ICAN Professional Level Notes

Ethical issues in and regulatory framework of strategic business reporting (5% of marks)

1. 1The regulatory framework of strategic business reportingRead
2. 2Ethical issues in strategic business reportingRead
3. 16Creative accounting and earnings managementRead

Reporting of entity’s performance to stakeholders (25%)

1. 3The Conceptual Framework (i): objective, qualitative characteristics, reporting entity and elementsRead
2. 4The Conceptual Framework (ii): recognition, measurement, presentation and capital maintenanceRead
3. 5IAS 1: presentation of financial statementsRead
4. 6IFRS 18 (i): the new statement of profit or loss, categories and subtotalsRead
5. 7IFRS 18 (ii): management-defined performance measures, aggregation and notesRead
6. 8IAS 34: interim financial reportingRead
7. 9IAS 24: related party disclosuresRead
8. 10IFRS 8: operating segmentsRead
9. 15IAS 8: accounting policies, changes in estimates and errorsRead
10. 17IFRS 15 (i): revenue and the five-step modelRead
11. 18IFRS 15 (ii): transaction price, other aspects and applicationRead
12. 19IAS 16: property, plant and equipmentRead
13. 20IAS 40: investment propertyRead
14. 21IAS 38: intangible assetsRead
15. 22IAS 37: provisions, contingent liabilities and contingent assetsRead
16. 23IAS 36 (i): impairment and recoverable amountRead
17. 24IAS 36 (ii): cash-generating units, goodwill and reversalsRead
18. 25IFRS 5: held for sale and discontinued operationsRead
19. 26IFRS 16 (i): leases and lessee accountingRead
20. 27IFRS 16 (ii): lessors, and sale and leasebackRead
21. 28IAS 12 (i): current tax and deferred taxRead
22. 29IAS 12 (ii): deferred tax in business combinations and single transactionsRead
23. 30IAS 19: employee benefitsRead
24. 31IFRS 2: share-based paymentRead
25. 32IFRS 13: fair value measurementRead
26. 33IFRS 9 (i): classification and measurement of financial instrumentsRead
27. 34IFRS 9 (ii): expected credit lossesRead
28. 35IFRS 9 (iii): hedge accountingRead
29. 36IAS 32 and IFRS 7: presentation and disclosure of financial instrumentsRead
30. 37Sundry standards: IAS 26, IAS 41, IFRS 6, IFRS 14, IFRS for SMEs and SAS 32Read
31. 49IAS 33: earnings per shareRead

Analysis of financial and other reports (20%)

1. 11Other information in the annual report: governance, management commentary and risk reportingRead
2. 50Analysis and interpretation (i): common size, return and efficiency ratiosRead
3. 51Analysis and interpretation (ii): liquidity, debt and investor ratiosRead

Sustainability and integrated reporting (10%)

1. 12Corporate social responsibilityRead
2. 13Sustainability reportingRead
3. 14Integrated reportingRead

Group financial statements (30%)

1. 38Business combinations (i): groups, IFRS 10 and IFRS 3Read
2. 39Business combinations (ii): consolidation technique and goodwillRead
3. 40The consolidated statement of profit or loss and other comprehensive incomeRead
4. 41Associates and joint ventures: IFRS 11 and IAS 28Read
5. 42Business combinations achieved in stagesRead
6. 43Disposal of subsidiariesRead
7. 44Other group standards: IAS 27 and IFRS 12Read
8. 45Foreign currency (i): IAS 21 and the individual entityRead
9. 46Foreign currency (ii): translating a foreign operationRead
10. 47IAS 7 (i): statement of cash flowsRead
11. 48IAS 7 (ii): consolidated statement of cash flowsRead

The impact of changes in accounting regulations (5%)

1. 52IFRS 1: first-time adoption of IFRSRead
2. 53IFRS 17: insurance contractsRead
3. 54IFRS 19: subsidiaries without public accountabilityRead

Other current developments in and beyond financial reporting (5%)

1. 55IFRS Practice Statement 1: management commentaryRead
2. 56IFRS Practice Statement 2: making materiality judgementsRead

Introduction to business strategy and financial management (10% of marks)

1. 1Strategic financial management and corporate objectivesRead
2. 2The treasury functionRead
3. 3Stakeholders, corporate social responsibility and ethics in financial managementRead
4. 4Money laundering and the duties of directorsRead
5. 5The economic environment, free trade and international institutionsRead
6. 6Government influence on business and the financial management frameworkRead
7. 7Financial markets, money markets and money market instrumentsRead
8. 8Dividend policy, dividend capacity and transfer pricingRead
9. 9Emerging issues: the financial crisis, dark pools and new asset classesRead
10. 10Technology tools for financial managementRead

Strategic management (10%)

1. 11Strategic analysis: PESTEL, SWOT and the five forcesRead
2. 12The Ansoff matrix and methods of strategic developmentRead
3. 13Assessment and selection of business strategiesRead
4. 14Business plans and communicating strategyRead
5. 15Strategic change and managing changeRead

Risk management (5%)

1. 16Risk, risk management and categories of riskRead
2. 17Identification, assessment and measurement of riskRead
3. 18Monitoring and controlling risk, and enterprise risk managementRead

Governance (5%)

1. 19Corporate governance: meaning, concepts and stakeholdersRead
2. 20Agency theory and other governance theoriesRead
3. 21Governance codes: rules-based and principles-based approachesRead
4. 22The board: roles, composition and committeesRead
5. 23Directors and the law, director development and auditRead

Advanced investment appraisal (30%)

1. 24Discounted cash flow (i): NPV, annuities and perpetuitiesRead
2. 25Discounted cash flow (ii): IRR, MIRR and relevant costsRead
3. 26Discounted cash flow (iii): taxation and capital allowancesRead
4. 27Discounted cash flow (iv): inflationRead
5. 28Risk and uncertainty (i): sensitivity analysis and expected valuesRead
6. 29Risk and uncertainty (ii): decision trees, risk-adjusted rates and other methodsRead
7. 30The lease versus buy decisionRead
8. 31Asset replacement decisionsRead
9. 32Capital rationingRead
10. 33Cost of capital and the weighted average cost of capitalRead
11. 34Risk, return and portfolio theoryRead
12. 35The capital asset pricing model and the cost of capital for appraisalRead
13. 36Sources of finance: equity and rights issuesRead
14. 37Sources of finance: debt, convertibles and preference sharesRead
15. 38Finance for SMEs and venture capitalRead
16. 39Islamic financeRead
17. 40Financing projects and capital structure theoriesRead
18. 41Gearing, WACC and asset and equity betasRead
19. 42Adjusted present valueRead
20. 43International Valuation StandardsRead
21. 44Business valuation: asset-based and income-based methodsRead
22. 45Dividend valuation modelsRead
23. 46The valuation of debt and preference sharesRead
24. 47The efficient market hypothesisRead
25. 48Value-based management: EVA and MVARead
26. 49Cash flow valuation and free cash flowRead
27. 50International investment decisionsRead
28. 51Option pricing theory and the Black-Scholes modelRead
29. 52Real options and applications of Black-ScholesRead

Acquisitions, mergers, corporate reconstruction and re-organisation (25%)

1. 53Mergers and acquisitions: strategic and regulatory issuesRead
2. 54Valuation for mergers and acquisitionsRead
3. 55Financing acquisitions and mergersRead
4. 56Capital reconstructionsRead
5. 57Business reorganisation and management buyouts (MBO)Read
6. 58Forecast financial statementsRead
7. 59Evaluating financial performance, position and proposed strategiesRead
8. 60Corporate failure and how to predict itRead

Advanced risk management techniques (15%)

1. 61Foreign exchange rates and exposureRead
2. 62Exchange rate relationships: PPP and interest rate parityRead
3. 63Forward contracts, money market hedges and nettingRead
4. 64Duration and convexityRead
5. 65Yield curves and credit riskRead
6. 66Forward rate agreements and interest rate swapsRead
7. 67Forward rates from yield curves and currency swapsRead
8. 68Futures and hedging with futuresRead
9. 69Currency futures and short-term interest rate futuresRead
10. 70Hedging with options, caps, floors and collarsRead
11. 71Delta hedging and the GreeksRead

Tax administration (5% of marks)

1. 1National tax policyRead
2. 2Tax administration and multiplicity of taxesRead
3. 3Objections and tax appealsRead

Taxation of companies and investment income (35%)

1. 4Companies income tax: framework, residence and basis periodsRead
2. 5Adjusted profit: allowable and disallowable expensesRead
3. 6Loss reliefRead
4. 7Capital allowancesRead
5. 8Chargeable gainsRead
6. 9Taxation of investment incomeRead
7. 10Tax incentives and free trade zonesRead
8. 11Assessable profit, total profit and the company tax computationRead
9. 12Taxation of leasesRead

International taxation (20%)

1. 13Non-resident taxationRead
2. 14Taxation of the digital economyRead
3. 15Tax treaties and double taxation reliefRead
4. 16Transfer pricingRead
5. 17Base erosion and profit shiftingRead
6. 18Regional integration and trade blocsRead
7. 19International tax policy and exchange of informationRead

Current issues and emerging trends (10%)

1. 20Current tax issuesRead
2. 21Emerging trends: sustainable development and taxRead
3. 22Mergers and acquisitions: tax considerationsRead

Tax management and planning (10%)

1. 23Tax practice managementRead
2. 24Tax planning, avoidance and evasionRead
3. 25Tax audit and tax investigationRead
4. 26Ethics and professionalism in taxRead
5. 27Tax accounting and reportingRead

Taxation of incomes of extractive industries (20%)

1. 28Petroleum industry: structure, licences and transitionRead
2. 29Hydrocarbon tax and companies income tax of petroleum companiesRead
3. 30Petroleum incentives, royalties and the host community fundRead
4. 31Petroleum companies: offences, filing and enforcementRead
5. 32Petroleum profits tax and production sharing contractsRead
6. 33Mining: regulation, titles and incentivesRead
7. 34Mining: tax computation, royalties and penaltiesRead
8. 35Environmental, social and governance matters in the extractive industriesRead

Quick references across the syllabus

1. 36Nigeria Tax Act 2025: overview of the new tax lawsRead
2. 37Withholding tax in NigeriaRead

Laws and regulations on audit and assurance engagements (20% of marks)

1. 1The meaning of assurance, audit and audit-related servicesRead
2. 2Why audit is regulated: the FRC Act, FRC rules and the Audit Regulation 2020Read
3. 3Appointment, removal, resignation, rights and duties of auditors under CAMA 2020Read
4. 4Professional standards and how audit standards are setRead
5. 5Corporate governance, its codes and the audit committeeRead
6. 6ISA 250 and money launderingRead
7. 7The fundamental ethical principlesRead
8. 8Independence: threats and relationships with audit clientsRead
9. 9Non-audit services and safeguarding independenceRead
10. 10Confidentiality, conflicts of interest, second opinions and corporate financial adviceRead
11. 11The expectations gap and the causes of audit failureRead
12. 12Fraud and error: ISA 240Read
13. 13The auditor’s liability and how to manage itRead

Accepting professional engagements and managing assignments (15%)

1. 14Quality management in firms: ISQM 1Read
2. 15ISA 220, engagement partner responsibility and risk before acceptanceRead
3. 16Changes in a professional appointmentRead
4. 17Obtaining professional work, fees and tenderingRead
5. 18Agreeing the terms of an engagement: ISA 210Read

Planning and undertaking audit work (30%)

1. 19Audit strategies and the business risk approachRead
2. 20The systems-based and statement of financial position approachesRead
3. 21Audit planning: ISA 200 and ISA 300Read
4. 22Audit risk and the audit risk modelRead
5. 23Linking business risk to risks of material misstatement and responding to themRead
6. 24Materiality: ISA 320Read
7. 25Computers in auditing and IT controlsRead
8. 26Not-for-profit and public sector auditsRead
9. 27Audit evidence, assertions and audit samplingRead
10. 28Audit documentation: ISA 230Read
11. 29Related parties: ISA 550Read
12. 30Written representations and the auditor’s expert: ISA 580 and ISA 620Read
13. 31Reliance on internal audit and auditing accounting estimates: ISA 610 and ISA 540Read
14. 32Auditing specific areas of the financial statementsRead
15. 33Auditing transaction cyclesRead
16. 34Evaluating misstatements, opening balances and comparativesRead
17. 35Subsequent events: ISA 560Read
18. 36Going concern: ISA 570Read
19. 37Group audits and working with component auditorsRead
20. 38Joint audits, the consolidation process and group communicationRead
21. 39Review engagements and due diligenceRead
22. 40Agreed-upon procedures and compilation engagementsRead
23. 41Investigations and reports on internal control over financial reportingRead
24. 42Liquidation, bankruptcy, receivership and administrationRead
25. 43Assurance engagements and ISAE 3000Read
26. 44Assurance on risk, performance, value for money, systems and e-commerceRead
27. 45Prospective financial information: ISAE 3400Read
28. 46Pro forma information in a prospectus: ISAE 3420, and reporting accountantsRead
29. 47Forensic accounting, investigation and auditRead
30. 48Internal audit and its typesRead
31. 49Outsourcing and service organisations: ISA 402Read

Drawing conclusions and reporting (20%)

1. 50The auditor’s report: true and fair view and the ISA 700 structureRead
2. 51Key audit matters, other information and CAMA 2020 reportingRead
3. 52Modified opinions: ISA 705Read
4. 53Emphasis of matter and other matter paragraphs: ISA 706Read
5. 54Opening balances, comparatives and going concern in the auditor’s reportRead
6. 55Communicating with those charged with governance and about control deficiencies: ISA 260 and ISA 265Read
7. 56Specialised audit reports: ISA 800 and ISA 810Read

Application of information technology in auditing (10%)

1. 57The impact of information technology on audit, and audit toolsRead
2. 58Governance, risk and compliance software, and COBITRead
3. 59E-business risks, digital forensics and robotics in auditRead
4. 60Data protection: the NDPR and the NITDA ActRead

Current issues and developments in audit and assurance (5%)

1. 61Ethical issues and the structure of the auditing professionRead
2. 62Transnational audits and the audit of small companiesRead
3. 63Social and environmental reporting and assuranceRead
4. 64Emerging technologies and the audit changes in CAMA 2020Read

Case Study technique, marking and report writing

1. 1What the Case Study paper tests and how it differs from other papersRead
2. 2The four-hour Case Study paper: the case pack, a reading method and a time planRead
3. 3Preparing for the Case Study paper: knowledge, analysis, writing and the ten differentiatorsRead
4. 4Reading a case and spotting issues: a method you can repeat on any caseRead
5. 5How the Case Study marking key works: boxes, grades and marksRead
6. 6Reading a marking key: a worked example, box by boxRead
7. 7How numerical work is rewarded, the grade profile and quality versus quantityRead
8. 8Writing the report: type, structure, headings and the report formatRead
9. 9The executive summary: what it contains, how to write it and mistakes to avoidRead
10. 10Language, style and the disclaimer in a Case Study reportRead

Financial statement analysis (30% of marks)

1. 11Financial statements analysis: meaning, types and techniquesRead
2. 12The ratio analysis toolkit for the Case StudyRead
3. 13Financial statements analysis in the Case Study: method, report and worked casesRead

Sustainability, sustainable business and responsible finance (15%)

1. 14Analysing and interpreting a sustainability reportRead

Financial data analysis (30%)

1. 15Financial data analysis: forecasting, budgeting and financial appraisalRead
2. 16Breakeven, cost-volume-profit analysis and pricing decisionsRead
3. 17Product mix, profitability and short-term and long-term decisionsRead
4. 18Project appraisal, flexing the numbers and sensitivity analysisRead
5. 19Risk and uncertainty in decision making: expected values, decision trees and perfect informationRead
6. 20Business valuation: purpose, approaches and asset-based methodsRead
7. 21Valuing shares: P/E, earnings yield, dividend yield and dividend growth modelsRead
8. 22Accuracy, assumptions and professional scepticism in financial data analysisRead
9. 23Plausibility, interpretation and using financial data analysis in the examRead
10. 24Corporate restructuring, capital reorganisation and capital reduction under CAMA 2020Read
11. 25Capital reconstruction and schemes of arrangementRead

Business strategic and operational analysis (25%)

1. 26Operational and strategic analysis in the Case Study, including business trust and ethicsRead