International Financial Reporting Standards

2020/2021

Academic Year

ENG

Instruction in English

3

ECTS credits

Delivered at:

Department of Finance

Course type:

Elective course

When:

3 year, 4 module

Instructor

Downing, Jeff

Course Syllabus

Abstract

The course consists of lectures (14 hours) and seminars (14 hours). Academic support for the course is provided via LMS, where students can find: guidelines and recommendations for doing the course; guidelines and recommendations for self-study; samples of assessment materials.

Learning Objectives

• 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.

Expected Learning Outcomes

• 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.

Course Contents

• Topic 1. Principles of IFRS
  Relevant 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 IFRS
  Relevant 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. Equity
  Relevant 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. Revenue
  Relevant 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&E
  Relevant 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 instruments
  Relevant 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. Consolidation
  Relevant subjects: - mergers and acquisitions; - goodwill; - consolidation; - non-controlling interests.

Assessment Elements

• Mid-term exam
  Individual, in-class, open-book.
• Group project
  In groups, at home.
• Final exam
  Individual, in-class, closed-book.

Interim Assessment

• Interim assessment (4 module)
  0.4 * Final exam + 0.3 * Group project + 0.3 * Mid-term exam

Bibliography

Recommended Core Bibliography

• Mirza, A. A. (2010). Wiley IFRS : Practical Implementation Guide and Workbook (Vol. 3rd ed). Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=363480

Recommended Additional Bibliography

• Bragg S.M. IFRS Made Easy [Electronic resource] / S.M. Bragg. – John Wiley & Sons, 2010. – 282 p. – URL: https://ebookcentral.proquest.com/lib/hselibrary-ebooks/detail.action?docID=699462