LahoreUniversityofManagementSciences

ACCT221CorporateFinancialReporting
FallSemester2017

Instructors AtifaDar,WaqarAli
RoomNo. 416,422respectively
OfficeHours TBA
Email atifa.dar@lums.edu.pk,Waqar_ali@lums.edu.pk
Telephone 04235608394
Secretary/TA Secretary:KashifSaeed
TAOfficeHours TBA
CourseURL(ifany) http://suraj.lums.edu.pk/~pco/

COURSEBASICS
CreditHours 3
Lecture(s) 2 Duration 75minutes
Recitation/Lab(perweek) Onneedbasis Duration Onneedbasis
Tutorial(perweek) Onneedbasis Duration Onneedbasis

COURSEDISTRIBUTION
Core Core
Elective
OpenforStudentCategory
CloseforStudentCategory

COURSEDESCRIPTION

Thecoursebuildsonyourknowledgeofaccountingtheoryandtechniquesasusedtorecord,process,andreportfinancial
information.Whilesomeemphasisisplacedonanalysis,interpretation,anduseofaccountingdataforinvesting,credit,and
managementdecisions,thereportingfunctionofaccountingtoexternalusers(investorsandcreditors)willbestressed.
Current financial reporting and disclosure requirements, plus controversial and emerging practices, will be discussed in
class.Thecoursewillexamineassetandincomedetermination,preparationandinterpretationoffinancialstatements,and
related disclosure requirements. Please note that this course is a building block for the financial reporting issues

encounteredinthedailyprofessionallife.

COURSEPREREQUISITE(S)

ACCT100 PrinciplesofFinancialAccounting

COURSEOBJECTIVES&LEARNINGOUTCOMES

Uponsuccessfulcompletionofthecourse,studentsshouldbeableto:
1.Demonstrateunderstandingofthefundamentalconcepts,mainstreamtheories,internationalaccounting
standardsandpracticesinfinancialreporting;
2.Identifyfinancialreportingissuesfacedbyinvestorsinanalyzingdifferentcompaniesbasedonfinancial
reportingstandards;
3.Applyfinancialreportingrequirementstoascertainfinancialposition,financialperformanceandcash
flowsofcompaniesofdiversenature.
4.Discussanddebateavarietyoftopicsinemergingareasofaccountingandtheirrelevancetobusiness
financialdecisionsincludingtheethicalandglobalperspectives;
5.Presentanddefendtheiranalysisandrecommendationseffectively,bothinoralandwrittenforms.
(GeneralLearningGoal)

 LahoreUniversityofManagementSciences
UNDERGRADUATEPROGRAMLEARNINGGOALS&OBJECTIVES
GeneralLearningGoals&Objectives
Goal1EffectiveWrittenandOralCommunication
Objective:Studentswilldemonstrateeffectivewritingandoralcommunicationskills
Goal2EthicalUnderstandingandReasoning
Objective:Studentswilldemonstratethattheyareabletoidentifyandaddressethicalissuesinan
organizationalcontext.
Goal3AnalyticalThinkingandProblemSolvingSkills
Objective:Studentswilldemonstratethattheyareabletoidentifykeyproblemsandgenerateviable
solutions.
Goal4ApplicationofInformationTechnology
Objective:Studentswilldemonstratethattheyareabletousecurrenttechnologiesinbusinessand
managementcontext.
Goal5TeamworkinDiverseandMulticulturalEnvironments
Objective:Studentswilldemonstratethattheyareabletoworkeffectivelyindiverseenvironments.
Goal6UnderstandingOrganizationalEcosystems
Objective:StudentswilldemonstratethattheyhaveanunderstandingofEconomic,Political,Regulatory,
Legal,Technological,andSocialenvironmentoforganizations.

MajorSpecificLearningGoals&Objectives
Goal7(a)DisciplineSpecificKnowledgeandUnderstanding
Objective:Studentswilldemonstrateknowledgeofkeybusinessdisciplinesandhowtheyinteractincluding
applicationtorealworldsituations(includingsubjectknowledge).
Goal7(b)Understandingthesciencebehindthedecisionmakingprocess(forMGSMajors)
Objective:Studentswilldemonstrateabilitytoanalyzeabusinessproblem,designandapplyappropriate
decisionsupporttools,interpretresultsandmakemeaningfulrecommendationstosupportthedecisionmaker
Indicatebelowhowthecourselearningobjectivesspecificallyrelatetoanyprogramlearninggoalsandobjectives.

MAPPINGOFOBJECTIVES
PROGRAMLEARNINGGOALS
ANDOBJECTIVES
Goal1EffectiveWrittenandOral
Communication
Goal2EthicalUnderstandingand
Reasoning
Goal3AnalyticalThinkingand
ProblemSolvingSkills
Goal4ApplicationofInformation
Technology
Goal5TeamworkinDiverseand
MulticulturalEnvironments
Goal6Understanding
OrganizationalEcosystems
Goal7(a)DisciplineSpecific
KnowledgeandUnderstanding
(SubjectKnowledge)
COURSELEARNINGOBJECTIVES COURSEASSESSMENTITEM
Studentsgetanumberofopportunitiesto CP,QuizandExam
demonstratetheirabilitytocommunicate
effectively(CLO#5)
Ethical perspectives in some of the case studies CP,QuizandExam
arehighlighted(CLO#4)
MajorGoal:Analyticalthinkingandproblem CP,Quiz,andExam
solvingskillsareessentialforsuccessinthis
course(CLO#13)
IntroductionandUseofelearningsoftware Assignments,Cases
Discussionanddebatethereonofdiversetopics CP
inclassroomwillallowthisobjectivetobemet.
Developstudentsunderstandingofthe CP,QuizandExam
interactionoffirmspecificvariableswiththe
securitiesmarkets,industry,andtheeconomy
(CLO#4)
MajorGoal:Comprehensivecoverageoftopics CP,QuizandExam
inCFR(CLO#15)
 LahoreUniversityofManagementSciences
Goal7(b)Understandingthe N/A N/A
sciencebehindthedecision
makingprocess

GRADINGBREAKUPANDPOLICY

ClassParticipation:5%
Quizzes:30%
Midterm:25%
GroupPresentation:10%
FinalExamination:30%

CourseInstructions:

Youmustobtainacumulativegradeof50%topassthecourse. Formatted: Font: Bold, Font color: Auto

Itisimportanttonotethatthecoursestructureisintegratedandmissingaclasswillhaveanegativeimpactonunderstanding
ofconceptsandperformance.

Asaccountingisproblemoriented,doingtheassignedquestionsonatimelybasisisanecessity.Examperformanceisdirectly
relatedtosystematicpreparation,whichincludesafterclasspractice.Thiscoursemovesveryquicklysoitisimperativethat
youdonotfallbehind.Workingonpracticeproblemswithotherstudentscanbeuseful.

Quizzeswillbeannouncedandtherewillbenomakeupquizzes.

Youareexpectedtobepunctualandseatedbeforetheclassstarts.Apolicyholdsandlatearrivalwillmeanzeroclass
participationforthatsession.Pleasemakesureyourcellphonesareonsilentandoutofsightduringclass..

EXAMINATIONDETAIL

Yes/No:Yes
Combine/Separate:TBC
Quizzes Duration:TBC
PreferredDate:TBC
ExamSpecifications:TBC


Yes/No:Yes
Combine/Separate:TBC
Midterm
Duration:TBC
Exam
PreferredDate:TBC
ExamSpecifications:TBC


Yes/No:Yes
FinalExam CombineSeparate:TBC
Duration:TBC
ExamSpecifications:TBC
 LahoreUniversityofManagementSciences

LECTURES CHAPTER:
TITLE/TOPIC SESSIONOBJECTIVES
/IASORIFRS
1 Chapter1 Introductiontothecourseanditsplacementintheprogram Formatted: Font: Calibri
2 Chapter2: 1. Describetheusefulnessofaconceptualframework.
Conceptual 2. Describeeffortstoconstructaconceptualframework.
Framework 3. Understandtheobjectiveoffinancialreporting.
forFinancial 4. Identifythequalitativecharacteristicsofaccountinginformation.
Reporting/ 5. Definethebasicelementsoffinancialstatements.
IAS1 6. Describethebasicassumptionsofaccounting.
7. Explaintheapplicationofthebasicprinciplesofaccounting.
8. Describetheimpactthatthecostconstrainthasonreportingaccountinginformation.

34 Chapter10: 1. Describeproperty,plant,andequipment.
Acquisition 2. Identifythecoststoincludeintheinitialvaluationofproperty,plant,andequipment.
andDisposal 3. Describetheaccountingproblemsassociatedwithselfconstructedassets.
PPE(incl. 4. Describetheaccountingproblemsassociatedwithinterestcapitalization.
Borrowing 5. Understandaccountingissuesrelatedtoacquiringandvaluingplantassets.
Costs)/IAS16 6. Describetheaccountingtreatmentforcostssubsequenttoacquisition.
&,23 7. Describetheaccountingtreatmentforthedisposalofproperty,plant,and
equipment.
Defineandaccountfornoncurrentassetsheldforsalediscontinuedoperations


57 Chapter11: 1. Explaintheconceptofdepreciation.
Depreciation, 2. Identifythefactorsinvolvedinthedepreciationprocess.
Impairment 3. Compareactivity,straightline,anddiminishingchargemethodsofdepreciation.
andDepletion 4. Explaincomponentdepreciation.
/IAS16,36& 5. Explaintheaccountingissuesrelatedtoassetimpairment.
40 6. Explaintheaccountingforrevaluations.
7. Explainhowtoreportproperty,plant&equipment.
8.Overviewofinvestmentpropertiesandtheiraccountingtreatment.
9.Distinguishbetweeninvestmentpropertiesandproperty,plantandequipment.

89 Chapter12: 1. Describethecharacteristicsofintangibleassets.
Intangible 2. Identifythecoststoincludeintheinitialvaluationofintangibleassets.
Assets/IAS38 3. Explaintheprocedureforamortizingintangibleassets.
4. Describethetypesofintangibleassets.
5. Explaintheaccountingissuesforrecordinggoodwill.
6. Explaintheaccountingissuesrelatedtointangibleassetimpairments.
7. Identifytheconceptualissuesrelatedtoresearchanddevelopmentcosts.
8. Describetheaccountingforresearchanddevelopmentandsimilarcosts.
9. Indicatethepresentationofintangibleassetsandrelateditems.


1011 Chapter13: 1. Describethenature,type,andvaluationofcurrentliabilities.
Current 2. Explaintheclassificationissuesofshorttermdebtexpectedtoberefinanced.
Liabilities, 3. Explaintheaccountingfordifferenttypesofprovisions.
Provisionsand 4. Identifythecriteriausedtoaccountforanddisclosecontingentliabilitiesandassets.
 LahoreUniversityofManagementSciences
LECTURES CHAPTER:
TITLE/TOPIC SESSIONOBJECTIVES
/IASORIFRS
Contingencies 5. Indicatehowtopresentliabilityrelatedinformation
/IAS37
12 Chapter15: 1. Discussthecharacteristicsofthecorporateformoforganization.
Equity 2. Identifythekeycomponentsofequity.
3. Explaintheaccountingproceduresforissuingshares.
4. Describetheaccountingfortreasuryshares.
5. Explaintheaccountingforandreportingofpreferenceshares.
6. Describethepoliciesusedindistributingdividends.
7. Identifythevariousformsofdividenddistributions.
8. Explaintheaccountingforsharedividendsandsharesplits.
9. Indicatehowtopresentequity.

1314 Chapter17: 1. Describetheaccountingframeworkforfinancialassets.
Investments 2. Understandtheaccountingfordebtinvestmentsatamortizedcost.
(excl. 3. Understandtheaccountingfordebtinvestmentsatfairvalue.
Appendices)/ 4. Describetheaccountingforthefairvalueoption.
IAS32&IFRS 5. Understandtheaccountingforequityinvestmentsatfairvalue.
9 6. Explaintheequitymethodofaccountingandcompareittothefairvaluemethodfor
equityinvestments.
7. Discusstheaccountingforimpairmentsofdebtinvestments.
8. Describetheaccountingfortransferofinvestmentsbetweencategories.

15 MidTerm
1619 Chapter18: 1. Understandrevenuerecognitionissues.
Revenue 2. Identifythefivestepsintherevenuerecognitionprocess.
Recognition/ 3. Identifythecontractwithcustomers.
IFRS15 4. Identifytheseparateperformanceobligationsinthecontract.
5. Determinethetransactionprice.
6. Allocatethetransactionpricetotheseparateperformanceobligations.
7. Recognizerevenuewhenthecompanysatisfiesitsperformanceobligation.
8. Identifyotherrevenuerecognitionissues.
9. Describepresentationanddisclosureregardingrevenue.
*10. Applythepercentageofcompletionmethodforlongtermcontracts.
*11. Applythecostrecoverymethodforlongtermcontracts.
*12. Identifytheproperaccountingforlossesonlongtermcontracts.
*13. Explainrevenuerecognitionforfranchises.

20 Chapter22: 1. Identifythetwotypesofaccountingchanges.
Accounting 2. Describetheaccountingforchangesinaccountingpolicies.
Changesand 3. Understandhowtoaccountforretrospectiveaccountingchanges.
ErrorAnalysis 4. Understandhowtoaccountforimpracticablechanges.
/IAS8 5. Describetheaccountingforchangesinestimates.
6. Describetheaccountingforcorrectionoferrors.
7. Identifyeconomicmotivesforchangingaccountingpolicies.
8. Analyzetheeffectoferrors.
2122 Chapter24:
Presentation 1.Discussrequirementsforrelatedpartytransactionsandsubsequentevents
andDisclosure
(excl. 2.Describetheaccountingproblemsassociatedwithinterimreporting
Appendices) 3.Identifythemajordisclosuresintheauditorsreport
IAS34/IAS 4.Understandmanagementsresponsibilitiesforfinancials
10/IAS24 5.Identifyissuesrelatedtofinancialforecastsandprojections
 LahoreUniversityofManagementSciences
LECTURES CHAPTER:
TITLE/TOPIC SESSIONOBJECTIVES
/IASORIFRS
6.Describetheprofessionsresponsetofraudulentfinancialreporting

2326 Consolidation, 1.Describetheconceptofagroupasasingleeconomicunit.

Associates& 2.Explainandapplythedefinitionofasubsidiarywithinrelevantaccounting
JointVentures standards.
/IFRS3&IAS 3.Identifyandoutlineusingaccountingstandardsandotherapplicableregulationthe
28 circumstancesinwhichagroupisrequiredtoprepareconsolidatedfinancialstatements.
4.Describethecircumstanceswhenagroupmayclaimexemptionfromthe
preparationofconsolidatedfinancialstatements.
5.Explainwhydirectorsmaynotwishtoconsolidateasubsidiaryandoutlineusing
accountingstandardsandotherapplicableregulationthecircumstanceswherethisis
permitted.
6.Explaintheneedforusingcoterminousyearendsanduniformaccountingpolices
whenpreparingconsolidatedfinancialstatements.
7.Explainwhyitisnecessarytoeliminateintragrouptransactions.
2728 Group 1. Studentswillpresenttotheclassonreportingrequirementsaroundoneofthe
Presentations disclosureareas(financialstatementitems)coveredabove.
2. Theywouldrelateintheirpresentationtheserequirementstoextractsfromthe
auditedaccountsofabusiness.

TEXTBOOK(S)/SUPPLEMENTARYREADINGS
RecommendedTextbook:
IntermediateAccounting,2ndedition,Kieso,Weygandt,Warfield.
SupplementaryMaterial:
IAS/IFRSText
Furthermaterialprovidedduringcourseprogress.