Bachelor
2022/2023
International Financial Reporting Standards
Type:
Elective course (Economics)
Area of studies:
Economics
Delivered by:
School of Finance
Where:
Faculty of Economic Sciences
When:
4 year, 2, 3 module
Mode of studies:
offline
Open to:
students of one campus
Language:
English
ECTS credits:
6
Contact hours:
62
Course Syllabus
Abstract
This course is designed for undergraduate students who have some experience with accounting methods and practices. The course covers International Financial Reporting Standards (IFRS) Concepts Framework and major formats of financial statements according to IFRS. Following that, the course is focused on recognition, measurement and disclosure for such elements of financial accounting as Revenue, Inventory and biological assets, Long-term assets as Property, Plant and Equipment, Intangible assets and Provisions. Accounting for Impairments of Long-term assets is also covered. The course contains concepts of accounting and reporting for Lease operations (financial and operating leases). One class is focused on the Cash Flow Statement preparation techniques. The course also covers the crucial topic of Financial Instruments. The last part of the course deals with the consolidated financial statements. It covers the main concepts of control, subsidiaries and affiliates, single and consolidated statements. After this course, the students will be able to deal with special items (e.g. intra-companies transactions and unrealized gains), and to prepare basic consolidated financial statements. Finally, the methods of accounting at the date of acquisition – that is, goodwill, measuring the consideration transferred, measuring the net assets acquired – will be examined. The course does not require extensive knowledge of mathematics and statistics.
Learning Objectives
- Recognition and measurement principles for non-current assets (including tangible and intangible), revenue, inventory and biological assets, financial instruments, leases, provisions, contingent liabilities and contingent assets, impairment calculation and reporting.
- Single entity financial statements preparation techniques.
- Consolidated financial statement preparation techniques.
Expected Learning Outcomes
- 1. Describe what is meant by a conceptual framework of accounting
- 2. Discuss whether a conceptual framework is necessary and what an alternative system might be
- 3. Discuss what is meant by relevance and faithful representation and describe the qualities that enhance these characteristics
- 4. Discuss whether faithful representation constitutes more than compliance with accounting standards
- 17. Define and compute the initial measurement of a non-current (including a self-constructed and borrowing costs) asset
- 18. Identify subsequent expenditure that may be capitalised, distinguishing between capital and revenue items
- 19. Discuss the requirements of relevant accounting standards in relation to the revaluation of non-current assets
- 20. Account for revaluation and disposal gains and losses for non-current assets
- 21. Compute depreciation based on the cost and revaluation models and on assets that have two or more significant parts (complex assets)
- 22. Discuss why the treatment of investment properties should differ from other properties
- 23. Apply the requirements of relevant accounting standards for investment property
- 24. Discuss the nature and accounting treatment of internally generated and purchased intangibles
- 25. Distinguish between goodwill and other intangibles
- 26. Describe the criteria for the initial recognition and measurement of intangible assets
- 27. Describe the subsequent accounting treatment, including the principle of impairment tests in relation to goodwill
- 28. Indicate why the value of purchase consideration for an investment may be less than the value of the acquired identifiable net assets and how the difference should be accounted for
- 29. Describe and apply the requirements of relevant accounting standards to research and development expenditure
- 30. Define an impairment loss
- 34. Explain and apply the principles of recognition of revenue: i.Identification of contracts ii.Identification of performance obligations iii.Determination of transaction price iv.Allocation of the price to performance obligations v.Recognition of revenue when/as performance obligations are satisfied
- 35. Explain and apply the criteria for recognising revenue generated from contracts where performance obligations are satisfied over time or at a point in time.
- 36. Describe the acceptable methods for measuring progress towards complete satisfaction of a performance obligation.
- 37. Explain and apply the criteria for the recognition of contract costs.
- 38. Apply the principles of recognition of revenue and specifically account for the following types of transaction: – Principal versus agent – Repurchase agreements – Bill and hold arrangements – Consignments
- 39. Prepare financial statement extracts for contracts where performance obligations are satisfied over time.
- 40. Apply the provisions of relevant accounting standards in relation to accounting for government grants.
Course Contents
- Lecture 1. The IFRS Conceptual Framework and the Financial Statements
- Lecture 2. Long-term assets – Tangible Assets
- Lecture 3. Long-term assets – Intangible Assets. Impairment of assets.
- Lecture 4. Revenue Recognition
- Lecture 5. Financial instruments I – Company’s debt and equity.
- Lecture 6. Leases I
- Lecture 8. Leases II
- Lecture 9. Financial instruments II – Investments in Debt and Equity.
- Lecture 10. Group accounts 1. Basic principles. Associates. Business combinations, consolidated financial statements
- Lecture 11. Group accounts 2. Consolidated accounts: consolidated statement of Profit & Loss, consolidated statement of financial position.
- Group accounts 3. Consolidated accounts: consolidated statement of financial position (Liabilities and Equity)
- Lecture 13. Statement of Cash Flows.
- Lecture 14. Provisions, events after the reporting date.
- Lecture 15. Reporting financial performance
- Lecture 16. Presentation of published financial statements. Disclosures.
Interim Assessment
- 2022/2023 3rd module0.1 * Seminar attendance and participation + 0.6 * Final Exam + 0.2 * Mid-term Test + 0.1 * Homework
Bibliography
Recommended Core Bibliography
- ACCA : financial reporting (FR), , 2020
- Association of Chartered Certified Accountants (Great Britain), & BPP Learning Media (Firm). (2017). ACCA : For Exams in September 2017, December 2017, March 2018 and June 2018: Vol. Eleventh edition. BPP Learning Media.
- BPP Learning Media (Firm). (2017). ACCA Paper F7 (Vol. Eleventh edition). London: BPP Learning Media. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1515138
Recommended Additional Bibliography
- BPP Learning Media (Firm). (2017). Foundations in Accountancy FMA : ACCA Paper F2: Management Accounting: for Exams From 1 September 2017 to 31 August 2018 (Vol. Sixth edition). London: BPP Learning Media. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1522341