Lahore University of Management Sciences

ACCT 320- Corporate Financial Reporting II

Fall Semester 201213

Instructor
Room No.
Office Hours

Bilal Zia
th
Room 416 - 4 Floor SDSB Building
TBA

Email

bilal.zia@lums.edu.pk

Telephone
TA
TA Office Hours
Course URL (if any)

8364
TBA
TBA
TBA

Course Basics
Credit Hours
Lecture(s)
Recitation / Lab(per week)
Tutorial (per week)
Course Distribution
Core
Elective
Open for Student Category
Close for Student Category

4
Nbr of Lec(s) Per Week
Nbr of Lec(s) Per Week
Nbr of Lec(s) Per Week

2
N/A
On need basis

Duration
Duration
Duration

One hour and fifty minutes, each.

N/A
N/A

Core

COURSE DESCRIPTION
The course will consist of a series of lectures. You are expected to come to class prepared and participate in the discussions.
Large amounts of materials will be covered quickly and each session builds on previous ones. It is therefore important for you
to remain current and master the basic concepts early in the course in order to grasp the more difficult ones later on in the
course.
Success in mastering financial reporting concepts is greatly enhanced by solving practical problems. You will only benefit from
class discussions if you have first attempted to solve some problems on your own. Do not approach the course with attitude of
memorizing rules or particular solution techniques. We will provide in-class examples and self-study problems that are designed
to help you understand and apply the key concepts. Examination questions will test your understanding of those concepts, but
by posing problems or conceptual questions that differ from those that you have seen before.
COURSE PREREQUISITE(S)
Accounting Courses

Corporate Financial Reporting (CFR) I

Lahore University of Management Sciences

COURSE OBJECTIVES
To apply knowledge, skills and exercise professional judgment in the application and evaluation of financial

reporting principles and practices in the range of business contexts and situations.
Learning Outcomes
On successful completion of this paper, candidates should be able to:

Discuss the professional and ethical duty of the accountant

Evaluate the financial reporting framework
Advice on and report the financial performance of entities
Prepare the financial statements of groups of entities in accordance with relevant accounting
standards
Discuss the implications of changes in accounting regulation on financial reporting
Appraise the financial performance and position of entities
Evaluate current developments

Grading Breakup and Policy

Quizzes(4): (n-1)
Class Participation:
Attendance:
Midterm Examination:
Final Examination:

15%
10%
05%
35%
35%

Examination Detail
Midterm Exam
Yes/No:
Combine/Separate:
Duration:
Preferred Date:
Exam Specifications:

Yes
Combined
3 Hours
TBA
MCQs and Long Questions

Final Exam

Yes/No:
Combine/Separate:
Duration:
Exam Specifications:

Yes
Combined
3 Hours
MCQs and Long Questions

Lahore University of Management Sciences

COURSE OVERVIEW
Week

Topics

Recommended
Readings
IAS 32

Shareholders Equity

Financial InstrumentFinancial Liabilities

IAS 39/IFRS 9

Financial InstrumentFinancial Assets

IAS 39/IFRS 9

Financial InstrumentDisclosure and other

issues

IFRS 7

Leases Accounting
by lessee & lessor

IAS 17

Impairment of assets

IAS 36

Objectives/Applications

Apply and discuss the recognition and de-recognition of financial

assets and financial liabilities.
Apply and discuss the classification of financial assets and
financial liabilities and their measurement.
Apply and discuss the treatment of gains and losses arising on
financial assets and financial liabilities.
Apply and discuss the treatment of impairments of financial
assets.
Account for derivative financial instruments, and simple
embedded derivatives.
Outline the principles of hedge accounting and account for fair
value hedges and cash flow hedges including
Hedge Effectiveness.
Apply and discuss the classification of leases and accounting for
leases by lessees & lessors.
Accounting for and discuss sale and leaseback transaction.
Define an impairment loss.
Identify the circumstances that may indicate impairments to
assets.
Describe what is meant by a cash generating unit.
State the basis on which impairment losses
should be allocated, and allocate an impairment loss to the
assets of a cash generating unit.

Agriculture Assets

IAS 41

Revision and Mid

Term
Earnings Per Share

Initial recognition, measurement and disposal of agricultural

assets and their reporting

IAS 33

Calculate the earnings per share (EPS) in accordance with relevant

accounting standards (dealing with bonus issues, full market value
issues and right issues).
Explain the relevance of diluted EPS and calculate the diluted EPS
involving convertible debt and share options (warrants).
Explain why the trend of EPS may be a more accurate indicator of
performance than a companys profit and the importance of EPS
as a stock market indicator.
Discuss the limitations of using EPS as a performance measure.
Outline and apply the translation of foreign currency amounts
and transactions into the functional currency and the
presentation currency.
Account for the consolidation of foreign operations and their
disposal.
Describe the principle objectives of establishing a standard for
enterprise reporting in the currency of a hyper-inflationary
economy.
Apply and discuss the accounting events after the balance sheet
date.
Determine and report going concern issues arising after the
balance sheet date.

10

The Effects of
Changes in Foreign
Exchange Rates

IAS 21

11

Changes in
Accounting policies
and fundamental
errors

IAS 8

Lahore University of Management Sciences

12

Interim financial
statements, disposal
of assets and sundry

IAS 34, IFRS 5

Introduction to interim financial statements

Legal and business need for use of interim financials
Effect of assets held for disposal on financial analysis

13

Company Taxation

IAS 12

Computation of current taxation

Computation of deferred taxation
Analysis of company tax expense via tax charge reconciliation

14

Contemporary issues
in accounting and
Revision

IFRS 10-IFRS 13

Recent changes being taken place in IFRS

Specific issues in relation to the alignment of US GAAP and IFRS

Textbook(s)/Supplementary Readings
Recommended Textbook

International Financial Reporting Standards (IFRS)

Intermediate Accounting, Updated third edition by Spiceland, Sepe and Tomassini