Addis Ababa University

College of Business and Economics

Department of Accounting & Finance

MSC in International Business

Course Title: Global Financial and Managerial Accounting
Course Code:ACFN 6021
ECTS 5
 I Description of Module:
This course provides an introduction to both global financial (IFRS) and global
managerial (GMAP) accounting in general and Ethiopian context in particular. It
emphasizes the analysis and evaluation of accounting information from the
perspective of both investors and managers in the process of planning, decision-
making and control. The course focuses on the nature and role of accounting
information including Data Analytics in Accounting: Artificial intelligence, cloud-
based systems, and robotic process automation; basic financial statements; the
accounting cycle; plant & intangible assets; financial statements analysis & Financial
Reporting Proclamation No. 847/2014 & Regulation No. 332/2014; introduction to
management accounting & Global Management Accounting Principles issued by the
CGMA; cost-volume-profit analysis, and incremental analysis.
 II Learning Outcomes
[a] Financial Accounting
Course General Objectives: This is the first course/module of two in the area of Global
Financial and Managerial Accounting. The aim of the course is to introduce students to the
theory and practice of global financial accounting. This area of accounting deals with the
reporting of information to external users of financial statements. From the perspective of
theory, emphasis is placed on establishing who these users are and what their needs are. The
course includes a discussion not only of the actual content of accounting standards but also
what that content ought to be or might be. Attention is also paid to who sets accounting rules
and by what processes.
From a practical perspective, the aim of the course is to show students how to make the
judgments, assess recognition and measurement of financial elements that are required by
theory or by regulation and also how to communicate, by way of written reports, the results
and implications of these calculations.
 Course Specific objectives: On successful completion of this part of
course, students should be able to demonstrate that they:

1.Identify the general problems of income measurement, asset valuation and

appreciate the problems created by changing price levels.
2.Able to discuss emerging financial accounting issues
3.Explain and apply the accounting recognition and measurement concepts
which underpin the International Accounting Standard accounting framework
4.Understand the procedures used to record financial transactions through
double-entry bookkeeping and generate financial statements from a trial
balance and understand control accounts, error detection and correction
5.Apply ratio analysis and other techniques to the interpretation of the financial
statements of listed companies
 Discipline Specific objectives: On successful completion of this course, students will be able to:

1.Appreciate in broad general terms the differences between corporate financial reporting
based on International Financial Reporting Standards on the one hand and GAAP of USA and
Ethiopian on the other;  
2.Apply accounting principles, concepts and conventions in practical situations
3.Aggregate accounting data for companies into meaningful statements, and comment
on the information to diverse user groups
4.Demonstrate an ability to appreciate the subjectivity of accounting
5.Appreciate the role of regulation and understand who in Ethiopia makes the rules and
by what processes.
 [b] Management Accounting
General Objective: This part of course aims to give students a thorough grasp of the major
techniques of modern management accounting and instill an appreciation of the theoretical
underpinnings of these practices.
Course Specific objectives: On successful completion of this part of course, students will be able
to:
1.Appreciate the importance of organizational goals in the choice and design of management
accounting information systems.
2.Understand the concepts of cost and value of information
3.Understand the mechanics of, uses of, and arguments relating to marginal, and activity based
costing methods.
4.Apply techniques to estimate and predict costs, including the use of relevant computerized
software. Evaluate the relevance of costs in the decision process.
5.Understand the role of budgeting in the planning, control and resource allocation process.
Prepare budgets, making use of spreadsheet software.
 Discipline Specific objectives: This part of course will develop in students the ability to:
1.Apply management accounting concepts and practices to analyze business problems and recommend
courses of action.
2.Identify and present appropriate information to assist management with controlling the business and
taking financial decisions.
3.Demonstrate critical appreciation of the usefulness or otherwise of management accounting techniques.
4.Use relevant databases, existing research literature and techniques to conduct a detailed investigation
of problems arising from organizations’ management accounting information.
Personal and Key Skills: This course will develop in students the ability to:
5.Demonstrate well-developed accounting and arithmetic skills
6.Able to prepare financial reports by using information technology for information retrieval, numerical
analysis and reporting
7.Basic written communication skills
8.Problem solving skill
9.Undertake independent and group study and manage their time
III Content Areas:
1: ACCOUNTING: INFORMATION FOR DECISION MAKING
• Accounting information: a means to an end
• Financial accounting information, Management accounting information
• Data Analytics in Accounting: Artificial intelligence, cloud-based systems, and robotic
process automation; basic financial statements
• Integrity of accounting information
• Overview on IAS/IFRS issued by IFRSB/IASB
• Overview on Financial Reporting Proclamation No. 847/2014 & Regulation No. 332/2014
and Accounting and Audit Board of Ethiopia.
• Ethics in Accounting (www.aabe.gov.et) and International Code of Ethics for Professional
Accountants issued by International Ethics Standard Board for Accountants 2021
• Ethiopian Code of Ethics for professional Accountants by the OFAG
• Some Articles on Accounting & cases on Ethics
2: BASIC FINANCIAL STATEMENTS (IFRS)
• Introduction to financial statements
• A starting point: statement of financial position
• The income statement
• The statement of change in equity
• The statement of cash flows
• Relationships among financial statements
• Forms of business organization in general and Ethiopian context
3: THE ACCOUNTING CYCLE
• Capturing Economic Events, Accruals and Deferrals
• Reporting Financial Results

4: FINANCIAL STATEMENT ANALYSIS

•  Objectives of financial statement analysis
• Tools of analysis
• Measures of liquidity and credit risk
• Measures of profitability
5: INTRODUCTION TO MANAGEMENT ACCOUNTING

•  Management accounting: basic framework

• Global Management Accounting Principles issued by the CGMA
• Accounting for manufacturing operations
• Classifications of manufacturing costs
• Product costs versus period costs
• Product costs and the matching principle
• The flow of costs parallels the flow of physical goods
• Direct materials, Direct labor , Manufacturing overhead
• Recording overhead costs
• Direct and indirect manufacturing costs
• Work in process inventory, finished goods inventory, and the cost of goods sold
• Determining the cost of finished goods manufactured
6: COSTING SYSTEMS
• Job Order Costing
• Process Costing
• Activity Based Costing

 7: COST-VOLUME-PROFIT ANALYSIS

•  Cost-volume relationships
• Cost behavior and operating income
• Cost-volume-profit analysis
• Preparing and using a cost-volume-profit graph
• Summary of basic cost-volume-profit relationships
8: INCREMENTAL ANALYSIS
• The challenge of changing markets
• The concept of relevant cost information
• Incremental analysis in common business decisions
• Special order decisions
• Production constraint decisions
• Make or buy decisions
• Sell, scrap, or rebuild decisions
• Joint product decisions
 IV Schedule of Delivery
 
• lecture sessions of two hours each on the content areas and discussion
(40%);

• Independent/self learning (40%) of the course session: students complete

individual/ group projects and presentation in class in two/three weeks;

• Collaborative learning (20%) students undertake group discussion based on

group assignments and presentation in class in two/three weeks.
• Assessment and Evaluation
• The final grade is based on total points accumulated from the following
categories:
[1] Collaborate Project based on course outline:
Report on IAS/IFRS based on Practice in Ethiopia 30 %
[2] Quizzes:
Quiz # 1= 20%
[3] Final Exam: 50 %
Total Points 100 %
Collaborate Project

•  Collaborate Project: Accounting Practice in Ethiopia IAS/IFRS based Empirical Report: Individual student
or a group of four students (depending upon the number of students in class for this course) will be
required to choose an organization/s based on the course outline to write its real accounting & financial
reporting practice in Ethiopia and compare & contrast with IAS/IFRS, then discuss critically the need for
international accounting harmonization and assess the success of the attempts at international
harmonization and standardization that have been made up to the present time including the need of
Ethiopia to move to IAS/IFRS in line with Financial Reporting Proclamation Number 847/2014 and
Regulation Number 332/2014, then submit the final draft to the instructor prior to 10th session i.e. on or
before December 15, 2021.
• Each group will be given 30 minutes for presenting their project paper. The class presentation will start
from 10th session.
• Collaborate Project: The size of paper should be maximum of 20 pages of 1.5 space with appropriate
footnote disclosure. The paper should be a professional work product and will be graded based on form,
grammar, content and technical merit. All members of each study group will get the same mark based
upon the group presentation and report. Further details about the paper will be discussed as the semester
progresses.