Maziko Kagoli
FR2 Year
Consolidation
Table of Contents
Week One: Intro, CF, and presentation of FS ................................................................................. 2
Week Two: PPE .............................................................................................................................. 2
Week Three & Four: Inventories .................................................................................................... 4
Week Five: Investment property, intangible assets, and leasing .................................................... 5
Week Seven: Prior period errors ..................................................................................................... 7
Week Eight: Equity ......................................................................................................................... 7
Week Nine: Financial Instruments – Part 1 .................................................................................... 9
Week Eleven – Twelve: Group Accounting (part A) ................................................................... 10
Week Thirteen: Financial Analysis ............................................................................................... 11
Weeks Fourteen – Fifteen: Liabilities ........................................................................................... 13
Week Sixteen: Financial instruments – part 2 .............................................................................. 15
Week Seventeen: Accounting policies and changes in accounting policies ................................. 16
Week Eighteen: Revenue from contracts with customers ............................................................ 17
Week Nineteen: Events after the reporting period ........................................................................ 19
Week Twenty: Group accounting (Part B) ................................................................................... 19
Week Twenty-one – Twenty-four: Group accounting (Part B) .................................................... 19
1
,Maziko Kagoli
Week One: Intro, CF, and presentation of FS
Mainly just recap work from last year. Nothing I would consider examinable or not already basic
knowledge for us at this point.
Week Two: PPE
• What: tangible items held for production of g/si, or renting to others, or used for admin.
Used for more than one period.
• Recognise when recognition criteria is met
o Existence uncertainty is not high
o Probability of inflow of economic benefits is not low
o Measurement uncertainty is not high.
• How much: Initially measured at cost
o Cost = purchase price + any cost directly attributed to bringing item to location
and condition for year + initial estimate for dismantling/restoration costs (PVii)
o If item is exchanged: cost is the FViii
o If only paid for later, then use PV of amount paid if beyond normal credit terms.
• Subsequent expenditure. If for enhancement = capitalise, if for maintaining = expense.
o Check the impact of EULiv, helpful to show if it is enhancing or maintaining.
• Accounting policies choice
o Cost: CAv = Cost – acc deprvi – acc impvii
o Revaluation model: CA = FV @ reporting date
▪ Revaluations go to OCI UNLESS reversing previous impairments. Loss
goes to P/L unless you utilise a revaluation surplus.
• Depreciation
o Systematic allocation of the depreciable amount over the EUL
o You can depreciate the components separately.
o Goes to p/l UNLESS it is included as part of the cost of another asset i.e.,
Manufacturing another asset.
• Changes in accounting estimates:
o Adjustment to CA or the amount of periodic consumption as a result of new
information NOT an error.
▪ Recognised prospectively: only for future periods.
▪ Changes recognised in p/lid change affects that year only or in the period
it affects
o Note disclosure – disclose:
▪ Nature and mount of change and effect expected for the current and future
periods
2
, Maziko Kagoli
o Structure of note:
▪ Heading: note to FSviii of company for yeix…
▪ Subheading: change in estimate
▪ Explanation: the RVx of PPE was revised from … to … on …The effect of
this change is …
• Derecognition: CA is derecognised on disposal.
o Gain/loss is recognised in p/l
3
FR2 Year
Consolidation
Table of Contents
Week One: Intro, CF, and presentation of FS ................................................................................. 2
Week Two: PPE .............................................................................................................................. 2
Week Three & Four: Inventories .................................................................................................... 4
Week Five: Investment property, intangible assets, and leasing .................................................... 5
Week Seven: Prior period errors ..................................................................................................... 7
Week Eight: Equity ......................................................................................................................... 7
Week Nine: Financial Instruments – Part 1 .................................................................................... 9
Week Eleven – Twelve: Group Accounting (part A) ................................................................... 10
Week Thirteen: Financial Analysis ............................................................................................... 11
Weeks Fourteen – Fifteen: Liabilities ........................................................................................... 13
Week Sixteen: Financial instruments – part 2 .............................................................................. 15
Week Seventeen: Accounting policies and changes in accounting policies ................................. 16
Week Eighteen: Revenue from contracts with customers ............................................................ 17
Week Nineteen: Events after the reporting period ........................................................................ 19
Week Twenty: Group accounting (Part B) ................................................................................... 19
Week Twenty-one – Twenty-four: Group accounting (Part B) .................................................... 19
1
,Maziko Kagoli
Week One: Intro, CF, and presentation of FS
Mainly just recap work from last year. Nothing I would consider examinable or not already basic
knowledge for us at this point.
Week Two: PPE
• What: tangible items held for production of g/si, or renting to others, or used for admin.
Used for more than one period.
• Recognise when recognition criteria is met
o Existence uncertainty is not high
o Probability of inflow of economic benefits is not low
o Measurement uncertainty is not high.
• How much: Initially measured at cost
o Cost = purchase price + any cost directly attributed to bringing item to location
and condition for year + initial estimate for dismantling/restoration costs (PVii)
o If item is exchanged: cost is the FViii
o If only paid for later, then use PV of amount paid if beyond normal credit terms.
• Subsequent expenditure. If for enhancement = capitalise, if for maintaining = expense.
o Check the impact of EULiv, helpful to show if it is enhancing or maintaining.
• Accounting policies choice
o Cost: CAv = Cost – acc deprvi – acc impvii
o Revaluation model: CA = FV @ reporting date
▪ Revaluations go to OCI UNLESS reversing previous impairments. Loss
goes to P/L unless you utilise a revaluation surplus.
• Depreciation
o Systematic allocation of the depreciable amount over the EUL
o You can depreciate the components separately.
o Goes to p/l UNLESS it is included as part of the cost of another asset i.e.,
Manufacturing another asset.
• Changes in accounting estimates:
o Adjustment to CA or the amount of periodic consumption as a result of new
information NOT an error.
▪ Recognised prospectively: only for future periods.
▪ Changes recognised in p/lid change affects that year only or in the period
it affects
o Note disclosure – disclose:
▪ Nature and mount of change and effect expected for the current and future
periods
2
, Maziko Kagoli
o Structure of note:
▪ Heading: note to FSviii of company for yeix…
▪ Subheading: change in estimate
▪ Explanation: the RVx of PPE was revised from … to … on …The effect of
this change is …
• Derecognition: CA is derecognised on disposal.
o Gain/loss is recognised in p/l
3
