American University of Madaba

Faculty of Business & Finance

Department of Accounting
IAS &IFRS
Assignments

AUM

Assignments
Course No 501421
International Accounting Standards and IFRS
Dr Osama Omar, Associate Professor In Accounting

This assignment is related to the class project. Once you select the company of choice and have
downloaded its annual report, prepare a report containing:

Give the background information about the company you choose in a very simple and attractive manner,
the background information is vital and it tells the long back history of the company performance.

Ch 1 The regulatory framework

a. Identify the first IFRS reporting period and state the date of transition.
b. Explain the procedure which must be followed in order to prepare the financial statements .

Ch 2 The conceptual framework

Explain the measurement bases used in preparing the financial statements

Ch 3 - The notes to the financial statements- Page No (51)

Disclosures relating to the Notes of financial statements - IAS1

As mentioned earlier in this chapter, the notes which accompany the statement of financial position,
the statement of comprehensive income, the statement of cash flows and the statement of changes in
equity are an integral part of the financial statements and so fall within the scope of international
standards. IAS1 states that the notes.
For each item listed below , write a brief description (only a few lines) about :
a. present information about the basis of preparation of the financial statements and the accounting policies
which have been used, including:
– the measurement bases used in preparing the financial statements

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 – other accounting policies relevant to an understanding of the financial statements
b. disclose information required by international standards, to the extent that this is not presented elsewhere in
the financial statements
c. provide any additional information which is relevant to an understanding of any of the financial statements.
The notes should be presented in a systematic manner and should be cross-referenced to the four primary
financial statements. The notes normally begin with a statement of compliance with international standards.
There should then be a section on significant accounting policies, followed by supporting information for line
items presented in the four primary statements and further disclosures as necessary.

d. Management commentary
IFRS Practice Statement Management Commentary has been issued by the IASB to assist entities that wish to
include a "management commentary" in their annual report. Such a commentary falls outside the scope of
international standards and the Practice Statement is not itself a standard. However a management commentary
provides users with explanations of the amounts presented in the financial statements. It also provides
commentary on the entity's future prospects. This information should help users to assess the performance of the
entity and the actions of its management. Please disclose all that information if available or Provide a very
brief summary of the guidance given on the management commentary for the company you select

Important Notes:

1. Each student need to submit a soft copy as well as hard copy of the report..

2. Copying ( copy and pasting) from the annual report is strictly prohibited and will be considered
as 'plagiarism'

Ch 4 - Accounting Policies, Accounting Estimates and Errors- IAS8

Disclosures relating to accounting policies, accounting estimates and errors - IAS8

a. Disclosure of a change in accounting policy

Does the company you choose report any disclosure of a change in accounting policy in its financial
statements and accompanying notes? Explain how a change in accounting policy should be accounted for?

b. Disclosure of changes in accounting estimates

IAS8 requires disclosure of the nature and amount of a change in an accounting estimate.
Does the company you choose report any disclosure of a change in accounting policy? Explain how a
change in estimate should be accounted for?

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 c. Disclosure of prior period errors
IAS8 requires an entity corrects a material prior period, and should be made in the notes to the financial
statements.
Does the company you choose report any disclosure of the amount of the correction at the beginning of
the earliest prior period. List the disclosure required when a material prior period is occurred and how it
is accounted for?

Important Notes:

1. Each student need to submit a soft copy as well as hard copy of the report..

2. Copying ( copy and pasting) from the annual report is strictly prohibited and will be
considered as 'plagiarism'

Assignment Two

Ch 5 - Property, Plant and Equipment- IAS16 and IAS40

1. Disclosures relating to property, plant and equipment- IAS16

The disclosure requirements for each class of property, plant and equipment of IAS16 are very
extensive. For each item below, write a brief description (only a few lines) about :
a. An itemized list about property, and equipments and its related costs.
b. The measurement bases used whether the cost model used or the revaluation model used.
b. The depreciation methods used and the useful lives or depreciation rates used.

1. Disclosure requirements on Measurement of investment property- IAS40

The general disclosure requirements of IAS40 are as follows: whether the entity has adopted the fair value model
or the cost model.

d. In relation to the international standard IAS40 for the measurement of investment property after
its initial recognition, what are the two models permitted by IAS40 and how they differ from
the two models permitted by IAS16 in relation the measurement of property , plant and
equipment . Does the company you choose has an investment property? And what model has been
adopted? (Write a brief description).

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Important Notes:

1. Each student need to submit a soft copy as well as hard copy of the report..

2. Copying ( copy and pasting) from the annual report is strictly prohibited and will be considered
as 'plagiarism'

Ch 6 - Intangible Assets - IAS38

Disclosures relating to intangible assets - IAS38

Does the company you choose report any intangible assets and goodwill in its financial statements
and accompanying notes? Briefly itemized list of each. The disclosures requirement for each class
of intangible assets of IAS38 are very extensive, for each item below, write a brief description
(only few lines ) about :

a. What were the amounts of accumulated amortization reported by your company

for the last two years (at the end of 2017 and 2018? Did the company record
impairments on intangible assets? Explain.
b. For each class of intangible asset, distinguishing between internally generated intangible
assets and other intangible assets.

c. Whether the useful lives are indefinite or finite and, if finite, the useful lives or
amortisation rates used and the amortisation methods used.

d. Explain the accounting treatment required by IAS38 in relation to research and

development expenditures. (Write a brief description whether if there is any research and
development expenditures and how should this expenditure be accounted for in the
company's financial statements?

Important Notes:

1. Each student need to submit a soft copy as well as hard copy of the report..

2. Copying ( copy and pasting) from the annual report is strictly prohibited and will be considered
as 'plagiarism'

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Ch 7 - Impairment of Assets – IAS36

Disclosures relating to impairment of assets - IAS36

Does the company you choose report any impairment of assets in its financial statements and
accompanying notes? Briefly itemized list of each. The disclosure requirements of IAS36 are
extremely extensive. For each item below, write a brief description (only few lines ) about :

a. The amount of impairment losses recognised as expenses during the period and the line items in the
statement of comprehensive income in which these impairment losses are included.

b. The amount of reversals of impairment losses recognised as income during the period and the line items
in the statement of comprehensive income in which these reversals are included.

c. The amount of impairment losses (and reversals) on revalued assets recognised in other comprehensive
income during the period.

D. The recoverable amount of the asset and whether this is its fair value less costs of disposal or its value in
use. Explain how the recoverable amount of an asset is determined?

Important Notes:

1. Each student need to submit a soft copy as well as hard copy of the report..

2. Copying ( copy and pasting) from the annual report is strictly prohibited and will be considered
as 'plagiarism'

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Ch 10 - Inventories – IAS2

Disclosures relating to inventories - IAS2

The main disclosures required by IAS2 are made in the notes which form part of the financial
statements.
For each item below, write a brief description (only few lines ) about :
a. The accounting policies adopted in measuring inventories, including cost formulas.

b. The total carrying amount of inventories (i.e. the amount at which the inventories are shown or
"carried" in the entity's financial statements) together with an analysis into appropriate categories.

c. The amount of inventories recognised as an expense during the period.

d. The amount of any write-down to net realisable value during the period and the amount of any
reversal of previous write-downs.

Important Notes:

3. Each student need to submit a soft copy as well as hard copy of the report..

4. The hard copy is due at the beginning of the next class meeting.

5. Copying ( copy and pasting) from the annual report is strictly prohibited and will be considered
as 'plagiarism'