Lahore University of Management Sciences

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)

ACCT 221 Corporate Financial Reporting

Fall Semester 2014

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)

Principles of financial accounting

Principles of management accounting

COURSE LEARNING OUTCOMES (CLO)

Upon successful completion of the course, students should be able to:

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

standards and practices in financial reporting;
2. Identify financial reporting issues faced by investors in analyzing different companies based on financial
reporting standards;
3. Apply financial reporting requirements to ascertain financial position, financial performance and cash flows of
companies of diverse nature.
4. Discuss and debate a variety of topics in emerging areas of accounting and their relevance to business financial
decisions including the ethical and global perspectives;
5. Present and defend their analysis and recommendations effectively, both in oral and written forms. (General
Learning Goal)

Lahore University of Management Sciences

UNDERGRADUATE PROGRAM LEARNING GOALS & OBJECTIVES

General Learning Goals & Objectives

Goal 1 Effective Written and Oral Communication
Objective: Students will demonstrate effective writing and oral communication skills
Goal 2 Ethical Understanding and Reasoning
Objective: Students will demonstrate that they are able to identify and address ethical issues in an organizational
context.
Goal 3 Analytical Thinking and Problem Solving Skills
Objective: Students will demonstrate that they are able to identify key problems and generate viable solutions.
Goal 4 Application of Information Technology
Objective: Students will demonstrate that they are able to use current technologies in business and management
context.
Goal 5 Teamwork in Diverse and Multicultural Environments
Objective: Students will demonstrate that they are able to work effectively in diverse environments.
Goal 6 Understanding Organizational Ecosystems
Objective: Students will demonstrate that they have an understanding of Economic, Political, Regulatory, Legal,
Technological, and Social environment of organizations.
Major Specific Learning Goals & Objectives
Goal 7 (a) Discipline Specific Knowledge and Understanding
Objective: Students will demonstrate knowledge of key business disciplines and how they interact including
application to real world situations. (including subject knowledge)
Goal 7 (b) Understanding the science behind the decision-making process
Objective: Students will demonstrate ability to analyze a business problem, design and apply appropriate
decision-support tools, interpret results and make meaningful recommendations to support the decision-maker
Indicate below how the course learning objectives/outcomes specifically relate to any program learning goals and objectives.

PROGRAM LEARNING GOALS AND

OBJECTIVES
Goal 1 Effective Written and Oral
Communication

Goal 2 Ethical Understanding and

Reasoning
Goal 3 Analytical Thinking and Problem
Solving Skills
Goal 4 Application of Information
Technology
Goal 5 Teamwork in Diverse and
Multicultural Environments
Goal 6 Understanding Organizational
Ecosystems
Goal 7 (a) Discipline Specific Knowledge
and Understanding (Subject Knowledge)
Goal 7 (b) Understanding the science
behind the decision-making process

COURSE LEARNING OBJECTIVES

COURSE ASSESSMENT ITEM

Students get a number of opportunities to

demonstrate their ability to communicate
effectively (CLO #5)
Ethical perspectives in some of the case
studies are highlighted (CLO #4)
Major Goal: Analytical thinking and
problem solving skills are essential for
success in this course (CLO #1-3)
Introduction and Use of e learning
software,
Discussion and debate thereon of diverse
topics in classroom will allow this
objective to be met.
Develop students understanding of the
interaction of firm specific variables with
the securities markets, industry, and the
economy (CLO #4)
Major Goal: Comprehensive coverage of
topics in Applied Corporate Finance (CLO
#1-5)
NA

CP, Quiz and Exam

CP, Quiz and Exam
CP, Quiz, and Exam
Assignments, Cases
CP
CP, Quiz and Exam

CP, Quiz and Exam

NA

Lahore University of Management Sciences

GRADING BREAKUP AND POLICY

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

Lahore University of Management Sciences

COURSE OVERVIEW
WEEK/
TOPICS
LECTURE/
MODULE

RECOMMENDED
READINGS

1-2

Framework and IAS 1

IFFRS Text

3-4

IAS 7

IFFRS Text

IAS 2

IFFRS Text

6-7

IAS 16 plus Quiz

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

Lahore University of Management Sciences

12-13

IAS 18 and 11 plus Quiz

IFFRS Text

Discuss revenue recognition issues; indicate when income

and expense recognition should occur.
(CLO 1-5)

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

IAS 24 plus Quiz

IFFRS Text

21

should be allocated, and allocate an impairment loss to the

assets of a cash generating unit.
(CLO 1-5)
a) Define a construction contract and discuss the role of
accounting concepts in the recognition of profit.
c) Describe the acceptable methods of determining the
stage (percentage) of completion of a contract.
d) Prepare financial statement extracts for construction
contracts.

a) Discuss why the treatment of investment properties

should differ from other properties.
b) Apply the requirements of relevant accounting standards
for investment property.
(CLO 1-5)
Application of principles of capitalization of financial costs
and debate on other alternatives
(CLO 1-5)
a) Discuss the importance of identifying and reporting the
results of discontinued operations.
b) Define and account for non-current assets held for sale
and discontinued operations.
c) Indicate the circumstances where separate disclosure of
material items of income and expense is required.
(CLO 1)
Events after the reporting date
i) distinguish between and account for adjusting and nonadjusting events after the reporting date
ii) Identify items requiring separate disclosure, including
their accounting treatment and required disclosures
(CLO 1-5)
a) Explain why an accounting standard on provisions is
necessary.
b) Distinguish between legal and constructive obligations.
c) State when provisions may and may not be made and
demonstrate how they should be accounted for.
d) Explain how provisions should be measured.
e) Define contingent assets and liabilities and describe their
accounting treatment.
f) Identify and account for:
i) warranties/guarantees
ii) onerous contracts
iii) environmental and similar provisions
iv) Provisions for future repairs or refurbishments.
(CLO 1-5)
Indicate the effect that the related party relationship may
have on the separate and the consolidated financial

Lahore University of Management Sciences

22

IAS 32, IFRS 9

IFFRS Text

23

IAS 41

IFFRS Text

24

IAS 34

IFFRS Text

25-26

Consolidation (IFRS
3,10,11,12) plus Quiz

Handouts will be provided

27 - 28

Advance Areas (IAS

12,17,19,21)

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)

Lahore University of Management Sciences

TEXTBOOK(S)/SUPPLEMENTARY READINGS
PWC Manual of Accounting; Delloite E Learning