Course Code Credit
ADVANCED ACCOUNTING-II 3
COM-402 Hours
Pre- Requisite Advanced Accounting-I Semester IV
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
Objectives 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.
To provide information that is useful in investment and credit
decisions,
To provide information that is useful in assessing cash flow
prospects, and
To provide information about enterprise resources claims to those
resources, and changes in them.
OUTLINE
Introductory matters
Preface of International Accounting Standards (IAS)
The IASB‘s framework and objectives of financial statements
International financial reporting standards (IFRS 1 First-Time Adoption on International
Financial Reporting Standard)
First time adoption of international financial reporting standards Income statement and
related information
Format of Income statement
Reporting Irregular issues
Special Reporting issues
IFRS-5 Non Current Assets held for sale and discontinued operation
Revenue recognition (IAS-18)
The current environment
Revenue recognition at point of sale(Delivery)
Sale with payback agreement
Sales when right of return exist
Revenue recognition before delivery
Percentage of completion method
Completed contract method
Long term contract losses
Disclosure in financial statement
Completion of production basis
Revenue recognition before delivery
Installment sales method
Cost recovery method
Deposit Method
Revenue recognition for special sales transactions
Balance sheet issues
Classification in the balance sheet
Additional information reported
Techniques of disclosure
Cash flow statement
Content and format of statement of cash flow
Preparation and usefulness of statement of cash flow
IAS-7 for cash flow statement
Additional valuation issues of Inventory IAS-2
Lower of cost or market
Valuation basis
The gross profit method
Assets
Depreciation,
Impairments
Depletion
Intangibles
IAS-16, Property Plant and Equipment
IAS_38, Intangible Assets
Long term liabilities
Long term notes payable
Reporting and analysis of long term debt
Accounting for troubled debt
IAS-23
Stockholders‘ Equity
Identify the key components of stockholders‘ equity.
Describe the accounting for treasury stock.
Explain the accounting for and reporting of preferred stock.
Describe the policies used in distributing dividends.
Indicate how to present and analyze stockholders‘ equity.
Dilutive Securities and Earnings Per Share
Describe the accounting for the issuance, conversion, and retirement of convertible
securities.
Explain the accounting for convertible preferred stock.
Contrast the accounting for stock warrants and for stock warrants issued with other
securities.
Describe the accounting for stock compensation plans under generally accepted
accounting principles.
Discuss the controversy involving stock compensation plans.
Compute earnings per share in a simple capital structure.
Compute earnings per share in a complex capital structure.
IAS-33 Earning Per Share
IAS-34 Interim Financial Reporting
Investments
Investment in debt securities
Investment in equity securities
Other reporting issues
Accounting for income tax
Fundamentals of accounting for income tax
Accounting for net operating losses
Financial statement presentation
Accounting changes and error analysis
Changes in accounting estimate
Changes in accounting principle
Reporting a change in entity
Error Analysis
Income statement error
Balance sheet error
Preparation of financial statements with error correction
Changes from or to the equity method
IAS-8 Accounting Policies, changes in accounting estimates and errors
Full Discloser in financial reporting
Full disclosure principle
Notes to the financial statements
Disclosure issues
Current reporting issues
Recommended Texts
1. Kieso, Weygandt, and Warfield (2010). Intermediate Accounting, IFRS Edition,
Wiley higher education.
2. IFRS, lASs by International Accounting Standards Board, London
