THE CPA LICENSURE EXAMINATION SYLLABUS

PRACTICAL ACCOUNTING PROBLEMS I

(Effective October 2006 Examination)
This subject tests the candidates proficiency in applyin financial accountin techni!ues and
methodoloy
to problems li"ely to be encountered in practice# The problems involve reconition$ measurement$
valuation$
classification$ disposition and disclosure of assets$ liabilities$ e!uity$ income$ expenses$ and net income
of a business
enterprise$ preparation of financial statements$ and contemporary accountin issues in accordance %ith
&hilippine
'inancial (eportin )tandards in effect at the time of examination#
Each examination %ill contain a minimum of *0 and a maximum of +0 multiple choice problems
e!uitably
allocated to the different subject areas as indicated belo%#
,#0 &reparation of 'inancial )tatements
,#, -ccountin process
,#2 .omponents of financial statements
a# /alance sheet
b# 0ncome statement
c# )tatement of chanes in e!uity
d# .ash flo% statement
e# 1otes to financial statements
,# .ontinencies
2# Events after balance sheet date
2# -ccountin policies
*# (elated party disclosure
+# )ement reportin
6# Earnins per share
3# Other disclosures
,#2 .ash basis to accrual basis and sinle entry
,#* 'inancial reportin and chanin prices (includin hyperinflationary economies)
2#0 -ccountin for 0ncome and Expenses
2#, 1et income
a# Transaction approach
b# .apital maintenance approach
2#2 -ccountin chanes
2#2 &rior4period errors
2#* 0nterim reportin
2#+ )ement reportin
2#6 5evelopment4stae enterprise
2#0 -ccountin for -ssets
2#, .ash and cash e!uivalents
2#2 Trade and other receivables
2#2 0nventories
2#* &repaid expenses
2#+ 0nvestments (excludin investment in subsidiaries and joint ventures)
2#6 &roperty$ plant and e!uipment
2#3 0ntanibles
2#6 Other assets
2#7 0mpairment of assets
*#0 -ccountin for 8iabilities
*#, Trade and other payables
*#2 &rovisions9 .ontinent liabilities
*#2 0ncome taxes payable
*#* /onds payable
*#+ 1otes payable
The CPA Licensure Examination Syllabus
Practical Accounting Problems I / page 2
*#6 5ebt restructurin (except dacion en pao)
*#3 Employee benefits
*#6 Other liabilities
+#0 -ccountin for E!uity
+#, &reference shares
+#2 Ordinary shares
+#2 -dditional paid4in capital : share premium : other sources
+#* (eserves (e##$ revaluation surplus$ translation adjustments$ and unreali;ed ain or loss on assets
available for sale)
+#+ (etained earnins : accumulated profit or loss
+#6 Treasury shares
+#3 Earnins per share
+#6 /oo" value per share
+#7 .apital restructurin
6#0 Other Topics
6#, -ccountin for deferred taxes
6#2 -ccountin for leases
6#2 -ccountin for non4current assets held for sale and discontinued operations
6#* -ccountin for share4based payments
6#+ -ccountin for bioloical assets$ aricultural produce at the point of harvest and overnment rants
related to aricultural activity
6#6 -ccountin for overnment rants and disclosure of overnment assistance
6#3 Other current pronouncements