National College of Business Administration and Economics

Course

Programs

: Advance Accounting

: BBA/B.Com/BS A&F

Total Marks : 100

Department : Business Administration

Semester

Instructor

: 5

th

: Abdullah Bin Omar

COURSE OBJECTIVES

Preparation of financial statements of companies in accordance with statutory

requirements of Companies Act and International Accounting Standards (IAS)

To get understanding about International Financial Reporting Standards (IFRS)
To deal with international accounting issues during foreign exchange transactions.
To provide understanding about international transactions of financial instruments
like future, forward, swaps and options.
COURSE OUTLINE

Lecture

Topics

s
(3 Hours)

Introduction, Syllabus overview, Conceptual and regulatory framework of

accounting standards. Understanding about International Accounting
1

Standards Committee (IASC), International Accounting Standard Board

(IASB), International Financial Reporting Interpretation Committee (IFRIC)
(old SIC), qualitative characteristics of financial information (relevance,
reliability, comparability, understandability)
Recognize the need for adjustments for inventory in preparing financial
statements, record opening and closing inventory, identify the alternative
methods of valuing inventory, understand and apply the IASB requirements
for valuing inventories, recognize which cost should be included in valuing

inventories, understand the use of continuous and period end inventory

records, calculate the value of closing inventory using FIFO and AVCO,
understand the impact of accounting concept on the valuation of inventory,
identify the impact of inventory valuation methods on profits and on assets

Questions practice
Explain how the matching concept applies to accruals and prepayments,
identify

and

calculate

the

adjustments

needed

for

accruals

and

prepayments in preparing financial statements, illustrate the process of

adjusting for accruals and prepayments in preparing financial statements,
prepare the journal entries and ledger entries for the creation of an accrual

or prepayments, understand and indentify the impact on profit and net

assets of accruals and prepayments
Questions practice
Define noncurrent assets, recognize the difference between current and
noncurrent assets, explain the difference between capital and revenue
items, classify expenditure as capital or revenue expenditure, prepare
ledger entries to record the acquisition and disposal of noncurrent assets,
1

calculate and records profits or losses on disposal of noncurrent assets in

the income statement, calculate the profit or loss on disposal of a revalued
assets, illustrate how noncurrent asset balances and movements are
disclosed in the company financial statements, explain the purpose and
function of an asset register
Understand and explain the purpose of depreciation, calculate the charge
for depreciation using straight line and reducing balance methods, identify

the circumstances where different methods of depreciation would be

appreciate,

illustrate

how

depreciation

expense

and

accumulated

depreciation are recorded in ledger accounts

Questions practice
Mid-term Exam
International monetary systems, definition and criteria of classification, the
1

Classical Gold Standard, Bretton Woods system, Fixed Exchange Rate

system, Fixed but adjustable exchange rate, Perfectly flexible exchange rate
system, Fixed exchange rate but flexible within a band, Crawling Peg
Currency Options, Option writer, Option holder, American option,

European option, Put Option, Call option, Exercise exchange rate Vs Spot
exchange rate, Premium, Contracts related to Put and Call option with and
without premium
Foreign Exchange Exposures: Translation exposure, Transaction exposure

and Economic exposure. Precautionary measures used to counter all these

exposures.

1
1

RECOMMENDED BOOKS:

CASE STUDY

1. International Finance: Putting Theory into Practice by Piet Sercu Leuven

School of Business and Economics
2. Multinational Business Finance by D. K. Eiteman, A. I. Stonehill and M. H.
Moffett, 12th Edition, Pearson Prentice Hall
3. International Finance: an analytical approach by Imad A.Moosa
4. Derivatives: Markets, Valuation, and Risk Management by ROBERT E.
WHALEY

COURSE FORMAT
The course combines lectures, exercises and discussions on actual problems.

COURSE ASSESSMENT
Students will be graded on the basis of:
Mid-Term Exam

= 30%

Final Examination = 50%

Solving practical problem/assignment/presentation or case study discussion = 20 %