BS351: Financial Reporting

Learning Objectives
1. This course is designed to serve the needs of Modern Accounting Principles, Procedures and
Methods that are applied in preparation and presentation of financial statements, and the proper
uses that can be made of financial data.
2. This course will have different relationships with the requirements of the various Professional
Accountancy Bodies like ICAP, ICMAP, PIPFA and other significant universities in Pakistan.
3. This course will enable students learn some advanced Accounting Treatments and Techniques
pertaining to Corporate Sector including Banking Corporations and Specialized
Ventures/Mechanisms including Construction Contracts and Leases
Learning Outcomes
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.
Contents

Week Topics to cover

Week 1 Unit1: Conceptual Framework
 The regulatory framework: The International Accounting Standard Board
(IASB, Setting of International Financial Reporting Standards

Week 2  The Conceptual Framework: Conceptual Framework and GAAP, The

IASB’s Conceptual Framework, Qualitative Characteristics of Financial
Statements, The elements of Financial Statements

Week 3  The Security Exchange Commission of Pakistan (SECP) and regulatory

requirements for Financial Reporting.
 Company Act 2017: Relevant articles for Reports & Financial Statements
Sections 223-239

Week 4 Unit 2: Company final accounts, and special treatments

 SINGLE COMPANY FINANCIAL ACCOUNTS:
 IAS 1 (Revised) Presentation of Financial statements

Week 5  General Features, Structure and Detail Contents

 Preparation of Financial Statements

Week 6  IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

 IAS 24 Related Part Disclosures

Week 7 Unit 3: Cash flow statement, and statement of changes in equity, and
notes
 Statements of Cash Flows
 IAS 7 Statement of Cash Flow
  Preparing a Statement of Cash Flow

Week 8 Mid Term

Week 9 Unit4: Statement of Changes in Shareholder’s Equity
 Preparation of Statement of changes in shareholder’s Equity
 Items to be treated though income statement
 Direct changes
 Classification of items
 Closing balances calculation
Week 10 Unit 5: IAS-16-Accounting for Non-Current Assets (NCS)
 Accounting for non-current assets
 IAS 16 Property, Plant and Equipment
 Scope and definitions o Cost of NCA

Week 11  Cost model

 Disposal of NCA
 Exchange of NCA
Week 12  Revaluation model
 Different movements in Revaluation.
 Excess depreciation.
 Disposal of Revalued Assets
Week 13 Unit 6: IAS 2- Inventories:
 IAS 2 Inventories
 Definitions
 Measurement of Inventories
 Inventory Valuation Method
 Net Realizable Value
 Recognition as an Expense
 Disclosures
Week 14 IAS 12- Income taxes
 IAS 12 definition, scope
 Current Tax
 Deferred Tax
 Taxation in Company Accounts
 Presentation and Disclosure of Taxation
Week 15
IFRS 15-Revenue from Contracts:
 Five steps of Revenue Recognition.
 Construction contacts.

Leases (w.r.t. IFRS 16)

 Characteristics of Leases
 IFRS 16 Lease
 Operating leases
 Finance leases
Week 16
Final Exam

Recommended Readings:
1. Gripping IFRS Pakistan Edition (Latest) by LexisNexis, Durban, South Africa & ICAP Pakistan
2. Barry Elliott, Jamie Elliott 2017 Financial Accounting and Reporting 18th Edition, . Mr
Barry Elliott, Consultant. ©2017 |Pearson |.
3. Kieso, Weygandt, and Warfield. (2021) Intermediate Accounting, 17th Edition Wiley higher
education
3 ACCA Paper F7 Financial Reporting Study text for Exams in September 2016, December 2016,
March 2017 and June 2017