CIMA F1 –Financial reporting
The Financial Accounting and Taxation CIMA F1 test can be a difficult one to master. It's heavily weighted towards financial accounting and reporting-it 's 45% of the syllabus-and it 's the main area for your study.
You have to be comfortable with the completion of the financial accounting cycle and the following financial statements being produced -
- Financial status statement
- The Comprehensive Tax Statement
- Notice of Capital Changes
- Cash flow statements
Summary of the CIMA F1 Syllabus:
The percentages display the relative range of weight given in the exam for each part –
- Section A: Economic regulatory climate and corporate governance – 10%
- Section B: Accounting and financial statements – 45%
- Section C: Managing working capital, funds, and short-term funding sources – 20%
- Section D: Corporate tax principles – 25%
All learning outcomes of the portions will be evaluated in this exam and it is therefore important that you cover each of them. The CIMA F1 paper focuses on financial accounting majorly and hence attempts to clear out basic and advanced concepts of the subject. You will be given information regarding accounting changes and accounting practices. Topics such as corporate governance have a vital role to play and can be a source of bagging marking points in your examination. There's no better way to complement your study on F1 than by attending online F1 revision lessons. The addition of watching revision classes from a professional CIMA tutor can be invaluable particularly for those students who are self-studying and can shed light on some of the trickier areas for the F1 syllabus you've been struggling with. Portions like cash flow teach you how to manage organizations operationally and maintain a sustainable financial back up for them. As a CIMA professional it is important to differentiate yourself with knowledge of taxes and capital. Observing and understanding is a comprehensive procedure from the financial point of view and CIMA professionals need to master it completely.
There's a lot of focus on the CIMA Objective Test Question Types and we would recommend you strongly to making sure you covered enough objective test mock exams in your preparation journey. Go back to longer style questions to ensure you completely understand the subject in depth. This will give you a greater chance on exam day to achieve a passing score and also help you evolve as a professional with strong conceptual clarity.
- Who are the regulators who determine how financial statements are prepared?
- What do they do?
- What value do they contribute to the production of financial statements?
- Coverage will include national and international regulators, stock exchange regulators and various accounting and financial reporting standards boards and major influential bodies like the IIRC. Boards have overall responsibility for ensuring that executives of organisations create value for their stakeholders and safeguard their assets. The role of boards is incorporated in various corporate governance codes.
- What are the main principles as they apply to financial reporting and the oversight of boards?
- This sets the main principles that underpin the preparation of financial statements. The focus is on the main principles. No detailed treatments are expected. Examine the requirements for how major items of the financial statements are to be recognised, measured and disclosed. This covers the main areas and not specialist topics. Give hands-on experience of preparing basic financial statements by bringing in all the elements. Gives a broad overview of the different types of taxes, who they affect and why they are used. The focus shifts here to corporate taxation. The main area covered is the difference between accounting profit and profit for taxation purposes. No national law is applied here. The main thing here is coverage and application of principles. Given the increase of cross-border trading and revenue generation in the digital world what are the key issues affecting international taxation?
- What are the ethical issues that arise in the computation and payment of taxes?
- What are the main types of funds needed for the short term? Where can those funds be accessed?
- How does one determine which type or source of finance is appropriate?
- The operating and cash cycle is one of the main means of putting together various elements of cash and near-cash items in a coherent manner to explain the cash needs of the organisation. What are these elements?
- How do they affect the availability and adequacy of cash for short-term operations?
- What are the policies that organisations should put in place to manage working capital?
- How is the appropriate level determined, forecasted and accessed? What are the risks associated with accessing such funds?