Aim of the syllabus
The aim of the P2 syllabus is to enable you to apply your knowledge and skills, and exercise professional judgement, in the application and evaluation of financial reporting principles and practices within a range of business contexts and situations.
- The professional and ethical duty of the accountant
- The financial reporting framework
- Advising and reporting on the financial performance of entities
- Preparing financial statements of groups of entities in accordance with relevant accounting standards
- Explaining report issues relating to specialised entities
- Implications of changes in accounting regulation on financial reporting
- The appraisal of financial performance and position of entities
- Evaluating current developments.
Read through your F7 materials, as this will be assumed knowledge.
You will be examined on concepts, theories and principles and on your ability to question and comment on proposed accounting treatments. You’ll need to be able to evaluate alternative accounting practices and identify and prioritise issues. It’s also important to demonstrate professional and ethical judgement as well as technical knowledge when addressing corporate reporting issues. Global issues will be addressed through current issues questions on the paper.
Section A - Compulsory question - 50%. This will be scenario based and deal with the preparation of consolidated financial statements including group cash flow statements and with issues in financial reporting.
Section B - Two from three, 25 mark questions - 50%. Two questions will be scenario or case study based and one question will be an essay. Section B could deal with any aspects of the syllabus.
(The Examiner has indicated that if Section A includes a group cash flow statement, then it is likely that some knowledge of group accounting will be required in section B.)
- You must have completed, or be about to
complete the Skills Module (papers F4, F5, F6, F7, F8, F9)
- You can sit this, with up to three other papers in any one exam sitting
P2 builds directly on the material covered in financial reporting (F3 and F7) at previous levels. Topics covered in P2 will also be applicable if you are going on to study P7 (Advanced Audit and Assurance).