Instructor
Room No.
Office Hours
Email
Telephone
Secretary/TA
TA Office Hours
Course URL (if any)
COURSE BASICS
Credit Hours
Lecture(s)
Recitation/Lab (per week)
Tutorial (per week)
Bilal Zia
416 SDSB Building
To be announced
bilal.zia@lums.edu.pk
042-3560-8364
Kashif
TBA
Suraj.lums.edu.pk
3
Nbr of Lec(s) Per Week
Nbr of Lec(s) Per Week
Nbr of Lec(s) Per Week
Duration
Duration
Duration
1 hour 15 minutes
COURSE DISTRIBUTION
Core
Elective
Open for Student Category
Close for Student Category
ACF Core
COURSE DESCRIPTION
The course builds on your knowledge of corporate theory 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,
the 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 income
determination, preparation and interpretation of financial statements, and related disclosure requirements. Please note that this course
is a building block for the financial reporting issues encountered in the daily professional life.
COURSE PREREQUISITE(S)
Quiz(s):
30%
Class Participation:
7%
Attendance:
3%
Midterm Examination: 30%
30%
Final Examination:
100%
There will be no makeup quizzes.
If you miss more than 5 classes you will automatically get an F grade in the 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 response to questions that cannot be answered definitively and for which all the
relevant information may not be available.
There will be a combination of announced and unannounced quizzes and the lowest 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 the course. I expect you to be punctual and be in your seat
before the 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 the course structure is integrated and one missed class may result in relatively pervasive impact on
understanding of concepts.
Examinations are demanding of both your efficiency and effectiveness in addressing accounting measurement, reporting, and
analysis issues.
EXAMINATION DETAIL
Midterm
Exam
Final Exam
Yes/No: Yes
Combine Separate: Combine
Duration: 3 hours
Preferred Date:
Exam Specifications: Open IFRS text/ closed notes
Yes/No: Yes
Combine Separate: Combine
Duration: 3 hours
Exam Specifications: Open IFRS text/ closed notes
RECOMMENDED
READINGS
1-2
IFFRS Text
3-4
IAS 7
IFFRS Text
IAS 2
IFFRS Text
6-7
IFFRS Text
8-9
IAS 38
IFFRS Text
10-11
IAS 36
IFFRS Text
SESSION OBJECTIVES
Describe what is meant by a conceptual framework of
accounting.
Discuss whether a conceptual framework is necessary and
what an alternative system might be.
Moreover
a) Discuss what is meant by understandability in relation to
the provision of financial information.
b) Discuss what is meant by relevance and reliability and
describe the qualities that enhance these characteristics.
c) Discuss the importance of comparability to users of
financial statements.
(CLO 1-5)
Prepare, compare and interpret statement of cash flows
(CLO 1-5)
Describe and apply the principles of inventory valuation.
(CLO 1-5)
a) Define and compute the initial measurement of a noncurrent (including self-constructed and borrowing costs)
asset.
b) Identify subsequent expenditure that may be capitalized,
distinguishing between capital and revenue items.
c) Discuss the requirements of relevant accounting
standards in relation to the revaluation of non-current
assets.
d) Account for revaluation and disposal gains and losses for
non-current assets.
(CLO 1-5)
a) Discuss the nature and accounting treatment of internally
generated and purchased intangibles.
b) Distinguish between goodwill and other intangible assets.
c) Describe the criteria for the initial recognition and
measurement of intangible assets.
d) Describe the subsequent accounting treatment, including
the principle of impairment tests in relation to goodwill.
e) Indicate why the value of purchase consideration for an
investment may be less than the value of the acquired
identifiable net assets and how the difference should be
accounted for.
f) Describe and apply the requirements of relevant
accounting standards to research and development
expenditure.
(CLO 1-5)
a) Define an impairment loss.
b) Identify the circumstances that may indicate impairments
to assets.
c) Describe what is meant by a cash generating unit.
d) State the basis on which impairment losses
12-13
IFFRS Text
14
15
Mid Terms
IAS 40
IFFRS Text
16
IAS 23
IFFRS Text
17
IFRS 5
IFFRS Text
18
IAS 10
IFFRS Text
19 - 20
IAS 37
IFFRS Text
IFFRS Text
21
IFFRS Text
23
IAS 41
IFFRS Text
24
IAS 34
IFFRS Text
25-26
Consolidation (IFRS
3,10,11,12) plus Quiz
27 - 28
IFFRS Text
statements.
(CLO 1-5)
a) Explain the need for an accounting standard on financial
instruments.
b) Define financial instruments in terms of financial assets
and financial liabilities.
c) Indicate for the following categories of financial
instruments how they should be measured and how any
gains and losses from subsequent measurement should be
treated in the financial statements:
i) amortized cost
ii) fair value ( including option to classify equity instruments
through other comprehensive income)
d) Distinguish between debt and equity capital.
e) Apply the requirements of relevant accounting standards
to the issue and finance costs of:
i) equity
ii) redeemable preference shares and debt instruments with
no conversion rights (principle of amortized cost)
iii) convertible debt
(CLO 1-5)
Initial recognition, measurement and disposal of agricultural
assets and their reporting
(CLO 1)
The understanding of the need of interim financial
statements and its specific implementation issues
(CLO 1)
a) Describe the concept of a group as a single economic
unit.
b) Explain and apply the definition of a subsidiary within
relevant accounting standards.
c) Identify and outline using accounting standards and other
applicable regulation the circumstances in which a group is
required to prepare consolidated financial statements.
d) Describe the circumstances when a group may claim
exemption from the preparation of consolidated financial
statements. .
e) Explain why directors may not wish to consolidate a
subsidiary and outline using accounting standards and other
applicable regulation the circumstances where this is
permitted.
f) Explain the need for using coterminous year
ends and uniform accounting polices when preparing
consolidated financial statements.
g) Explain why it is necessary to eliminate intragroup
transactions.
(CLO 1-5)
Basic concepts of these topics will be discussed to expedite
the learning curve when these topics are to be read at
advance stage.
(CLO 4)
TEXTBOOK(S)/SUPPLEMENTARY READINGS
PWC Manual of Accounting; Delloite E Learning