CIMA-F1 – Financial Reporting and Taxation

Teacher

Course Description:

F1 – Financial Reporting and Taxation covers the regulation and preparation of financial statements and how the information contained in them can be used. It provides the competencies required to produce financial statements for both individual entities and groups using appropriate international financial reporting standards. It also gives insight into how to effectively source and manage cash and working capital, which are essential for both the survival and success of organisations. The final part focuses on the basic principles and application of business taxation. The competencies gained from F1 form the basis for developing further insights into producing and analysing complex group accounts (covered in F2) and formulating and implementing financial strategy (covered in F3)

Summary of syllabus:

Each subject is divided into a number of broad syllabus topics.

A percentage weighting is shown against each syllabus topic and is intended as a guide to the proportion of study time each topic requires.

It is essential that all topics in the syllabus are studied, as all topics will be examined. The weightings do not specify the number of marks that will be allocated to topics in the examination.

Weight	Syllabus topic
10%	A. Regulatory environment for financial reporting and corporate governance
45%	B. Financial accounting and reporting
20%	C. Management of working capital, cash and sources of short-term finance
25%	D. Fundamentals of business taxation

Learning Objective:

On completion of their studies, students will be able to:

1: Explain the need for and the process of regulating the financial reporting information of incorporated entities.

2: Discuss the need for and key principles of corporate governance regulation.

3: Explain the main elements of and key principles underpinning financial statements prepared in accordance with international financial reporting standards.

4: Produce the primary financial statements of an individual entity incorporating accounting transactions and adjustments, in accordance with relevant international financial reporting standards, in an ethical manner.

5: Produce the consolidated statement of financial position and consolidated statement of comprehensive income in accordance with relevant international financial reporting standards, in an ethical manner.

6: Describe the sources of short-term finance and cash investment.

7: Evaluate the working capital position of an entity.

8: Analyse the short-term cash position of an entity.

9: Discuss the types of taxation that typically apply to an incorporated entity and the regulatory environment for taxation.

10: Explain the taxation issues that may apply to an incorporated entity that operates internationally.

11: Produce computations for corporate income tax and capital tax.

Certification:

You won’t get any certificate on completion of this paper. However, this is a mandatory module to pass to complete your CIMA certificate level. However, students will be awarded “(CIMA Diploma in Management Accounting certificate)” when they have successfully completed (either passed or exempt) Papers F1 – F3. A positive result is required for all four F1 to F3 papers in order for the CIMA Certificate in Business Accounting certificate to be awarded.