goodwill, distinguishing acquired from internally generated goodwill, how purchase price over net identifiable assets creates goodwill in consolidation, and impairment and negative goodwill treatment.

Explore IAS 37 provisions, contingent liabilities and contingent assets, including when to recognize or disclose, with examples like warranties, restoration, decommissioning, and refunds.

Record a present-value restoration provision, add it to the asset, and unwind it yearly at the discount rate, recognizing finance cost in the PNL.

Explain that future operating losses are not provisions under IAS 37, while onerous contracts require a provision for the lower of cost of fulfilling and penalties for failing to fulfill.

Learn how IAS 37 handles provision for restructuring and the role of a detailed, communicated plan in creating a constructive obligation. Identify which costs are included as direct restructuring costs.

Introduce impairment of assets and recoverable amount, defined as the higher of economic value and value in use, and outline impairment indicators, cash generating units, and reversal considerations.

Identify external and internal impairment indicators at period end, compare net book value with recoverable amount, and allocate impairment across assets and cash-generating units.

Explore how impairment and its reversal affect asset carrying amounts, depreciation, and recoverable amount through a detailed example.

Learn how to allocate goodwill to cash generating units and test impairment using a proportionate basis; understand corporate assets and head office allocations.

Explain impairment allocation in cash generating units: first reduce goodwill, then proportionally reduce non-current assets (PPE and intangible assets); keep current assets intact; no reversal for goodwill.