COURSE DESCRIPTION:

 

This course will cover an introduction to corporate reporting from its background, it will further discuss the conceptual framework emphasizing its relevance, usefulness and highlighting the standard setting process. Single and group financial statements will be prepared to fulfil the requirements of IFRS using practical cases. Finally the course will conclude by analyzing and interpreting financial statements.

 

COURSE OBJECTIVES:

 

This course is designed to achieve the following objectives:

1.      Explain concepts and principles of companies

2.      Describe and discuss what is meant by a conceptual framework of accounting.

3.      Prepare a Financial Statements for a single entity (not a group) in accordance with relevant accounting standards.

4.      Describe the concept and principles of a group as a single economic unit and further consider the procedures and accounting treatments.

4.1  Explain and apply the definition of a subsidiary within relevant accounting standards.

4.2  Identify and outline using accounting standards and other applicable regulation the circumstances       in which a group is required to prepare consolidated financial statements.

4.3  Describe the circumstances when a group may claim exemption from the preparation of consolidated financial statements.

4.4  Explain why directors may not wish to consolidate a subsidiary and outline using accounting standards and other applicable regulation the circumstances where this is permitted.

4.5  Explain the need for using coterminous year ends and uniform accounting policies when preparing consolidated financial statements.

4.6  Explain why it is necessary to eliminate intra-group transactions.

5.      Define and compute relevant financial ratios.

5.1   Explain what aspects of performance specific ratios are intended to assess.

5.2   Analyse and interpret ratios to give an assessment of an entity’s performance and financial position in comparison with:

i. an entity’s previous period’s financial statements

ii. another similar entity for the same reporting period

iii. industry average ratios.

5.3   Interpret an entity’s financial statements to give advice from the perspectives of different stakeholders.

5.4   Discuss how the interpretation of current value based financial statements would differ from those using historical cost based accounts.

 

COURSE PROCEDURES AND REQUIREMENTS

 

1.      Each session to begin with a devotion and prayer.

2.      All students are encouraged to participate during devotion eg by giving testimonies or short sermons that will encourage other students.

3.      As stewards of time students are expected to be punctual in all classes and are expected to submit their assignments as they fall due.

4.      Effort and involvement are as essential for learning as they are for success in your career. To help assure your success, participation in all activities of this course is expected. Your program will identify any specific requirements applicable to this class and delivery method.

5.      Each student is encouraged to participate in the class activities meaningfully.

6.      Students are encouraged to work in small groups, but should refrain from duplicating or photocopying other student’s work.  All assignments must reflect each student’s work and ingenuity. Academic dishonesty is considered to be an extremely serious academic offence.

 

PRESCRIBED TEXT BOOKS:

 

1. Introduction to IFRS Latest Edition

2. Accounting Standards (2016), H.R.B Oppermann et al

3. GAAP Hand Book   vol 1 & 2 Latest Edition

 

EXAMINATION AND GRADING SYSTEM

 

Examination & Grading System

The final grade will be determined as follows:

 

Tests / Quizzes                  15%

Assignments                      5%

Mid Term                         30%

Final Exam                        50%

Total                                100%

 

The following cut-offs are established to assign the final letter grade:

 

The grading scale will be as follows:

 

Letter Grade	Percentage Grade	Grade Points
A	90 – 100	12.00
A-	80 – 89	11.01
B+	75 – 79	9.99
B	70 – 74	9.00
B-	65 – 69	8.01
C+	60 – 64	6.99
C	50 – 59	6.00
D	45 – 49	3.00
F	0   - 44	0.00

 

 

 

TENTATIVE SCHEDULE
Date	Topic	Class Activity	Assignment
Lesson 1	1. Introduction to Company Financial Reporting 1.1 Introduction   1.2  Annual financial statements 1.3  Regulatory requirements relating to the preparation of financial statements 1.4  Share transactions 1.5  Share capital structures 1.6  Types of shares 1.7  Issue of capitalization shares 1.8  Rights issues and options 1.9  Underwriting of share issues Dividends	Group discussions	Watch videos on Introduction to Company Financial Reporting and write a summary on it.
Lesson 2	2.      Conceptual Framework 2.1  Scope for a conceptual framework. 2.2  Understandability, relevance, reliability and comparability. 2.3  Objective of general Purpose financial statements. 2.4  The legal versus the commercial view of accounting. 2.5  The concept of “faithful representation” (“true and fair view”). 2.6  The standard setting process.	Discussions and presentations on what they understand on Conceptual Framework.
Lesson 3	3. Financial Statements. 3.1  Statements Of Cash Flow.(IAS 7) 3.2  Revenue (IFRS 15) 3.3  Property Plant & Equipment. (IAS 16) 3.4   Intangible Assets. (IAS 38) 3.5   Inventory. (IAS 2) 3.6   Financial Instrument. (IAS 39) 3.7   Leases.(IAS 17) 3.8   Provisions, Contingent Liabilities, and Contingent Assets. (IAS 37) 3.9   Impairment of Assets. (IAS 36) 3.10                       Taxation. (IAS 12) 3.11                      Reporting Financial Performance.	Discuss the requirements of relevant accounting standards in relation to the IAS and IFRS.   Test 1 on IAS 7, IFRS 15 and IAS 16 Test 2 on IAS 3, IAS 2and IAS 39	Watch videos on moodle.   Assignment 1
Lesson 4	4        Group Financial Statements. 4.1  Preparation of Single Entity Financial Statements 4.2  The Concept and Principles of a Group. 4.3  The Concept of Consolidated Financial Statements. 4.4  Preparation of Consolidated Financial Statements Including an Associate.	Test 3	Watch videos on moodle.   Assignment 2
	MID TERM EXAMINATION
Lesson 5	Financial Statements Analysis. 5.1  Analysis and Interpretation Considerations. 5.2  Calculation and Interpretation of Accounting Ratios to Address Users and Stakeholders Needs. 5.3  Limitations of Ratio Analysis and Financial Statements	Group Discussions Test 4	Watch videos on moodle.   Assignment 3