Syllabus Latest Evolution of the Aca Technical Knowledge Grids 2013

7/28/2019 Syllabus Latest Evolution of the Aca Technical Knowledge Grids 2013

1/27

ICAEW 2013 1

LATEST EVOLUTION OF THE ACA

SYLLABUS 2013

TECHNICAL KNOWLEDGE GRIDS


2/27

ICAEW 2013 2

TECHNICAL KNOWLEDGE

The tables contained in this section show the technical knowledge in the disciplines of financialreporting, audit and assurance, business analysis, ethics and taxation covered in the ACA syllabusby module.

For each individual standard the level of knowledge required in the relevant Certificate andProfessional Level module and at the Advanced Level is shown.

The knowledge levels are defined as follows:

Level D

An awareness of the scope of the standard.

Level C

A general knowledge with a basic understanding of the subject matter and training in its application

thereof sufficient to identify significant issues and evaluate their potential implications or impact.

Level B

A working knowledge with a broad understanding of the subject matter and a level of experience inthe application thereof sufficient to apply the subject matter in straightforward circumstances.

Level A

A thorough knowledge with a solid understanding of the subject matter and experience in theapplication thereof sufficient to exercise reasonable professional judgement in the application ofthe subject matter in those circumstances generally encountered by Chartered Accountants.

Key to other symbols:

the knowledge level reached is assumed to be continued


3/27

ICAEW 2013 3

ASSURANCE AND AUDIT

Title

Certificate &Professional

Level

Advanced

Level

Assuranc

e

Audit&

Assuranc

e

The International Auditing and Assurance Standards Board D CThe Authority Attaching to Standards Issued by the International Auditingand Assurance Standards Board

C A

The Authority Attaching to Practice Statements Issued by the InternationalAuditing and Assurance Standards Board

A

Discussion Papers C

Working Procedures C

International Standards on Auditing (UK and Ireland)200 Overall Objectives of the Independent Auditor and the Conduct of anAudit in Accordance with International Standards on Auditing

B A

210 Agreeing theTerms of Audit Engagements B 220 Quality Control for anAudit of Financial Statements B 230 Audit Documentation B A240 The Auditors Responsibilities Relating to Fraud in an Audit of FinancialStatements

B A

250 A Consideration of Laws and Regulations in an Audit of FinancialStatements

B A

250 B The Auditors Right and Duty to Report to Regulators in the FinancialSector

C

260 Communication with Those Charged withGovernance B A265 Communicating Deficiencies in Internal Control to Those Charged withGovernance and Management

B A

300 Planning an Audit of Financial Statements B A 315 Identifying and Assessing the Risks of Material Misstatement ThroughUnderstanding the Entity and its Environment

C A

320 Materiality in Planning and Performing an Audit C A 330 The Auditors Responses to Assessed Risks B A402 Audit Considerations Relating to an Entity Using a ServiceOrganisation

C B

450 Evaluation of Misstatements Identified during the Audit C A500 Audit Evidence B A

501 Audit Evidence - Specific Considerations for Selected Items B A505 External Confirmations B B A510 Initial Audit Engagements - Opening Balances B A520 Analytical Procedures B A A530 Audit Sampling B B A540 Auditing Accounting Estimates, Including Fair Value AccountingEstimates and Related Disclosures

C B A

550 Related Parties B A560 Subsequent Events B A570 Going Concern A 580 Written Representations C B A600 Special Considerations Audits of Group Financial Statements(including the Work of Component Auditors)

C A

610 Using the Work of Internal Auditors C A620 Using the Work of an Auditors Expert C A


4/27

ICAEW 2013 4

Title

Certificate &Professional

Level

A

dvancedLevel

A

ssurance

Audit&

A

ssurance

700 The Auditors Report on Financial Statements B A 705 Modifications to the Opinion in the Independent Auditors Report A 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in theIndependent Auditors Report

A

710 ComparativeInformation Corresponding Figures and ComparativeFinancial Statements

B A

720 A The Auditors Responsibility Relating toOther Information inDocuments Containing Audited Financial Statements

B A

720 B The Auditors Statutory Reporting Responsibility in Relation toDirectors Reports A

International Standards on Auditing800 Special Considerations Audits of Financial Statements prepared inAccordance with Special Purpose Frameworks

B

805 Special Considerations Audits of Single FinancialStatements and Specific Elements, Accounts or items of a FinancialStatement

B A

810 Engagements to Report on Summary Financial Statements B AInternational Auditing Practice Note (IAPN)1000 Special Considerations in Auditing Financial Instruments CInternational Standards on Review Engagements (ISREs)2400 Engagements to Review Financial Statements C B2410 Review of Interim Financial Information Performed by the Independent

Auditor of the Entity

B

International Standards on Assurance Engagements (ISAEs)3000 Assurance Engagements Other than Audits or Reviews of HistoricalFinancial Information

C B

3400 The Examination of Prospective Financial Information C B3402 Assurance Reports on Controls at a Service Organisation C AInternational Standards on Related Services (ISRSs)4400 Engagements to Perform Agreed-upon Procedures RegardingFinancial Information

B

4410 Engagements to Compile Financial Statements BIFAC StatementsISQC1 Quality Control for Firms that Perform Audits and Reviews of

Financial Statements, and Other Assurance and Related ServicesEngagements

C B

APB Bulletins2010/2 Compendium of illustrative Auditors Reports on UK Private SectorFinancial Statements

B B


5/27

ICAEW 2013 5

BUSINESS ANALYSIS

Topic

Certificate and ProfessionalLevel

Adva

ncedLevel

Management

Information

Business&

Fin

ance

Fina

ncial

Management

Bus

iness

Strategy

STRATEGIC ANALYSISEnvironmental and market analysis toolsPESTEL analysis C A Porters five forces B A Product life cycle B A Boston consulting group matrix B A Competitor analysis B A Positional and other analysis tools

Resource audit C A Resource-based strategy C A Value chain analysis B A SWOT analysis C A Gap analysis C A Marketing analysis B A Competitive advantage C A Benchmarking C A Directional policy matrix BBusiness process analysis B AStrategic risk analysis A Balanced scorecard C A

STRATEGIC CHOICEStrategy formulation, evaluation and choice C A Business risk management C A Financial analysis and data analysis A Stakeholder analysis B A Objectives and stakeholders preferences C BCorporate responsibility and sustainability C B ASTRATEGIC IMPLEMENTATIONBusiness plans C B AOrganisational structure C B AInformation management C B AChange management A

Project management ACOST ANALYSIS FOR DECISION MAKINGCostingCost classification A Costing systems direct, marginal, absorption B Activity based costing (ABC) C BBreak even analysis B AMulti-product break even analysis BBudgeting and performance management B APricingPricing decisions B A Transfer pricing B A BUSINESS AND SHAREHOLDER VALUEValuation TechniquesIncome dividend yield B A


6/27

ICAEW 2013 6

Topic


AdvancedLevel

Management

Information

Business&

Finance

Financial

Management

Business

Strategy

Income P/E B AIncome discounted cash flow B AAsset based measures B AOptions approach Shareholder valueValue based management (VBM) Value drivers B AShareholder value analysis (SVA) B AShort and long term growth rates and terminal values AEconomic profit A

Cash flow return on investment (CFROI) ATotal shareholder return (TSR) AMarket value added (MVA) AINVESTMENT APPRAISAL AND BASIC RISK ANALYSISProject appraisalNPV B A IRR B A Payback B A Relevant cash flows A Tax and inflation A Replacement Analysis A Capital rationing A

Adjusted present value (APV) A Assessing riskProject appraisal and sensitivity analysis B AProject appraisal and simulation B AExpected values B AScenario planning AGap analysis B Continuous vs. event risk B FINANCIAL ANALYSISCost of capitalCost of equity B ACost of debt B A

Cost of preference shares B ACost of bank loans B AWeighted average cost of capital (WACC) B AEffective interest rates ASplitting convertibles into equity and debt elements APublic sector discount rates APortfolio theory and CAPMPortfolio theory B ACAPM B AAPT and MCPM ACAPM and cost of capital B AInternational cost of capital ABondsBond pricing using NPV AYields to maturity A


7/27

ICAEW 2013 7

Topic


AdvancedLevel

Management

Information

Business&

Finance

Financial

Management

Business

Strategy

Duration and price volatility AConvexity ATerm structure of interest rates ACorporate borrowing and default risk ASOURCES OF FINANCE AND FINANCING ARRANGEMENTSShort, medium and long term sources of finance B ALoan agreement conditions (warranties; covenants;guarantees)

B A

Raising capital B AGearing and capital structure A

Loan agreements and covenants A Dividend policy A Financing reconstructions (eg: group reconstruction,spin off, purchase of own shares, use of distributableprofits)

B A

Working capital management C AFINANCIAL ENGINEERINGFutures, options and swapsOptions B AInterest rate futures B AInterest rate options B AInterest forward rate agreements (FRAs) B A

Interest rate swaps B AForeign exchangeCurrency forward contracts B ACurrency money market cover B ACurrency options B ACurrency swaps B AOperational techniques for managing currency risk B ATheoretical determinants of foreign exchange rates B AOption valueValue of a call and put option CBlack Scholes option pricing model BBinomial Option Pricing Model B

Real options C B


8/27

ICAEW 2013 8

ETHICS CODES AND STANDARDS

Ethics Codes and Standards Level Certificate and Professional Levelmodules

IFAC Code of Ethics for Professional

Accountants(parts A, B and C and Definitions)

A Assurance

Business and FinanceLawPrinciples of TaxationAudit and AssuranceBusiness StrategyFinancial Accounting and ReportingTax Compliance and BusinessPlanning: Taxation

ICAEW Code of Ethics A

APB Ethical Standards 1-5 (revised)Provisions Available to Small Entities(revised)

A AssuranceAudit and Assurance


9/27

ICAEW 2013 9

FINANCIAL REPORTING

Title

Certificate &

Professional Level

AdvancedLev

el

Accounting

Financial

Accounting

&Reporting

Preface to International Financial Reporting Standards A AConceptual Framework for Financial Reporting B A AIAS 1 Presentation of Financial Statements A A AIAS 2 Inventories B A A

IAS 7 Statement of Cash flows B A AIAS 8 Accounting Policies, Changes in AccountingEstimates and Errors

B A A

IAS 10 Events after the Reporting Period A AIAS 11 Construction Contracts AIAS 12 Income Taxes C AIAS 16 Property, Plant and Equipment B A AIAS 17 Leases B AIAS 18 Revenue B A AIAS 19 Employee Benefits AIAS 20 Accounting for Government Grants and Disclosureof Government Assistance

A A

IAS 21 The Effects of Changes in Foreign ExchangeRates

C A

IAS 23 Borrowing Costs C AIAS 24 Related Party Disclosures B AIAS 26 Accounting and Reporting by Retirement BenefitPlans

- D

IAS 27 (IFRS 10) Consolidated and Separate FinancialStatements

B A

IAS 28 Investments in Associates B AIAS 29 Financial Reporting in Hyperinflationary Economics DIAS 31 (IFRS 11) Interests in Joint Ventures B AIAS 32 Financial Instruments: Presentation B A

IAS 33 Earnings Per Share C AIAS 34 Interim Financial Reporting AIAS 36 Impairment of Assets B AIAS 37 Provisions, Contingent Liabilities and ContingentAssets

C A A

IAS 38 Intangible Assets C A AIAS 39 Financial Instruments: Recognition andMeasurement

C A

IAS 40 Investment Property - AIAS 41 Agriculture - DIFRS 1 First-Time Adoption of IFRS - AIFRS 2 Share-based Payment - A

IFRS 3 Business Combinations B AIFRS 4 Insurance Contracts - DIFRS 5 Non-Current Assets Held for Sale and B A


10/27

ICAEW 2013 10

Discontinued OperationsIFRS 6 Exploration for and Evaluation of MineralResources

- D

IFRS 7 Financial Instruments: Disclosures B AIFRS 8 Operating Segments - AIFRS 9 Financial Instruments - CIFRS for SMEs - A

IFRS 10 Consolidated Financial Statements B AIFRS 11 Joint Arrangements B AIFRS 12 Disclosure of Interests in Other Entities B AIFRS 13 FV Measurement C A


11/27

ICAEW 2013 11

DIFFERENCES BETWEEN IFRS AND UK GAAP

The following table identifies the scope of the differences examinable in the ACA qualification and where they will be introduced. In general, thedifferences will become examinable where the relevant IFRS is set at knowledge level A. The differences may also be examined in subsequentmodules but only in a different context, for example at the Advanced Level where knowledge of the differences forms part of an integrated question.Where a general awareness only of an accounting standard is expected (knowledge level D) any differences will also be dealt with at this level.

Title Key examinable d if ferencesbetween IFRS and UK GAAP

Preface to InternationalFinancial ReportingStandards

No examinable differences

Conceptual Frameworkfor Financial Reporting

ASB Statement of Principles for Financial Reporting

Qualitative characteristics are based on the IASB Framework rather than the revised chapters thatform part of the new Conceptual Framework

Includes chapters on the reporting entity, presentation and accounting for interests in other entitieswhere there is no direct equivalent in theConceptual Framework

Measurement chapter is more detailed with an emphasis on the deprival value model.

Companies Act

Format 1 and 2 profit & loss account classifications of expenses are similar to IAS1. However, IAS1requires further detail, but not necessarily as individual line items in the statement of comprehensive

income. CA balance sheet formats are less flexible than IAS1 formats that allow a wider choice of

classification formats. Differences in terminology used, including a balance sheet which is described as a statement of

financial position under IAS 1.

FRS3 Reporting Financial Performance

Specifies certain mezzanine exceptional items that must be presented on the face of the profit &loss account after operating profit. IAS1 doesnt specify items and doesnt contain the strict


12/27

ICAEW 2013 12


IAS1 Presentation ofFinancial Statements

concept of exceptional items. Requires separate presentation of profit & loss account and STRGL. IAS1 allows a single statement

of comprehensive income which combines both. Requires a sub-total for operating profit which is not explicitly required by IAS1.

FRS18 Accounting Policies

The disclosure requirements for estimation techniques are not as extensive. FRS18 only requires adiscussion of significant estimation techniques.

FRS28 Corresponding Amounts

Does not specifically require comparative information for narrative and descriptive information to bedisclosed.

IAS2 Inventories

SSAP9 Stocks and Long Term Contracts

No examinable differences.

IAS7 Statement of CashFlows

FRS1 Cash Flow Statements

Allows certain exemptions from preparing a cash flow statement for certain subsidiaries and small

companies. No exemptions in IAS7. The definition of cash is more restrictive and only includes cash and deposits repayable on demand

(within 24 hours). IAS7 uses the wider terminology of cash and cash equivalents.

Cash flows are classified under eight standard headings rather than three. There is less flexibility asto where certain cash flows, such as interest paid, are presented.

IAS8 Accounting Policies,

FRS3 Reporting Financial Performance Comparative financial information is restated where a fundamental prior period error has occurred

which is more restrictive than IAS 8 which requires restatement for material prior period errors.


13/27

ICAEW 2013 13


Changes in AccountingEstimates and Errors

FRS18 Accounting Policies Impending changes to accounting policies are not required to be disclosed

FRS28 Corresponding Amounts


IAS10 Events after theReporting Period

FRS21 Events After the Balance Sheet Date


IAS11 ConstructionContracts

SSAP9 Stocks and Long-Term Contracts

Unlike IAS11, service contracts may fall within its scope.

Requires the asset representing the gross amount due from customers for contract work to be splitbetween amounts recoverable on contracts (debtors) and long-term contract balances (stocks).

Inequalities in profit generation from different stages of a contract should be considered indetermining the attributable profit. IAS11 is silent on this.

IAS12 Income Taxes

FRS19 Deferred tax

Requires deferred taxation to be recognised on the basis of timing differences rather than IAS12stemporary differences.

May require deferred taxation to be recognised at a different rate than IAS12 for intra-grouptransactions eliminated on consolidation.

FRS19 permits, but does not require, the discounting of deferred tax balances, whereas IAS12prohibits this.

FRS 19 does not normally recognise deferred taxation on the revaluation of assets

IAS16 Property, Plantand Equipment

FRS15 Tangible Fixed Assets

Where assets have been revalued FRS15 requires the use of existing use value (EUV) rather thanfair value.


14/27

ICAEW 2013 14


FRS15 specifies a maximum period of five years between full valuations and an interim valuationevery three years. IAS16 does not specify a maximum period and the timing of revaluationsdepends on changes in market values.

FRS15 requires impairment losses to be debited first against any revaluation surplus in respect ofthe asset unless it reflects a consumption of economic benefits. IAS16 does not include such alimitation.

The residual values of assets are assessed at the date of acquisition and not adjusted for expectedfuture price changes. However, residual values should be reviewed at each balance sheet date andrevised if appropriate. IAS16 requires them to be reassessed at the end of each reporting periodtaking into account current price changes. This may affect the depreciation expense.

Annual impairment reviews are required for all assets, which are either depreciated over a period ofmore than 50 years or not depreciated. IAS16 does not include such a requirement.

IAS17 Leases

SSAP21 Accounting For Leases and Hire Purchase Contracts

SSAP21 contains the 90% test rebuttable presumption for determining the classification of financeand operating leases.

IAS17 specifically requires leases of land and buildings to be split at inception as a separate leaseof the land and a separate lease of the buildings. Under SSAP21 they are considered together.

The net cash investment method is used for lessor accounting. IAS17 requires the net investmentmethod.

UK GAAP requires operating lease rental incentives to be spread over the shorter of the lease termand the period until the next rent review. IAS requires any incentives to be spread over the whole

lease term.

IAS18 Revenue There is no comprehensive UK accounting standard covering revenue. The main principles in FRS 5Reporting the Substance of Transactions and IAS 18 are consistent.

IAS19 Employee Benefits

FRS17 Retirement Benefits

The scope of IAS19 is wider and covers different types of employee compensation. IAS19 allows a similar immediate recognition approach to actuarial gains and losses as FRS17.


15/27


16/27

ICAEW 2013 16


Management compensation disclosures are included in CArather than FRS8 as well as disclosureson loans and other transactions involving directors.

IAS24 does not consider the materiality of related party transactions. FRS8 considers materialityfrom the perspective of both the company and the related party.

IAS26 Accounting andReporting by RetirementBenefit Plans


IAS27 (IFRS 10)Consolidated andSeparate FinancialStatements

FRS2 Accounting for Subsidiary Undertakings

Includes an exclusion of a subsidiary from consolidation on the grounds of severe long-termrestrictions. No exemption exists under IAS27.

Under IAS27 the existence of potential voting rights should be considered in assessing control. Noconsideration is required under UK GAAP.

Requires the non-controlling interest to be presented separately from shareholders funds. IAS27requires it to be shown as a separate component of equity.

IAS27 requires changes in a parents ownership interest in a subsidiary that do not result in the lossof control are accounted for within equity.

IAS27 requires any investment retained in the former subsidiary following a loss of control to bemeasured at its fair value at the date when control is lost. FRS2 does not require this.

IAS28 Investments inAssociates

FRS9 Associates and Joint Ventures

Prescribes detailed format for equity accounting. IAS 28 does not prescribe guidance for thestatement of comprehensive income. However, IAS1 provides limited guidance which uses a pre-taxpresentation of the associates income. FRS9 shows the components separately.

Requires investors to recognise their share of any interest in net liabilities. IAS28 only requires thiswhere there is a legal or constructive obligation to make good those losses.

FRS24 Financial Reporting in Hyperinflationary Environments


17/27

ICAEW 2013 17


IAS29 FinancialReporting inHyperinflationaryEconomies


IAS31 (IFRS 11) Interestsin Joint Ventures

FRS9 Associates and Joint Ventures

Requires the use of the gross equity method rather than proportionate consolidation or equitymethods allowed by IAS31.

IAS32 FinancialInstruments: Presentation

FRS25 Financial Instruments: Disclosure and Presentation


IAS33 Earnings perShare

FRS22 Earnings Per Share


IAS34 Interim FinancialReporting

No UK accounting standard on interim financial reporting. IAS34 is broadly comparable with the ASBstatement on interim reports.

IAS36 Impairment ofAssets

FRS11 Impairment of fixed assets and goodwill

Impairment losses on previously revalued assets are taken to the profit & loss account where theyrelate to a consumption of economic benefits (see IAS16\FRS15 above)

Impairment losses are allocated to goodwill, intangible assets and tangible assets in that order.IAS36 allocates the losses to goodwill first and then on a pro-rata basis to intangible and tangibleassets.

FRS11 is more restrictive on the recognition of the reversal of intangible assets other than goodwill.

Unlike IAS36, where cash flows have been used to demonstrate the recoverable amount, FRS11requires future cash flows to be monitored against those forecasts for the 5 subsequent years (look


18/27

ICAEW 2013 18


back test).

IAS37 Provisions,Contingent Liabilities andContingent Assets

FRS12 Provisions, Contingent Liabilities and Contingent Assets


IAS38 Intangible Assets

SSAP13 Accounting for Research and Development

The capitalisation of development expenditure is optional. IAS38 requires it to be capitalised whereit meets the recognition criteria.

Development expenditure recognition criteria include a requirement to have a reasonableexpectation of future benefits. IAS38 is more stringent as the requirement is to demonstrate futurebenefits.

FRS10 Goodwill and Intangible Assets

Only intangible assets that can be sold separately from the business are recognised under UKGAAP. IAS38 allows non-separable assets to be recognised where they arise from contractual orother legal rights.

Allows amortisation of intangibles over economic life or no amortisation where an indefinite life isassessed. Under IAS38 goodwill and indefinite life assets should not be amortised but instead

tested annually for impairment.

IAS39 FinancialInstruments: Recognitionand Measurement

FRS26 Financial Instruments: Measurement


SSAP19 Accounting for Investment Properties


19/27

ICAEW 2013 19


IAS40 InvestmentProperty

Requires measurement at open market value. IAS40 allows a choice between cost and fair value. Investment gains and losses are taken to STRGL unless they represent a permanent deficit in fair

value. Under IAS40 all gains and losses are recognised in profit or loss.

IAS41 Agriculture No equivalent UK accounting standard.

IFRS1 First-TimeAdoption of IFRS

Not applicable not relevant to UK GAAP

IFRS2 Share-basedPayment

FRS20 Share-based Payment


IFRS3 BusinessCombinations

FRS6 Acquisitions and Mergers Merger accounting is required when criteria are met. Not permitted under IFRS. Group reconstructions are merger accounted for (AS). Common control transactions are not within scope of IFRS3 (AS).

IFRS3 contains explicit option (not in UK GAAP) to measure minority interest (or non-controllinginterest (NCI)) as fair value.

FRS7 Fair Values in Acquisition Accounting

Provides specific guidance on fair value measurement. IFRS3 only offers brief guidance on fairvalue measurement.

Only requires separable intangible assets to be fair valued. Hence, more intangibles could berecognised under IFRS3.

Requires acquisition-related costs to be included in the cost of the investment. IFRS3 requires themto be treated as period costs.

Post-acquisition changes to the estimates of contingent consideration affect the amounts of goodwillrecognised. IFRS3 permits few subsequent changes to be reflected in goodwill.

FRS10 Goodwill and Intangible Assets Goodwill is often amortised over its estimated useful economic life. There is a rebuttable


20/27

ICAEW 2013 20


presumption that it is not more than 20 years. IFRS3 prohibits amortisation and requires annualimpairment reviews.

Negative goodwill is capitalised as a separate item within goodwill and amortised over the periodover which any related losses are expected and as acquired non-monetary assets are realised.IFRS3 requires immediate recognition as a gain in the profit & loss account.

IFRS4 InsuranceContracts

Companies Act

Contains specific requirements for insurance companies

Specific requirements in SORP and FRS27, Life Assurance

IFRS5 Non-currentAssets Held for Sale andDiscontinued

Operations

FRS3 Reporting Financial Performance

Continuing and discontinued activities must be analysed. Unlike IFRS5 detailed analysis is shownon face of P&L account.

Discontinued classification will often be at a later date than IFRS5 as disposal must be completedduring the reporting period or before the earlier of the approval of the financial statements and threemonths after year-end.

FRS15 Tangible Fixed Assets

Classification and measurement of assets generally continues as normal without regard for the

disposal. This includes depreciation until the date of disposal. IFRS5 on the other hand requiresdepreciation to cease while a non-current asset is held for sale.

FRS1 Cash flow Statements

Encourages the separate disclosure of cash flows from discontinued operations. This is requiredrather than encouraged by IFRS5.

IFRS6 Exploration for andEvaluation of Mineral

SORP discusses the issues surrounding oil and gas exploration and production.


21/27

ICAEW 2013 21


Resources

IFRS7 FinancialInstruments: Disclosures

FRS29 Financial Instruments: Disclosures


IFRS8 OperatingSegments

SSAP25 Segmental Reporting

Omission of segment information is allowed where disclosure may be seriously prejudicial to theentitys interests. No exemption exists under IFRS8.

Requires disclosures for both geographic and business segments. IFRS8 requires disclosure aboutthe components of the entity that management uses to make decisions about operating matters.

Requires segment information to be prepared in accordance with accounting policies. IFRS8requires the amounts reported to be on the same basis as for internal decision making.

SSAP25 does not require unlisted subsidiaries of listed parents to disclose segment informationwhere the parent has prepared such information.

IFRS in individual company accounts.

Candidates may be required to discuss the key issues that need to be considered when considering whether UK companies should retain UK GAAPfor their individual company accounts or to move to IFRS. This is examinable in the Financial Accounting and Reporting module.


22/27

ICAEW 2013 22

TAXATION

Certificate & ProfessionalLevel

Title

Principlesof

Taxation

TaxCompliance

BusinessPlannin

g:

Taxation

Objectives of taxation C Ethics A

HM Revenue & Customs B

Tax evasion and avoidance C B ADisclosure of tax avoidance schemes (DOTAS) A

ADMINISTRATIONAdministration B Appeals C PAYE B Payments B A Penalties and interest B A Self assessment B A

CAPITAL GAINS TAXChargeable gainsAnnual exempt amount B A Capital gains tax for trusts B

Chargeable assets C B Chargeable disposals C B Chargeable persons C B Chattels: wasting and non wasting B Connected persons A Converted trading losses BCosts of acquisition and disposal C B Leases ANil gain/nil loss transfers B APart disposals B Pre 31 March 1982 assets A Qualifying corporate bonds B

Rate of tax B ARelief for capital losses AReorganisations and reconstructions AShares and securities (including bonus and rights issues) A Chargeable gains reliefsEntrepreneurs relief AGift relief AIncorporation relief ALetting relief A Principal private residence relief A Reinvestment relief under EIS BRoll-over relief A

Overseas aspects of capital gains taxArising basis B ADomicile B A


23/27

ICAEW 2013 23


Title

Principlesof

Taxa

tion

TaxCom

pliance

Business

Planning:

Taxa

tion

Double tax relief A Gains on foreign assets B AOrdinary residence B ARemittance basis B AResidence B ATemporary absence AUK taxation of non-domiciled individuals B A

INCOME TAXTrading profitsAdjustments to profits B A Badges of trade B A Capital allowances B A Foreign currency transactions ALong periods of account C A Pension contributions A Royalty payments B Royalty receipts B Unincorporated businessesBasis of assessment current year basis B A Change of accounting date B ACommencement and cessation of trade B A Overlap profits B A Partnerships B A Trading losses ATreatment of opening year losses AEmployment incomeAllowable deductions against employment income A Employment income B A Share schemes AStatutory Mileage Rates Scheme A Taxable and exempt benefits B A

Termination payments BOther incomeDividends from UK companies B A Enterprise Investment Scheme BInvestment income B A ISAs B B BLease premiums A Property income C A Savings income B A Venture Capital Trusts BOverseas aspects of income taxArising basis B A

Domicile B ADouble tax relief A AIncome on foreign assets and income from foreign employment B A


24/27

ICAEW 2013 24


Title

Principlesof

Taxa

tion

TaxCom

pliance

Business

Planning:

Taxa

tion

Ordinary residence B ARemittance basis B AResidence B AUK taxation of non-domiciled individuals B AIncome tax computationExempt income B A Gift Aid B A Income tax liability and income tax payable B A

Income tax charge on child benefit B Independent taxation and jointly owned assets B AIncome tax for trusts B Married couples allowance B A Pension contributions provisions for retirement B APension contributions tax reliefs B APersonal age allowance B A Personal allowance B A Rates of tax B A Taxable persons C A

INHERITANCE TAXFundamental principles of inheritance taxChargeable persons B Chargeable property B Excluded property B Inter-spouse transfers A Rates of tax A Related property B Seven year accumulation period A Trusts B Inheritance tax on lifetime transfersRelevant property trusts A Potentially exempt transfers A

Inheritance tax on deathDeath estate A Deeds of variation BLifetime transfers A Overseas aspects of inheritance taxDeemed domicile for IHT A Domicile A Double tax relief A Lex-situs rules A Reliefs & exemptions from inheritance taxAgricultural property relief BAnnual exemption A

Business property relief AGifts to charities and political parties A Gifts with reservation of benefit A


25/27

ICAEW 2013 25


Title

Principlesof

Taxa

tion

TaxCom

pliance

Business

Planning:

Taxa

tion

Marriage exemption A Normal expenditure out of income A Quick succession relief B Small gifts exemption A Taper relief A

NATIONAL INSURANCE CONTRIBUTIONSAdministration C B Classes of NIC C B

Directors B Maximum contributions C Taxable benefits B

CORPORATION TAXChargeable gainsChargeable assets C B Chargeable disposals C B Chargeable persons C B Chattels: wasting and non wasting B Costs of acquisition and disposal C B Indexation B A

Leases ANil gain/nil loss transfers APart disposals B Pre 31 March 1982 assets A Qualifying corporate bonds B Relief for capital losses B AReorganisations and reconstructions AShares and securities (including bonus and rights issues) A Substantial shareholding exemption B ATrading profitsAdjustments to profits B A Badges of trade B A

Capital allowances B A Foreign currency transactions ALong periods of account C A Pension contributions A Royalty payments B Royalty receipts B Taxable total profitsChargeable gains B A Intangible assets B ALoan relationships B B ALoan relationships worldwide debt cap AMiscellaneous income B A

Property income (including lease premiums) A Qualifying donations B A Research and development expenditure A


26/27

ICAEW 2013 26


Title

Principlesof

Taxa

tion

TaxCom

pliance

Business

Planning:

Taxa

tion

Research and development tax credits ATrading losses ATrading profits B A Use of deficit on non-trading loan relationships ACorporation tax computationAccounting periods C B AClose companies ACorporation tax liability B A

Distributions B Double tax relief (including underlying tax and withholding tax) B Liquidation AProvision of services through a company ARates of tax B A Residence C B Tax treaties and the OECD Model Tax Convention CGroupsAssociated companies C B ACapital gains groups AChange in group structure AChange in ownership AConsortium relief AControlled foreign companies ADegrouping charges AGroup loss relief AGroup relationships ANon-coterminous accounting periods AOverseas companies and branches APre-acquisition gains and losses ARoll-over relief ATransfer of assets ATransfer pricing A

STAMP TAXESBasic principles B Chargeable occasions B Exemptions B Stamp taxes for groups B

VATAdministration B Appeals C Capitals goods scheme A Classification of supplies B Distinction between goods and services C EU and overseas aspects A

Group aspects AInput VAT A Mixed and composite supplies B


27/27


Title

Principlesof

Taxa

tion

TaxCom

pliance

Business

Planning:

Taxa

tion

Output VAT A Partial exemption B Payments A Penalties and interest A Property transactions B ARegistration and deregistration A Small business reliefs A Taxable person A

Taxable supplies A Transfer of a business as a going concern AVAT records and accounts A

Syllabus Latest Evolution of the Aca Technical Knowledge Grids 2013

Documents

Transcript of Syllabus Latest Evolution of the Aca Technical Knowledge Grids 2013