For sessions up to June 2019
The ACCA Diploma in International Financial Reporting (DipIFR) is primarily intended for professional accountants working in practice and industry. Many professionals who are qualified in accordance with national accounting standards now need to develop technical awareness of International Financial Reporting Standards® (IFRS Standards) because of the increasing global use of IFRS Standards, for example by listed entities in the European Union in their consolidated financial statements.
The DipIFR bridges the knowledge gap that currently may exist regarding IFRS Standards by providing an understanding of the following areas:
The DipIFR can be attempted by:
The exam will test a mixture of technical preparation of consolidated financial statements and identification of appropriate financial reporting treatments. The three-hour 15-minute exam is paper-based.
The level of difficulty lies between ACCA Qualification Papers Financial reporting (FR) and Strategic Business Reporting (SBR). The paper contains four compulsory questions.
Question 1 is for 40 marks. This question will require candidates to prepare the consolidated statement of financial position or the consolidated statement of comprehensive income and may additionally include the consolidated statement of changes in equity. Questions involving the preparation of the consolidated statement of cash flows will not be set. A key purpose of this question is to assess technical group accounting skills. However, the question will also require candidates to adjust a number of transactions (typically three or four) that have been incorrectly or incompletely accounted for in the financial statements of group entities (usually the parent entity). In order to make these adjustments candidates will need to apply the provisions of relevant IFRS Standards. In Question 1 the emphasis will be on application rather than explanation.
Questions 2, 3 and 4 are for 20 marks each. All are compulsory. In all three questions, there will be more emphasis on explanation of financial reporting issues than of numerical financial statements preparation. Practicing these questions from the past exam papers is very good exam preparation as generally candidates find the narrative style questions more challenging than the numerical style of question 1.
Question 2 will often present candidates with two or three reasonably complex issues and require them to prepare a narrative answer that shows the appropriate financial reporting of those issues. This question will usually involve a little more computational work than Question 3 and 4 and the requirements will normally be presented as ‘explain and show’ which means the the answer should describe the accounting required but also give workings for the actual figures to be accounted for or disclosed. Examples of issues that could be examined in this question include, but are not restricted to, accounting for retirement benefit schemes or share-based payment schemes, impairment calculations for a cash-generating unit, computation of the cost of a constructed item of property, plant and equipment, and accounting for a decommissioning provision relating to an asset such as a nuclear power station.
Question 3 will usually deal with a particular IFRS Standard in some detail. Such a question would require candidates to describe key features of the IFRS Standard and apply it to two or more situations that the question describes. In contrast with Question 1, there will only be a limited number, if any, marks available for technical preparation of financial statements extracts and the majority of marks are available for identifying and quantifying the appropriate adjustments. However it is expected that candidates can explain how these adjustments will affect line items in the financial statements.
Question 4 will often present candidates with a scenario or a range of scenarios for which the correct financial reporting treatment is complex or uncertain. Often the question will place the candidate in a ‘real-life’ role, for example chief accountant reporting to the chief executive officer or senior accountant supervising an assistant. The question frequently requires candidates to address a series of questions that have been posed by the other party in the scenario. The question will often ask candidates to present a reply or report that deals with the appropriate financial reporting of the issues raised in the scenario. The primary skill in this question is identifying and describing the issues, rather than the detailed computation of numbers.
Written by a member of the DipIFR examining team