Financial Accounting Exam tests the competencies of the student in the area of Financial Reporting concepts, Financial statements and its related disclosures, Income measurement and assets valuation, Consolidated Financial statements, Segment and interim reporting, Foreign currency translation, Partnerships and Corporations, Business Combinations and Accounting for State and Local Government.
Professional Exam Competencies
- Define the purpose of financial reporting, explain the function of accounting standards and assess the importance of ethics in accounting.
- Define the financial statements, their purpose, format, limitations and disclosure requirements.
- Concept of cash and cash equivalent, credit policies and issues related to receivables.
- Inventory, its valuation methods and the impact of inventory recording errors on Financial Statements.
- Acquisition of noncurrent assets, depreciation methods and accounting issues related to impairments, write-downs and disposals.
- Classification and measurement issues associated with debts, equity financing and accounting issues of stock rights, stock warrants, stock options, stock dividend, stock splits, cash dividend, property dividend and stock repurchase.
- Accounting for the purchase of debt and equity securities. Computation of earnings per share and complex capital structure.
- Capital and Operating lease. Accounting issues faced by the lessor and lessee.
- Business Combination, allocation of goodwill and consolidation of financial statements.
- Apply knowledge of foreign currency transactions, forward contracts and options.
- Partnership accounting and issues involving termination, liquidation, dissolution of partnership.
- Financial reporting of state and local government.
- Intermediate Accounting by Kieso, Weygandt and Warfield
- Advanced Accounting by Hoyle, Schaefer and Doupnik