COURSE OUTLINE

GIFT BUSINESS SCHOOL

MSc. & BSc.- Accounting and Finance
ACC-501
Advanced Financial Accounting
ACC-405
Advanced Financial Accounting - II

Spring Semester, 2010

Faculty: GIFT Business School

Credit hours: 3
Course level: Graduation
Campus/Location/Instruction GIFT University/On Campus/In Person
Mode:
Course Instructor:
Consultation hours:
Pre-requisite:
Timing
This document was last updated:

BRIEF COURSE DESCRIPTION

The aim of this subject is to develop and test students’ ability to prepare financial statements of
manufacturing and banking companies as per disclosure requirements of local laws and
International Financial Reporting Standards as applicable in Pakistan.
COURSE OBJECTIVES
On completion of this course, participants should be able to understand theoretical framework and
practical application of:
 Understand conceptual framework and practical application of different IFRS used in financial
reporting of companies.
 Prepare Financial Statements of manufacturing companies.
 Prepare Financial Statements of banking companies.
 Understand the concepts and accounting of leasing.
 IAS and IFRS related to different topics.

LEARNING OUTCOMES

At the end of this course, students would be expected to understand the accounting system and
financial statements of different types of companies.
Expected cognitive outcomes include the development and demonstration of a high level of skills
in:
• Written communication
• Problem solving
• Analysis and critical evaluation
• information literacy
• Ability to assume responsibility and make decisions.

CONTENTS
SESSIONS TOPIC READINGS
Financial reporting framework in Pakistan:
1 International Financial Reporting Standards, 4th and Handouts
5th Schedule of Companies Ordinance 1984.
4th Schedule of Companies Ordinance 1984:
Companies
Disclosure requirements as to the financial
Ordinance 1984
1 statements of listed companies, completion of
checklist developed by Institute of Chartered
Handouts
Accountants of Pakistan.
Frame work and IAS 1”Presentation of Financial
2 IFRS & Handouts
Statements”.
5 Preparation of the following for manufacturing IFRS & Handouts
companies:
• Statement of comprehensive Income
• Statement of Financial Position
• Statement of Changes in Equity
• Notes to Financial Statements

CASE: Financial Reporting Problems at Molex, Inc.

Harvard Business School
2
3 Preparation of Statement of Cash Flows (IAS 7) IFRS & Handouts
Preparation of the following for banking
companies:
• Statement of Comprehensive Income
2 IFRS & Handouts
• Statement of Financial Position
• Statement of Changes in Equity
• Notes to Financial Statements
1 MID TERM
IAS 8” Accounting Policies, Changes in
Accounting Estimates and Errors”. IFRS & Handouts
1

IAS 24, “Related Party Disclosures”: Introduction

1 IFRS & Handouts
and scope, definitions, disclosures.
IAS 34, “Interim Financial Reporting”:
1 Introduction, definitions, contents of interim financial IFRS & Handouts
reports.
IAS 37”Provisions , Contingent Liabilities and IFRS & Handouts
1 Contingent Assets”.

IFRS 8 “Operating Segment ”: Introduction and

1 definitions, operating segments, aggregation criteria, IFRS & Handouts
quantitative threshold, disclosure requirements.

Lease Accounting (IAS 17): Definitions, types of

leases, criteria for identification for finance and
3 operating lease, accounting for finance lease, IFRS & Handouts
accounting for operating lease, disclosures
requirements.
IAS 18, “Revenue”: Introduction and objectives,
measurement of revenue, sale of goods, rendering of
services, interest, royalties and dividend, disclosure
requirements.
2 IFRS & Handouts
CASE: Biovail Corporation
Revenue Recognition and FOB Sales Accounting
Harvard Business School.
IAS 16, “Property Plant and Equipment”:
introduction and definition, recognition, initial
measurement, subsequent expenditures,
depreciation, disclosure requirements. Impairment of
3 IFRS & Handouts
assets ( IAS 36 ), Intangibles ( IAS 38 ).

CASE: Depreciation at Delta Air Lines

Harvard Business School
IAS 32, 39 and IFRS 7, “ Financial Instruments”:
Introduction and definitions, classification of financial
2 instruments, recognition and derecognition, IFRS & Handouts
measurement, reclassification, gain or loss,
disclosures requirements.
3
 Projects: During the semester students would also
be given different projects on accounting and
financial reporting.

Please note: This is a proposed schedule only and may be varied at the discretion of the Course
Convenor to give a greater or lesser degree of emphasis to particular topics.

TEXTS AND SUPPORTING MATERIALS

Prescribed Text:
Understanding IFRS by Javid Zubari
International Financial Reporting Standards
Reference Texts:
Published Financial Statements of Listed Companies in Pakistan

Recommended Journals
Pakistan Accountant , a journal of ICAP. See, www.icap.org.pk
Internet Resources:
See digital library EbscoHost and SpringerLink at http://digitallibrary.edu.pk/giftunigujranwala.html

ASSESSMENT

Item Assessment Task Length Weighting Due Day and Time

1. Class Participation/ 10% During the whole semester

assignments
2. Projects 10% During the whole semester
3. Quizzes (4) 15 to 30 mins. 15% Various Weeks in Class
4. Mid term examination 20% Mid of the semester
5. Final Examination 3 hours 45% During Formal Examination Period

Information about Assessment:

All components of the above assessment are compulsory, and must be completed in order to
obtain a pass grade. Students are expected to perform satisfactorily in each item.
Students must complete each component of the assessment to the satisfaction of the Course
Convenor, and achieve an overall mark of at least 40% in order to pass the course.
Grading system will be as follow:

Percentage Grade
4
91% and above A+
86% to 90% A
81% to 85% A-
76% to 80% B+
71% to 75% B
66% to 70% B-
61% to 65% C+
56% to 60% C
51% to 55% C-
46% to 50% D+
40% to 45% D
Below than 40% F