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1 CFAP Syllabus Winter 2020
1 CFAP Syllabus Winter 2020
PVEA
Learning Outcome
Learning outcomes specified in this course are fully aligned with the requirements of International Education
Standards issued by IAESB of IFAC.
S. No. Contents
1 Part I Understanding ethics and human behaviors
Explain the nature of ethics
Explain the role of ethics within the profession and in relation to the concept of social
responsibility
Explain the different models of ethical decision making
2 Part II Understanding models of ethical decision making
Apply the fundamental ethical principles of integrity, objectivity, professional competence and
due care, confidentiality, and professional behavior to ethical dilemmas and determine an
appropriate resolution
Apply the relevant ethical requirements to professional behavior and compliance with
standards
Analyze the interrelationship of ethics and law, including the relationship between laws,
regulations, and the public interest
Analyze the consequences of unethical behavior to the individual, to the profession, and to
society at large
3 Part III Reflective Activities
Exercise professional judgment
Act in an ethical manner that is in the public interest
Learning Outcome
On the successful completion of this paper candidates will be able to:
1 prepare financial statements in accordance with the international pronouncements and under the
Companies Act, 2017
2 evaluate and analyze the financial data for arriving at firm decision about the accounting treatment
and reporting of the same
3 prepare financial statements of small and medium sized entities in accordance with the Companies
Act, 2017 and applicable reporting framework
4 prepare financial statements of retirement benefit funds in accordance with the international
pronouncements
5 understand reporting requirement under the laws specific to insurance, banking companies and
mutual funds.
Grid Weightage
Group financial statements 25 – 35
Financial reporting 50 – 60
Specialized Financial Statements and Areas 10 – 20
Total 100
Note: *Syllabus has been revised in 302nd meeting of the Council held on September 5-6, 2018.
2 CFAP Syllabus Winter 2020
Syllabus Contents Level
Ref Proficiency Testing
B Financial reporting
1 Financial instruments 3 2
IFRS 7 Financial Instruments: Disclosures
IFRS 9 Financial Instruments (including IFRIC 16 & 19)
IAS 32 Financial Instruments: Presentation
2 Employees benefit and share based payments 3 2
IFRS 2 Share-based Payment
IAS 19 Employee Benefits (including IFRIC 14)
3 IFRS 5 Non-current Assets Held for Sale and Discontinued Operations 3 1
4 IFRS 13 Fair Value Measurement 3 1
5 IFRS 15 Revenue From Contracts with Customers 3 2
6 IFRS 16 Leases 3 2
7 IAS 12 Income Taxes (including SIC 25) 3 2
8 IAS 24 Related Party Disclosures 3 1
9 IAS 33 Earnings per Share 3 2
10 IAS 34 Interim Financial Reporting (including IFRIC 10) 3 1
11 IAS 36 Impairment of Assets 3 2
12 IAS 40 Investment Property 3 1
C Specialized Financial Statements and areas
1 Small and medium sized entities 1 1
2 Banks 1 1
3 Mutual funds 1 1
4 Insurance companies 1 1
5 IAS 26 Accounting and Reporting by Retirement Benefit Plans 3 1
6 Specialized area of IFRSs 1 1
IFRS 1 First-time Adoption of International Financial Reporting
Standards
IFRS 4 Insurance Contracts
IFRS 6 Exploration for and evaluation of Mineral Resources
IFRS 14 Regulatory Deferral Accounts
IAS 29 Financial Reporting in Hyperinflationary Economies (including
IFRIC 7)
7 Overview of Islamic Accounting Standard issued by ICAP 1 1
8 Overview of IPSASs and The Conceptual Framework for General 1 1
Purpose Financial Reporting by Public Sector
IPSAS 1 Presentation of Financial Statements
IPSAS Financial Reporting Under the Cash Basis of Accounting
a. Technical contents assessed at earlier stages of qualification will be tested in later stages with a limit of 8
marks per topic in an attempt.
b. The contents of syllabus may classify topics at three testing levels from 1 to 3 with a maximum limit per
question as 8, 20 and 25, respectively.
c. The overall marks of earlier stage topics and testing level-1 topics, as mentioned above, will have a
maximum limit of 35 marks in aggregate in an attempt
Objective
To develop in-depth knowledge, understanding and application skills of corporate laws most relevant in local
corporate environment in general and required for secretarial practices, in particular.
Learning Outcome
On the successful completion of this paper candidates will be able to:
1 identify, evaluate and analyze different situations arising in performing the professional duties
with reference to applicable corporate laws
2 perform secretarial practices
3 demonstrate working knowledge of meaning, formation and working of non-banking financial
institutes
4 demonstrate awareness of legal provisions in respect of compromise, arrangements, amalgamation
and reconstruction of companies, winding up of limited and unregistered companies
5 demonstrate awareness of laws, rules and regulations related to banking companies, insurance
companies, securities, issue of capital, listing, modarba, competition, anti-money laundering and
foreign exchange
6 recognize ethical and professional issues and act appropriately.
*Grid Weightage
Companies Act, 2017 (Section 1 to 275) and relevant rules 30-40
Mediation, Arbitration, Arrangement ,Reconstruction, Management, Winding up and 15-25
other related matters under Companies Act, 2017and Non-Banking Finance Companies
Other laws and regulations, governance, ethics and professionalism 40-50
Total 100
Syllabus Proficiency
Contents
Ref Level
A Companies Act, 2017 (Section 1 to 275) and relevant rules
Note: *Grid has been revised in 310th meeting of the Council held on February 15, 2019.
Objective
To develop competence of formulation and implementation of business strategies.
Learning Outcome
On the successful completion of this paper candidates will be able to:
1 prepare business vision and mission statements
analyze and assess external and internal environment and resources for the purposes of formulation
2
of business strategy
3 formulate business strategies and make strategic choices
4 prepare long term business objective and plans
5 manage human resources
6 participate in making decision on entity›s social responsibility
7 participate in development and implementation of marketing strategy
8 understand Supply Chain Management.
Grid Weightage
Formulation and implementation of strategy 35-40
Strategy and Management of information technology 15-20
Human Resource Management 15-20
Marketing and supply chain management 15-20
Corporate social responsibility and business ethics 15-20
Total 100
Syllabus Proficiency
Contents
Ref Level
A Formulation and implementation of strategy
a Formulation of strategy
1 Development of business vision and mission 3
2 Developing strategic, tactical and operational level strategies 3
b Analysis
1 Porter’s Five Forces model 3
2 PESTEL analysis 3
3 Boston consulting group matrix 3
4 Competitor analysis 3
5 Competitive strategies of cost leadership and differentiation 3
6 Resource audit 3
Objective
To develop competence and abilities to analyze complex financial information for strategic financial decisions.
Learning Outcome
On the successful completion of this paper candidates will be able to:
1 utilize financial analysis techniques
2 ascertain value of securities and financial instruments
3 identify, document and manage the financial risks
4 evaluate and analyze merger, demerger, acquisitions and expansions and advise thereon
5 take production decisions, ascertain price, accept, reject and negotiate special orders
6 use management and costing tools to control cost of products and services.
Grid Weightage
Investment appraisal and decision making 40-60
Valuation 15-20
Risk management 15-20
Management controls 10-20
Total 100
Syllabus Proficiency
Contents
Ref Level
A INVESTMENT APPRAISAL AND DECISION MAKING
a Cost of capital
1 Cost of equity, cost of debt and weighted average cost of capital (WACC) 3
2 Capital Asset Pricing Model (CAPM) 3
3 Arbitrage Pricing Theory (APT) 3
4 Bond’s return analysis - yield to maturity or yield to call etc. 3
b Investment Appraisal
1 Project analysis using NPV, APV, IRR, MIRR, EIRR, Profitability Index and 3
Payback (including the effect of inflation)
2 Project analysis using ratio analysis 3
3 Application of Monte Carlo simulation to investment appraisal 3
4 Sensitivity analysis 3
5 Portfolio analysis 3
6 Capital rationing 3
Objective
To develop capability to perform duties of a professional accountant or support tax consultant.
Learning Outcome
On the successful completion of this paper candidates will be able to:
1 develop expert knowledge of Income Tax, Sales Tax and Federal Excise Duty law in Pakistan
(excluding case laws)
Grid Weightage
Income tax laws 50-55
Sales tax laws 30-35
Federal excise laws 10-15
Professional values, ethics and attitude 5-10
Total 100
Syllabus Proficiency
Contents
Ref Level
A Income tax laws
Proficiency
1 The Income Tax Ordinance, 2001
Level 3
2 Notifications, Rules, General orders and Circulars issued under the 3
Income Tax Ordinance, 2001 excluding specific double taxation
agreements
B Sales tax laws
1 The Sales Tax Act, 1990 3
2 The Provincial Sales Tax 3
3 The Islamabad Capital Territory (Tax on Services) Ordinance, 2001 3
4 Notifications, Rules, General orders and Circulars issued under the Sales 3
Tax Act, 1990
C Federal excise laws
1 The Federal Excise Act, 2005 (Chapters I and II only) 2
2 Notifications, Rules, General orders and Circulars issued under the 2
Federal Excise Act, 2005 relevant to Chapters I and II only
D Professional values, ethics and attitude
1 Principle of fair tax legislation and tax administration 2
2 Ethics for tax payers and tax practitioners 3
3 Tax evasion and avoidance 3
Objective
To develop competence which is necessary for performing audit, assurance and other related services in
accordance with the international and local pronouncements.
Learning Outcome
On the successful completion of this paper candidates will be able to:
1 comprehend professional environment
2 perform assurance services in accordance with the international and local pronouncements
3 make professional judgment at all level of assurance and non assurance services
4 conclude and formulate opinion on complex matters of assurance services
consider and demonstrate professional attitude while performing assurance and non-assurance
5
services.
Grid Weightage
Performance of audit 45-55
Audit conclusion and reporting 20-30
Other assurance engagements and related services 10-15
Professional Ethics, Quality Control and current development 10-15
Total 100
Syllabus Proficiency
Contents
Ref. Level
A Performance of audit
a Performance of audit – General
1 Overall Objectives of the Independent Auditor and the Conduct of an 3
Audit in accordance with International Standards on Auditing
2 Initial engagements and opening balances 3
3 Agreeing the terms of Audit engagement 3
4 The planning and mobilization phase 3
5 Risk assessment procedures and response to risks 3
6 Internal Controls (including Test of controls) 3
7 Audit materiality 3
8 Sampling and other means of testing 3
9 Audit evidence(including Specific considerations for Selected Items) 3
10 Substantive tests (including Analytical Procedures) 3
11 Responsibility to consider fraud 3
12 Evaluation of misstatements identified during the audit 3