International Financial Reporting Standards
- The objective of this course is to help students learn how to prepare and interpret the information in financial statements under International Financial Reporting Standards (IFRS).
- Student demonstrates deep knowledge and critical understanding of theories, principles, concepts and methodologies in finance
- Student uses strong analytical skills and applies them to solve practical problems.
- Student demonstrates a range of generic skills including information and time management, team and project work, computing and autonomous learning, digital skills
- Topic 1. Principles of IFRSThe principles of accrual accounting. Tthe 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 IFRSPreparing 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. RevenueRevenue recognition under IFRS. The main principles of IFRS 15. Concepts such as variable consideration and revenue reversals. Accounting for default risk for credit sales. Hhow accounts related to revenue are presented in the financial statements and notes. Using relevant information to analyze a firm’s credit policy
- Topic 4. InventoryDifferent methods of recording events involving inventory (e.g., LIFO and FIFO). Write-downs. Cost of goods sold. Adjusting items in the financial statements when different methods for inventory are used. Using relevant information to analyze a firm’s inventory policy
- Topic 5. EquityRecording 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 6. PP&EThe 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. Ggains and losses on sales, net income, and the statement of cash flows. Using relevant information to analyze a firm’s investment decisions
- Topic 7. Financial instrumentsInvestments 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 8. Foreign-exchange translationsLocal currency, functional currency, and presentation currency. Recording business activities that involve a foreign subsidiary. Determining the functional currency. Translating other currencies into the functional currency
- Topic 9. ConsolidationMergers and acquisitions. Goodwill. Consolidation. Non-controlling interests
- Topic 10. LeasesDifferences between IFRS 16 and IAS 17. Different methods of accounting for leases. Differences between lease accounting for the lessor and the lessee. Initial measurement and subsequent measurement
- mid-term (in-class, open-book, 20% of the final evaluation) (неблокирующий)
- group project (home assignment, 20% of the final evaluation) (неблокирующий)
- exam (closed-book, 60% of the final evaluation) (неблокирующий)
- Промежуточная аттестация (1 модуль)0.6 * exam (closed-book, 60% of the final evaluation) + 0.2 * group project (home assignment, 20% of the final evaluation) + 0.2 * mid-term (in-class, open-book, 20% of the final evaluation)
- 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