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CPA Australia Financial-Accounting-and-Reporting Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Financial Instruments | 12% | - Classification and measurement - Recognition, derecognition and disclosure |
| Topic 2: Business Combinations and Group Accounting | 20% | - Business combinations and goodwill - Consolidation principles and procedures - Non-controlling interests |
| Topic 3: Presentation of Financial Statements | 15% | - Statement of financial position - Statement of profit or loss and OCI - Statement of cash flows and notes |
| Topic 4: Role and Regulatory Framework of Financial Reporting | 15% | - Regulatory environment and standards setting - Business entities and reporting obligations - Conceptual framework and qualitative characteristics |
| Topic 5: Impairment of Assets | 6% | - Impairment indicators and recoverable amount - Impairment testing and recognition |
| Topic 6: Income Taxes | 18% | - Tax effects in financial statements - Current and deferred tax calculation |
| Topic 7: Revenue, Provisions and Liabilities | 14% | - Provisions, contingent liabilities and assets - Revenue from contracts with customers |
CPA Australia CPA Financial Accounting and Reporting Sample Questions:
1. Historical cost accounting provides financial information that is
A) relevant but may not be reliable for decision making.
B) relevant for decision making.
C) relevant and reliable for decision making.
D) reliable but may not be relevant for decision making.
2. Which one of the following practices is not considered creative accounting?
A) trading in derivatives
B) window dressing
C) profit smoothing
D) aggressive earnings management
3. Which one of the following bases of measurement is used to implement an approach to capital maintenance based on maintaining the operating capability of a business?
A) current value
B) fair value
C) deprival value
D) current purchasing power
4. Which one of the following parties provides information to ensure that the financial statements show a true and fair view?
A) shareholders
B) financial Institutions
C) directors of the company
D) tax consultants
5. In relation to financial statements, the 'true and fair override' indicates that
A) accounting standards must be complied with under all circumstances.
B) the true and fair requirement need not be complied with by certain industries.
C) departure is allowed from accounting standards under specific instances to show a fair presentation.
D) statements need not always be true and accurate.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: C |






