Ayesha Bhatti/ Bilal Zia 319 PDC Block. Office. . Tahir Abbas. Hours. Credit. Duration. Core Elective. Core COURSE DESCRIPTION.

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1 ACCT 220 Corporate Financial Reporting I Fall Semester Instructor Room No. Office Hours Telephone Secretary/TA TA Office Hours Course URL (if any) Ayesha Bhatti/ Bilal Zia 319 PDC Block Bilal Zia 2:00 PM to 4:00 PM Tuesday and Thursday / bilal.zia@lums. edu.pk Tahir Abbas Course Basics Credit Hours Lecture(s) Recitation/Lab (per week) Tutorial (per week) 4 Nbr of Lec(s) Per Week 2 Nbr of Lec(s) Per Week Nbr of Lec(s) Per Week 1 hour 50 minutes Course Distribution Core Elective Open for Student Category Close for Student Category Core COURSE DESCRIPTION The course builds on your knowledge of corporate ory and techniques as used to record, process, and report financial information. While some emphasis is placed on analysis, interpretation, and use of accounting data for investing, credit, and management decisions, reporting function of accounting to external users (investors and creditors) will be stressed. Current financial reporting and disclosure requirements, plus controversial and emerging practices, will be discussed in class. The course will examine asset and incomee determination, preparation and interpretation of financial statements, and related disclosure requirements. Please note that this course is a building block for financial reporting issues encountered in daily professional life. COURSE PREREQUISITE(S) Principles of Financial Accounting Principles of Management Accounting COURSE OBJECTIVES Learn and evaluate current financial accounting framework and standards/rules Understand complex financial events and ir effect on financial statements, cashh flows and accounting based contracts. Read and critically evaluate financial statements and understand interrelationships among income statement, balance sheet, statement of cash flows, and notes to financial statements.

2 Learning Outcomes Lahore University Learn and evaluate current financial accounting framework and standards/rules Understand complex financial events and ir effect on financial statements, cashh flows and accounting based contracts. Read and critically evaluate financial statements and understand interrelationships among income statement, balance sheet, statement of cash flows, and notes to financial statements. Grading Breakup and Policy Quiz(s): 30% Class Participation: 7% Attendance: 3% Midterm ination: 30% Final ination: 30% 100% There will be no makeup quizzes. If you miss more than 5 classes you will automatically get an F grade in course. Develop critical thinking skills by completing research tasks, group learning and interaction tasks, and written and oral communication tasks. Critical thinking is a rational responsee to questions that cannot be answered definitively and for which all relevant information may not be available. There will be a combination of announced and unannounced quizzes and lowestt scoring quiz will be dropped. There will be no makeup quizzes. If you miss more than 5 classes you will automatically get an F grade in course. I expect you to be punctual and be in your seat before class starts. Walk in after 5 minutes will be counted as a nonattendance and will lower your attendance grade. It is important to note that course structure is integrated and one missed class may result in relatively pervasive impactt on understanding of concepts. inations are demanding of both your efficiency and effectiveness in addressing accounting measurement, reporting, and analysis issues. ination Detail Midterm Yes/ /No: Yes Combine Separate: Combine : 3 hours Preferred Date: Specifications: Open IFRS text/ closed notes Final Yes/ /No: Yes Combine Separate: Combine : 3 hours Specifications: Open IFRS text/ closed notes

3 COURSE OVERVIEW Week/ Recommended Lecture/ Topics Readings Module 1 2 Framework and IAS IAS 7 5 IAS IAS 16 plus Quiz 8 9 IAS IAS 36 IAS 18 and 11 plus Quiz Objectives/ Application Describe what is meant by a conceptual framework of accounting. Discuss wher a conceptual framework is necessary and what an alternative system might be. Moreover a) Discuss what is meant by understandability in relation to provision of financial information. b) Discuss what is meant by relevance and reliability and describe qualities that enhance see characteristics. c) Discuss importance of comparability to users of financial statements. Prepare, compare and interpret statement of cash flows Describe and applyy principles of inventory valuation. a) Define and compute initial measurement of a non current (including self between capital and revenue items. c) Discuss requirements of relevant accounting standards in relation to constructed and borrowing costs) asset. b) Identify subsequent expendituree that may be capitalised, distinguishing revaluation of non current assets. d) Account for revaluation and disposal gains and losses for non current assets. a) Discuss nature and accounting treatment of internally generated and purchased intangibles. b) Distinguish between goodwill and or intangible assets. c) Describe criteria for initial recognition and measurement of intangible assets. d) Describe subsequent accounting treatment, including principle of impairment tests inn relation to goodwill. e) Indicate why e value of purchase consideration for an investment may be lesss than valuee of acquiredd identifiable net assets and how difference should be accounted for. f) Describe and apply requirements of relevant accounting standards to research and development expenditure. a) Define an impairment loss. b) Identify circumstances that may indicate impairments to assets. c) Describe what iss meant by a cash generating unit. d) State basis on which impairment losses should be allocated, and allocate an impairment loss to assetss of a cash generating unit. a) Define a construction contract and discuss role of accounting concepts in recognition of profit. c) Describe acceptable methods of determining stage (percentage) of completion of a contract. d) Prepare financial statement extracts for construction contracts. 14 Mid Term 15 IAS IAS IFRS 5 Discuss revenue recognition issues; indicate when income and expense recognition shouldd occur. a) Discuss why treatment of investment properties should differ from or properties. b) Apply requirements of relevant accounting standards for investment property. a) Discuss importance of identifying and reporting results of discontinued operations.

4 b) Define and account for non current assets held for sale and discontinued operations. c) Indicate circumstances where separate disclosure of material items of income and expense is required. 18 IAS IAS IAS 24 plus Quiz 22 IAS 32, IFRS 9 23 IAS IAS Consolidation (IFRS 3,10,11,12) plus Quiz Handouts provided will be Events after reporting date i) distinguish between and account for adjusting and non adjusting events after reporting date ii) Identify items requiring separatee disclosure, including ir accounting treatment and required disclosures a) Explain why an accounting standard on provisions is necessary. b) Distinguish between legal and constructive obligations. c) State when provisions may and may not be made and demonstrate how y should be accounted for. d) Explain how provisions should be measured. e) Define contingent assets and liabilities and describe ir accounting treatment. f) Identify and account for: i) warranties/guara antees ii) onerous contracts iii) environmental and similar provisions iv) provisions for future repairs or refurbishments. Indicate effect that relatedd party relationship may have on separate and consolidated financial statements. a) Explain needd for an accounting standard on financial instruments. b) Define financial instruments in terms of financial assets and financial liabilities. c) Indicate for following categories of financial instruments how y should be measured and how any gains and losses from subsequent measurement should be treated in financial statements: i) amortised cost ii) fair value ( including option to classify equity instruments through or comprehensive income) d) Distinguish between debt and equity capital. e) Apply requirements of relevant accounting standards to issue and finance costs of: i) equity ii) redeemable preference shares and debt instruments with no conversion rights (principle of amortised cost) ) iii) convertible debt Initial recognition, measurement and disposal of agricultural assets and ir reporting The understandingg of need of interim financial statements and its specific implementation issues a) Describe concept of a groupp as a single economic unit. b) Explain and apply definition of a subsidiary within relevant accounting standards. c) Identify and outline using accounting standards and or applicable regulation circumstances in which a group is required to prepare consolidated financial statements.. d) Describe circumstances when a group may claim exemption from preparation of consolidated financial statements.. e) Explain why directors may not wish to consolidate a subsidiary and outline using accounting standards and or applicable regulation circumstances where this is permitted. f) Explain needd for using coterminous year

5 ends and uniform accounting polices when preparing consolidated financial statements. g) Explain why it is necessary to eliminate intragroup transactions Advance Areas (IAS Basic concepts of se topics will be discussed to expedite learning curve 12,17,19,21) when se topics are to be read at advance stage. Final Textbook(s)/Supplementary Readings PWC Manual of Accounting; Delloite E Learning