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CPA Australia Financial-Accounting-and-Reporting Exam Syllabus Topics:

SectionWeightObjectives
Role and Regulatory Framework of Financial Reporting15%- Conceptual framework and qualitative characteristics
- Regulatory environment and standards setting
- Business entities and reporting obligations
Presentation of Financial Statements15%- Statement of financial position
- Statement of cash flows and notes
- Statement of profit or loss and OCI
Financial Instruments12%- Classification and measurement
- Recognition, derecognition and disclosure
Revenue, Provisions and Liabilities14%- Provisions, contingent liabilities and assets
- Revenue from contracts with customers
Impairment of Assets6%- Impairment indicators and recoverable amount
- Impairment testing and recognition
Business Combinations and Group Accounting20%- Consolidation principles and procedures
- Business combinations and goodwill
- Non-controlling interests
Income Taxes18%- Tax effects in financial statements
- Current and deferred tax calculation

CPA Australia CPA Financial Accounting and Reporting Sample Questions:

1. Which one of the following bodies makes accounting standards in Australia?

A) FRC
B) IASB
C) ASIC
D) AASB


2. Which accounting theory is best described by the statement 'An approach to accounting is one where a theory is thought of as a body of knowledge that explains and attempts to predict actual accounting practice'?

A) positive accounting theory
B) historical cost accounting theory
C) general accounting theory
D) normative accounting theory


3. According to IASB's Conceptual Framework, an expense is a decrease in economic benefits in the form of
I.
outflows.
II.
decreases of assets.
III.
incurrences of liabilities.
IV.
contributions to equity holders.

A) I, II and III only
B) II, III and IV only
C) I, III and IV only
D) I, II and IV only


4. The International Accounting Standards Board's Conceptual Framework for Financial Reporting for the preparation and presentation of financial statements is concerned with the information needs of most users, but not for each possible user.
Which one of the following stakeholders would not be one of the users that the Conceptual Framework is concerned about?

A) potential investors in the company
B) governments and regulatory bodies
C) members of the public who have small investment holdings in the company
D) a company's executive management


5. Which one of the following contributes to an efficient capital market?

A) stock markets being managed by directors of companies that are listed on the stock market
B) having stock markets in every country
C) stock markets ensuring that companies do not overcharge for their products
D) information about the stock market can be obtained cheaply


Solutions:

Question # 1
Answer: D
Question # 2
Answer: A
Question # 3
Answer: A
Question # 4
Answer: D
Question # 5
Answer: D

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