COURSE NAME

: INTERMEDIATE FINANCIAL ACCOUNTING II

(Perakaunan Kewangan Pertengahan II)

COURSE CODE

: ACT 3122

CREDIT HOURS

: 3 (3+0)

TOTAL STUDENT
LEARNING HOURS

: 120 jam per semester

PREREQUISITE

: ACT 3121

LEARNING OUTCOMES

: Students should be able to :

SYNOPSIS

1.

apply in depth the various aspects of company accounts

that relate to accounting and disclosure of financial
information, and advanced issues of asset, liability,
equity, revenue and expense (CTPS)

2.

prepare accounts for selected sectors such as construction

and property development activity (C3, P3)

3.

illustrate advanced issues such as liquidation and capital

reduction and reconstruction (C4)

4.

evaluate optimum accounting method (that comply with

approved accounting standards) in advanced company
issues such as provisions, contingent assets and liabilities
and events after reporting date (C6, A3, TS)

: This course covers financial reporting for companies in

accordance with current reporting framework and financial
reporting for companies under receiverships and are
undergoing winding-up petition.
(Kursus ini merangkumi pelaporan kewangan syarikat
mengikut keperluan rangka pelaporan semasa dan laporan
syarikat yang diletak dibawah penerima dan menjalani proses
penggulungan.)

COURSE CONTENTS
Lecture/Week

L1 (W1)
[3/11/14]

L2 (W2)
[10/11/14]

Contact
Hours

Content

Reference(s)

Topic 1: Accounting Framework and Financial 1) Lazar and Huang (2012): Chapter 1
Accounting and Reporting in Malaysia
2) Tan (2012): Chapter 1
(a) Historical perspectives
3) MFRS 101
(b) Regulatory and accounting standards reporting 4) Balachandran Muniandy and Muhammad
requirements
Jahangir Ali (2012). Development of financial
(c) Present and future direction
reporting environment in Malaysia. Research
in Accounting Regulation, 24, pp. 115125
Financial Information I: Statement of Comprehensive
Income (SOCI)
Topic 2:
(a) Accounting Policies
i) Definition;
ii)
Selection, Application & Consistency;
iii) Changes in accounting policy;
iv) Disclosure.
(b) Accounting estimates
i) Definition;
ii) Changes in accounting estimates;
iii) Disclosure.

1) Lazar and Huang (2012): Chapter 13

2) Tan (2012): Chapter 4 (Sections 4.1 to 4.4)
3) MFRS 108

Topic 3:
(c) Accounting for Errors: Definition & Disclosure
(d) Retrospective and Prospective Adjustment
Lecture/Week
2

Contact
Hours

Content

Reference(s)

Lecture/Week

Contact
Hours

Content

Reference(s)

Financial Information II (REVENUE): Statement of

Comprehensive Income (SOCI)

L3 (W3)
[17/11/14]

Topic 4: Accounting for Revenue

i) Definition;
ii) Measurement;
iii) Recognition;
1. Sales of Goods;
2. Rendering of Services;
3. Interest, Royalties & Dividends.
iv) Disclosure.

1) Lazar and Huang (2012): Chapter 19

2) Tan (2012): Chapter 5
3) MFRS 118

Financial Information III (ASSETS): Statement of

Financial Position (SOFP)
Topic 5: Inventories
i) Measurement: Cost / NRV / CoC;
ii) Recognition as an Expense;
iii) Disclosure.
L4 (W4)
[24/11/14]

Lecture/Week
3

Contact
Hours

Topic 6: Construction contracts

i) Combining & Segmenting Const. Contracts;
ii) Measurement: Contract Revenue & Costs;
iii) Variation & Claims;
iv) Recognition: Contract Revenue & Costs;
v) Progress Billings;
vi) Disclosure
Content

1) Lazar and Huang (2012): Chapter 11

2) Tan (2012): Chapter 6
3) MFRS 102
1) Lazar and Huang (2012): Chapter 15
2) Tan (2012): Chapter 7 (Section 7.2)
3) MFRS 111

Reference(s)

Lecture/Week

Contact
Hours

Content

Reference(s)

Financial Information IV (ASSETS): Statement of

Financial Position (SOFP)

L5 (W5)
[1/12/14]

Topic 7: Property development activities

i)
Definition;
ii) Land Held for Property Development;
iii) Property Development Costs;
iv) Revenue & Expenses;
v) Unsold completed units;
vi) Disclosure.

1)
2)
3)
4)

Lazar and Huang (2012): Chapter 39

Tan (2012): Chapter 7 (Section 7.3)
MFRS 201
IFRIC 15

Financial Information V (ASSETS): Statement of

Financial Position (SOFP)

L6 (W6)
[8/12/14]

Lecture/Week

Contact
Hours

Topic 8: Accounting for Investment Property

i)
Definition & Classification;
ii) Property held as Operating lease
iii) Recognition & Initial Measurement;
iv) Subsequent Measurement (Cost vs. Fair Value);
v) Transfer (IP PPE)
vi) Disposal;
vii) Disclosure.

Content

1) Lazar and Huang (2012): Chapter 37

2) Tan (2012): Chapter 9 (Section 9.4)
3) MFRS 140

Reference(s)

Lecture/Week

Contact
Hours

Content

Reference(s)

Financial Information VI (LIABILITY): Statement of

Financial Position (SOFP)
L7 (W7)
[15/12/14]

Topic 9: Accounting for borrowing costs

i)
Definition;
ii)
Recognition Expense off & Capitalization;
iii)
Disclosure.

1) Lazar and Huang (2012): Chapter 23

2) Tan (2012): Chapter 12 (Section 12.6)
3) MFRS 123

Financial Information VII (LIABILITY): Statement of

Financial Position (SOFP)

L8 (W8)
[22/12/14]

Lecture/Week

Contact
Hours

Topic 10: Loan Capital: Bonds, Debentures, Loan

Stocks
i)
Definitions & Comparisons;
ii) Issuance: At Par / Discount / Premium;
iii) Issuance with warrant attachment
iv) Amortisation;
v) Redemption;
vi) Disclosure.

Content

1) Lazar and Tan (2011):

Chapter 2 (Part B);
Chapter 3 (Section 3.3)
2) Tan (2012): Chapter 12 (Section 12.2)

Reference(s)

Lecture/Week

Contact
Hours

Content

Reference(s)

Financial Information VIII (LIABILITY): Statement of

Financial Position (SOFP)

L9 (W9)
[29/12/14]

Topic 11: Accounting for lease

i)
Definition & Classification: Finance vs.
Operating;
ii)
Recording: Finance Lease by Lessee & Lessor;
iii)
Recording: Operating Lease by Lessee &
Lessor;
iv)
Manufacturer / Dealer Lessor;
v)
Sale & Lease back;
vi)
Disclosure.

1) Lazar and Huang (2012): Chapter 18

2) Tan (2012): Chapter 12 (Section 12.4)
3) MFRS 117

Financial Information IX (LIABILITY): Statement of

Financial Position (SOFP)

L10 (W10)
[5/1/15]

Topic 12: Employee Benefits

i) Short Term benefits;
ii) Post-Employment benefits;
iii) Termination benefits;
iv) Other benefits;
v) Disclosure.

1) Lazar and Huang (2012): Chapter 20

2) Tan (2012): Chapter 14 (Section 14.2)
3) MFRS 119

Contact
Hours
Contact
Lecture/Week
Hours
Lecture/Week

Content

Reference(s)

Content

Reference(s)

Financial Information X (LIABILITY): Statement of

Financial Position (SOFP)
Topic 13: Provision, Commitment & Contingency
i)
Definition;
ii)
Recognition;
iii)
Types: Contingent Assets vs. Liability;
iv)
Measurement;
v)
Application in 3-Specific Cases;
vi)
Disclosure.
L11 (W11)
[12/1/15]

Topic 14: Event after reporting period

i)
Definition;
ii)
Events: Adjusting vs. Non-Adjusting;
iii)
Dividends;
iv)
Going Concern status;
v)
Disclosure.

1) Lazar and Huang (2012): Chapter 34

2) Tan (2012): Chapter 15 (Section 15.4)
3) MFRS 137

1) Lazar and Huang (2012): Chapter 14

2) Tan (2012): Chapter 15 (Section 15.8)
3) MFRS 110

Contact
Hours
Contact
Lecture/Week
Hours
Lecture/Week

Content

Reference(s)

Content

Reference(s)

Financial Information X (LIABILITY): Statement of

Financial Position (SOFP)
L12 (W12)
[19/1/15]

Topic 15: Government Grants & Assistance

i)
Definitions & Comparisons;
ii)
Types: Related to Income vs. Assets;
iii)
Revocation;
iv)
Disclosure

1) Lazar and Huang (2012): Chapter 21

2) Tan (2012): Chapter 15 (Section 15.12)
3) MFRS 120

Financial Information X (EQUITY): Statement of

Financial Position (SOFP)

L13 (W13)
[26/1/15]

Topic 16:
(a) Share capital
(b) Reserves
(c) Capital reduction
(d) Capital reconstruction

1) Tan (2012): Chapter 16 (Section 16.1 to

16.5) (For a & b)
2) Lazar and Tan (2011): Chapter 6
(For c & d)

Contact
Hours
Contact
Lecture/Week
Hours
Lecture/Week

L14 (W14)
[2/2/15]

Content

Reference(s)

Content

Reference(s)

Topic 17: Receivership and Liquidation

(a) Receivership vs. Liquidation
(b) Types of liquidation;
(c) Cases Illustration (Malaysia);
i)
Kimlin;
ii) Lim Eng Chuan vs. UMBC;
(d) Statement of affairs and reduction account;
(e) Receipt and payment accounts;
(f) Section 176 of Malaysian Companies Act
Regulatory tool to maximize returns to creditors?

1) Jeter & Chaney (2012): Chapter 10

2) Section 176 of Malaysian Companies Act

ASSESSMENTS

Course Works
Individual Assignment
Group Assignment
Mid-Term Test

5%
20%
25%

Final Exam

50%

See below
See below
Week 7
Date: 15/12/14
7.30PM to 9.30PM
Venue: DKEP 3
Topics: 2 to 7

Individual Assignment

a) Must be hand-written;
b) 1 No. of pages 3;
c) Choose ONE topic, but you MAY consider BOTH;
d) Critically ANALYZE:
i)
Phases of financial reporting evolution in Malaysia;
ii) Factors shaping financial reporting development in
Malaysia.
e) Proper citation a MUST;
f) Maximum reward = 5 Marks;
g) Due Date: Week 5

Group Assignment

a) 1 Members 5;
b) Must be word-processed, Times-New-Roman, Font-12,
Double Spacing;
c) 10 No. of pages 15;
d) Proper citation a MUST;
e) Maximum reward = 20 Marks;
f) Due Date: Week 12

REFERENCES :

10

1.

MAIN: Lazar, J. and Huang, C.C. (2012), Malaysian Financial

Reporting Standards, Revised 3rd edition, McGraw Hill Education,
Kuala Lumpur, Malaysia. (Black Colored Book).

2.

Tan L.T. (2014), Financial Accounting and Reporting in Malaysia,

Vol. 1, 5th edition, CCH Asia, Malaysia

3.

Lazar, J. and Tan, L.L. (2011), Company and Group Financial

Reporting, 7th edition, Pearson: Prentice Hall, Malaysia. (Green
Colored Book).

4.

Jeter, D.C. & Chaney, P.K. (2012), Advanced Accounting, 5th

Edition (International Student Version), John Wiley & Sons, Inc.

Financial Accounting (FA) isnt that difficult. It requires your understanding

on its concepts and later put it into practice. So here is the practice. This
is a group work (Max 5 students) which requires all members to equally
contribute. Follow the instructions below, step by step. [Total marks =
20%]
1.

a) Select ONE accounting standard covered in the course and register

the standard with your lecturer (each group must use different
standard).
b) Choose ONE Malaysian Public Listed Company and register the firm
with your lecturer (each group must use different firm).
c) Assuming that you are the consultant appointed by the Audit
Committee (AC) of the selected firm (in [b] above) and required to
explain the selected accounting standard (in [a] above) in details.
d) Required: Write a report addressing the firms Audit Committee
Chairman covering the following issues:
i) Brief Historical Background of the standard;
ii) Brief description of the standard (structure,

techniques,

disclosure, etc.);
iii) Identification of industry/ies& firm(s) will be affected most by the
standard;
iv) The standards impact on the firms financial statement (SOCI,
SOFP

&SOCiE,

SOCF)

by

providing

hypothetical

demonstration of relevant transactions;

v) Your opinions & suggestions to the AC chairman on the possible
impacts

of

the

standard

on

the

firm

as

whole

(e.g.

Additional/reduction in Human Resource costs, Complexity of

2.
0

reporting, etc.)
Warning:
a. Plagiarism is a serious academic offence. All contents of the
report must be students OWN words and sentences. Anything
(words, sentences and paragraphs) taken from the firms AR or
elsewhere must be properly cited (with page number).
b. All project papers will be screened against applicable software to
check for plagiarism. Report(s) found violating this requirement will
automatically be graded Fail.

11