Diploma in International Financial Reporting (DipIFR)

Diploma in
International
Financial
Reporting
(DipIFR)
Syllabus and study guide
December 2022 to June 2023

Designed to help with planning study and to provide

detailed information on what could be assessed in
any examination session

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 Diploma in International Financial Reporting (DipIFR)

Contents
1. Aims ........................................................3
2. Objectives ...............................................3
3. Position of the course within the overall
portfolio of ACCA’s qualification framework.3
4. Approach to examining the syllabus ........3
5. The syllabus ............................................5
6. Detailed study guide................................7
7. Summary of changes to Diploma in
International Financial Reporting (DipIFR) 14

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 Diploma in International Financial Reporting (DipIFR)

conceptual and technical financial reporting

1. Aims knowledge that candidates have already
obtained to the specific requirements of
To provide qualified accountants or financial reporting under IFRS Standards
graduates, possessing relevant country
specific qualifications or work experience The DipIFR also provides essential
with an up to date and relevant conversion international financial reporting knowledge
course, providing a practical and detailed and principles that will equip candidates to
knowledge of the key international financial operate in an increasingly global market
reporting standards (IFRS® Standards) and place .
how they are interpreted and applied.
The prerequisite knowledge for DipIFR can
either come from a country specific
2. Objectives professional qualification, from possessing a
relevant degree (giving exemptions from
Business and Technology (BT);
On completion of this syllabus, candidates Management Accounting (MA) and Financial
should be able to: Accounting (FA) and Corporate and
Business Law (LW) of the ACCA
• Understand and explain the structure of qualification) and two years’ accounting
the international professional and experience, or by having three years’ full-
conceptual framework of financial time relevant accounting experience,
reporting. supported by an employer’s covering letter.
• Apply relevant international financial
reporting standards to key elements of 4. Approach to examining
financial statements the syllabus
• Identify and apply disclosure
requirements for entities relating to the The examination is a three-hour fifteen
presentation of financial statements and minute paper. ACCA has removed the
notes restriction relating to the 15 minutes reading
and planning time, so that while the time
• Prepare group financial statements considered necessary to complete this exam
(excluding group cash flow statements) remains at 3 hours, candidates may use the
including subsidiaries, associates and additional 15 minutes as they choose. ACCA
joint arrangements. encourages students to take time to read
questions carefully and to plan answers but
once the exam time has started, there are
3. Position of the course no additional restrictions as to when
within the overall portfolio candidates may start.
of ACCA’s qualification Time should be taken to ensure that all the
framework information and exam requirements are
properly read and understood.

The Diploma in International Financial Most questions will contain a mix of

Reporting (DipIFR) builds on the technical computational and discursive elements. All
and/or practical knowledge acquired from questions are compulsory.
recognised country specific accountancy
qualifications or relevant work experience. All questions will attract 25 marks. Question
The syllabus introduces candidates to the one will involve the preparation of one or
wider international framework of accounting more of the consolidated financial
and the system of standard setting. The statements that are examinable within the
DipIFR concentrates on the application of syllabus. This question will often include

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 Diploma in International Financial Reporting (DipIFR)

issues that will need to be addressed prior to use the relevant functionality and technology
performing the consolidation procedures. to prepare and present response options in
Generally these issues will relate to the a professional manner. These skills are
financial statements of the parent prior to specifically developed by practicing and
their consolidation. preparing for the DipIFR exam, using the
learning support content for computer-based
Question two will often be related to a exams available via the ACCA website and
scenario in which questions arise regarding will need to be demonstrated during the live
the appropriate accounting treatment and/or exam..
disclosure of a range of issues. In this
question candidates may be asked to The overall pass mark for the Diploma in
comment on management’s chosen International Financial Reporting is 50%.
accounting treatment and determine a more
appropriate one, based on circumstances
described in the [Link] question will
also contain an ethical and professional
component related to the accounting
treatment that is being examined. This
aspect of question two will have a mark
ceiling of 5 marks.

Question three will usually focus more

specifically on the requirements of one
specific IFRS. This question will typically
contain a mixture of explanation of the
principles underpinning the standard and
practical application of those principles.

Question four will usually consist of a

scenario in which the candidate is given a
series of queries from a superior relating to
the financial statements. The requirement
will usually be to answer each query. The
queries will normally be independent of each
other. It will be rare for the queries in
question four to require a numerical answer.

Some IFRS Standards are very detailed and

complex. In the DipIFR exam candidates
need to be aware of the principles and key
elements of these Standards. Candidates
will also be expected to have an
appreciation of the background and need for
international financial reporting standards
and issues related to harmonisation of
accounting in a global context.

Finally the syllabus contains outcomes

relating to the demonstration of appropriate
digital and employability skills in preparing
for and taking the DipIFR examination. This
includes being able to interact with different
question item types, manage information
presented in digital format and being able to

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 Diploma in International Financial Reporting (DipIFR)

income and the statement of changes in

equity
5. The syllabus
3. Earnings per share
A International sources of authority
4. Events after the reporting period
1. The International Accounting Standards
Board (IASB) and the regulatory 5. Accounting policies, changes in
framework accounting estimates and errors

2. Fundamental ethical and professional 6. Related party disclosures

principles
7. Operating segments
B Elements of financial statements
8. Reporting requirements of small and
1. Revenue recognition medium-sized entities (SMEs)

2. Property, plant and equipment D Preparation of external financial

reports for combined entities,
3. Impairment of assets associates and joint arrangements

4. Leases 1. Preparation of group consolidated

external reports
5. Intangible assets and goodwill
2. Business combinations – intra-group
6. Inventories adjustments

7. Financial instruments 3. Business combinations – fair value

adjustments
8. Provisions, contingent assets and
liabilities 4. Business combinations – associates
and joint arrangements
9. Employee benefits
5. Complete disposal of shares in
10. Tax in financial statements subsidiaries

11. The effects of changes in foreign Excluded topics

currency exchange rates
The following topics are specifically
12. Agriculture excluded from the syllabus:

13. Share-based payment • Complex group structures, including sub-

subsidiaries or mixed groups and foreign
14. Exploration and evaluation expenditures subsidiaries

15. Fair value measurement • Step acquisitions, partial disposal of

subsidiaries and group re-constructions
C Presentation of financial statements
and additional disclosures • Financial statements of banks and
similar financial institutions
1. Presentation of the statement of
financial position, the statement of profit • Preparation of statements of cash flow
or loss and other comprehensive (single company and consolidated)

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 Diploma in International Financial Reporting (DipIFR)

• Preparation of interim financial

statements

• Accounting for insurance entities

• International financial reporting exposure

drafts and discussion papers

• The international public sector

perspective

• Multi-employer benefit schemes

• Information reflecting the effects of

changing prices and financial reporting in
hyperinflationary economies

Key areas of the syllabus

The key topic area headings are as follows:

• International sources of authority

• Elements of financial statements

• Presentation of accounts and additional

disclosures

• Preparation of external reports for

combined entities, associates and joint
arrangements.

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 Diploma in International Financial Reporting (DipIFR)

(v) Recognition of revenue when/as

6. Detailed study guide performance obligations are
satisfied
A International sources of • Describe and apply the acceptable
authority methods for measuring progress towards
complete satisfaction of performance
1. The International Accounting obligations.
Standards Board (IASB) and the
regulatory framework • Explain and apply the criteria for the
recognition of contract costs
• Discuss the need for IFRS Standards
and possible barriers to their • Specifically account for the following
development. types of transactions:
(i) Principal versus agent;
• Explain the structure and constitution of (ii) Repurchase agreements;
the IASB and the standard setting (iii) Bill and hold arrangements
process. (iv) Consignment agreements

• Understand and interpret the IASB’s • Account for different types of

Conceptual Framework for Financial consideration (including variable
Reporting®. consideration) and where a significant
financing component exists in the
• Critically discuss and apply the contract.
definitions of the elements of financial
statements and the reporting of items in • Prepare financial statement extracts for
the financial statements. contracts with multiple performance
obligations, some of which are satisfied
• Account for the first-time adoption of over time and some at a point in time.
IFRS Standards.
2. Property, plant and equipment
2. Fundamental ethical and
professional principles • Define the initial cost of a non-current
Appraise and discuss the ethical and asset (including a self-constructed asset)
professional issues in complying with and apply this to various examples of
accounting standards. expenditure, distinguishing between
capital and revenue items.
B Elements of financial
• Identify pre-conditions for the
statements capitalisation of borrowing costs.
1. Revenue recognition
• Describe, and be able to identify,
subsequent expenditures that should be
• Explain and apply the principles of
capitalised, including appropriate
revenue recognition:
borrowing costs.
(i) Identification of contracts
(ii) Identification of performance
• Compute the impact on the financial
obligations
(iii) Determination of transaction price statements when property, plant and
(iv) Allocation of the price to the equipment is measured under
performance obligations revaluation model and a revaluation to
fair value is made

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 Diploma in International Financial Reporting (DipIFR)

• Account for gains and losses on the 4. Leases

disposal of re-valued assets.
• Account for right of use assets and
• Calculate depreciation on: lease liabilities in the records of the
–revalued assets, and lessee
–assets that have two or more major
items or significant components. • Explain the exemption from the
recognition criteria for leases in the
• Apply the provisions of accounting records of the lessee.
standards relating to government grants
and government assistance in relation to • Account for sale and leaseback
property, plant and equipment. transactions in the financial statements
of lessees.
• Describe the criteria that need to be
present before non-current assets are • Explain the distinction between operating
classified as held for sale, either leases and finance leases from a lessor
individually or in a disposal group. perspective.

• Apply the requirements of IFRS • Account for operating leases and finance
Standards for non-current assets and leases in the financial statements of
disposal. groups that are held for sale. lessors.

• Discuss the way in which the treatment 5. Intangible assets and goodwill
of investment properties can differ from
other properties. • Discuss the nature and possible
accounting treatments of both internally
• Apply the requirements of IFRS generated and purchased goodwill.
Standards to investment properties.
• Distinguish between goodwill and other
3. Impairment of assets intangible assets.

• Identify, circumstances which indicate • Define the criteria for the initial
that the impairment of an asset may recognition and measurement of
have occurred. intangible assets.

• Describe what is meant by a cash- • Explain the principle of impairment tests

generating unit. in relation to purchased goodwill.

• Define and calculate the recoverable • Identify the circumstances in which a

amount of an asset and any associated gain on a bargain purchase (negative
impairment losses. goodwill) arises, and its subsequent
accounting treatment.
• State the basis on which impairment
losses should be allocated, and allocate • Describe and apply the requirements of
a given impairment loss to the assets of IFRS Standards to internally generated
a cash-generating unit. assets other than goodwill (e.g. research
and development).
• Account for the reversal of an
impairment loss that was recognised in a • Describe the method of accounting
previous period. specified by the IASB for the exploration
for and evaluation of mineral resources.

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 Diploma in International Financial Reporting (DipIFR)

6. Inventories • Explain how provisions should be

measured.
• Measure and value inventories.
• Define contingent assets and liabilities –
7. Financial instruments give examples and describe their
accounting treatment.
• Explain the definition of a financial
instrument. • Identify and account for:
– Onerous contracts
• Determine the appropriate classification – Environmental and similar provisions.
of a financial instrument, including those
instruments that are subject to ‘split 9. Employee benefits
classification’ – e.g. convertible loans.
• Describe the nature of short term and
• Discuss and account for the initial and long term employee benefits, termination
subsequent measurement (including benefits, defined contribution, and
impairment in the case of financial defined benefits plans.
assets) of financial assets and financial
liabilities in accordance with applicable • Explain the recognition and
IFRS Standards and the finance costs measurement of short term and long
associated with them. term employee benefits, termination
benefits and defined contribution and
• Discuss the conditions that are required defined benefit plans in the financial
for a financial asset or liability to be de- statements of contributing employers.
recognised.
• Account for short term and long term
• Explain the conditions that are required employee benefits, termination benefits
for hedge accounting to be used. and defined contribution and defined
benefit plans in the financial statements
• Prepare financial information for hedge of contributing employers.
accounting purposes, including the
impact of treating hedging arrangements 10. Tax in financial statements
as fair value hedges or cash flow
hedges. • Account for current tax liabilities and
assets in accordance IFRS Standards.
• Describe the financial instrument
disclosures required in the notes to the • Describe the general principles of
financial statements. government sales taxes (e.g. VAT or
GST).
8. Provisions, contingent assets and
liabilities • Outline the principles of accounting for
deferred tax.
• Explain why an accounting standard on
provisions is necessary – give examples • Explain the effect of taxable and
of previous abuses in this area. deductible temporary differences on
accounting and taxable profits.
• Define provisions, legal and constructive
obligations, past events and the transfer • Identify and account for the requirements
of economic benefits. relating to deferred tax assets and
liabilities in accordance with the IFRS
• State when provisions may and may not Standards.
be made, and how they should be
accounted for.

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 Diploma in International Financial Reporting (DipIFR)

• Calculate and record deferred tax

amounts in the financial statements. • Identify the principles applied to
measuring both cash and equity settled
11. The effects of changes in foreign share-based payment transactions and
currency exchange rates transactions with cash alternatives.

• Distinguish between reporting and • Compute the amounts that need to be

functional currencies. recorded in the financial statements
when an entity carries out a transaction
• Determine an entity’s functional where the payment is share based.
currency.
14. Exploration and evaluation
• Discuss the recording of transactions expenditures
and translation of monetary/non-
monetary items at the reporting date for • Outline the need for an accounting
individual entities in accordance with standard in this area and clarify its
IFRS Standards. scope.

12. Agriculture • Give examples of elements of cost that

might be included in the initial
• Recognise the scope of IFRS Standards measurement of exploration and
for agriculture. evaluation assets.

• Discuss the recognition and • Describe how exploration and evaluation

measurement criteria including the assets should be classified and
treatment of gains and losses, and the reclassified.
inability to measure fair value reliably.
• Explain when and how exploration and
• Identify and explain the treatment of evaluation assets should be tested for
government grants, and the presentation impairment.
and disclosure of information relating to
agriculture. 15. Fair value

• Report on the transformation of • Explain the principle under which fair

biological assets and agricultural value is measured according to IFRS
produce at the point of harvest and Standards.
account for agriculture related
government grants. • Identify an appropriate fair value
measurement for an asset or liability in a
13. Share-based payment given set of circumstances.

• Understand the term ‘share-based C Presentation of financial

payment’.
statements and additional
• Discuss the key issue that measurement disclosures
of the transaction should be based on
fair value. 1. Presentation of the statement of
financial position and the statement
• Explain the difference between cash of profit or loss and other
settled share based payment comprehensive income and the
transactions and equity settled share statement of changes in equity
based payment transactions and
transactions with cash alternatives.

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 Diploma in International Financial Reporting (DipIFR)

• State the objectives of IFRS Standards describe the circumstances that will give
governing the presentation of financial rise to a future dilution of the EPS.
statements.
• Compute the diluted EPS in the following
• Describe the structure and content of circumstances:
statements of financial position and – where convertible debt or preference
statements of profit or loss and other shares are in issue
comprehensive income including – where share options and warrants
continuing operations. exist.

• Discuss the importance of identifying • Identify anti-dilutive circumstances.

and reporting the results of discontinued
operations.
• Define and account for non-current 3. Events after the reporting period
assets held for sale and discontinued
operations. • Distinguish between and account for
adjusting and non-adjusting events after
• Discuss ‘fair presentation’ and the the reporting period.
accounting concepts/principles.
4. Accounting policies, changes in
2. Earnings per share accounting estimates and errors

• Recognise the importance of • Identify items requiring separate

comparability in relation to the disclosure, including their accounting
calculation of earnings per share (EPS) treatment and required disclosures.
and its importance as a stock market
indicator. • Recognise the circumstances where a
change in accounting policy is justified.
• Explain why the trend of EPS may be a
more accurate indicator of performance • Define prior period errors.
than a company’s profit trend.
• Account for the correction of errors and
• Define earnings for EPS purposes. changes in accounting policies.

• Calculate the EPS in the following 5. Related party disclosures

circumstances:
– where the number of issued ordinary • Define and apply the definition of related
shares is constant throughout the parties in accordance with IFRS
year. Standards.
– where the has been an issue of
ordinary shares at fair value during • Describe the potential to mislead users
the year. when related party relationships and
– where there has been a bonus issue transactions are not disclosed
of ordinary shares/stock split during appropriately
the year,
– where there has been a rights issue • Explain the disclosure requirements for
of ordinary shares during the year. related party transactions.
– where there has been more than one
change in the number of issued 6. Operating segments
ordinary shares during the year
• Discuss the usefulness and problems
• Explain the relevance to existing associated with the provision of segment
shareholders of the diluted EPS, and information.

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 Diploma in International Financial Reporting (DipIFR)

• Define an operating segment. acquisition or disposal of an entire

interest occurs during the year and
• Identify reportable segments (including there is a non-controlling interest.
applying the aggregation criteria and
quantitative thresholds). 2. Business combinations – intra-group
adjustments
7. Reporting requirements of small and
medium- sized entities (SMEs) • Explain why intra-group transactions
should be eliminated on consolidation.
• Outline the principal considerations in
developing a set of financial reporting • Report the effects of intra-group trading
standards for SMEs. and other transactions including:
– unsettled intra-group balances at the
• Discuss solutions to the problem of year-end
differential financial reporting. – unrealised profits in inventory and
non
• Discuss reasons why the IFRS for SMEs current assets
Standard does not address certain – intra-group loans and interest and
topics. other
intra-group charges, and
D Preparation of external – intra-group dividends.
reports for combined entities 3. Business combinations – fair value
and joint arrangements adjustments

• Explain why it is necessary for both the

1. Preparation of group consolidated consideration paid for a subsidiary and
external reports the subsidiary’s identifiable assets and
liabilities to be accounted for at their fair
• Explain the concept of a group and the values when preparing consolidated
purpose of preparing consolidated financial statements.
financial statements.
• Compute the fair value of the
• Explain and apply the definition of a consideration given including the
subsidiary. following elements:
- Cash
• Prepare a consolidated statement of - Share exchanges
financial position for a simple group (one - Deferred consideration
or more subsidiaries) dealing with pre - Contingent consideration.
and post-acquisition profits, non-
controlling interests and goodwill. • Prepare consolidated financial
statements dealing with fair value
• Explain the need for using coterminous adjustments (including their effect on
year-ends and uniform accounting consolidated goodwill) in respect of:
polices when preparing consolidated – Depreciating and non-depreciating
financial statements and describe how it non-current assets
is achieved in practice. – Inventory
– Deferred tax
• Prepare a consolidated statement of – Liabilities
profit or loss, statement of profit or loss – Assets and liabilities (including
and other comprehensive income and contingencies), not included in the
statement of changes in equity for a subsidiary’s own statement of
simple group (one or more subsidiaries), financial position.
including an example where an

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 Diploma in International Financial Reporting (DipIFR)

4. Business combinations – associates

and joint arrangements

• Define associates and joint

arrangements.

• Distinguish between joint operations and

joint ventures.

• Prepare consolidated financial

statements to include a single subsidiary
and an associate or a joint arrangement.

5. Complete disposal of shares in

subsidiaries

• Calculate the gain or loss on the

complete disposal of shares in a
subsidiary in the financial statements of
the parent and the subsidiary.

• Explain and illustrate the effect of the

complete disposal of a parent’s
investment in a subsidiary in the parent’s
individual financial statements and/or
those of the group.

E Employability and technology skills

• [Link] computer technology to efficiently

access and manipulate relevant
information.
• [Link] on relevant response options,
using available functions and
technology, as would be required in the
workplace.
• [Link] windows and computer
screens to create and amend responses
to exam requirements, using the
appropriate tools.
• 4. Present data and information
effectively, using the appropriate tools.

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 Diploma in International Financial Reporting (DipIFR)

7. Summary of changes to Diploma in International

Financial Reporting (DipIFR)

ACCA periodically reviews its qualification syllabuses so that they meet the needs of
stakeholders such as employers, students, regulatory and advisory bodies and learning
providers. There were no changes to the syllabus in the current period.

14 © ACCA 2022-2023 All rights reserved