COURSE OUTLINE Subject: Financial Reporting y This course is designed to serve the needs of modern accounting principles, procedures

and methods that are applied in preparations of financial statements and the proper uses that can be made of financial data. This course will have different relationships with the requirements of the various professional accountancy bodies like ICAP, ICMAP, PIPFA and other universities in Pakistan. The course requires students to study how the design, operation and validation of accounting systems affects, and is affected by, individuals, organizations, markets and society. As indicated above, accounting is often studied in combination with a substantial amount of finance. Under such circumstances, the degree structure should also require the study of the operation and design of financial systems, risk, financial structures, and financial instruments. The objectives of financial reporting are to provide y Information that is useful in investment and credit decisions, y Information that is useful in assessing cash flow prospects, and y Information about enterprise resources claims to those resources, and changes in them. Course Contents: Topic Introductory matters y Preface of International Accounting Standards (IAS) y The IASBs framework and objectives of financial statements International financial reporting standards (IFRS-1) y First time adoption of international financial reporting standards Income statement and related information y Format of Income statement y Reporting Irregular issues y Special Reporting issues Revenue recognition y The current environment y Revenue recognition at point of sale(Delivery) 1. Sale with payback agreement 2. Sales when right of return exist 3. Trade loading and Channel stuffing y Revenue recognition before delivery 1. Percentage of completion method 2. Completed contract method 3. Long term contract losses 4. Disclosure in financial statement 5. Completion of production basis y Revenue recognition before delivery 1. Installment sales method 2. Cost recovery method 3. Deposit Method y Revenue recognition for special sales transactions Balance sheet issues y Classification in the balance sheet Book, Chapter Book 2, Ch.I, Ch II Book 2, IFRS-1 Book 1, Ch.4

y y

Lecture 1-3

4-7

8-9

10-14

Book 1, Ch.18

15-16

Book 1, Ch.5

17-19

20-22

23-25

26-28

29-31

32-35

36-40

41-45

y Additional information reported y Techniques of disclosure Cash flow statement y Content and format of statement of cash flow y Preparation and usefulness of statement of cash flow Additional valuation issues of Inventory y Lower of cost or market y Valuation basis y The gross profit method Assets: y Depreciation, y Impairments y Depletion y Intangibles Long term liabilities y Long term notes payable y Reporting and analysis of long term debt y Accounting for troubled debt Investments y Investment in debt securities y Investment in equity securities y Other reporting issues Accounting for income tax y Fundamentals of accounting for income tax y Accounting for net operating losses y Financial statement presentation Accounting changes and error analysis y Changes in accounting estimate y Changes in accounting principle y Reporting a change in entity Error Analysis y Income statement error y Balance sheet error y Preparation of financial statements with error correction y Changes from or to the equity method Full Discloser in financial reporting y Full disclosure principle y Notes to the financial statements y Disclosure issues y Current reporting issues Recommended Texts

Book 1, Ch.5, Ch 23 Book 1, Ch.8, 9

Book 1, Ch.10, 11, 12

Book 1, Ch. 14

Book 1, Ch.17

Book 1, Ch.19

Book 1, Ch.22

Book 1, Ch.25

1. Kieso, Weygandt, and Warfield ()Intermediate Accounting, 12th Edition Wiley higher education. 2. Muhammad Maqbool M.Com. FCA, ICAP, (2005) Accounting Standards & Financial Reporting, Technical Reference Manual, Volume-I PBP professional education.