B25F Exam Focus: High-Yield Topics

Concentrate your study time on these IFRS areas confirmed by your practice pack and past exam trends.

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Track your progress by checking off topics as you study them

1. Mandatory Consolidation (IFRS 3, IFRS 10, IAS 28)

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This will likely be the largest, compulsory question in the exam. Practice the comprehensive statement preparation and detailed workings.

Recommended Videos:

IFRS 3 Business Combinations Overview Consolidation with NCI Calculation IAS 28 Equity Method Accounting Intercompany Transactions Elimination

Group Retained Earnings (Crucial): Master the calculation of NCI and Group Retained Earnings for the Statement of Changes in Equity (SOCIE) and SFP.
Acquisition Date Workings: Goodwill, NCI at Acquisition, and Fair Value adjustments of identifiable net assets (including deferred tax on fair value adjustments).
Inter-company Transactions: Elimination of Unrealized Profit (e.g., UP in inventory, UP on sale of PPE), especially between Parent-Sub and Parent-Associate.
Equity Accounting (IAS 28): Pro-forma journal entries and calculation of Share of Profit/OCI from the Associate.

Quick Reference: Consolidation Steps

Step	Key Action
1	Calculate Fair Value of Net Assets at Acquisition
2	Calculate Goodwill and NCI
3	Eliminate Inter-company Transactions
4	Prepare Consolidated Financial Statements

2. Deferred Tax, Revenue, and Leasing (IAS 12, IFRS 15, IFRS 16)

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These standards are complex and usually appear as smaller, high-mark calculation or discussion questions.

Recommended Videos:

IAS 12 Deferred Tax Explained IFRS 15 Revenue Recognition 5-Step Model IFRS 16 Leases Lessee Accounting Variable Consideration in IFRS 15

IAS 12: Deferred Tax: Calculate the Deferred Tax Balance (Asset/Liability) for SFP, including the tax effect of non-taxable income and non-deductible expenses in the Tax Rate Reconciliation.
IFRS 15: Revenue: Focus on the first three steps: Identifying Performance Obligations (are goods/services distinct?); Determining Transaction Price (variable consideration, significant financing component); and Timing of Recognition (point in time vs. over time).
IFRS 16: Leases (Lessee): Calculate the Right-of-Use (RoU) Asset and Lease Liability (using present value) and prepare initial and subsequent journal entries (Depreciation/Interest).
IFRS 16: Leases (Lessor): Know how to classify Operating vs. Finance leases and calculate the Operating Lease Accrual/Receivable (straight-lining income).

Quick Reference: IFRS 15 Revenue Steps

Step	Description
1	Identify the contract with a customer
2	Identify performance obligations
3	Determine the transaction price
4	Allocate price to performance obligations
5	Recognize revenue when obligations are satisfied

3. Conceptual Framework & Asset Standards (CF, IFRS 9, IAS 16/40)

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These often appear as high-mark theory/discussion questions, requiring definitions and criteria application.

Recommended Videos:

IFRS Conceptual Framework Overview IFRS 9 Financial Instruments Classification IAS 16 Property, Plant & Equipment IAS 37 Provisions, Contingent Liabilities & Assets

Conceptual Framework (CF): Discuss the Definition of an Asset (economic resource, control, past event) and the Recognition Criteria (relevance and faithful representation).
IFRS 9: Financial Instruments: Focus on the Classification criteria (Business Model Test & SPPI Test) for debt instruments (Amortised Cost vs. FVOCI).
IAS 16 / IAS 40: PPE and IP: Distinguishing between the Cost Model (PPE) and Revaluation Model (PPE Land) and journal entries for revaluation (including deferred tax impact).
IAS 37: Provisions: Recognition criteria (present obligation, probable outflow, reliable measurement) and initial recognition of Decommissioning/Restoration Provisions (present value).

Quick Reference: Asset Definition Criteria

Criterion	Description
Economic Resource	A right that has potential to produce economic benefits
Control	Entity can direct use and obtain substantially all benefits
Past Event	Transaction or event giving control has already occurred

Additional Video Resources

Supplement your study with these comprehensive video playlists covering key exam topics.

Consolidation Masterclass

Complete series on consolidation techniques and calculations.

IFRS 16 Leases Deep Dive

Detailed explanations of lessee and lessor accounting under IFRS 16.

IFRS 9 Financial Instruments

Classification, measurement, and impairment of financial instruments.

Exam Technique & Time Management

Strategies for approaching FR exams and maximizing marks.