DEPARTMENT OF FINANCE AND ACCOUNTING

INTERMEDIATE FINANCIAL ACCOUNTING

i) Course title : Intermediate Financial Accounting

Course code : ACCN201
Contact hours : 60 hours per semester

ii) Purpose of the course

The main objective of the course is to build on knowledge obtained in Introductory
Financial Accounting and gain an understanding of more advanced topics in this
subject. A key aspect of the course is the preparation of the financial statements of
limited liability companies in accordance with the requirements of the International
Accounting Standards (IAS) and International Financial Reporting Standards (IFRS)
and applicable laws of Zimbabwe.

The course is part of the Bachelor of Science Accounting and Finance (Honours)
Level 2 curriculum. The major benefits for the students are that they will be in a
position to make an important contribution to the requirements of their employers
when they go for their industrial attachment during the third year of their studies.

iii) Aims of the course

 To provide continuity with the Introductory Financial Accounting course.
 To examine a working knowledge of examinable IAS and IFRS at this level
 To develop an interest in and understanding of more advanced applications
of financial accounting in the formal sector of the economy.

Financial accounting is a part of an organisation’s overall management information

system. This course is therefore related to other disciplines like Management
Accounting and Corporate Finance.

iv) Objectives (intended learning outcomes )

By the end of the course, students should be able to:
 Define, recognise and measure the elements from which financial
statements are drawn up in a variety of situations.

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  Prepare financial statements which meet the requirements of the
Conceptual Framework for Financial Reporting, IAS 1 Presentation of
Financial Statements and a selection of other IAS and IFRS.
 Account for varied components of non-current assets and current assets.
 Account for share capital and other components of equity.
 Account for provisions, contingent liabilities and contingent assets.
 Account for revenue , income and value added taxes
 Account for payroll related deductions, like pension PAYE

Indicative students’ performance levels

All diligent students will be able to pass this course. Very good grades will be
obtained by hardworking students, and those who have a natural flair for the
subject. Students will not pass the course if they rely only on class tutorial exercises
or information in their notes.

v) Course content (and content time frames)

The course consists of both theory and practice, based on ideas and facts
accumulated over many centuries and developed through the efforts of local and
international professional accounting bodies as well as regulatory authorities. The
content should enable students to hold junior accounting positions in the private
and public sectors. The context is determined by the lecturer’s own knowledge and
experience, further study and research by the lecturer on topical issues and
consulting experts in industry and commerce. Through internet–based research and
other information sources, the course will be periodically reviewed and updated to
ensure that it continues to be relevant to the needs of students, potential employers
and the country as a whole. The lecturer’s teaching methodology will be improved
by undertaking his own research, publishing study guides and other teaching
materials and reviewing materials used and examinations set by colleagues at other
institutions. External examiner’s reports will be reviewed to identify areas of
improvement in setting and marking examinations. The topics in the course outline
are deliberately kept few to insure a thorough study of the related concepts and
themes.

vi) Methods /strategies of Teaching

The basic delivery mode will be face-to-face lectures. Students are strongly
encouraged to attend all lectures, because this is where they get the basic
introduction to all the topics. Some exercises are undertaken in class, depending on
the nature of the topic and the level of difficulty. Students are also required to

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 attend tutorials which will give them additional practice and enhance their
knowledge of the subject. Tutorials are also a platform for students to clear areas of
difficulties with the lecturer/tutor or their colleagues. Since accounting is a practical
subject, there is a lot of emphasis on active learning during lectures and tutorials.
Attempts will also be made to minimize monotony by utilizing a variety of delivery
approaches e.g. use of electronic boards, power point presentations by the lecturer
and group presentations by the students.

vii) Student assessment

Continuous assessments during each of the two semesters will take the form of tests
and quizzes accounting for 30% of the coursework marks and two or more
assignments and class exercises accounting for the remaining 20%. The final
examination at the end of each semester will consist of a single 4-hour paper.
Students will be expected to give feedback on the course and the lecturer’s
performance, while peer evaluation and the departmental chairperson’s evaluation
will also be used to improve the lecturer’s performance in future semesters.

Detailed Course Outline

Semester One
1 Conversion of partnerships into private liability companies
2 Introduction to limited liability companies
3 Issue and redemption of shares
4 Property plant and equipment (IAS 16 and IAS 36)
5 Financial instruments (IFRS7 and IFRS9)
6 Revenue (IFRS 15)
7 Income taxes (IAS 12)
8 First time adoption of IFRS (IFRS1)
9 Accounting policies, changes in accounting estimates and errors (IAS 8)
10 Provisions, contingent liabilities and contingent assets IAS 37

Semester Two

1 Value Added Tax

2 Payroll deductions
3 Accounting for agriculture (IAS 41)
4 Fair value measurement (IFRS 13)
5 Accounting for investment property (IAS 40)

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6 Accounting for construction contracts (IFRS 15)
7 Accounting for operating segments (IFRS 8)
8 Accounting for hire purchase agreements and leases (IFRS 16)
9 Statement of cash flows (IAS 7)

ESSENTIAL READING MATERIAL

KOPPESCHAAR, Z.R. et al Introduction to IFRS

5th edition Lexis/Nexis Durban 2013

MIRZA A A and HOLT G.J Practical Implementation Guide and Workbook for

IFRS latest edition Wiley

WOOD F AND SANGSTER Business Accounting latest edition

Prentice Hall

VON WEL, R. GAAP Handbook 2014 Volume 1 & 2

PRETORIUS, D Financial Accounting & Reporting Practice
FERREIRA, PH Lexis/Nexis Durban 2014

PARADZA P.M. Financial Accounting 2

IAC(Z) study pack (latest)
GOVERNMENT OF ZIMBABWE Value Added Tax Chapter 23-12
ELECTRONIC RESOURCES

IFRS Home http://www.ifrs.org/IFRSs/Pages/IFRS.aspx

Website of the IFRS Foundation and the IASB
Standards and their technical summaries

DeloitteIASPlus
www.iasplus.com/en/standards
Summaries, analysis, history and resources for
- International Financial Reporting Standards (IFRS)
- International Accounting Standards (IAS)
- IFRIC Interpretations
- SIC Interpretations - Other pronouncements