Class BBA

Course ACC202 Financial Accounting

Credit hours 3.0
Class nos. 2080, 2081, and 2082
Session start date August 21, 2019
Session days Class # 2080 Monday and Wednesday 8:30 AM – 9:45 AM
Class # 2081 Monday and Wednesday10:00 AM – 11:15
AM
Class # 2082 Tuesday and Thursday 8:30 AM – 9:45 AM
Refer IBA calendar for holidays and examination dates.
Location Main Campus –Adamjee Building MAC 4
Instructor Ahmad Saeed
Instructor’s email e-mail: asaeed@iba.edu.pk;ahmad.saeed@kirmani.com.pk
Teaching Assistant (TA) To be advised (TBA)
TA’s contact TBA
Counselling Refer separate section later in this document

Course Description
This course is the continuation of Principles of Accounting-I and concentrates on the
discussion of accounting principles and procedures relating to accounting for partnerships
and companies. Modules offered include partnerships, formation of corporations, issuance
of shares, treasury stock, dividends, appropriations of retained earnings, bonds payable,
financial statements analysis, and preparation of statement of cash flow. Special emphasizes
would be placed on reporting under the Generally Accepted Accounting Principles (GAAP)
and under the International Financial Reporting Standards (IFRS).

Course Objectives and Learning Outcomes

The objectives of this course are:

 To develop an understanding of economic activities (UNDERSTAND)

 To develop an understanding of assumptions and measurement techniques used to
convert the economic activities into accounting information which is relevant for
making economic decisions and describe the accounting rules for recording such
information. (RECORD)
 To explain the financial statements presentation and disclosure requirements for
such information. (PRESENT)
 To explain the methods of analysing such information. (ANALYZE)

The principal objective of this course is to enable the students to develop their core
Accounting Knowledge in the areas mentioned above. On completion of the course, the
students will be able to understand the basic Accounting Principles, and financial concepts
such as Time Value of Money. They will also be able to interpret a set of Financial
Statements.

Furthermore, the teaching methodology to be used in this course (lectures, class discussions,
cases studies and hands on practice) will enable the students to:
  Improve their Communication Skills for they will be asked to present their oral and
written thoughts in a logical and structured manner using technology
 Hone their Critical Thinking Skills by developing their ability to understand and
critically analyze accounting theories, models, and frameworks and comprehend
how these help in Effective Decision Making
 Build an awareness about Ethical Frameworks and Responsibilities by solving
case studies involving ethical issues
 Develop a Global Mindset as the course would cover accounting under both GAAP
and IFRS

Course pre-requisites
 ACC111 - Principles of Accounting I

Sess Chapter Learning Outcome – at the end of each Hands on Practice

ions session/chapter students should be able to
1  Course
Introduction 1. Understand the course outline
 Review 2. Explain the building blocks of accounting:
Principles of ethics, principles and assumptions.
Accounting
Chapter 1
(Pre-reading
pages 2 – 47)
2 Chapter 2 -3 Review Principles of Accounting to understand:
(Pre-reading pages 48 – 1. The Recording Process: the accrual basis of
147) accounting, and reasons for adjusting entries.
2. Adjusting Entries for accruals and deferrals.
3. Financial reporting concepts.

3 International Understand the requirements of IAS 1 Presentation of

Accounting Standards Financial Statements
4 International Understand the requirements of IAS 8 Accounting
Accounting Standards Policies, Changes in Accounting Estimates and Errors.
5 International Understand the requirements of IAS 10 Events after
Accounting Standards the Reporting Period.
6– Chapter 12 Accounting for Partnerships To be advised at the en
10 1. Identify the characteristics of the partnership each chapter.
(Pre-reading pages 532 form of business organization, including
-569) limited liability partnerships.
2. Explain the accounting entries for the
formation of a partnership.
3. Identify the bases for dividing net income or
net loss.
4. Describe the form and contents of partnership
financial statements.
5. Explain the effects of the entries to record the
Sess Chapter Learning Outcome – at the end of each Hands on Practice
ions session/chapter students should be able to
liquidation of a partnership.
6. Explain how to record admission and
withdrawal of partners.
7. Understand the concept of Limited Liability
Partnerships
11 – Chapter 13 Corporations: Organization and Capital Stock To be advised at the en
13 Transactions each chapter.
(Pre-reading pages 570 1. Identify the major characteristics of a
-607) corporation.
2. Differentiate between paid-in capital and
retained earnings.
3. Record the issuance of common stock.
4. Explain the accounting for treasury stock.
5. Differentiate preferred stock from common
stock.
6. Prepare a stockholders’ equity section.
7. Use Critical Thinking Skills to solve case
studies covering decision making,
communication activity and ethics issues.
8. Compare and Contrast requirements under
GAAP and IFRS

14 – Chapter14 Corporations: Dividends, Retained Earnings and To be advised at the en

15 Income Reporting each chapter.
(Pre-reading page 608 - 1. Prepare the entries for cash dividends and
643) stock dividends
2. Identify the items reported in a retained
earnings statement
3. Prepare and analyze a comprehensive
stockholders’ equity section
4. Describe the form and content of corporation
income statements
5. Compute earnings per share
6. Use Critical Thinking Skills to solve case
studies on Decision Making, Communication
Activity, and Ethics
7. Compare and Contrast requirements under
GAAP and IFRS

Mid Term Examination Mid Term Exam Week

16 - Chapter 15 Accounting for Long-term Liabilities To be advised at the en
18 1. Explain why bonds are issued. each chapter.
(Pre-reading page 644 - 2. Prepare the entries for the issuance of bonds
689) and interest expense.
Sess Chapter Learning Outcome – at the end of each Hands on Practice
ions session/chapter students should be able to
3. Describe the entries when bonds are redeemed
or converted.
4. Describe the accounting for long-term notes
payable.
5. Contrast the accounting for operating and
capital leases.
6. Identify the methods for the presentation and
analysis of long-term liabilities.
7. Use Critical Thinking Skills to solve case
studies on Decision Making, Communication
Activity, and Ethics
8. Compare and Contrast requirements under
GAAP and IFRS

19 - Chapter16 Accounting for Investments To be advised at the en

21 1. Discuss why corporations invest in debt and each chapter.
(Pre-reading page 690 - stock securities.
725) 2. Explain the accounting for debt investments.
3. Explain the accounting for stock investments.
4. Describe the use of consolidated financial
statements.
5. Indicate how debt and stock investments are
reported in financial statements.
6. Distinguish between short-term and long-term
investments.
7. Use Critical Thinking Skills to solve case
studies on Decision Making, Communication
Activity, and Ethics
8. Compare and Contrast requirements under
GAAP and IFRS

22 - Chapter 17 Statement of Cash Flows To be advised at the en

24 1. Indicate the usefulness of the statement of cash each chapter.
(Pre-reading page 726 - flows.
783) 2. Distinguish among operating, investing, and
financing activities.
3. Prepare a statement of cash flows using both
direct and indirect method.
4. Analyze the statement of cash flows.
5. Review the requirements of IAS 7 Cash Flow
Statements
6. Use Critical Thinking Skills to solve case
studies on Decision Making, Communication
Activity, and Ethics
Sess Chapter Learning Outcome – at the end of each Hands on Practice
ions session/chapter students should be able to
7. Compare and Contrast requirements under
GAAP and IFRS

25 - Chapter 18 Financial Statement Analysis To be advised at the en

27 Pre-reading page 784 - 1. Discuss the need for comparative analysis. each chapter.
833 2. Identify the tools for financial statement
analysis.
3. Explain and apply horizontal analysis.
4. Describe and apply vertical analysis.
5. Identify and compute ratios used in analysing a
firm’s liquidity, profitability, and solvency.
6. Understand the concept of earning power and
how irregular items are presented.
7. Understand the concept of quality of earnings.
8. Use Critical Thinking Skills to solve case
studies on Decision Making, Communication
Activity, and Ethics.
9. Compare and Contrast requirements under
GAAP and IFRS
.
28 Revision
Final Examination Final Examination We

Text book and course reading material etc.

Main text book:
 Accounting Principles 12th edition Weygandt, Kieso and Kimmel (Kieso)
 Not all sections in a chapter will be covered; only relevant portions will be dealt
with.
 Additional slides/handouts/information if any will also be shared in-class, as
appropriate.
 The emphasis of the course is on understanding the concepts and applying them
to business transactions - not on learning by rote
 Slides/Reading Material will be uploaded on LMS.
 The course outline given previously is indicative only. This may change
depending on guest lectures, in-class activities, videos, new cases, role plays,
simulations, field trips, etc.
 Students are expected to read the chapter and additional material (if any
provided) before coming to the class and ask relevant questions.

Link to students companion web site for practicing self-study quizzes

11Th Edition
http://bcs.wiley.com/he-
bcs/Books?action=index&bcsId=8114&itemId=1118323661
Th
10 Edition

http://bcs.wiley.com/he-bcs/Books?action=index&itemId=0470646462&bcsId=6406

Assignments
Essay of a 1,000 words on: Due date Remarks
The Impact of Accounting 15 September 2019 Assignments may be
Records on the attempted in groups of 2 –
Performance of a Business 3 students. However, role
Organization of each member of the
group in solving the
assignment should be
clearly identified.
The Impact of Financial 15 October 2019 Assignments may be
Reporting Standards on the attempted in groups of 2 –
Quality of Financial 3 students. However, role
Statements of each member of the
group in solving the
assignment should be
clearly identified.
Relevance of Financial 15 November 2019 Assignments may be
Statement Analysis in the attempted in groups of 2 –
Appraisal of Small Scale 3 students. However, role
Business of each member of the
group in solving the
assignment should be
clearly identified.

Grading Plan
Assessment Marks
Quiz (n-1 basis) 10%
Assignments/Class Participation 20%
Term examinations 30%
Final examination 40%

Counselling
Meet the instructor
Students may see the faculty any time in case of any problem or issue that needs attention.
Social Media
Class group will be created on .
TA’s Office Hours
TBA
Tutorials
TBA

Comments and/or Suggestions

Comments and/or Suggestions on the course content and teaching methodology are most welcome.

Technology Requirements
 Please bring your book and relevant handouts, pen and paper and a simple calculator.
 Relevant course material shall be uploaded on LMS and students must bring their copies to the
class.

Academic Conduct, Attendance, Plagiarism, and Withdrawal

 The relationship between the instructor and the students and among the students is that of mutual
respect. Proper conduct and behaviour is expected in the class
 Maximum of 7 absences are allowed during the semester
 Mobile Phones must be switched off or turned to silent mode (not to vibrate mode) during the
class. This rule must be strictly followed
 No side conversations are allowed in class. It will be marked as negative class participation. If
you have any question, please raise your hand
 Punctuality is essential. If the student is late he or she will be marked absent
 Students must avoid leaving the class during the session, however, if need be students may ask
for permission and leave the class for a maximum of 10 minutes. Failure to return to class during
this time will result in being marked absent
 The instructor will not grant permission to leave the class for any meetings or preparation for
events within the campus. Please ensure that all such commitments are scheduled before or after
the class
 At IBA academic honesty is mandatory. Absolutely no plagiarism/ cheating in any examination,
quiz, assignment, report, and/or presentation by any student is tolerated. Each case is decided on
its own merit in accordance with notified plagiarism policies
 All classrooms are cell phone free zones. Permission to attend to emergencies is to be obtained
from the instructor. Sports / music playing and /or other activities on campus during class
timings, especially near class rooms are not allowed
 A student may withdraw from a course in accordance with IBA’s policy on withdrawal i.e.
within one week after the announcement of the midterm examination result