ICAP C6 | Financial Accounting
Sixth paper in ICAP’s exam course which is named C6 Financial Accounting compliments the course that students cover in Module B with the name B4 Introduction to Financial Accounting. Thus, examiner can ask anything from B4 as well. In C6 exam definitely the skill and proficiency required in interpreting and applying relevant provisions of International and local accounting standards is higher then what was expected in B4. Syllabus contains both numerical and theoretical portions and the same is reflected in the exams where examiner includes discursive questions as well with numerical ones. Students are advised to practice as much past exam questions as possible and use only such solutions which are updated according to latest examinable standards.
Among principal aims of this paper, it requires students to learn:
- Accounting methods and procedures followed by different organizations
- The application of local i.e. Companies Ordinance, 1984 and international accounting standards / international financial reporting standards
- How to prepare basic financial statements of companies under local and international guidelines
- How changes in accounting policies, estimates and discovery of prior period errors is dealt with under IASs
- Accounting of Tangible and Intangible Non-current assets and capitalization of borrowing cost and also Leases.
- Accounting treatments of contingencies
- Accounting for taxation of current period and how prior period’s provisions are adjusted including accounting of deferred taxation.
There is no particular exam format provided by ICAP for this paper. Nothing has been mentioned regarding topics that a certain topic will form a compulsory part of the exam. Also there is no instruction about how many questions are going to be in the exam.
The only information in this regard is the indicative grid which divides the syllabus in three parts and even then the weightages provided are for guidance purposes and examiner can deviate from them while setting paper. Weightages are as follows:
- Accounts of limited companies – 25%
- Specialized accounting treatments – 40%
- Other accounting and reporting issues – 35%
Paper is of 100 marks in total and contains 6-10 questions divided in different parts. 50% is required to pass the exam.