The document provides information on the Diploma in International Financial Reporting (DipIFR) qualification. It outlines the aims, objectives, and structure of the exam. The exam is designed to test candidates' understanding of international financial reporting standards and their ability to apply the standards to financial reporting tasks and scenarios. It consists of one consolidation question worth 40 marks and three scenario questions worth 20 marks each. The overall pass mark is 50%. The document also provides details on key topics covered in the syllabus, such as international standards, financial statement elements, consolidated financial statements, and disclosure requirements.

1. Diploma in International The DipIFR also provides essential international
Financial Reporting 2011 financial reporting knowledge and principles that
will prepare candidates for the increasingly global
market place and keep them abreast of international
This syllabus and study guide is designed to help
developments and how they might apply to
with planning study and to provide detailed
companies and businesses.
information on what could be assessed in
any examination session.
The prerequisite knowledge for DipIFR can either
come from a country specific professional
AIMS
qualification, from possessing a relevant degree
To provide qualified accountants or graduates,
(giving exemptions from F1, F2, F3 and F4 of the
possessing relevant country specific qualifications or
ACCA qualification) and two years’ accounting
work experience with an up to date and relevant
experience, or by having three years’ full-time
conversion course, providing a practical and detailed
relevant accounting experience, supported by an
knowledge of the key international financial
employer’s covering letter.
reporting standards and how they are interpreted
and applied.
APPROACH TO EXAMINING THE SYLLABUS
OBJECTIVES
The examination is a three-hour paper. Most
On completion of this syllabus, candidates should
questions will contain a mix of computational and
be able to:
discursive elements. Some questions will adopt a
• Understand and explain the structure of the
scenario/case study approach. All questions are
international professional and conceptual
compulsory.
framework of accounting
The first question will attract 40 marks. It will
• Apply relevant financial reporting standards to
Involve preparation of one or more of the
key elements of financial reports
consolidated financial statements that are
examinable within the syllabus. This question will
• Identify and apply disclosure requirements for
include several issues that will need to be addressed
companies relating to the presentation of
prior to performing the consolidation procedures.
financial reports and notes
These issues will often relate to the financial
statements of the parent.
• Prepare group financial statements (excluding
group cash flow statements) including
The other three questions will attract 20 marks
subsidiaries, associates, and joint ventures.
each. These will often be related to a scenario in
which questions arise regarding the appropriate
POSITION OF THE COURSE WITHIN THE
accounting treatment and or disclosure of a range
OVERALL PORTFOLIO OF ACCA’S
of issues. In such questions candidates may
QUALIFICATION FRAMEWORK
be expected to comment on management’s chosen
accounting treatment and determine a more
The Diploma in International Financial Reporting
appropriate one, based on circumstances described
(DipIFR) builds on the technical and/or practical
in the question. Occasionally one of the questions
knowledge acquired from recognised country
might focus more specifically on the requirements of
specific accountancy qualifications or relevant work
one specific International Financial Reporting
experience. The syllabus introduces the candidate to
Standard.
the wider international framework of accounting and
the system of standard setting. This conversion
Some International Financial Reporting Standards
course concentrates on the application of
are very detailed and complex. In the DipIFR exam
conceptual and technical financial accounting
candidates need to be aware of the principles and
knowledge that candidates have already obtained to
key elements of these Standards. Candidates will
the specific requirements of financial reporting
also be expected to have an appreciation of the
under international professional regulation and
background and need for international financial
standards.
1

2. reporting standards and issues related to
harmonisation of accounting in a global context.
The overall pass mark for the Diploma in
International Financial Reporting is 50%.
EXAMINATION STRUCTURE
No. of marks
1 consolidation question 40
3 scenario questions 60
(20 marks each) 100
READING LIST
ACCA has one Approved Learning Partner – Content
(Platinum) which is BPP Learning Media. In
addition there are ALP–c (Gold) who also publish
text books for ACCA examinations.
BPP and the Gold ALP-c base their study texts on
the detailed contents of the study guides as
published by ACCA. All approved study content
providers will be subject to extensive quality
assurance by ACCA, but the highest level of
approval - Platinum - will benefit from an exclusive
examiner review of content. There will be only one
Platinum approved study content provider over a
three-year period, and BPP Learning Media are
ACCA’s inaugural Platinum study content provider.
In addition ACCA examiners may also suggest
other text books where appropriate, which students
can refer to when widening their reading beyond the
approved study texts. These are listed at the end of
this study guide.
A learning content provider for study and/or revision
material and/or extra reading can be found by
searching for your paper within the following link.
http://www.accaglobal.com/learningproviders/alpc/c
ontent_provider_directory/search/
Relevant articles will also be published in student
accountant.
2

3. SYLLABUS CONTENT b) Earnings per share
1 International sources of authority c) Related party disclosures
a) The structure of the International Accounting d) Interim financial reporting
Standards Board (IASB)
e) Effects of changes in foreign exchange rates
b) The standard setting process
f) Operating segments
c) The role of the International Financial
Reporting Interpretations Committee (the 4 Preparation of external financial reports for
content of specific IFRICs will not be combined entities and joint ventures
examined)
a) Definitions of subsidiaries, investments in
d) Progress towards international harmonisation associates and joint ventures
e) The accounting framework b) Preparation of consolidated statements of
financial position, income statements,
f) The first time adoption of international financial statements of comprehensive income and
reporting standards. statements of changes in equity
2 Elements of financial statements c) Equity accounting
a) Property, plant and equipment d) Proportionate consolidation and joint ventures.
b) Intangible assets EXCLUDED TOPICS
c) Goodwill The following topics are specifically excluded from
the syllabus:
d) Current assets including inventories
• Partnership and branch financial statements
e) Construction contracts
f) Liabilities • Complex group structures, including sub-
subsidiaries or mixed groups and foreign
g) Financial instruments subsidiaries
h) Provisions and contingencies • Piece-meal acquisitions, disposal of
subsidiaries and group re-constructions
i) Employment and post-employment benefits
• Financial statements of banks and similar
j) Current and deferred tax financial institutions
k) Biological assets and agricultural produce • Statements of cash flows
l) Share-based payment • Schemes of reorganisation/reconstruction
m) Exploration and evaluation expenditures • Company/share valuation
3 Presentation and additional disclosures • Accounting for insurance entities
a) Events after the reporting date • International financial reporting exposure drafts
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4. and discussion papers
• The international public sector perspective
• Multi-employer benefit schemes
• Information reflecting the effects of changing
prices and financial reporting in
hyperinflationary economies
• Share-based payment transactions with cash
alternatives
KEY AREAS OF THE SYLLABUS
The key topic area headings are as follows:
• International sources of authority
• Elements of financial statements
• Presentation of accounts and additional
disclosures
• Preparation of external reports for combined
entities and joint ventures.
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5. Study Guide rules for the revaluation of property, plant and
equipment
INTERNATIONAL SOURCES OF AUTHORITY • Account for gains and losses on the disposal of
re-valued assets
1. The International Accounting Standards
Board (IASB) and the regulatory framework • Calculate depreciation on:
– revalued assets, and
• Discuss the need for international accounting – assets that have two or more major items
standards and possible barriers to their or significant parts
development
• Apply the provisions of accounting standards
• Explain the structure and constitution of the relating to government grants and government
IASB and the standard setting process assistance
• Understand and interpret the Financial • Describe the criteria that need to be present
Reporting Framework before non-current assets are classified as held
for sale, either individually or in a disposal
• Account for the first-time adoption of group
International Financial Reporting Standards.
• Account for non-current assets and disposal
ELEMENTS OF FINANCIAL STATEMENTS groups that are held for sale
2. Revenue recognition • Discuss the way in which the treatment of
investment properties differs from other
• Outline the principles of the timing of revenue properties
recognition
• Apply the requirements of international
• Explain the concept of substance over form in accounting standards to investment properties.
relation to recognising sales revenue
4. Impairment of assets
• Discuss the various points in the production
and sales cycle where it may, depending on • Define the recoverable amount of an asset;
circumstances, be appropriate to recognise define impairment losses
gains and losses – give examples of this
• Give examples of, and be able to identify,
• Describe the IASB’s approach to revenue circumstances that may indicate that an
recognition. impairment of an asset has occurred
3. Non-current assets – tangible • Describe what is meant by a cash-generating
unit
• Define the initial cost of a non-current asset
(including a self-constructed asset) and apply • State the basis on which impairment losses
this to various examples of expenditure, should be allocated, and allocate a given
distinguishing between capital and revenue impairment loss to the assets of a cash-
items generating unit.
• Identify pre-conditions for the capitalisation of 5. Leases
borrowing costs
• Define the essential characteristics of a lease
• Describe, and be able to identify, subsequent
expenditures that should be capitalised • Describe and apply the method of determining
a lease type (ie an operating or finance lease)
• State and appraise the effects of the IASB's
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6. • Explain the effect on the financial statements of • Describe the ways in which contract revenue
a finance lease being incorrectly treated as an and contract cost may be recognised
operating lease
• Calculate and disclose the amounts to be
• Account for operating leases in the financial shown in the financial statements for
statements of the lessor and the lessee construction contracts.
• Account for finance leases in the financial 8. Financial instruments
statements of the lessor and lessee
• Account for debt instruments, equity
• Outline the principles of accounting standards instruments and the allocation of finance costs
for leases and the main disclosure
requirements. Note: the net cash investment • Account for fixed interest rate and convertible
method will not be examined. bonds
6. Intangible assets and goodwill • Discuss the definition and classification of a
financial instrument
• Discuss the nature and possible accounting
treatments of both internally generated and • Discuss the measurement issues relating to
purchased goodwill financial instruments
• Distinguish between goodwill and other • Explain the current measurement proposals for
intangible assets financial instruments including the use of
current values, hedging and the treatment of
• Define the criteria for the initial recognition and gains and losses
measurement of intangible assets
• Describe the nature of the presentation and
• Explain the subsequent accounting treatment, disclosure requirements relating to financial
including the principle of impairment tests in instruments
relation to purchased goodwill
• Discuss the key areas where consensus is
• Identify the circumstances in which negative required on the accounting treatment of
goodwill arises, and its subsequent accounting financial instruments.
treatment
9. Liabilities – provisions, contingent assets and
• Describe and apply the requirements of liabilities
international accounting standards to internally
generated assets other than goodwill (eg • Explain why an accounting standard on
research and development) provisions is necessary – give examples of
previous abuses in this area
• Describe the method of accounting specified by
the IASB for the exploration for and evaluation • Define provisions, legal and constructive
of mineral resources obligations, past events and the transfer of
economic benefits
7. Inventories and construction contracts • State when provisions may and may not be
made, and how they should be accounted for
• Measure and value inventories
• Explain how provisions should be measured
• Define a construction contract and describe
why recognising profit before completion is • Define contingent assets and liabilities – give
generally considered to be desirable; discuss if examples and describe their accounting
this may be profit smoothing treatment
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7. • Identify and account for: • Determine an entity’s functional currency
– Onerous contracts
– Environmental and similar provisions 13. Agriculture
• Discuss the validity of making provisions for • Recognise the scope of international
future repairs or renewals. accounting standards for agriculture
10. Accounting for employment and post- • Discuss the recognition and measurement
employment benefit costs criteria including the treatment of gains and
losses, and the inability to measure fair value
• Describe the nature of defined contribution, reliably
multi-employers and defined benefits schemes
• Identify and explain the treatment of
• Explain the recognition and measurement of government grants, and the presentation and
defined benefit schemes under current disclosure of information relating to agriculture
proposals
• Report on the transformation of biological
• Account for defined benefit schemes including assets and agricultural produce at the point of
the amounts shown in the financial statements harvest and account for agriculture related
(and notes to the accounts). government grants.
11. Taxation in financial statements 14. Share-based payment
• Account for current tax liabilities and assets in • Understand the term ‘share-based payment’
accordance with international accounting
standards • Discuss the key issue that measurement of the
transaction should be based on fair value
• Describe the general principles of government
sales taxes (eg VAT or GST) • Explain the difference between cash settled
share based payment transactions and equity
• Explain the effect of taxable temporary settled share based payment transactions
differences on accounting and taxable profits
• Identify the principles applied to measuring
• Outline the principles of accounting for deferred both cash and equity settled share-based
tax payment transactions
• Identify and account for the IASB requirements • Compute the amounts that need to be recorded
relating to deferred tax assets and liabilities in the financial statements when an entity
carries out a transaction where the payment is
• Calculate and record deferred tax amounts in share based.
the financial statements.
15. Exploration and evaluation expenditures
12. The effects of changes in foreign currency
exchange rates • Outline the need for an accounting standard in
this area and clarify its scope
• Discuss the recording of transactions and
translation of monetary/non-monetary items at • Give examples of elements of cost that might
the reporting date for individual entities in be included in the initial measurement of
accordance with relevant accounting standards exploration and evaluation assets
• Distinguish between reporting and functional • Describe how exploration and evaluation assets
currencies should be classified and reclassified
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8. • Explain when and how exploration and – where convertible debt or preference shares
evaluation assets should be tested for are in issue
impairment – where share options and warrants exist
PRESENTATION OF ACCOUNTS AND • Identify anti-dilutive circumstances.
ADDITIONAL DISCLOSURES
18. Accounting policies, changes in accounting
16. Presentation of the income statement and estimates and errors
statement of comprehensive income
• Distinguish between and account for adjusting
• State the objectives of international accounting and non-adjusting events after the reporting
standards governing presentation of financial date
statements
• Identify items requiring separate disclosure,
• Describe the structure and content of income including their accounting treatment and
statements and statements of comprehensive required disclosures
income including continuing operations
• Recognise the circumstances where a change
• Discuss ‘fair presentation’ and the accounting in accounting policy is justified
concepts/principles
• Define prior period adjustments and ‘errors’
• Recognise the content and format of interim and account for the correction of errors and
financial statements. changes in accounting policies.
17. Earnings per share 19. Related party disclosures
• Recognise the importance of comparability in • Define and apply the definition of related
relation to the calculation of earnings per share parties in accordance with international
(EPS) and its importance as a stock market accounting standards
indicator
• Describe the potential to mislead users when
• Explain why the trend of EPS may be a more related party transactions are accounted for
accurate indicator of performance than a
company’s profit trend • Explain the disclosure requirements for related
party transactions.
• Define earnings
20. Operating segments
• Calculate the EPS in the following
circumstances: • Discuss the usefulness and problems
– basic EPS associated with the provision of segment
– where there has been a bonus issue of information
shares/stock split during the year, and • Define an operating segment
– where there has been a rights issues of
shares during the year • Identify reportable segments (including
applying the aggregation criteria and
• Explain the relevance to existing shareholders quantitative thresholds)
of the diluted EPS, and describe the
circumstances that will give rise to a future PREPARATION OF EXTERNAL REPORTS FOR
dilution of the EPS COMBINED ENTITIES AND JOINT VENTURES
21. Preparation of group consolidated external
• Compute the diluted EPS in the following
reports
circumstances:
• Explain the concept of a group and the purpose
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9. of preparing consolidated financial statements – Depreciating and non-depreciating non-
current assets
• Explain and apply the definition of subsidiary – Inventory
companies – Monetary liabilities
• Identify the circumstances and reasoning when – Assets and liabilities (including
subsidiaries should be excluded from contingencies), not included in the
consolidated financial statements subsidiary’s own statement of financial
position
• Prepare a consolidated statement of financial
position for a simple group dealing with pre 24. Business combinations – associates and joint
and post acquisition profits, non-controlling ventures
interests and goodwill
• Define associates and joint ventures (ie jointly
• Explain the need for using coterminous year- controlled operations, assets and entities)
ends and uniform accounting polices when
preparing consolidated financial statements • Distinguish between equity accounting and
and describe how it is achieved in practice proportional consolidation
• Prepare a consolidated income statement, • Describe and prepare accounts under the two
statement of comprehensive income and formats of proportional consolidation
statement of changes in equity for a simple
group, including an example where an • Prepare consolidated financial statements to
acquisition occurs during the year where there include a single subsidiary and an associated
is a non-controlling interest. company or a joint venture (both allowed
methods).
22. Business combinations – intra-group
adjustments
• Explain why intra-group transactions should be
eliminated on consolidation
• Report the effects of intra-group trading and READING LIST
other transactions including: This section only contains examiner suggested
– unrealised profits in inventory and non- reading which is in addition to the study texts
current assets and/or revision materials and/or other reading listed
– intra-group loans and interest and other within the learning content provider directory.
intra-group charges, and
– intra-group dividends Additional examiner suggested reading:
DipIFR does not have any examiner suggested
reading.
23. Business combinations – fair value
adjustments Further details on reading lists and Approved
Learning Content can be found in the first few
• Explain why it is necessary for both the sections of this guide and on the following link.
consideration paid for a subsidiary and the
subsidiary’s identifiable assets and liabilities to http://www.accaglobal.com/learningproviders/alpc/c
be accounted for at their fair values when ontent_provider_directory/search/
preparing consolidated financial statements
• Prepare consolidated financial statements
dealing with fair value adjustments (including
their effect on consolidated goodwill) in respect
of:
9