Preface

• Purpose of these notes: equip students and practitioners with a systematic approach to solving advanced IFRS questions
• How to use this book:
  • Read the conceptual chapters
  • Follow worked examples step by step
  • Tackle practice problems for mastery
  • Use appendices as quick reference

Chapter 1: Foundations of IFRS Financial Reporting

1. Objectives and framework of financial reporting
2. Key IFRS standards overview (IAS 1, 2, 16, 36, 38, IFRS 3, 9, 10, 12)
3. Presentation formats: vertical vs horizontal statements
4. Common accounting principles: accrual, consistency, going concern

Chapter 2: Business Combinations & Consolidation

1. IFRS 3: definitions, acquisition method
2. Identifying acquiree, acquirer, date of acquisition
3. Measuring consideration transferred and fair value of net assets
4. Calculating and accounting for goodwill and bargain purchase
5. Non-controlling interests
6. Post-acquisition measurement

Chapter 3: Adjustments and Fair-Value Uplifts

1. Remeasurement of PPE, intangibles
2. Depreciation on fair-value uplifts
3. Deferred tax on revaluations (IAS 12): measurement and recognition
4. Journal entries and worked example

Chapter 4: Inventory Valuation and Cost of Sales

1. IAS 2: cost formulas (FIFO, weighted average, LIFO prohibited)
2. Calculating COGS, opening/closing inventory
3. Obsolescence and write-downs to NRV
4. Worked examples and walkthroughs

Chapter 5: Financial Instruments and Expected Credit Losses

1. IFRS 9 classification and measurement
2. Stages of credit risk and ECL model
3. Group-level vs. specific provisions
4. Journal entries and sample calculations

Chapter 6: Intercompany Transactions and Profit Elimination

1. Nature of intercompany sales, dividends, loans
2. Calculating unrealized profits in inventory
3. Eliminating intercompany revenue, COGS, profit in inventory
4. Treatment of intra-group dividends
5. Worked example

Chapter 7: Preparing Standalone vs Consolidated Statements

1. Standalone financial statements: structure and disclosures
2. Consolidated statements: combining schedules
3. Eliminations, non-controlling interests, published schedules
4. Worked examples for 2-entity group

Chapter 8: Ratio Analysis and Interpretation

1. Liquidity ratios: current, quick
2. Profitability: gross margin, ROE, ROA
3. Leverage: debt to equity, interest cover
4. Market ratios: EPS, P/E
5. Interpreting trends and benchmarking
6. Sample calculations and commentary

Chapter 9: Problem-Solving Strategies

1. Step-by-step approach:
   • Read question carefully, identify IFRS issues
   • List adjustments required
   • Draft journal entries
   • Prepare standalone schedules
   • Consolidate and eliminate
   • Compute ratios and interpret
2. Common pitfalls and tips

Chapter 10: Worked Case Studies

1. Case A: Acquisition of Nova Ltd. – full consolidation
2. Case B: Sale and leaseback transaction
3. Case C: Joint venture accounting
4. Detailed workings and answers

Chapter 11: Practice Questions

• 20 exercises of varying difficulty
• Self-assessment answers provided in Appendix
• Practice Set A, B, & C Questions
• Solution for Set A

Practice Question Bank with Solutions:

1. Practice Question: AcmeTech’s Acquisition of CyberSystems

Appendices

• A: Key formulas and ratios
• B: IFRS standards summary tables
• C: Glossary of terms
• D: Journal entry templates