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CPA Australia Financial-Accounting-and-Reporting Exam Overview:
| Certification Vendor: | CPA Australia |
| Exam Name: | CPA Australia Financial Accounting and Reporting Exam |
| Exam Number: | Financial Accounting and Reporting |
| Exam Price: | AUD 388 (enrolment fee, may vary by region) |
| Related Certifications: | CPA Australia Associate Member CPA Program |
| Exam Duration: | 195 minutes |
| Real Exam Qty: | 100 |
| Exam Format: | Multiple choice |
| Available Languages: | English |
| Passing Score: | Scaled pass mark 540 (on 100–900 scale) |
| Sample Questions: | CPA Australia Financial-Accounting-and-Reporting Sample Questions |
| Exam Way: | Computer-based test centre exam (closed book, supervised by Pearson VUE; online proctored in some regions under conditions) with 100 multiple-choice questions; total time 195 minutes (3 hours 15 minutes) excluding introductory and survey components. |
| Pre Condition: | No formal prerequisite; part of CPA Australia Foundation exams required for entry to the CPA Program. Eligibility assessed based on prior qualifications and competencies. |
| Official Syllabus URL: | https://www.cpaaustralia.com.au/become-a-cpa/cpa-program/foundation-exams/financial-accounting-and-reporting |
CPA Australia Financial-Accounting-and-Reporting Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Financial statements | 15% | - Statement of financial position - Statement of profit or loss and other comprehensive income - Discrepancy detection and correction - Statement of cash flows |
| Topic 2: Application of specific accounting standards | 22% | - Revenue recognition and ledger reconciliation - Current and deferred income tax accounting - Intangible assets and journal entries - Foreign currency transactions and translation |
| Topic 3: Analysis of financial statements | 10% | - Financial ratio calculation and interpretation - Limitations of financial statement analysis |
| Topic 4: The financial reporting environment | 25% | - Accounting regulation and GAAP/IFRS - Accounting standards and policies - Types of business entity and structure - Conceptual framework and elements of financial statements - Users and developments impacting reporting - Regulatory environment and reporting requirements - Role of International Accounting Standards Board |
| Topic 5: Business combinations | 13% | - Goodwill measurement and disclosure - Consolidated financial statements - Accounting issues for business combinations - Non-controlling interest and control concepts - Impairment and journal entries |
| Topic 6: The accounting theory | 15% | - Recognition criteria per conceptual framework - Historical cost vs other valuation methods - Agency and contracting theories |
CPA Australia CPA Financial Accounting and Reporting Sample Questions:
1. Which one of the following is not an Australian Securities Exchange (ASX) principle of good corporate governance?
A) Respect the rights of shareholders.
B) Safeguard the environment.
C) Remunerate fairly and responsibly.
D) Promote ethical and responsible decision-making.
2. Which one of the following is an accurate definition of fair value of an asset?
A) The cost of replacing an asset with an identical item.
B) The amount yet to be written off over the remainder of the asset's useful life.
C) The price for which an asset could be sold net of disposal costs.
D) The price for which an asset could be sold in an orderly transaction between market participants at the measurement date.
3. Which one of the following countries has the view that Generally Accepted Accounting Principles (GAAP) refers to accounting practices which are regarded as permissible by the accounting profession?
A) United Kingdom
B) Canada
C) Australia
D) United States of America
4. A multinational company is converting the methodology of reporting by its subsidiaries in various countries to make it uniform with the requirements of the International Financial Reporting Standards (IFRS). While changing the reporting methodologies, accountants have to apply certain judgments.
Which one of the following is not a valid motivation for decision making on reporting methodologies?
A) to be consistent with the methodologies followed in the home country of the company
B) to present the company's financial performance in the most favourable way
C) to present the financial statements in a manner that is understood by most users
D) to comply with the information demands of government bodies in home country
5. The International Federation of Accountants (IFAC) was established by
A) the United Nations.
B) the Organization for Economic Co-operation & Development.
C) various professional accounting bodies.
D) the International Accounting Standards Board.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: C |
By Lorraine
