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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 |
| Available Languages: | English |
| Exam Duration: | 195 minutes |
| Passing Score: | Scaled pass mark 540 (on 100–900 scale) |
| Real Exam Qty: | 100 |
| Related Certifications: | CPA Australia Associate Member CPA Program |
| Exam Price: | AUD 388 (enrolment fee, may vary by region) |
| Exam Format: | Multiple choice |
| 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: The financial reporting environment | 25% | - Role of International Accounting Standards Board - Accounting regulation and GAAP/IFRS - Types of business entity and structure - Users and developments impacting reporting - Conceptual framework and elements of financial statements - Regulatory environment and reporting requirements - Accounting standards and policies |
| Topic 2: The accounting theory | 15% | - Recognition criteria per conceptual framework - Agency and contracting theories - Historical cost vs other valuation methods |
| Topic 3: Financial statements | 15% | - Statement of financial position - Statement of cash flows - Discrepancy detection and correction - Statement of profit or loss and other comprehensive income |
| Topic 4: Analysis of financial statements | 10% | - Limitations of financial statement analysis - Financial ratio calculation and interpretation |
| Topic 5: Application of specific accounting standards | 22% | - Current and deferred income tax accounting - Revenue recognition and ledger reconciliation - Intangible assets and journal entries - Foreign currency transactions and translation |
| Topic 6: Business combinations | 13% | - Accounting issues for business combinations - Consolidated financial statements - Impairment and journal entries - Non-controlling interest and control concepts - Goodwill measurement and disclosure |
CPA Australia CPA Financial Accounting and Reporting Sample Questions:
1. Which one of the following is an advantage of current purchasing power accounting?
A) It provides a stable monetary unit that values profit and capital.
B) It supposes that value of net assets clearly reflects general goods and services are bought once assets were released.
C) It provides a clear use of indices which approximates the measurement of value.
D) It enables raw data to be just easily verifiable but not auditable.
2. Which one of the following situations would result in either a new liability being recognised or an existing liability being increased?
A) A company recognises the depreciation expense for the current period.
B) A company pays only half of an overdue invoice.
C) A company establishes an asset revaluation reserve.
D) At the end of the reporting period, there are unpaid wages.
3. 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.
4. Which one of these concepts suggests that stock prices react to new information almost instantly?
A) bargaining power
B) market power
C) efficient market
D) incentive substitution
5. Which one of the following includes social reporting guidelines?
A) Generally Accepted Accounting Principles (GAAP)
B) Global Reporting Initiative (GRI)
C) International Financial Reporting Standards (IFRS)
D) International Accounting Standards (IAS)
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: B |
By Joa
