International Financial Reporting Standards
- This course’s objective is to help students learn how to do the following: - to understand and apply the principles of IFRS; - to record firms’ business activities (e.g., the issuance of equity, the sale of goods and services) under IFRS; - to prepare firms’ financial statements and notes under IFRS. The topics of this course relate to these objectives.
- Students understand and apply the principles of IFRS.
- Students are able to record firms’ business activities under IFRS.
- Students are able to prepare firms’ financial statements and notes under IFRS.
- Topic 1. Principles of IFRSRelevant subjects: - the principles of accrual accounting; - the difference between accrual accounting and cash accounting; - deferred revenue, deferred expenses, accrued revenue, and accrued expenses.
- Topic 2. Preparing and analyzing the financial statements and notes under IFRSRelevant subjects: - preparing the balance sheet, income statement, statement of equity, and statement of cash flows; - for the statement of cash flows, using both the direct method and the indirect method; - using the balance sheet to analyze a firm’s liquidity and capital structure; - using the income statement to analyze a firm’s efficiency; - using the statement of equity to analyze a firm’s dividend policy; - using the statement of cash flows to understand the difference between cash flows from operations and net income.
- Topic 3. EquityRelevant subjects: - recording equity issuances, share repurchases, dividends, bonus issues, and stock splits; - how equity accounts are presented in the financial statements and notes; - calculating earnings per share.
- Topic 4. RevenueRelevant subjects: - revenue recognition under IFRS; - the main principles of IFRS 15; - concepts such as variable consideration and revenue reversals; - accounting for default risk for credit sales; - how accounts related to revenue are presented in the financial statements and notes; - using relevant information to analyze a firm’s credit policy.
- Topic 5. PP&ERelevant subjects: - the revaluation model and the cost model; - gross PP&E versus net PP&E; - recording the purchase, use, and sale of PP&E; - different depreciation methods; - impairments. PP&E, and the statement of cash flows; - gains and losses on sales, net income, and the statement of cash flows; - using relevant information to analyze a firm’s investment decisions.
- Topic 6. Financial instrumentsRelevant subjects: - investments in debt and equity instruments; - different types of derivatives and hedges (e.g., cash-flow hedges); - financial liabilities; - finding the net present value of financial instruments; - using relevant information to analyze a firm’s risk-management practices.
- Topic 7. ConsolidationRelevant subjects: - mergers and acquisitions; - goodwill; - consolidation; - non-controlling interests.
- Mid-term exam (неблокирующий)Individual, in-class, open-book.
- Group project (неблокирующий)In groups, at home.
- Final exam (неблокирующий)Individual, in-class, closed-book.
- Промежуточная аттестация (2 модуль)0.6 * Final exam + 0.2 * Group project + 0.2 * Mid-term exam
- Bakker, E. (2017). Wiley IFRS 2017 : Interpretation and Application of IFRS Standards. Hoboken, NJ: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1477431
- Picker, R. (2016). Applying IFRS Standards (Vol. Fourth edition). Chichester, West Sussex, United Kingdom: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1639476