Lahore University of Management Sciences

ACCT 220 – Corporate Financial Reporting

Fall 2020
Instructors Samia Ali
Room No. TBA
Office Hours TBA
Email samia.ali@lums.edu.pk
Telephone
Secretary/TA Bushra Kanwal
Email Bushra.kanwal@lums.edu.pk
TA Office Hours TBA
Course URL (if any) http://suraj.lums.edu.pk/~pco/

Course Teaching Methodology

• Teaching Methodology: Blend of synchronous & asynchronous.
• Lecture details: 80% live interaction lectures

COURSE BASICS
Credit Hours 3
Lecture(s) 2 Duration 75 minutes
Recitation/Lab (per week) On need basis Duration On need basis
Tutorial (per week) On need basis Duration On need basis

COURSE DISTRIBUTION
Core Core
Elective
Open for Student Category
Close for Student Category

COURSE DESCRIPTION

The course builds on your knowledge of accounting theory and techniques as used to record, process, and report financial
information.

While some emphasis is placed on analysis, interpretation, and use of accounting data for investing, credit, and management
decisions, the reporting function of accounting to external users (investors and creditors) will be stressed. The course will
focus on the Asset side of the Balance Sheet, covering some elements of the Liabilities / Equity side and the Income Statement.
This course will build the base for more complex reporting issues which will be covered in CFR 2.

Please note that this course is a building block for the financial reporting issues encountered in daily professional life and will
partially serve the purpose of preparing students for professional exams (Reporting).
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COURSE PREREQUISITE(S)

• ACCT 100 Principles of Financial Accounting

COURSE OBJECTIVES & LEARNING OUTCOMES

Upon successful completion of the course, students should be able to:

1. Describe the purpose of Financial Reporting

2. Discuss and apply the conceptual framework for Financial Reporting.
3. Apply main reporting requirements of International Financial Reporting Standards (IFRS) to assets and revenue
financial statement line items.
4. Identify presentation and disclosure requirements within real financial statements

UNDERGRADUATE PROGRAM LEARNING GOALS & OBJECTIVES

General Learning Goals & Objectives

Goal 1 –Effective Written and Oral Communication

Objective: Students will demonstrate effective writing and oral communication skills
Goal 2 –Ethical Understanding and Reasoning
Objective: Students will demonstrate that they are able to identify and address ethical issues in an organizational
context.
Goal 3 – Analytical Thinking and Problem-Solving Skills
Objective: Students will demonstrate that they are able to identify key problems and generate viable solutions.
Goal 4 – Application of Information Technology
Objective: Students will demonstrate that they are able to use current technologies in business and management
context.
Goal 5 – Teamwork in Diverse and Multicultural Environments
Objective: Students will demonstrate that they are able to work effectively in diverse environments.
Goal 6 – Understanding Organizational Ecosystems
Objective: Students will demonstrate that they understand Economic, Political, Regulatory, Legal, Technological,
and Social environment of organizations.

Major Specific Learning Goals & Objectives

Goal 7 (a) – Discipline Specific Knowledge and Understanding

Objective: Students will demonstrate knowledge of key business disciplines and how they interact including
application to real world situations (including subject knowledge).
Goal 7 (b) – Understanding the “science” behind the decision-making process (for MGS Majors)
Objective: Students will demonstrate ability to analyze a business problem, design and apply appropriate
decision-support tools, interpret results and make meaningful recommendations to support the decision-maker
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Indicate below how the course learning objectives specifically relate to any program learning goals and objectives.

MAPPING OF OBJECTIVES
PROGRAM LEARNING GOALS
AND OBJECTIVES
Goal 1 –Effective Written and Oral
Communication
COURSE LEARNING OBJECTIVES COURSE ASSESSMENT ITEM
Students get a number of opportunities to CP, Quizzes, Project and Exams
demonstrate their ability to communicate
effectively

Goal 2 –Ethical Understanding and
Reasoning
Goal 3 – Analytical Thinking and
Problem-Solving Skills
Goal 4 – Application of Information
Technology
Goal 5 – Teamwork in Diverse and
Multicultural Environments
Ethical perspectives in some of the case studies CP, Quizzes, Project and Exams
are highlighted
Major Goal: Analytical thinking and problem- CP, Quizzes, Project and Exams
solving skills are essential for success in this
course
Introduction and Use of e-learning software Visiting Faculty Experts
Discussion and debate thereon of diverse topics in CP and Project
classroom will allow this objective to be met.

Goal 6 – Understanding
Organizational Ecosystems
Goal 7 (a) – Discipline Specific
Knowledge and Understanding
(Subject Knowledge)
Goal 7 (b) – Understanding the
“science” behind the decision-
making process
Develop students understanding of the CP, Project and Visiting Faculty
interaction of firm specific variables with the Experts
securities markets, industry, and the economy
Major Goal: Comprehensive coverage of topics in CP, Quizzes, Project and Exams
CFR 1
N/A N/A

GRADING BREAKUP AND POLICY

Class Participation: 10%

Quizzes (Short & Long quizzes) 60%
Final Exam 30%

Course Instructions:
While attendance is not graded, it is important to note that the course structure is integrated and missing a class will have a
negative impact on understanding of concepts and performance.
As accounting is problem oriented, doing the assigned readings on a timely basis is a necessity. Exam performance is directly
related to systematic preparation, which includes after class practice. This course moves very quickly so it is imperative that you do
not fall behind. Working on practice problems with other students can be useful. This will also be done in class but will only work if
students come prepared to class.
Quizzes will be a combination of short and long quizzes. There will be a total of 4 long announced quizzes (1 lowest quiz will be
dropped). There will be a higher number of short quizzes which may vary depending on how the course progresses. The number of
short quizzes to be dropped will be decided at the end of the semester.
Based on how the course progresses, there might be minor changes in the chapters / topics covered.
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EXAMINATION DETAIL

Yes/No: Yes
Combine/Separate: TBA
Quizzes
Duration: TBA
Preferred Date: TBA
Exam Specifications: TBA

Yes/No: No
Combine/Separate: N/A
Midterm
Duration: N/A
Exam
Preferred Date: N/A
Exam Specifications: N/A

Yes/No: Yes
Combine Separate: Combined
Final Exam
Duration: 3 hours
Exam Specifications: TBA

Lectures Chapter: Title /

Topic / IAS or SESSION OBJECTIVES
IFRS
1 Course Outline 1. Introduction to the course and its placement in the program
2. Brief run through of the Course Outline & class norms
Chapter 1: 3. Introduction to the instructors and the course structure
Financial 4. Describe the growing importance of global financial markets and its relation to financial
Reporting and reporting
Accounting 5. Explain the objective of financial reporting
Standards 6. Explain how accounting assists in the efficient use of scarce resources
7. Explain the need for high-quality standards
8. Identify the major policy-setting bodies and their role in the standard-setting process
9. Describe the challenges facing financial reporting
2-3 Chapter 2: 1. Describe the usefulness of a conceptual framework.
Conceptual 2 Identify the qualitative characteristics of accounting information.
Framework for 3. Define the basic elements of financial statements.
Financial 4. Describe the basic assumptions of accounting.
Reporting 5. Explain the application of the basic principles of accounting.
6. Describe the impact that the cost constraint has on reporting accounting information.
4 Chapter 4 – 1. Understand the uses and limitations of an income statement
Income Statement 2. Describe the content and format of the income statement
and Related 3. Explain how to report items in the income statement
Information 4. Understand the reporting of accounting changes and errors.
5. Describe related equity statements
6. Explain how to report other comprehensive income.
Students to revise the purpose and format of the Income Statement before class. There will
be a short quiz on this.
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Lectures Chapter: Title /
Topic / IAS or SESSION OBJECTIVES
IFRS
5 Quiz 1 Quiz 1
6 Chapter 8: 1. Identify major classifications of inventory (revision)
Valuation of 2. Distinguish between perpetual and periodic inventory systems (revision)
Inventories 3. Determine the goods included in inventory and the effects of inventory errors on the financial
statements (revision)
4. Understand the items to include as inventory cost (revision)
5. Describe and compare the methods used to price inventories (revision)
6. Describe and apply the lower-of-cost-or-net realizable value rule (focus area)
Chapter 9: 7. Explain when companies value inventories at net realizable value (focus area)
Additional 8. Explain when companies use the relative standalone sales value method to value inventories
Valuation Issues (focus area)
9. Determine ending inventory by applying the gross profit method. (focus area)
10. Explain how to report and analyse inventory (focus area)
Students have covered the objectives marked as revision above in POFA. They are
expected to revise these before coming to class and there will be a short quiz on
these objectives.

7 to 9 Chapter 10: 1. Describe property, plant, and equipment (revision)

Acquisition and 2. Identify the costs to include in the initial valuation of property, plant, and equipment (revision)
Disposal PPE 3. Describe the accounting problems associated with self-constructed assets (focus area)
4. Describe the accounting problems associated with interest capitalization (focus area)
5. Understand accounting issues related to acquiring and valuing plant assets (focus area)
6. Describe the accounting treatment for costs subsequent to acquisition (focus area)
7. Describe the accounting treatment for the disposal of property, plant, and equipment (revision)
8. Define and account for non-current assets held for sale and discontinued operations (focus)
Students have covered the objectives marked as revision above in POFA. They are
expected to revise these before coming to class and there will be a short quiz on
these objectives.
10-11 Chapter 11: 1. Explain the concept of depreciation (revision)
Depreciation & 2. Identify the factors involved in the depreciation process (revision)
Impairment 3. Compare activity, straight-line, and diminishing-charge methods of depreciation (revision)
4. Explain component depreciation (focus area)
5. Explain the accounting issues related to asset impairment (focus area)
6. Explain the accounting for revaluations (focus area)
7. Explain how to report property, plant & equipment (focus area)
8. Overview of investment properties and their accounting treatment
9. Distinguish between investment properties and property, plant and equipment
10. A brief review of investment property
Students have covered the objectives marked as revision above in POFA. They are
expected to revise these before coming to class and there will be a short quiz on
these objectives.

12 Quiz 2 Quiz 2
13 - 14 Chapter 12: 1. Describe the characteristics of intangible assets
Intangible Assets 2. Identify the costs to include in the initial valuation of intangible assets
3. Explain the procedure for amortizing intangible assets
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Lectures Chapter: Title /
Topic / IAS or SESSION OBJECTIVES
IFRS
4. Describe the types of intangible assets.
5. Explain the accounting issues for recording goodwill
6. Explain the accounting issues related to intangible asset impairments
7. Identify the conceptual issues related to research and development costs
8. Describe the accounting for research and development costs
9. Indicate the presentation of intangible assets and related items
15-16 Chapter 13: 1. Describe the nature, type, and valuation of current liabilities
Current Liabilities, 2. Explain the accounting for different types of provisions
Provisions and 3. Identify the criteria used to account for and disclose contingent liabilities and assets.
Contingencies 4. Indicate how to present liability-related information

17 Quiz 3 Quiz 3
18 -22 Chapter 18: 1. Understand revenue recognition issues
Revenue 2. Identify the five steps in the revenue recognition process
Recognition (IFRS 3. Identify the contract with customers
15) 4. Identify the separate performance obligations in the contract
5. Determine the transaction price
6. Allocate the transaction price to the separate performance obligations
7. Recognize revenue when the company satisfies its performance obligation
8. Identify other revenue recognition issues
9. Describe presentation and disclosure regarding revenue
*10. Apply the percentage-of-completion method for long-term contracts
*11. Apply the cost-recovery method for long-term contracts
*12. Identify the proper accounting for losses on long-term contracts
*13. Explain revenue recognition for franchises
23-24 Chapter 17: 1. Describe the accounting framework for financial assets
Investments 2. Understand the accounting for debt investments at amortized cost
3. Understand the accounting for debt investments at fair value
4. Describe the accounting for the fair value option
5. Understand the accounting for equity investments at fair value
6. Explain the equity method of accounting and compare it to the fair value method for equity
investments
7. Discuss the accounting for impairments of debt investments
8. Describe the accounting for transfer of investments between categories
25 Quiz 4 Quiz 4
26 Related Party 1. Discuss the disclosure requirements for related-party transactions
Transactions & 2. Describe the accounting problems associated with interim reporting
Interim Reporting
Exam Final Exam Final Exam
Week

TEXTBOOK(S)/SUPPLEMENTARY READINGS
Recommended Textbook:
▪ Intermediate Accounting, 2nd edition, Kieso, Weygandt, Warfield.
Supplementary Material:
▪ IAS/IFRS Text
▪ Further material provided during course progress.