Fiac7311 Mo

IIE Learn Module Outline FIAC7311
Financial Accounting 3A
FIAC7311
MODULE OUTLINE 2024
(Second Edition: 2020)
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© The Independent Institute of Education (Pty) Ltd 2024 Page 1 of 34

Table of Contents
Introduction........................................................................................................................................... 3
Using this Module Outline ................................................................................................................... 5
This Module on Learn........................................................................................................................... 6
Icons Used in this Document and on Learn ....................................................................................... 7
Module Resources ................................................................................................................................ 8
Module Purpose.................................................................................................................................... 9
Module Outcomes ................................................................................................................................ 9
Module Pacer ...................................................................................................................................... 13

Introduction
Welcome to Financial Accounting 3A, which focuses on the application of selected International
Financial Reporting Standards, some of which were introduced in Financial Accounting 2A. This
module focuses on more complex issues in these standards as well as introducing new topics in
additional standards that will be studied for the first time in Financial Accounting 3A.
Mastery of topics in Financial Accounting 3 is critical to continued success as an accounting

student in the future. A significant portion of the topics covered in this module forms the
foundation for CTA Financial Accounting and, ultimately the Initial Test of Competence (ITC) set
by SAICA.
The Competency Framework issued by SAICA outlines the Accounting and External Reporting
competencies for universities to follow when preparing students for the ITC exam. This section of
the ITC exam requires students to:
• Demonstrate the ability to identify and apply the appropriate and relevant technical skill to
a business problem, given the operating environment and organisation structure of the
entity;
• Assimilate the key attributes of the external and internal environment opportunities and risk
factors in the evaluation of a particular problem and response thereto; and
• Demonstrate the ability to identify links between this competency and other competency
areas.
To meet this competency, the academic programme for Accounting and External Reporting is
primarily concerned with International Financial Reporting Standards (IFRS).
From 2018, SAICA has introduced principles of examination to provide guidance on how specific
sections of IFRS will be assessed in the ITC from 2019 onwards. Standards and topics are
categorised as follows:
• Core: Significant and prevalent. At the core level, an entry-level Chartered Accountant must
be able to identify the underlying problem, perform complex calculations and answer
integrated questions.
• Awareness: The issue is not core, but entry-level chartered accountants must know about
it. Students are expected to perform basic processing of the transaction from amounts
provided to them by an expert.
• Excluded: Student does not have to study as concepts are unique to a particular industry.

Financial Accounting 3A includes the following IFRS standards:
Core
Learning Unit 1 IAS 12 Income Taxes
Learning Unit 2 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
Learning Unit 3 IAS 16 Property, Plant and Equipment
Learning Unit 4 IAS 40 Investment Property
Learning Unit 5 IAS 36 Impairment of Assets
Learning Unit 6 IAS 38 Intangible Assets
Learning Unit 8 IFRS 5 Non-current Assets held for Sale and Discontinued Operations
Learning Unit 9 IAS 19 Employee benefits
Learning Unit 10 IFRS 15 Revenue from Contracts with Customers
Learning Unit 11 IFRS 16 Leases
Awareness
Learning Unit 7 IAS 23 Borrowing Costs
In summary, this module will focus on the application of more complex issues of International
Financial Reporting Standards:
• To perform calculations and to prepare journal entries in a range of business contexts;

• When preparing the annual financial statements of a company.

Using this Module Outline

This module outline has been developed to support your learning. Please note that the
content of this module is on Learn as well as in the prescribed material. Without focusing on
this document alone, you will not succeed in this module.
• This document does not reflect all the content on Learn, the links to different resources, nor
the specific instructions for the group and individual activities.
• Your lecturer will decide when activities are available/open for submission and when these
submissions or contributions are due. Ensure that you take note of announcements made
during lectures and/or posted within Learn in this regard.

This Module on Learn

Learn is an online space designed to support and maximise your learning in an active manner. Its
main purpose is to guide and pace you through the module. In addition to the information
provided in this document, you will find the following when you access Learn:
• A list of prescribed material;

• A variety of additional online resources (articles, videos, audio, interactive graphics, etc.) in
each learning unit that will further help to explain theoretical concepts;
• Critical questions to guide you through the module’s objectives;
• Collaborative and individual activities (all of which are gradable) with time-on-task estimates
to assist you in managing your time around these and
• Revision questions, or references to revision questions, after each learning unit.
Kindly note:
• Unless you are completing this as a distance module, Learn does not replace your
contact time with your lecturers and/or tutors.
• FIAC7311 is a Learn module, and as such, you are required to engage extensively with
the content on the Learn platform. Effective use of this tool will provide you with
opportunities to discuss, debate, and consolidate your understanding of the content
presented in this module.
• You are expected to work through the learning units on Learn in your own time –
especially before class. Any contact sessions will, therefore, be used to raise and address
any questions or interesting points with your lecturer and not to cover every aspect of
this module.
• Your lecturer will communicate submission dates for specific activities in class and/or on
Learn.

Icons Used in this Document and on Learn

The following icons are used in all your modules on Learn:
Icon Description
A list of what you should be able to do after working through the learning
unit.
Specific references to sections in the prescribed work.
Questions to help you recognise or think about theoretical concepts to be

covered.
Sections where you get to grapple with the content/theory. This is mainly
presented in the form of questions that focus your attention and are aimed
at helping you understand the content better. You will be presented with
online resources to work through (in addition to the textbook or manual
references) and find some of the answers to the questions posed.
Opportunities to make connections between different chunks of theory in

the module or to real life.
Real life or the world of work information or examples of application of

theory, using online resources for self-exploration.
REMEMBER:
You need to log onto Learn to:

• Access online resources such as articles, interactive graphics, explanations, video clips,
etc. which will assist you in mastering the content; and
• View instructions and submit or post your contributions to individual or group activities,
which are managed and tracked on Learn.

Module Resources
Prescribed Material (PM) for PM1: Koppeschaar, Z.R., Rossouw, J., Sturdy, J., van Wyk,
this Module H.A., Gaie-Booysen, F.F., Papageorgiou, K., Smith, C., van der
Merwe, C.M. and Schmulian, A. 2019. Descriptive Accounting
IFRS focus. 21st ed. Lexis Nexis.
Print ISBN: 9780409128284
eBook ISBN 9780409128291
PM2: SAICA Student Handbook Volume 1 (IFRS) 2023/2024

ISBN: 9780639009629
Recommended Readings, Please note that a number of additional resources and links
Digital, and Web Resources to resources are provided throughout this module on the
Learn platform. You are encouraged to engage with these as
they will assist you in mastering the various objectives of this
module. They may also be useful resources for completing
any assignments. You will not, however, be assessed under
examination conditions on any additional or recommended
reading material.
Module Overview You will find an overview of this module on Learn under the
Module Information link in the Course Menu.
Assessments Find more information on this module’s assessments in this
document and on the Student Portal.

Module Purpose
The purpose of this module is to further expose students to the principles of selected
International Financial Reporting Standards (IFRS), thereby developing the skills needed to
prepare financial statements in accordance with International Financial Reporting Standards
(IFRS).
Module Outcomes
Prepare financial statements in accordance with selected International Financial.
MO1
Reporting Standards.
Apply selected International Financial Reporting Standards (IFRS) to the
MO2
preparation of a set of financial statements.
MO3 Evaluate the accounting process in a business environment.

Assessments
Integrated Curriculum Engagement (ICE)

Minimum number of ICE activities to complete 4
Weighting towards the final module mark 10%
Formatives Test 1 Test 2

Weighting 20% 20%
Duration 1 hour 1 hour
Write/Submit after After 30 sessions After 54 sessions
Learning Units covered LU1 – 4 LU1 – 10, emphasis on 5 to 10
Open/Closed book Limited open book Limited open book
Resources required None None
Summative Examination
Weighting 50%
Duration 3 hours
Total marks 120
Learning Units covered All
Open/Closed book Limited open book
Resources required None

Assessment Preparation Guidelines

Format of the Assessment Preparation Hints
Test 1 (Limited open book)
The test for this module will • Ensure that you work through all the relevant activities,
assess your understanding exercises and revision questions on Learn and in your
of Learning Units 1 to 4 of textbook.
this module. The test will • Brainstorm possible questions based on the learning
include discussion and outcomes and objectives provided. Then, complete these
application questions. You as practice tests.
will be expected to apply the • During both your preparation for the test and during the
theory to a given context, test itself, pay attention to the instruction words (like
perform complex calculate, present, disclose, etc.) and to the mark
calculations and present and allocations of each question to ensure that you are able to
disclose information in the provide the correct depth and detail in your answers.
financial statements. • Make sure that you have mastered the objectives in
Learning Units 1 to 4.
Test 2 (Limited open book)
The test for this module will • Ensure that you work through all the relevant activities,
assess your understanding exercises and revision questions on Learn and in your
of Learning Units 1 to 10 of textbook.
this module and will include • Brainstorm possible questions based on the learning
a series of short and outcomes and objectives provided. Then, complete these
medium-length questions, as practice tests.
as well as one longer • During both your preparation for the test and during the
question. You will be test itself, pay attention to the instruction words (like
expected to apply, as well as calculate, present, disclose, etc.) and to the mark
recall, information as per allocations of each question to ensure that you are able to
your objectives for these provide the correct depth and detail in your answers.
learning units. • Make sure that you have mastered the objectives in
Learning Units 1 to 10. The test will focus on new content
from learning units 5 to 10.
Examination (Limited open book)
The examination will assess • Consult your examination brief for this module, which will
all learning units in this be made available prior to your examination. Make sure
module and will include that you practise answering the sample questions in the
discussion, application and brief so that you become familiar with the kinds of
presentation and disclosure questions likely to appear in the examination itself.
questions. • Ensure that you work through all the activities, exercises
and revision questions on Learn and in your textbook.

• You must have completed close readings of your

prescribed material to ensure that you have prepared
adequately for your examination for this module.
• Pay close attention to the instruction words (calculate,
present, disclose, etc.) and to the mark allocations of each
question to ensure that you provide the correct depth and
detail in your answers.
• Make sure that you are comfortable in responding to all
the objectives for all learning units.
• Brainstorm possible questions based on the learning
outcomes and objectives provided.

Module Pacer
Code Programme Contact Sessions Credits
FIAC7311 BAC312 72 (including six revision sessions) 22
Learning Unit 1 IAS 12 Income Taxes
Overview:
In this learning unit, you will learn to recognise and measure all company taxes, including
current taxes, deferred taxes, and foreign taxes. You will learn that an entity should account for
the tax consequences of a transaction in the same way and period that it accounts for the
transaction itself (this is according to the matching concept).
As a student, you will be required to calculate current and deferred tax and to present and
disclose income tax expense and deferred tax in the annual financial statements of a company.
Please work through Themes 1 to 4 on Learn, together with the relevant sections of your
prescribed source/s. To ensure that you are working towards mastering the objectives for this
learning unit, please complete all the activities on Learn.
IAS 12 is a very important accounting statement as the tax and deferred tax principles
established in this statement are applicable to several other accounting statements. You are,
therefore, likely to see deferred tax calculations integrated into learning units of this module
and other financial accounting modules.

Learning Unit 1: Theme Breakdown

Sessions: Theme 1: Recognition and measurement Prescribed Material (PM)
1 – 12 of current tax
Academic Week: LO1: Calculate the taxable income and PM: Chapter 8
1–2 current tax of a company.
Related Theme 2: Recognition and Measurement PM: Chapter 8
Outcomes: of deferred tax
MO01 LO2: Apply the definitions of IAS12: Excluded:
MO02 • Tax base of assets and liabilities; 8.8.3 Examples 8.25 to 8.28
• Taxable and deductible temporary
differences;
• Deferred tax assets and liabilities.
LO3: Calculate the deferred tax balance
and movement for the year.
Theme 3: Deferred Tax: Advanced PM: Chapter 8
principles
LO4: Calculate the deferred tax asset on an Excluded:
assessed loss. 8.9 Dividends tax
LO5: Calculate the effect of a change in tax 8.11 Consolidation and
rate on deferred tax. Equity Method
8.12 Uncertainty over
income tax treatments
Theme 4: Presentation and disclosure PM: Chapter 8
LO6: Apply the disclosure requirements of
IAS 12 Income Taxes in the annual
financial statements of a company.

Learning Unit 2 IAS 8 Accounting Policies, Changes in Accounting Estimates and

Errors
Overview:
In this learning unit, you will learn that there is always the possibility that financial information
should be amended after the publication of the financial statements. This is due to:
• Changes in accounting policies;

• Changes in accounting estimates;
• Correction of prior period errors.
The objective of IAS 8 is to establish the principles for the selection of an accounting policy
and to prescribe the accounting treatment and disclosures of changes in accounting policies,
changes in accounting estimates and the correction of prior period errors.
This learning unit should not present any significant challenges.


Sessions: Theme 1: Introduction and definitions Prescribed Material (PM)
13 – 18
Academic Week: LO1: Apply the definitions of IAS 8. PM: Chapter 6
3
Related Excluded:
Outcomes: 6.7 Impracticability of
MO01 retrospective application.
MO02 Theme 2: Changes in accounting estimates PM: Chapter 6
M003 LO2: Present and disclose changes in
accounting estimates in the annual
Theme 3: Changes in accounting policies PM: Chapter 6
LO3: Present and disclose changes in
accounting policies in the annual
Theme 4: Prior period errors PM: Chapter 6
LO4: Present and disclose the correction of
prior period errors in the annual financial
statements of a company.

Learning Unit 3 IAS 16: Property, Plant and Equipment
Overview:
In this learning unit, you will learn to apply the accounting requirements of IAS 16 Property,
Plant and Equipment to the financial statements of a company so that users of the financial
statements can understand information about an entity’s investment in its property, plant and
equipment and any changes therein.
The fundamental principles of IAS 16 were studied in FIAC6211. In this module, you identified
the recognition and derecognition criteria, calculated amounts for initial and subsequent
measurement and presented and disclosed property, plant and equipment in the annual
In FIAC7311, you will continue to develop your understanding of property, plant and equipment
by applying the revaluation model and considering the tax consequences of property, plant and
equipment.
On completion of this learning unit, you will once more be required to present and disclose
property, plant, and equipment in a company's annual financial statements. You will also be
required to calculate and disclose deferred tax balances with respect to property, plant, and
equipment.
Work through Themes 1 to 5 on Learn, together with the relevant sections of your prescribed
source/s. To ensure that you are working towards mastering the objectives for this learning
unit, please complete all the activities on Learn.
The first part of this learning unit should be familiar to you as the cost and depreciation
principles of IAS 16 should have been mastered in FIAC6211. If necessary, you should go back
and revise IAS 16 from your second-year learning material.
A challenge in this learning unit is the application of the revaluation model to land and the
resulting deferred tax implications. You must also understand the tax implications of all other
classes of property, plant and equipment. You will be required to properly present the
property, plant, and equipment notes in the company's annual financial statements.
You may be required to perform present value calculations using a financial calculator.


Sessions: Theme 1: Recognition of property, plant Prescribed Material (PM)
19 – 24 and equipment
Academic Week: LO1: Apply the recognition principles of PM: Chapter 9
4 property, plant and equipment.
Related Theme 2: Initial and subsequent PM: Chapter 9
Outcomes: measurement
MO01 LO2: Calculate the cost of property, plant
MO02 and equipment.
LO3: Apply the revaluation model to
property, plant and equipment.
Theme 3: Derecognition PM: Chapter 9
LO4: Derecognise property, plant and
equipment.
Theme 4: Deferred tax PM: Chapter 9
LO5: Calculate deferred tax balances of
property, plant and equipment as per
IAS 12.
Theme 5: Presentation and Disclosure PM: Chapter 9
IAS 16 Property, Plant and Equipment
in the annual financial statements of a
company.

Learning Unit 4 IAS 40 Investment Property
Overview:
In this learning unit, you will learn to distinguish investment property from property, plant and
equipment and to apply the recognition and measurement principles to investment property.
Investment property is defined as property held by the owner to earn rental income or for
capital appreciation, or for both, rather than for use in the business or for sale in the ordinary
course of business.
You will also be required to understand the accounting and taxation principles of transfers to
and from investment property and property, plant and equipment. Thereafter, you will
present and disclose investment property in the company's annual financial statements.
The challenge you may experience in this learning unit is the calculation of deferred tax on
investment property that has been transferred to/from property, plant and equipment in the
current year. Remember that deferred tax relates to the future tax consequences of an asset,
and therefore, the deferred tax balances at year's end should reflect the future manner of
recovery of that asset.


Sessions: Theme 1: Recognition of investment Prescribed Material (PM)
25 – 30 property
Academic Week: LO1: Identify investment property by PM: Chapter 17
5 applying the definition.
Related Theme 2: Initial and subsequent PM: Chapter 17
Outcomes: measurement
MO01 LO2: Calculate the cost of investment Excluded:
MO02 property. 17.4.1.3 Inability to
LO3: Determine the appropriate measure fair value.
accounting treatment of subsequent 17.5 Intragroup investment
expenditure. property
LO4: Apply the fair value model to
investment property on subsequent
measurement.
Theme 3: Tax implications of investment PM: Chapter 17
property
LO5: Calculate the deferred tax balances of
investment property.
Theme 4: Transfers PM: Chapter 17
LO6: Transfer land and buildings between
investment property and property,
plant and equipment.
IAS 40 Investment Property in the
company’s annual financial
statements of a company.

Learning Unit 5 IAS 36 Impairment of Assets
Overview:
In this learning unit, you will learn about the impairment of assets. IAS 36 prescribes the
procedures an entity should apply to ensure that assets are carried at no more than the
recoverable amount. If the carrying value of an asset exceeds its recoverable amount, the asset
is impaired and should be written down to the recoverable amount. Consideration must also be
given to assets where an impairment loss previously recognised may now be reversed.
To identify an asset that may be impaired, you will need to know the definition of an asset and
be able to calculate its recoverable amount. IAS 36 contains very specific definitions to support
these principles and calculations, and you must be able to apply these.
In later years, the conditions relating to an asset that was previously impaired may no longer be
applicable, and therefore, the impairment loss, or a part thereof, may be reversed. You must
also be able to perform these calculations. Thereafter, as with all IFRS statements, you must be
able to present and disclose impairment losses and impairment loss reversals in a company's
financial statements.
You will only be required to complete a few practice questions in this learning unit, as this
topic will be applied again in later learning units.
The only challenge in this learning unit is the limitation on the reversal of an impairment loss.
On reversal, the carrying value of the asset after reversal is limited to the historical carrying
value of the asset that would have been determined if there had been no impairment loss.


Sessions: Theme 1: Identification of assets that may Prescribed Material (PM)
31 – 33 be impaired
Academic Week: LO1: Apply the definitions of IAS 36 by PM: Chapter 14
6 identifying assets that may be
Related impaired.
Outcomes: Theme 2: Recognition and measurement PM: Chapter 14
MO01 of an impairment loss
MO02 LO2: Calculate and recognise an Excluded:
MO03 impairment loss on an asset. 14.3.2.3 Restructuring
14.5 Cash-generating units
Theme 3: Recognition and measurement PM: Chapter 14
of the reversal of an impairment loss
LO3: Calculate and recognise an Excluded:
impairment loss reversal on an asset. 14.5 Cash-generating units
IAS 36 Impairment of assets in the
company’s annual financial
statements.

Learning Unit 6 IAS 38 Intangible Assets
Overview:
In this learning unit, you will learn to apply the accounting requirements of IAS 38 Intangible
Assets. Entities often invest in the acquisition and development of intangible assets. IAS 38
prescribes the accounting treatment for intangible assets that are not dealt with in another
standard. An intangible asset is defined as an identifiable non-monetary asset without physical
substance.
Many of the principles that you learnt in IAS 16 Property, Plant and Equipment are applicable
to IAS 38 Intangible Assets. What is, therefore, important in this learning unit is to understand
the principles that overlap and the principles that are different. You can then focus your
attention on learning the new principles. There are several definitions unique to IAS 38, and
you must familiarise yourself with them and be able to apply them.
Derecognition and the tax implications of intangible assets are not specifically covered in the
syllabus as the principles are similar to IAS 16 Property, plant and equipment.
Pay attention specifically to the calculation of the cost of internally generated intangible
assets.


Sessions: Theme 1: Recognition of intangible assets Prescribed Material (PM)
34 – 36
Academic Week: LO1: Apply the recognition principles of PM: Chapter 16
6 intangible assets.
Related Theme 2: Initial Measurement PM: Chapter 16
Outcomes: LO2: Calculate the cost of externally
MO01 acquired intangible assets. Excluded:
MO02 16.3.3 Acquisition as part
of a business combination
16.3.5 Acquisition by way
of a government grant
Theme 3: Internally generated intangible PM: Chapter 16
assets
LO3: Identify the research and development
phases of internally generated
intangible assets.
LO4: Calculate the cost of internally
generated intangible assets.
Theme 4: Website costs PM: Chapter 16
LO5: Calculate the portion of website costs
that should be expensed and the
portion that should be capitalised as an
intangible asset.
Theme 5: Subsequent measurement PM: Chapter 16
LO6: Apply the cost model to intangible
assets. Excluded:
LO7: Calculate amortisation for an intangible 16.5.2 Revaluation model
asset with a finite life.
LO8: Calculate the impairment loss for an
intangible asset with an indefinite life.
IAS 38 Intangible Assets in the annual

Learning Unit 7 IAS 23 Borrowing Costs
Overview:
In this learning unit, you will learn about the accounting requirements of IAS 23 Borrowing
Costs. IAS 23 requires an entity to capitalise borrowing costs directly attributable to the
acquisition, construction or production of a qualifying asset to the cost of that asset. Borrowing
costs not capitalised are expensed to profit or loss. In order to apply IAS 23, you will need to
understand the definitions of borrowing costs and qualifying assets.
IAS 23 is an awareness standard in terms of the SAICA syllabus for financial reporting. You will,
therefore, only spend a short time on this topic, focusing on the scope of IAS 23, basic
calculations and presentation and disclosure.
As this topic is at an awareness level for ITC, you will not be required to perform complex
calculations. Amounts to be capitalised will either be given or will be a simple calculation.


Sessions: Theme 1: Requirement for capitalisation Prescribed Material (PM)
47-48
Academic LO1: Apply the definitions and requirements PM: Chapter 12
Week: for capitalisation of borrowing costs.
8
Related Theme 2: Recognition and measurement PM: Chapter 12
Outcomes: LO2: Perform a basic calculation of borrowing
MO01 costs to be capitalised to the cost of a Excluded:
MO02 qualifying asset. 12.5.3 General pool of funds.
12.5.4 Combination
12.5.5 Group statements
12.5.6 Foreign exchange
differences
Theme 3: Presentation and disclosure
LO3: Apply the disclosure requirement of
IAS23 Borrowing Costs to a company's
annual financial statements.

Learning Unit 8 IFRS 5 Non-current Assets held for Sale and Discontinued Operations
Overview:
In this learning unit, you will learn to apply the principles of IFRS 5 to non-current assets held
for sale (part 1) and the presentation and disclosure of discontinued operations (part 2).
Part 1 of IFRS 5 deals with non-current assets classified as held for sale. Non-current assets
held for sale are those assets whose carrying value will be recovered through sale rather than
through use. There are five criteria to recognise a non-current asset as held for sale. You must
know and be able to apply these criteria. Upon classification as held for sale, the asset/s must
be remeasured to lower carrying value and fair value less costs to sell. This may result in a
remeasurement gain or loss.
The second part of IFRS 5 deals with discontinued operations. A discontinued operation is a
component of an entity that has been disposed of or is classified as held for sale. The results
and cash flows of a discontinued operation must be presented separately from the results of
the continuing operations of the entity. You will be required to present and disclose
discontinued operations in a company's annual financial statements.
This learning unit may be a little challenging as it introduces new concepts that can be tricky
to grasp. It is important to understand the theory that is applicable and to be able to apply it
to a practical application, specifically the calculation and allocation of an impairment loss in a
disposal group.


Sessions: Theme 1: Classification of non-current Prescribed Material (PM)
37 – 42 asset (or disposal group) as held for sale
Academic Week: LO1: Identify criteria to classify non-current PM: Chapter 19
7 assets as held for sale.
Related Theme 2: Measurement of non-current PM: Chapter 19
Outcomes: assets (or disposal groups) classified as
MO01 held for sale Excluded:
MO02 LO2: Calculate the carrying value of non- 19.9 Changes to a plan of
MO03 current assets (or disposal group) sale
immediately before classification as 19.15 Tax implications
held for sale.
LO3: Identify assets specifically excluded
from the measurement requirements
of IFRS 5.
LO4: Calculate the impairment loss of non-
current assets (or disposal group)
classified as held for sale.
LO5: Remeasure non-current assets (or
disposal groups) after classification as
held for sale.
Theme 3: Presentation and disclosure of PM: Chapter 19
non-current assets (or disposal group)
classified as held for sale Excluded:
LO6: Apply the disclosure requirements of 19.14 Subsidiaries
IFRS 5 with respect to non-current
assets held for sale in a company's
annual financial statements.
Theme 4: Discontinued operations PM: Chapter 19
LO7: Classify a component of an entity as a
discontinued operation. Excluded:
LO8: Apply the disclosure requirements of Subsidiaries
IFRS 5 in respect to discontinued
operations in a company's annual

Learning Unit 9 IAS 19 Employee Benefits
Overview:
IAS 19: Employee Benefits provides guidance on the accounting treatment for employee
benefits. The standard matches the cost of providing employee benefits with the period in
which the employees earn the benefits, considering this may be different to when they actually
take the benefit.
In this learning unit, you will learn how to calculate and disclose employee benefits in the
financial statements of companies in terms of the requirements of International Financial
Reporting Standards (IFRS).
Please work through Themes 1, 2, 3 and 4 on Learn, together with the relevant sections of
your prescribed source/s. To ensure that you are working towards mastering the objectives
for this learning unit, please complete all the activities on Learn.
The challenge you may experience in this learning unit is the disclosure of employee benefits
in the notes to the financial statements. The calculation of accruals relating to bonuses and
annual leave can be challenging. Pay attention to the wording of the question prior to
performing the calculations.


Sessions: Theme 1: Short-term employee benefits Prescribed Material (PM)
43 – 46
Academic Week: LO1: Calculate short-term employee PM: Chapter 11
8 benefits.
Related Theme 2: Post-employment benefits PM: Chapter 11
Outcomes: LO2: Calculate post-employment benefits.
MO01 Theme 3: Termination benefits PM: Chapter 11
LO3: Calculate termination benefits.
LO4: Disclose employee benefits in a
company's annual financial
statements.
Learning Unit 10 IFRS 15 Revenue from Contracts with Customers
Overview:
In this learning unit, you will build on your knowledge of IFRS 15 by learning more advanced
principles of revenue from contracts with customers. The objective of IFRS 15 is to establish
the principles to be applied by an entity to report information about the nature, amount,
timing and uncertainty of revenue and cash flows arising from a contract with a customer.
The broad principles of the five-step revenue model of IFRS 15 were studied in FIAC6211. In
this module, you learnt to apply the model to an entity’s contracts with customers and to
determine the amount of revenue to be recognised and disclosed in the annual financial
statements for the reporting period.
In FIAC7311, you will continue to apply the five-step model to revenue recognition in more
complex business applications. The focus will be on multiple performance obligations and
performance obligations satisfied over a period of time. You will also be required to identify
contract costs and determine the accounting treatment thereof.
Contract modifications are specifically excluded from the ITC exam syllabus and are therefore
not included in the syllabus.

IFRS 15 is a complex statement, and you are expected to apply knowledge learned in
FIAC6211 and in this module when answering questions. Questions will require you to discuss
and apply theory as well as answer application style questions.


Sessions: Theme 1: Revenue model Prescribed Material (PM)
49 – 54
Academic Week: LO1: Apply the five-step revenue model PM: Chapter 22
9 to advanced business applications.
Related LO2: Calculate revenue to be recognised Excluded:
Outcomes: from multiple performances 22.4.1.2 Contract
MO01 obligations. modifications
MO02 LO3: Calculate revenue to be recognised Example 22.6
MO03 from performance, obligations settled
over time.
Theme 2: Contract costs PM: Chapter 22
LO4: Determine the accounting treatment
of contract costs.
LO5: Calculate the carrying value of the
contract asset to be recognised for
the costs of fulfilling a contract.
LO6: Calculate the carrying value of the
contract asset to be recognised for
the costs of obtaining a contract.
IFRS 15 Revenue from Contracts with
Customers in a company's annual

Learning Unit 11 IFRS 16 Leases
Overview:
In this learning unit, you will learn to apply the accounting requirements for IFRS 16 Leases.
The objective of IFRS 16 is to establish the principles for the recognition, measurement,
presentation and disclosure of leases to ensure that lessees and lessors provide relevant
information that represents these transactions.
IFRS 16 is a large and detailed accounting standard and contains a significant amount of
content that needs to be mastered. The IFRS can be summarised as follows:
• Theory;
• Lessee Accounting;
• Lessor Accounting;
• Sale and leaseback (not included in the syllabus, awareness only).
We will explore the classification, recognition, measurement and disclosure requirements of

the IFRS 16 Leases.
IFRS 16 will be challenging as it contains a large volume of work that is completely new to you.
IFRS 16 will also be a very important statement in future years, and it is therefore important
that you master the topic in the third year. You are also expected to apply principles learnt in
IFRS 16 in FIAC6211 in your previous year of study and apply this knowledge when answering
questions in this module. Questions will require you to discuss and apply theory as well as
answer application style questions.


Sessions: Theme 1: Theory Prescribed Material (PM)
55 – 66
Academic Week: LO1: Evaluate a contract to determine if it PM: Chapter 23
10 – 11 contains a lease.
Related Excluded:
Outcomes: 23.5 Separating components
MO01 of a lease
23.6 Combination of
contracts
Theme 2: Lessee Accounting PM: Chapter 23
LO2: Determine if the recognition
exemptions apply to a lease contract. Excluded:
LO3: Recognise and measure the right to Example 23.7
use assets and lease liability in the 23.8.3 Reassessment of the
accounting records of a lessee. lease liability
LO4: Calculate the tax implications of a 23.8.4 Lease modifications
lease for a lessee. 23.11 Sale and leaseback
transactions
Theme 3: Lessees: Presentation and PM: Chapter 23
disclosure
IFRS 16 in the annual financial
statements of a lessee.
Theme 4: Lessor Accounting PM: Chapter 23
LO6: Classify a lease as a finance or
operating lease. Excluded:
LO7: Recognise and measure a finance 23.9.4 Subleases
lease in the accounting records of a 23.9.5 Lease modifications
lessor. 23.9.6 Manufacturer or
LO8: Recognise and measure an dealer lessors
operating lease in the accounting 23.9.9 Instalment sale
records of a lessor. agreements
LO9: Calculate the tax implications of a
lease for a lessor.
Theme 5: Lessors: Presentation and PM: Chapter 23
disclosure
LO10: Apply the disclosure requirements
of IFRS 16 Leases in the annual
financial statements of a lessor.

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IIE Learn Module Outline FIAC7311

The Independent Institute of Education (Pty) Ltd is registered with the

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Mastery of topics in Financial Accounting 3 is critical to continued success as an accounting

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Financial Accounting 3A includes the following IFRS standards:

Learning Unit 7 IAS 23 Borrowing Costs

• To perform calculations and to prepare journal entries in a range of business contexts;

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Using this Module Outline

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This Module on Learn

• A list of prescribed material;

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Icons Used in this Document and on Learn

Specific references to sections in the prescribed work.

Questions to help you recognise or think about theoretical concepts to be

Opportunities to make connections between different chunks of theory in

Real life or the world of work information or examples of application of

You need to log onto Learn to:

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PM2: SAICA Student Handbook Volume 1 (IFRS) 2023/2024

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Integrated Curriculum Engagement (ICE)

Formatives Test 1 Test 2

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Assessment Preparation Guidelines

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• You must have completed close readings of your

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Learning Unit 1: Theme Breakdown

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Learning Unit 2 IAS 8 Accounting Policies, Changes in Accounting Estimates and

• Changes in accounting policies;

This learning unit should not present any significant challenges.

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Learning Unit 2: Theme Breakdown

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Learning Unit 3 IAS 16: Property, Plant and Equipment

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Learning Unit 3: Theme Breakdown

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Learning Unit 4 IAS 40 Investment Property

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Learning Unit 4: Theme Breakdown

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Learning Unit 5 IAS 36 Impairment of Assets

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Learning Unit 5: Theme Breakdown

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Learning Unit 6 IAS 38 Intangible Assets

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Learning Unit 6: Theme Breakdown

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Learning Unit 7 IAS 23 Borrowing Costs

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Learning Unit 7: Theme Breakdown

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Learning Unit 8: Theme Breakdown

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