International Financial Reporting Standards

2024/2025

Academic Year

ENG

Instruction in English

6

ECTS credits

Delivered by:

School of Finance

Type:

Elective course

When:

2 year, 2, 3 module

Instructors

Evdokimova, Mariia

Kokurina, Aglaia

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

Course Contents

• Financial Accounting Operations and Procedures. Shareholders' Equity. The IFRS Conceptual Framework.
• Short-term Liabilities
• Long-term Liabilities
• Long-term assets – Tangible Assets
• Leasing Assets
• Long-term assets – Intangible Assets. Impairment of assets.
• Financial instruments I and II – Investments in Debt and Equity.
• Investment in Associates
• Advanced Statement of Cash Flows.
• Business Mergers I
• Business Mergers II
• Business Mergers III - Goodwill

Assessment Elements

• In-class assignment
• In-class assignment
• In-class assignment
• In-class assignment
• Homework

Interim Assessment

• 2024/2025 3rd module
  0.1 * Homework + 0.1 * Homework + 0.2 * In-class assignment + 0.2 * In-class assignment + 0.2 * In-class assignment + 0.2 * In-class assignment

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

• Foundations in accountancy / ACCA : financial accounting (FFA/FA), , 2019

Authors

• Monastyrskaia Aglaia Dmitrievna