LahoreUniversityofManagementSciences

ACCT221CorporateFinancialReporting
FallSemester2015
Instructor
RoomNo.
OfficeHours
Email
Telephone
Secretary/TA
TAOfficeHours
CourseURL(ifany)

AtifaDar
TBA
TBA
TBA
TBA
TBA
TBA
Suraj.lums.edu.pk

COURSEBASICS
CreditHours
Lecture(s)
Recitation/Lab(perweek)
Tutorial(perweek)

3
NbrofLec(s)PerWeek
NbrofLec(s)PerWeek
NbrofLec(s)PerWeek

Duration
Duration
Duration

1hour15minutes

COURSEDISTRIBUTION
Core
Elective
OpenforStudentCategory
CloseforStudentCategory

ACFCore

COURSEDESCRIPTION
Thecoursebuildsonyourknowledgeofcorporatetheoryandtechniquesasusedtorecord,process,andreportfinancialinformation.
Whilesomeemphasisisplacedonanalysis,interpretation,anduseofaccountingdataforinvesting,credit,andmanagementdecisions,
the reporting function of accounting to external users (investors and creditors) will be stressed. Current financial reporting and
disclosurerequirements,pluscontroversialandemergingpractices,willbediscussedinclass.Thecoursewillexamineassetandincome
determination,preparationandinterpretationoffinancialstatements,andrelateddisclosurerequirements.Pleasenotethatthiscourse
isabuildingblockforthefinancialreportingissuesencounteredinthedailyprofessionallife.

COURSEPREREQUISITE(S)

Principlesoffinancialaccounting

COURSELEARNINGOUTCOMES(CLO)

Uponsuccessfulcompletionofthecourse,studentsshouldbeableto:

1. Demonstrate understanding of the fundamental concepts, mainstream theories, international accounting

standardsandpracticesinfinancialreporting;
2. Identify financial reporting issues faced by investors in analyzing different companies based on financial
reportingstandards;
3. Applyfinancialreportingrequirementstoascertainfinancialposition,financialperformanceandcashflowsof
companiesofdiversenature.
4. Discussanddebateavarietyoftopicsinemergingareasofaccountingandtheirrelevancetobusinessfinancial
decisionsincludingtheethicalandglobalperspectives;
5. Present and defend their analysis and recommendations effectively, both in oral and written forms. (General
LearningGoal)

LahoreUniversityofManagementSciences
UNDERGRADUATEPROGRAMLEARNINGGOALS&OBJECTIVES

GeneralLearningGoals&Objectives
Goal1EffectiveWrittenandOralCommunication
Objective:Studentswilldemonstrateeffectivewritingandoralcommunicationskills
Goal2EthicalUnderstandingandReasoning
Objective:Studentswilldemonstratethattheyareabletoidentifyandaddressethicalissuesinanorganizational
context.
Goal3AnalyticalThinkingandProblemSolvingSkills
Objective:Studentswilldemonstratethattheyareabletoidentifykeyproblemsandgenerateviablesolutions.
Goal4ApplicationofInformationTechnology
Objective:Studentswilldemonstratethattheyareabletousecurrenttechnologiesinbusinessandmanagement
context.
Goal5TeamworkinDiverseandMulticulturalEnvironments
Objective:Studentswilldemonstratethattheyareabletoworkeffectivelyindiverseenvironments.
Goal6UnderstandingOrganizationalEcosystems
Objective:StudentswilldemonstratethattheyhaveanunderstandingofEconomic,Political,Regulatory,Legal,
Technological,andSocialenvironmentoforganizations.

MajorSpecificLearningGoals&Objectives
Goal7(a)DisciplineSpecificKnowledgeandUnderstanding
Objective:Studentswilldemonstrateknowledgeofkeybusinessdisciplinesandhowtheyinteractincluding
applicationtorealworldsituations.(includingsubjectknowledge)
Goal7(b)Understandingthesciencebehindthedecisionmakingprocess
Objective:Studentswilldemonstrateabilitytoanalyzeabusinessproblem,designandapplyappropriate
decisionsupporttools,interpretresultsandmakemeaningfulrecommendationstosupportthedecisionmaker

Indicatebelowhowthecourselearningobjectives/outcomesspecificallyrelatetoanyprogramlearninggoalsandobjectives.

PROGRAMLEARNINGGOALSAND
OBJECTIVES

COURSELEARNINGOBJECTIVES

COURSEASSESSMENTITEM

Goal1EffectiveWrittenandOral
Communication

Studentsgetanumberofopportunitiesto
demonstratetheirabilitytocommunicate
effectively(CLO#5)
Ethicalperspectivesinsomeofthecase
studiesarehighlighted(CLO#4)
MajorGoal: Analyticalthinkingand
problemsolvingskillsareessentialfor
successinthiscourse(CLO#13)
IntroductionandUseofelearning
software,
Discussionanddebatethereonofdiverse
topicsinclassroomwillallowthis
objectivetobemet.
Developstudentsunderstandingofthe
interactionoffirmspecificvariableswith
thesecuritiesmarkets,industry,andthe
economy(CLO#4)
MajorGoal: Comprehensivecoverageof
topicsinAppliedCorporateFinance(CLO
#15)
NA

CP,QuizandExam

Goal2EthicalUnderstandingand
Reasoning
Goal3AnalyticalThinkingandProblem
SolvingSkills
Goal4ApplicationofInformation
Technology
Goal5TeamworkinDiverseand
MulticulturalEnvironments
Goal6UnderstandingOrganizational
Ecosystems

Goal7(a)DisciplineSpecificKnowledge
andUnderstanding(SubjectKnowledge)
Goal7(b)Understandingthescience
behindthedecisionmakingprocess

CP,QuizandExam
CP,Quiz,andExam

Assignments,Cases
CP

CP,QuizandExam

CP,QuizandExam

NA

LahoreUniversityofManagementSciences
GRADINGBREAKUPANDPOLICY

Quiz(s):30%
ClassParticipation:7%
Attendance:3%
MidtermExamination:30%
FinalExamination:30%
100%
Therewillbenomakeupquizzes.
Ifyoumissmorethan5classesyouwillautomaticallygetanFgradeinthecourse.

Developcriticalthinkingskillsbycompletingresearchtasks,grouplearningandinteractiontasks,andwrittenandoral
communicationtasks.Criticalthinkingisarationalresponsetoquestionsthatcannotbeanswereddefinitivelyandforwhichallthe
relevantinformationmaynotbeavailable.
Therewillbeacombinationofannouncedandunannouncedquizzesandthelowestscoringquizwillbedropped.Therewillbeno
makeupquizzes.
Ifyoumissmorethan5classesyouwillautomaticallygetanFgradeinthecourse.Iexpectyoutobepunctualandbeinyourseat
beforetheclassstarts.Walkinafter5minuteswillbecountedasanonattendanceandwillloweryourattendancegrade.Itis
importanttonotethatthecoursestructureisintegratedandonemissedclassmayresultinrelativelypervasiveimpacton
understandingofconcepts.
Examinationsaredemandingofbothyourefficiencyandeffectivenessinaddressingaccountingmeasurement,reporting,and
analysisissues.

EXAMINATIONDETAIL

Midterm
Exam

FinalExam

Yes/No:Yes
CombineSeparate:Combine
Duration:3hours
PreferredDate:
ExamSpecifications:OpenIFRStext/closednotes

Yes/No:Yes
CombineSeparate:Combine
Duration:3hours
ExamSpecifications:OpenIFRStext/closednotes

LahoreUniversityofManagementSciences
COURSEOVERVIEW
WEEK/
LECTURE/
TOPICS
MODULE

RECOMMENDED
READINGS

12

FrameworkandIAS1

IFFRSText

34

IAS7

IFFRSText

IAS2

IFFRSText

67

IAS16plusQuiz

IFFRSText

89

IAS38

IFFRSText

1011

IAS36

IFFRSText

SESSIONOBJECTIVES
Describewhatismeantbyaconceptualframeworkof
accounting.
Discusswhetheraconceptualframeworkisnecessaryand
whatanalternativesystemmightbe.
Moreover
a)Discusswhatismeantbyunderstandabilityinrelationto
theprovisionoffinancialinformation.
b)Discusswhatismeantbyrelevanceandreliabilityand
describethequalitiesthatenhancethesecharacteristics.
c)Discusstheimportanceofcomparabilitytousersof
financialstatements.
(CLO15)
Prepare,compareandinterpretstatementofcashflows
(CLO15)
Describeandapplytheprinciplesofinventoryvaluation.
(CLO15)
a)Defineandcomputetheinitialmeasurementofanon
current(includingselfconstructedandborrowingcosts)
asset.
b)Identifysubsequentexpenditurethatmaybecapitalized,
distinguishingbetweencapitalandrevenueitems.
c)Discusstherequirementsofrelevantaccounting
standardsinrelationtotherevaluationofnoncurrent
assets.
d)Accountforrevaluationanddisposalgainsandlossesfor
noncurrentassets.
(CLO15)
a)Discussthenatureandaccountingtreatmentofinternally
generatedandpurchasedintangibles.
b)Distinguishbetweengoodwillandotherintangibleassets.
c)Describethecriteriafortheinitialrecognitionand
measurementofintangibleassets.
d)Describethesubsequentaccountingtreatment,including
theprincipleofimpairmenttestsinrelationtogoodwill.
e)Indicatewhythevalueofpurchaseconsiderationforan
investmentmaybelessthanthevalueoftheacquired
identifiablenetassetsandhowthedifferenceshouldbe
accountedfor.
f)Describeandapplytherequirementsofrelevant
accountingstandardstoresearchanddevelopment
expenditure.
(CLO15)
a)Defineanimpairmentloss.
b)Identifythecircumstancesthatmayindicateimpairments
toassets.
c)Describewhatismeantbyacashgeneratingunit.
d)Statethebasisonwhichimpairmentlosses

LahoreUniversityofManagementSciences

1213

IAS18and11plusQuiz IFFRSText

14
15

MidTerms
IAS40

IFFRSText

16

IAS23

IFFRSText

17

IFRS5

IFFRSText

18

IAS10

IFFRSText

1920

IAS37

IFFRSText

IAS24plusQuiz

IFFRSText

21

shouldbeallocated,andallocateanimpairmentlosstothe
assetsofacashgeneratingunit.
(CLO15)
a)Defineaconstructioncontractanddiscusstheroleof
accountingconceptsintherecognitionofprofit.
c)Describetheacceptablemethodsofdeterminingthe
stage(percentage)ofcompletionofacontract.
d)Preparefinancialstatementextractsforconstruction
contracts.

Discussrevenuerecognitionissues;indicatewhenincome
andexpenserecognitionshouldoccur.
(CLO15)
a)Discusswhythetreatmentofinvestmentproperties
shoulddifferfromotherproperties.
b)Applytherequirementsofrelevantaccountingstandards
forinvestmentproperty.
(CLO15)
Applicationofprinciplesofcapitalizationoffinancialcosts
anddebateonotheralternatives
(CLO15)
a)Discusstheimportanceofidentifyingandreportingthe
resultsofdiscontinuedoperations.
b)Defineandaccountfornoncurrentassetsheldforsale
anddiscontinuedoperations.
c)Indicatethecircumstanceswhereseparatedisclosureof
materialitemsofincomeandexpenseisrequired.
(CLO1)
Eventsafterthereportingdate
i)distinguishbetweenandaccountforadjustingandnon
adjustingeventsafterthereportingdate
ii)Identifyitemsrequiringseparatedisclosure,including
theiraccountingtreatmentandrequireddisclosures
(CLO15)
a)Explainwhyanaccountingstandardonprovisionsis
necessary.
b)Distinguishbetweenlegalandconstructiveobligations.
c)Statewhenprovisionsmayandmaynotbemadeand
demonstratehowtheyshouldbeaccountedfor.
d)Explainhowprovisionsshouldbemeasured.
e)Definecontingentassetsandliabilitiesanddescribetheir
accountingtreatment.
f)Identifyandaccountfor:
i)warranties/guarantees
ii)onerouscontracts
iii)environmentalandsimilarprovisions
iv)Provisionsforfuturerepairsorrefurbishments.
(CLO15)
Indicatetheeffectthattherelatedpartyrelationshipmay
haveontheseparateandtheconsolidatedfinancial

LahoreUniversityofManagementSciences
22

IAS32,IFRS9

IFFRSText

23

IAS41

IFFRSText

24

IAS34

IFFRSText

2526

Consolidation(IFRS
3,10,11,12)plusQuiz

Handoutswillbeprovided

2728

AdvanceAreas(IAS
12,17,19,21)

IFFRSText

statements.
(CLO15)
a)Explaintheneedforanaccountingstandardonfinancial
instruments.
b)Definefinancialinstrumentsintermsoffinancialassets
andfinancialliabilities.
c)Indicateforthefollowingcategoriesoffinancial
instrumentshowtheyshouldbemeasuredandhowany
gainsandlossesfromsubsequentmeasurementshouldbe
treatedinthefinancialstatements:
i)amortizedcost
ii)fairvalue(includingoptiontoclassifyequityinstruments
throughothercomprehensiveincome)
d)Distinguishbetweendebtandequitycapital.
e)Applytherequirementsofrelevantaccountingstandards
totheissueandfinancecostsof:
i)equity
ii)redeemablepreferencesharesanddebtinstrumentswith
noconversionrights(principleofamortizedcost)
iii)convertibledebt
(CLO15)
Initialrecognition,measurementanddisposalofagricultural
assetsandtheirreporting
(CLO1)
Theunderstandingoftheneedofinterimfinancial
statementsanditsspecificimplementationissues
(CLO1)
a)Describetheconceptofagroupasasingleeconomic
unit.
b)Explainandapplythedefinitionofasubsidiarywithin
relevantaccountingstandards.
c)Identifyandoutlineusingaccountingstandardsandother
applicableregulationthecircumstancesinwhichagroupis
requiredtoprepareconsolidatedfinancialstatements.
d)Describethecircumstanceswhenagroupmayclaim
exemptionfromthepreparationofconsolidatedfinancial
statements..
e)Explainwhydirectorsmaynotwishtoconsolidatea
subsidiaryandoutlineusingaccountingstandardsandother
applicableregulationthecircumstanceswherethisis
permitted.
f)Explaintheneedforusingcoterminousyear
endsanduniformaccountingpoliceswhenpreparing
consolidatedfinancialstatements.
g)Explainwhyitisnecessarytoeliminateintragroup
transactions.
(CLO15)
Basicconceptsofthesetopicswillbediscussedtoexpedite
thelearningcurvewhenthesetopicsaretobereadat
advancestage.
(CLO4)

LahoreUniversityofManagementSciences
TEXTBOOK(S)/SUPPLEMENTARYREADINGS
PWCManualofAccounting;DelloiteELearning