EXAMINABLE ACCOUNTING PRONOUNCEMENTS
FINANCIAL REPORTING
INITIAL TEST OF COMPETENCE, JANUARY AND JUNE 2014
In terms of the policy of SAICA’s Initial Professional Development (IPD) Committee, the cutoff date for accounting standards examinable in the Initial Test of Competence (ITC) is as
follows:
International Financial Reporting Standards as issued by the International Accounting
Standards Board on or before 31 December, 12 months prior to the ITC being written, plus
significant changes to 30 June of the year preceding the January exam. In addition, any
interpretations and circulars issued during the period (up to and including 30 June) relating to
statements already examinable will be included in the ITC.
For the ITC 2014 the cut-off date is therefore 31 December 2012 and for significant changes the
cut-off date is 30 June 2013. It is however decided that the exposure draft on revenue will be
examinable at a level 1 regardless of whether the actual standard is issued before 30 June 2013
or not.
Your attention is specifically drawn to the following:

The IFRS for SMEs is examinable. This pronouncement is examinable at the
following levels:
Scope section
Level 3
Other sections
Not examinable

The Companies Act (2008) is examinable in the ITC 2014, as outlined in the
Companies Act (2008) syllabus document.

All Exposure Drafts that were in issue on or before 31 December 2012 are NOT
examinable, except for the following exposure draft that will be examinable at a
level 1 regardless of whether the final standard is issued before 30 June 2013:
Revenue from Contracts with Customers

Transitional arrangements contained in the paragraphs of the individual statements
are NOT examinable in the ITC.

IFRIC interpretations are interpretations of the accounting implications relating to
existing IFRS standards. Even though certain of these interpretations are
examinable at a level 1 or not examinable at all, they may contain relevant examples
and guidance that may assist candidates to understand and apply principles in
examinable standards.
1
The levels at which knowledge is examined in the ITC are as follows:
Level 1 = Knowledge and awareness
Level 2 = Identification of underlying problems and simple calculations
Level 3 = Perform complex calculations and answer an integrated question relating to the specific topics.

All standards in the list are examinable at level 3, unless otherwise indicated

See comments relating to circulars and exposure drafts on page 7.
The following is a complete list of Accounting pronouncements (per A Guide through IFRS
handbooks, July 2012 and the SAICA Handbook (2012/2013) which are examinable in the ITC in
January and June 2014:
Reference
Abbreviated title
Issued by Examinable Examinable
IASB
in ITC
in ITC 2015
2014
Included in A Guide through IFRS, July 2012. The text of the standards can be
obtained in Part A and the accompanying documents (basis of conclusions and
implementation guidance) to the standards can be found in either Part B1 or Part B2.
Preface to International Financial Reporting
September
No
No
Standards
2010
The Conceptual Framework for Financial
September
Yes
Yes
Reporting
2010
International Financial Reporting Standards (IFRSs)
IFRS 1
First-time Adoption of International Financial
December
No
No
Reporting Standards
2010
IFRS 2
Share-based Payment
June 2009
Yes
Yes
Level 2:
Valuation of options (app. B, parr. B1–B41) –
Level 1:
 Share-based payments where the terms of
arrangement provides the counterparty with
choice of settlement (parr. 35–40)
IFRS 3
Business Combinations
May 2010
Yes
Yes
 Reverse acquisitions – paragraphs B19–
B27 are EXCLUDED (however, the
identification of an acquirer is included
(parr. 6 and 7 and elaborated upon in
B13–B18))
 All sections dealing with operating leases
are included (excluding para B42)
IFRS 4
Insurance Contracts
October
No
No
2010
2005
IFRS 5
Non-current Assets Held for Sale and
April 2009
Yes
Yes
Discontinued Operations
IFRS 6
Exploration for and Evaluation of Mineral
April 2009
No
No
2
Reference
IFRS 7
IFRS 8
IFRS 9
Abbreviated title
Issued by Examinable Examinable
IASB
in ITC
in ITC 2015
2014
Resources
Level 2:
Financial Instruments: Disclosures
Level 1:
 Paragraphs 42A - 42H and 17
IFRS 7 will only be examined in the context of
an entity that is not a financial institution.
Operating Segments
Level 1:
 Disclosures (parr. 20–34)
Financial Instruments
 As at 31 December 2012.
 IFRS 9 replaces the sections in IAS 39
dealing with the classification and
measurement of financial assets and
financial liabilities.
December
2011
Yes
Yes
April 2009
Yes
Yes
October
2010
Yes
Yes
June 2012
June 2012
June 2012
May 2011
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Move to
level 3
June 2011
December
2003
April 2009
Yes
Yes
Yes
Yes
Yes
Yes
December
2003
December
Yes
Yes
Yes
Yes
Level 1:
 First day gains and losses (B5.1.2A)
 Derecognition of financial assets and
liabilities (3.2 and 3.3)
 Identification of embedded derivatives (4.3)
IFRS 10
IFRS 11
IFRS 12
IFRS 13
EXCLUDED:
 Financial guarantee contracts
 Loan commitments
Consolidated Financial Statements
Joint Arrangements
Disclosures of Interests in Other Entities
Level 2:
Fair Value Measurement
Level 1:
 Application to financial assets and financial
liabilities with offsetting positions in
market risks or counterparty credit risks
parr. 48-56
International Accounting Standards (IASs)
IAS 1
Presentation of Financial Statements
IAS 2
Inventories
IAS 7
IAS 8
IAS 10
Statement of Cash Flows
Level 1:
 Foreign subsidiaries
Accounting Policies, Changes in Accounting
Estimates and Errors
Events after the Reporting Period
3
Reference
Abbreviated title
IAS 11
Construction Contracts
IAS 12
Income Taxes
Level 1:
Issued by Examinable Examinable
IASB
in ITC
in ITC 2015
2014
2003
December
No
No as will
2003
be covered
in the new
revenue
standard
which will
be
examinable
December
Yes
Yes
2010

IAS 16
IAS 17
Deferred tax for equity-settled share-based
payments (parr. 68A – 68C)
 Paragraphs 38–45 – EXCLUDED and
therefore no deferred tax to be provided on
these items
Property, Plant and Equipment
Leases
EXCLUDED:
 Paragraphs 15A, 16, 17, 18, 19, 61 - 63
IAS 18
Revenue
Level 1:
 Appendix – Financial service fees
April 2009
Yes
IAS 19
Employee Benefits
Level 1:
 Paragraphs (.67 - .98) (actuarial methods
and assumptions)
June 2011
Yes
Yes
All
exclusions
could come
back – i.e.
full standard
may be
examined
Both IAS 18
and the new
revenue
standard
will be
examined
from 2015
Yes
IAS 20
Level 1:
Accounting for Government Grants and
Disclosure of Government Assistance
The Effects of Changes in Foreign Exchange
Rates
Borrowing Costs
Related Party Disclosures
May 2008
Yes
Yes
December
2005
May 2008
December
2009
Jan 1987
Yes
Yes
Yes
Yes
Yes
Yes
No
No
May 2011
Yes
Yes
IAS 21
IAS 23
IAS 24
IAS 26
IAS 27
Accounting and Reporting by Retirement
Benefit Plans
Separate Financial Statements
4
May 2008
April 2009
Yes
Yes
Reference
IAS 28
IAS 29
IAS 32
IAS 33
IAS 34
IAS 36
IAS 37
IAS 38
IAS 39
Abbreviated title
Investments in Associates and Joint Ventures
Financial Reporting in Hyperinflationary
Economies
Financial Instruments: Presentation
Level 2:
 Compound financial instruments –
EXCLUDED
 Puttable financial instruments and
obligations arising on liquidation (IAS 32,
parr.16A–16F) –
Earnings per Share
Level 1:
 Headline earnings (Circ 3/12)
Level 1:
Interim Financial Reporting
Impairment of Assets
Provisions, Contingent Liabilities and
Contingent Assets
Intangible Assets
Financial Instruments: Recognition and
Measurement. As in issue on 31 December
2012.
Issued by Examinable Examinable
IASB
in ITC
in ITC 2015
2014
May 2010
Yes
Yes
May 2008
No
No
October
2009
Yes
Yes
December
2003
Yes
Yes
May 2008
Yes
Yes
April 2009
April 2001
Yes
Yes
Yes
Yes
April 2009
October
2010
Yes
Yes
Yes
Yes
May 2008
Yes
Yes
Please note: IFRS 9 replaces the sections in
IAS 39 dealing with the classification and
measurement of financial assets and
financial liabilities. These sections in IAS 39
that are replaced will NOT be examinable.
All matters are examinable at a level 3 except
as set out below:
IAS 40
EXCLUDED:
 Recognition and measurement of fair value
hedge accounting for a portfolio hedge of
interest rate risk (amendment June 2004)
Level 1:
 Hedge accounting of any risk
o other than foreign exchange risk
hedged with an FEC*
o or interest rate risk hedged with an
interest rate swap*
(* = level 3)
Level 3:
 Hedge accounting of foreign exchange risk
with an FEC and interest rate risk with an
interest rate swap
Investment Property
5
Reference
IAS 41
Abbreviated title
Issued by Examinable Examinable
IASB
in ITC
in ITC 2015
2014
EXCLUDED:
 Paragraph 6 – Property interests held by a
lessee under an operating lease which is
classified and accounted for as an
investment property
 Paragraph 25, 26, 34 and 41
Agriculture
May 2008
No
No
IFRIC interpretations are interpretations of the accounting implications relating to
existing IFRS standards. Even though certain of these interpretations are examinable at a
level 1 or not examinable at all, it may contain relevant examples and guidance that may
assist candidates to understand and apply principles in examinable standards. However
excluded interpretations will not be examined in the specific context of the interpretation.
For example: we will not examine the accounting treatment of a service concession
arrangement but may request candidates to apply IAS 38 and IFRS 9 to the assessment of
intangible assets or financial instruments in other contexts.
Interpretations
IFRIC 1
Changes in Existing Decommissioning, Restoration
and Similar Liabilities
IFRIC 2
Members’ Shares in Co-operative Entities and
Similar Instruments
IFRIC 4
Determining whether an Arrangement contains a
Lease
IFRIC 5
Rights to Interests arising from Decommissioning,
Restoration and Environmental Rehabilitation Funds
IFRIC 6
Liabilities arising from Participating in a Specific
Market – Waste Electrical and Electronic Equipment
IFRIC 7
Applying the Restatement Approach under IAS 29
Financial Reporting in Hyperinflationary Economies
IFRIC 10
Interim Financial Reporting and Impairment – level 1
See IAS 34
IFRIC 12
Service Concession Arrangements
IFRIC 13
Customer Loyalty Programmes
IFRIC 14
IAS 19 – The Limit on a Defined Benefit Asset,
Minimum Funding Requirements and their
Interaction
IFRIC 15
Agreements for the Construction of Real Estate
IFRIC 16
Hedges of a Net Investment in a Foreign Operation –
level 1
IFRIC 17
Distributions of Non-cash Assets to Owners
IFRIC 18
Transfers of Assets from Customers
IFRIC 19
Extinguishing Financial Liabilities with Equity
Instruments
6
September
2007
February
2008
November
2009
September
2007
September
2005
September
2007
October
2010
May 2011
May 2011
June 2011
Yes
Yes
No
No
Yes
Yes
Yes
Yes
No
No
No
No
Yes
Yes
No
Yes
No
No
Yes
Yes
July 2008
April 2009
No
Yes
No
Yes
October
2010
January
2009
May 2011
Yes
Yes
No
Yes
Yes
Yes
IFRIC 20
No
No
No
Yes
No
Yes
Yes
Yes
No
No
No
No
No
No
Revenue – Barter Transactions Involving Advertising
No
Services
SIC 32
Intangible Assets – Web Site Costs
May 2011
Yes
South African Statements and Interpretations of Statements of Generally Accepted
Accounting Practice
Included in SAICA Handbook 2012/2013, volume 3 – Accounting, Ethics and Circulars
AC500
Preface to the South African statements and
Nov 2003
No
interpretations of statements of Generally Accepted
Accounting Practice
AC501
Accounting for “Secondary Tax on Companies
Nov 2003
No
(STC)”
AC502
Substantively enacted tax rates and tax laws
Feb 2006
Yes
AC503
Accounting for Black Economic Empowerment
March
Yes
(BEE) transactions
2009
AC504
IAS 19 (AC 116) - The limit on a defined benefit
March
No
asset, minimum funding requirements and their
2009
interaction in the South African pension fund
environment
Yes
SIC 7
SIC 10
SIC 15
SIC 25
SIC 27
SIC 29
Stripping costs in the production phase of a surface
mine
Introduction of the Euro
Government Assistance – No Specific Relation to
Operating Activities – level 1
Operating Leases – Incentives
Income Taxes – Changes in the Tax Status of an
Entity or its Shareholders
Evaluating the Substance of Transactions Involving
the Legal Form of a Lease
Service Concession Arrangements: Disclosures
SIC 31
October
2011
May 2011
September
2007
September
2007
September
2007
October
2010
September
2007
May 2011
Yes
No
No
Yes
Yes
Yes
NOTE THAT ONLY THE FOLLOWING CIRCULARS RELATING TO
FINANCIAL ACCOUNTING ARE EXAMINABLE:
Circulars
Included in SAICA Handbook 2012/2013, volume 3 – Accounting, Ethics and Circulars
03/12
Headline earnings – level 1
12/06*
Operating leases
09/06*
Transactions giving rise to adjustments to revenue / purchases
*
Level 3
NOTE THAT ONLY THE FOLLOWING EXPOSURE DRAFT RELATING
TO FINANCIAL ACCOUNTING IS EXAMINABLE:
Exposure drafts are available on: www.saica.co.za
ED 309
Level 1: Revenue from Contracts with Customers
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