Study Scheme 2018

MANAGERIAL LEVEL-2
M4 – FINANCIAL ACCOUNTING & CORPORATE REPORTING
INTRODUCTION  Elucidate operating segments;
This course is designed to focus on preparing,  Understand non-current assets held for sale and
analysing financial statements and developing reports discontinued operations;
thereon, for management decisions. The students are  Identify the events after the reporting period;
expected to use knowledge and understanding of  Comprehend provisions, contingent liabilities
more advanced financial accounting, for preparing and contingent assets;
and interpreting financial statements in context of  Elucidate property, plant and equipment;
practice.  Deal with government grants;
 Understand borrowing cost;
OBJECTIVE
 Identify and comprehend intangible assets and
To provide the students with an in-depth knowledge
impairment of assets;
of financial reporting enabling them to:
 Record research and development expenditure
 analyse and interpret financial statements and
cost;
prepare financial reports, and
 Apply accounting treatment of goodwill and its
 Submit recommendations to the management for
impairment;
taking decision.
 Perform adequate accounting treatment of
LEARNING OUTCOMES leases;
On completion of this course, students will be able to:  Prepare and interpret statement of cash flows;
 Comprehend the structure and objectives of  Prepare and present the financial statements
regulatory framework and setting of according to international Accounting Standards
international financial reporting standards; (IAS) and International Reporting Standards
 Understand the meaning of conceptual (IFRS);
framework and GAAP;  Identify accounting treatment of inventories and
 Realize the ways in which IFRS can interact with WIP;
local regulatory frameworks:  Learn accounting treatment for financial
 Explicate the elements and qualitative instruments;
characteristics of financial statements;  Apply the accounting rules for current and
 Implement accounting policies changes in deferred taxation, including calculation of
accounting estimates and errors; deferred tax.
 Learn the revenue recognition;  ystems audit, control and security practices;
 Explicate related party disclosure;
INDICATIVE GRID
PART SYLLABUS CONTENT AREA WEIGHTAGE
REGULATORY AND CONCEPTUAL FRAMEWORK
A 1 The regulatory framework 5%
2 The Conceptual Framework
SINGLE COMPANY FINANCIAL ACCOUNTS
3 IAS 1 (Revised) Presentation of Financial statements
4 Reporting Financial Performance
5 Other Reporting
6 Accounting for non-current assets
B 7 Intangible non-current assets 85%
8 Impairment of Assets
9 Leases
10 Statements of Cash Flows
11 IAS 2 Inventories and Short term WIP
12 Share Based Transactions and Financial instruments
ACCOUNTING FOR TAXATION
C 10%
13 IAS 12: Income taxes
TOTAL 100%
Note: The weightage shown against each section indicates, study time required for the topics in that section. This
weightage does not necessarily specify the number of marks to be allocated to that section in the examination.
DETAILED CONTENTS
PART – A  The IASB’s Conceptual Framework
REGULATORY AND CONCEPTUAL FRAMEWORK  Qualitative Characteristics of Financial
Statements
1. The regulatory framework
 The elements of Financial Statements
 The International Accounting Standard
Board (IASB) PART - B
 Setting of International Financial Reporting SINGLE COMPANY FINANCIAL ACCOUNTS
Standards
3. IAS 1 (Revised) Presentation of Financial
2. The Conceptual Framework statements
 Conceptual Framework and GAAP  General Features

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 Study Scheme 2018
 Structure and Detail Contents o Prepare and present simple
 Preparation of Financial Statements consolidated statements of financial
position and simple consolidated
4. Reporting Financial Performance statement of comprehensive income
 IFRS 5: Non-Current Assets held for Sale and involving a single subsidiary
discontinued operations.
o Scope and definitions : 8. Impairment of Assets
o Conditions of IFRs 5:  IAS 36 Impairment of Assets
o Transfer from IAS 16 to IFRS 5  Cash Generating Units
 IAS 8 Accounting Policies, Changes in  Goodwill and the Impairment of Assets
Accounting Estimates and Errors  Accounting treatment of an Impairment
 IFRS 8 Operating Segments. Loss.
 IFRS 15 Revenue from Contracts with  Reversal of impairment losses.
Customers.
o Five steps of Revenue Recognition. 9. Leases
o Construction contacts.  Characteristics of Leases
 IAS 24 Related Part Disclosures  IFRS 16 Lease
 Operating leases
5. Other Reporting  Finance leases
 IAS 10 Events after the Reporting Period
 IAS 37 Provisions, Contingent Liabilities 10. Statements of Cash Flows
and Contingent Assets  IAS 7 Statement of Cash Flow
 Preparing a Statement of Cash Flow
6. Accounting for non-current assets  Interpretation of Statements of Cash Flows
 IAS 16 Property, Plant and Equipment
o Scope and definitions 11. IAS 2 Inventories
o Cost of NCA:  Definitions
o Cost model.  Measurement of Inventories
o Disposal of NCA  Inventory Valuation Method
o Exchange of NCA.  Net Realizable Value
o Revaluation model.  Recognition as an Expense
o Different movements in Revaluation.  Disclosures
o Excess depreciation. 12. Share based Transactions and Financial
o Disposal of Revalued Assets. instruments
 IAS 20 Accounting for Government Grants  Definitions
and Disclosure of Government Assistance.  Types of Transaction
o Scope and definitions :  Equity-Settled Share-Based Payment
o Government grants and assistance : Transactions Disclosures.
o Revenue grant:  Financial Assets and Financial Liabilities:
o Treated as income o Scope and definitions of financial
o Deducted from respective expense assets and financial liabilities:
o Capital grants: o Financial liabilities (Short term, Long
o Treated as deferred income and term, Convertible loan notes)
deducted from Non-current assets IAS o Indicate for the following categories of
23 Borrowing Costs financial instruments how they should
 IAS 40 Investment Properties. be measured and how any gains and
o Scope and definitions : losses from subsequent measurement
o Investment properties. should be treated in the financial
o Transfer from IAS 16 to IAS 40 statements:
7. Intangible non-current assets i . A m o r t i z ed c o s t
 IAS 38 Intangible Assets. i i . Fa i r va l u e thr o ug h o the r
o Internally and externally generated comprehensive in c om e
intangibles. (including where an irrevocable
o Infinite and indefinite intangible election has been made for
 Research & Development Cost e q u i t y i n s t r u m en t s t h a t a r e n o t
 IFRS 3 Business Combinations h e l d f o r t r a d in g )
o Describe the concept of a group as a iii. Fair value through profit or loss
single economic unit PART - C
o Define subsidiary, parent and control ACCOUNTING FOR TAXATION
by identifying simple examples
o Describe situations when control is 13. IAS 12 Income taxes
presumed to exist  Current Tax
o Identify and describe the  Deferred Tax
circumstances in which an entity is  Taxation in Company Accounts
required to prepare and present  Presentation and Disclosure of Taxation
consolidated financial statements
Recommended Books:
CORE READINGS
Title Author Publisher
Gripping: IFRS Pakistan Edition Cathryune Sowden-Service ICAP / Lexis Nexis
Intermediate Accounting Donald E. Kieso / Jerry J. Weygandt & Terry D. Warfield John Willey & Sons.
IFRSs/IASs IASB IFRS Foundation
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