IFRS Specialist

Domains and learning objectives

A domain’s weighting is its share of the discipline, and the share of the examination paper drawn from that domain. The study material and the examination questions are written to the objectives.

1. Domain 1

   Conceptual Framework and Reporting Judgements

   15%

   • 1.1Distinguish the roles of the standard-setter, the interpretations body and national regulators in the IFRS reporting ecosystem
   • 1.2Interpret the definitions of an asset, a liability, income and an expense to classify borderline transactions
   • 1.3Evaluate whether an item qualifies for recognition or derecognition using the framework's criteria
   • 1.4Select the appropriate measurement basis for a given asset or liability from historical cost and current value approaches
   • 1.5Distinguish a change in accounting policy from a change in accounting estimate and from the correction of a prior period error, and select the correct treatment for each
   • 1.6Apply materiality judgements to decide whether information must be recognised, disclosed or may be omitted

2. Domain 2

   Revenue from Customer Contracts

   20%

   • 2.1Evaluate whether an arrangement meets the criteria to be accounted for as a contract with a customer
   • 2.2Distinguish distinct performance obligations within a bundled contract of goods and services
   • 2.3Calculate the transaction price including variable consideration, the constraint, significant financing components and consideration payable to the customer
   • 2.4Allocate the transaction price to performance obligations using stand-alone selling prices
   • 2.5Select over-time or point-in-time recognition for a given obligation and calculate revenue using an appropriate progress measure
   • 2.6Interpret contract asset, contract liability and receivable balances arising from timing differences

3. Domain 3

   Lease Accounting

   15%

   • 3.1Evaluate whether a contract contains a lease by testing for an identified asset and the right to control its use
   • 3.2Calculate the initial lease liability and right-of-use asset from payment terms, the discount rate and initial direct costs
   • 3.3Calculate subsequent interest, depreciation and carrying amounts across the lease term using an amortisation schedule
   • 3.4Select the correct treatment for short-term and low-value asset exemptions and for variable lease payments
   • 3.5Distinguish finance leases from operating leases in lessor accounting and select the resulting income pattern
   • 3.6Interpret the effect of lease remeasurements and modifications on the liability and right-of-use asset

4. Domain 4

   Financial Instruments Essentials

   20%

   • 4.1Distinguish financial assets, financial liabilities and equity instruments from the issuer's and holder's perspectives
   • 4.2Select the classification of a financial asset using the business model and contractual cash flow characteristics tests
   • 4.3Calculate amortised cost balances and interest income or expense using the effective interest method
   • 4.4Interpret the expected credit loss model, including the 12-month and lifetime stages and the simplified approach for trade receivables
   • 4.5Evaluate whether fair value changes are reported in profit or loss or in other comprehensive income for a given instrument
   • 4.6Distinguish situations in which a financial asset is derecognised from those in which it remains on the statement of financial position

5. Domain 5

   Consolidation and Group Reporting Basics

   15%

   • 5.1Evaluate whether one entity controls another using power, exposure to variable returns and the link between them
   • 5.2Calculate goodwill at acquisition under both the fair value and proportionate share methods for non-controlling interests
   • 5.3Calculate consolidated totals after eliminating intragroup balances, transactions and unrealised profits
   • 5.4Calculate the non-controlling interest share of profit and of net assets at the reporting date
   • 5.5Distinguish subsidiaries, associates and joint arrangements and select the corresponding accounting method
   • 5.6Interpret the effect of fair value adjustments on consolidated depreciation and goodwill

6. Domain 6

   Presentation, Disclosure and Statement Analysis

   15%

   • 6.1Select the correct classification of items as current or non-current in the statement of financial position
   • 6.2Distinguish items reported in profit or loss from items reported in other comprehensive income, including those that may be reclassified
   • 6.3Calculate cash flows from operating activities using the indirect method and classify cash flows into operating, investing and financing activities
   • 6.4Evaluate whether events after the reporting period are adjusting or non-adjusting and select the correct treatment
   • 6.5Interpret disclosures on judgements, estimation uncertainty, related parties and provisions when reading a set of financial statements
   • 6.6Distinguish provisions from contingent liabilities and contingent assets and select the correct recognition and disclosure outcome