MANGOSUTHU UNIVERSITY OF

TECHNOLOGY

STUDY GUIDE

FACULTY OF MANAGEMENT SCIENCES

DEPARTMENT OF ACCOUNTING

SUBJECT: FINANCIAL ACCOUNTING II

SUBJECT CODES: FNLA200, FIAC200, FINC200, FIAC200, FINA200,

LOGFA200

2025
CONTENTS
1. Introduction ................................................................................................................................. 2
2. Purpose of financial accounting ii. ........................................................................................... 3
3. Contact information .................................................................................................................... 4
4. Policies and procedures............................................................................................................ 4
4.1. Class attendance, punctuality & participation ................................................................ 4
4.2. Rights & responsibilities .................................................................................................... 5
4.3. Plagiarism & academic integrity ....................................................................................... 5
4.4. Grievances & appeals ........................................................................................................ 5
4.5. Consultations ....................................................................................................................... 6
5. Resources. .................................................................................................................................. 6
5.1. Prescribed books ................................................................................................................ 6
5.2. Additional resources / recorded books ............................................................................ 6
6. Critical cross-field outcomes for the subject .......................................................................... 6
6.1. Enhance integration and consistency across the qualification .................................... 6
6.2. Align content with national and international standards ............................................... 6
6.3. Ensure high-quality teaching and learning outcomes ................................................... 7
6.4. Develop skills in data collection, organisation, and critical evaluation ....................... 7
6.5. Demonstrate a thorough understanding of key financial regulations ......................... 7
7. Promotion requirements ............................................................................................................ 7
8. Rights and responsibilities ........................................................................................................ 8
8.1. Formative assessment marks ........................................................................................... 8
8.2. Summative assessment marks......................................................................................... 8
8.3. Responsibility for your marks............................................................................................ 9
8.4. Attendance requirements .................................................................................................. 9
9. Assessment schedule ............................................................................................................... 9
9.1. Formative assessments ..................................................................................................... 9
9.1.1. Open book formative assessment ............................................................................ 9
9.1.2. Closed book formative assessment ....................................................................... 10
9.1.3. Provisional formative assessments (tests) dates ................................................. 10
9.2. Summative assessments................................................................................................. 10
10. Breakdown of the subject contents (learning units) ........................................................ 11

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 1. INTRODUCTION
Welcome to Financial Accounting II

We are delighted to welcoming you to Financial Accounting II and we hope you will find this
module exciting, fruitful and easy to engage with the content. This course is designed to
introduce you to the application of Financial Accounting theory, and with a positive attitude
about this subject, you will find it interesting and make use of the knowledge gained
throughout all your previous levels. We hope that you will find this course interesting and
informative. Financial Accounting II will continue building on the knowledge and skills that
you gained in Financial Accounting I and Accounting you did at high school.

The course outline will show you what is expected of you during this course. A course outline
promotes self-study on the part of the student. The task of a lecturer at a tertiary institution
is to make knowledge available and not primarily to impart knowledge. It is your
responsibility to acquire the knowledge and make it your own. The lecturer will explain the
principles of the subject as well as the practical application thereof in the class. The detail
of the work is your responsibility by self-study of the prescribed books, recommended
literature, and supplementary sources in the library. You must therefore think and learn
independently with the necessary self-discipline.

Financial Accounting II is not a subject where you can just memorise facts and figures to
reproduce in the tests or examination. It is a subject where you need to develop an
understanding of concepts so that you can use them to solve various types of problems. In
order to make sure that you understand and can apply these techniques you will have to do
lots of exercises both examples in your textbook, graded questions and other relevant
material. Thus, make sure that as each lecture and week passes you try as many examples
and exercises as possible. This way you will very quickly detect where you have problems
of understanding, so that you can sort them out at the earliest possible opportunity. If you
do detect any problems, feel free to discuss them with the lecturer.

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 2. PURPOSE OF FINANCIAL ACCOUNTING II.
The Financial Accounting II module is designed to equip students with the advanced
knowledge and technical skills necessary to prepare, draft, and analyse annual financial
statements in accordance with the International Accounting Standards (IAS) and
International Financial Reporting Standards (IFRS). This module builds upon foundational
accounting principles and focuses on enhancing students' ability to apply accounting
concepts to real-world financial reporting scenarios. By engaging with the key components
of financial statements, students will develop the competence to ensure compliance with
global accounting standards and make informed financial decisions.

A key aspect of this module is the in-depth exploration of financial statement presentation,
with particular emphasis on areas such as share capital and earnings per share. Students
will also gain a thorough understanding of asset-related accounting treatments, including
the cost and revaluation model for property, plant, and equipment, impairment of assets,
and intangible assets. The module further covers complex accounting areas such as
borrowing costs, government grants, and provisions and contingencies, ensuring students
are well-versed in the recognition, measurement, and disclosure requirements of these
elements. Additionally, the module provides critical insights into the financial reporting
implications of events occurring after the reporting period, equipping students with the
analytical skills needed to assess subsequent events and their impact on financial
statements.

By the end of the course, students will not only be proficient in applying accounting standards
but will also be capable of critically evaluating financial reports, making well-reasoned
judgments, and contributing to sound financial decision-making in corporate environments.
Through a combination of theoretical learning and practical application, this module lays a
strong foundation for subsequent financial accounting modules and professional practice.

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 3. CONTACT INFORMATION
This module is facilitated by two lecturers who work collaboratively to support students in
their learning journey. For any academic inquiries or assistance, students are encouraged
to contact the respective lecturer via email to schedule an appointment. Below are their
contact details:

CONTACT DETAILS

Office Address : NW 203

Lecturer: Telephone :
MR P. LUTHULI
Email : luthuli.phelelani@mut.ac.za

Consultations : By Appointment only

CONTACT DETAILS
Office Address : NW 210
Lecturer: Telephone :
MR S.E DLOMO
Email : sipho@mut.ac.za

Consultations : By Appointment only

4. POLICIES AND PROCEDURES.

4.1. Class Attendance, Punctuality & Participation
▪ Attendance is compulsory.
▪ Students must attend at least 80% of all lectures and tutorials to qualify for the final
examination.
▪ Punctuality is mandatory, students will not be allowed to enter the lecture venue
once the session has commenced.
▪ Late arrivals disrupt the learning environment and will not be accommodated.
▪ Active participation in all lectures is highly encouraged to enhance comprehension
of the subject content.
▪ Engaging in discussions and activities will help students develop a deeper
understanding of financial accounting concepts.

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4.2. Rights & Responsibilities
▪ Lecturers reserve the right to deny entry to any student who has not completed the
required pre-reading or preparatory tasks assigned before a lecture.
▪ This ensures that all students engage meaningfully with the material.
▪ It is the student’s responsibility to obtain all prescribed reading materials, including
textbooks and supplementary resources, as these are essential for successful
learning.
▪ The onus is on the student to sign the register/sign-in in the biometric system every
day for every lecture attended.
▪ Submit assignments and tutorials on or before the due date.

4.3. Plagiarism & Academic Integrity

▪ Copying homework, assessments, or any academic work is considered an act of
fraud and a violation of the University’s plagiarism policy.
▪ Strict disciplinary action will be taken against offenders in accordance with
institutional regulations.
▪ Students must ensure that all submitted work is their own and properly referenced
where necessary.

4.4. Grievances & Appeals

▪ If a student has a grievance or academic concern, they must follow the proper
escalation procedure:
o First point of contact: Is your class rep.
o If the matter is unresolve, you may contact the lecturer concerned.
o If unresolved: The matter may be escalated to the Head of Department
(H.O.D.).
o If the matter is not resolve, student may approach the Dean of the Faculty of
Management Sciences
o Students must exhaust these internal procedures before seeking further
intervention.

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 4.5. Consultations
▪ Consultations are strictly by appointment and must be scheduled via email or other
approved communication channels.
▪ Walk-ins will not be accommodated, as lecturers need to manage their schedules
effectively.

5. RESOURCES.
5.1. Prescribed books
a) Gripping GAAP 2024/2025 Edition: CATHRYNNE SERVICE
b) GAAP: Graded Questions 2024/25 Edition: CATHRYNNE SERVICE

5.2. Additional resources / Recorded books

a) Introduction to IFRS 7th Edition: ZR Koppeschaar and others
b) Descriptive accounting 22nd Edition: ZR Koppeschaar and others

5.3. Accessing Study Materials

▪ Students should acquire the prescribed books as they form the foundation of this
course.
▪ MUT has a resource centre where students can access other accounting textbooks.
It is crucial to use the latest editions to ensure alignment with updated IFRS standards
and financial reporting concepts.
▪ Students may also explore reputable sources such as the IFRS Foundation website
(www.ifrs.org) for updates on international financial reporting standards.

6. CRITICAL CROSS-FIELD OUTCOMES FOR THE SUBJECT

6.1. Enhance Integration and Consistency Across the Qualification
▪ Ensure strong connections and harmonisation between financial accounting modules
within the qualification, promoting a cohesive learning experience for students and a
logical progression throughout their studies.

6.2. Align Content with National and International Standards

▪ Align the content of financial accounting courses with that of other reputable higher
education institutions, ensuring the curriculum remains competitive and up-to-date
with global best practices in financial accounting education.

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 6.3. Ensure High-Quality Teaching and Learning Outcomes
▪ Deliver high-quality instruction and materials that enhance students' knowledge,
skills, and capacity.
▪ This will better prepare them for the professional requirements of prospective
employers and the wider financial accounting industry, both during their studies and
after completing their qualification.

6.4. Develop Skills in Data Collection, Organisation, and Critical Evaluation

▪ Equip students with the ability to effectively collect, organize, and critically assess
financial information.
▪ This will enable them to prepare accurate and comprehensive financial statements,
applying appropriate judgment to meet accounting standards.

6.5. Demonstrate a Thorough Understanding of Key Financial Regulations

▪ Ensure students have a solid understanding of the Companies Act and International
Financial Reporting Standards (IFRS), demonstrating their ability to apply these
regulatory frameworks in the preparation and presentation of financial statements.

7. PROMOTION REQUIREMENTS
As a dedicated student aiming for success in this course, it is essential that you fully
understand and adhere to the criteria for both entry into assessments and examinations.
Moreover, you must meet the promotional criteria in order to achieve the required
competency status at the conclusion of your studies.

7.1. Formative Assessments (Tests)

▪ There will be four (4) formative assessments (tests) throughout the course.
▪ Of these four tests, the best three results will be used to calculate your Duly
Performed (DP) status.
▪ The DP status is a part requirement for entry into the final examination.
▪ The formative assessments (best three) collectively contribute 40% towards your final
mark.

7.2. Admission to Summative Assessment (Final Examination)

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 ▪ To qualify for the summative assessment (the main examination), you must obtain a
minimum average DP of 40% from your formative assessments.
▪ Further, you must have attended at least 80% of your lectures.
▪ The summative assessment mark will contribute 60% towards your final mark, which
will determine whether you pass the course.

7.3. Passing Criteria

▪ To pass the course and progress to the next level, you must achieve a final mark of
50% or above.
▪ The final mark is calculated by combining your formative assessment marks (40%)
and summative assessment mark (60%).
▪ If your final mark falls between 40% and 49%, you will be eligible for a supplementary
examination.
▪ If your final mark is below 40%, you will be deemed not competent in the subject,
meaning you will not progress to the next level.

8. RIGHTS AND RESPONSIBILITIES

8.1. Formative Assessment Marks
▪ As a student, you have the right to query your marks if you feel there is an issue with
the assessment results.
▪ If you wish to dispute or seek clarification on your marks, you must do so within one
week (7 days) of the distribution of the scripts in class.
▪ It is important to address any concerns promptly to ensure a fair resolution.

8.2. Summative Assessment Marks

▪ Summative assessments, which include the final examinations and any
supplementary examinations, are managed by the Examinations Department at
Mangosuthu University of Technology (MUT).
▪ It is important to note that course lecturers do not handle summative assessment
logistics or final examination arrangements.
▪ For any inquiries related to the final exam or supplementary exams, students must
contact the Examinations Department directly.

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 ▪ Any queries or concerns regarding these assessments, such as issues with
scheduling, results, or any discrepancies in the examination process, should be
directed to the Examinations Department and not to the course lecturers.
▪ For a seamless experience, students are encouraged to consult the Examinations
Department early to address any potential issues before the examination period
begins.

8.3. Responsibility for Your Marks

▪ You are solely responsible for the marks you receive throughout the course.
▪ It is essential to engage actively in your learning, complete activities and tutorials on
time, and perform well in both formative and summative assessments.
▪ Regular reflection on your performance and seeking guidance when needed is part
of ensuring your success in the subject.

8.4. Attendance Requirements

▪ To be eligible to sit for the final assessment, you must attend at least 80% of both
lectures and tutorials.
▪ Regular attendance is crucial, as it ensures you are up-to-date with course content,
actively participating in discussions, and able to engage in learning activities that
support your understanding of the subject.

9. ASSESSMENT SCHEDULE
9.1. Formative Assessments
▪ Formative assessments will consist of four (4) written assessments throughout the
course.
▪ These assessments may be either open book or closed book.
▪ The Duly Performed (DP) status will be determined based on the best three (3)
assessments from the four assessments completed.
▪ The lecturers will announce in advance whether each upcoming assessment will be
open book or closed book.

9.1.1. Open Book Formative Assessment

▪ In an open-book assessment, students are permitted to bring specific materials into
the assessment room. The allowed materials are:

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 o GRIPPING GAAP original textbook (Students are allowed to make notes in
the textbook for reference).
o Black or blue pen for writing the exam.
o Calculator for any necessary calculations.
o Ruler for drawing diagrams or lines where needed.

9.1.2. Closed Book Formative Assessment

▪ For a closed-book assessment, students are restricted to bringing the following
items only:
o Black or blue pen for writing the exam.
o Calculator for performing calculations (if necessary).
o Ruler for drawing diagrams or lines.

9.1.3. Provisional Formative Assessments (Tests) Dates

The department will on an ongoing basis, issue a test timetable that schedules each
subject, including the specific test dates, times, and venues. Students are advised to
check the notice board regularly for any updates or changes to the schedule.

9.2. SUMMATIVE ASSESSMENTS

The office of the Registrar together with the Examinations Department will issue the
final Examination Timetable. Students are advised to check the notice board
regularly for any updates or changes to the schedule.

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 10. BREAKDOWN OF THE SUBJECT CONTENTS (LEARNING UNITS)
TOPIC PRESENTATION OF FINANCIAL STATEMENTS
Allocated time Two weeks

Learning Objectives Assessment Criteria

Understand the purpose of financial reporting and the key objectives Students should be able to describe the primary objectives of financial reporting,
of financial statements in providing relevant information for decision- highlighting the role of financial statements in providing essential information to
making. stakeholders such as investors and creditors.
Identify and explain the qualitative characteristics that make financial Students will be assessed on their ability to explain key qualitative characteristics
information useful and apply these characteristics in analysing (relevance, reliability, comparability, and understandability) and apply them when
financial data. evaluating financial information in practice.
Understand and explain the fundamental assumptions in preparing Students should be able to explain the basic assumptions involved in financial
financial statements, including the going concern and accrual reporting, such as the going concern concept and the accrual basis of accounting,
assumptions. and how these assumptions affect the preparation of financial statements.
Define and apply the key elements of financial statements, such as Students will demonstrate their understanding by identifying and applying the
assets, liabilities, equity, income, and expenses, according to the elements of financial statements correctly in practical examples, recognising how
accounting framework. these elements are recognised and classified under the applicable standards.
Understand and apply the principles of recognition and derecognition Students will be assessed on their ability to apply the principles of recognition and
in relation to financial statement items, including the conditions for derecognition by explaining when items should be included or excluded from
recognising or removing items from the financial statements. financial statements and applying these principles in real-world scenarios.
Explain and apply the measurement bases used in financial reporting, Students should be able to explain the different measurement bases (e.g.,
such as historical cost and fair value, to measure the value of historical cost, fair value) and apply them to relevant financial statement items,
financial statement items. demonstrating their ability to choose the appropriate measurement method.
Understand and apply the principles of presentation and disclosure in Students will be assessed on their ability to evaluate and apply the presentation
preparing financial statements, ensuring clarity and compliance with and disclosure principles, ensuring that financial statements are clear, well-
reporting standards. structured, and in compliance with the relevant accounting standards and
regulations.

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TOPIC SHARE CAPITAL
Allocated time Two weeks

Learning Objectives Assessment Criteria

Define and apply the key terms related to share capital, including Students should be able to accurately define terms related to share capital and apply
authorised, issued, and paid-up share capital. them in practical situations, demonstrating a clear understanding of authorized,
issued, and paid-up capital.
Differentiate between various classes of ordinary share capital, such Students will be assessed on their ability to distinguish between different types of
as voting and non-voting shares, and their respective rights and ordinary share capital, recognising their unique features, rights, and implications for
characteristics. shareholders.
Account for changes in the structure of share capital, including the Students should be able to record and account for any changes in the structure of
issuance, repurchase, and cancellation of shares. share capital, demonstrating an understanding of transactions like the issuance,
buyback, and cancellation of shares in line with accounting standards.
Identify, classify, and explain the different types of preference Students will be assessed on their ability to correctly distinguish and classify different
shares, including cumulative and non-cumulative shares, and their types of preference shares and explain how these classifications affect financial
impact on financial reporting. statements.
Properly classify preference share dividends either as finance costs Students should demonstrate the ability to classify preference share dividends
(using the effective interest rate method) or as dividends based on correctly, either as finance costs (using the effective interest rate method) or as
the terms of the share agreement. dividends, based on the terms and conditions set out in the share issuance
agreement.
Calculate the outstanding balance or the year-end balance of Students will be assessed on their ability to accurately calculate the outstanding
preference shares, considering factors such as dividends and balance of preference shares at year-end, including any adjustments due to
conversions. dividends or share conversions.
Apply the appropriate accounting treatment for share capital Students should demonstrate their ability to account for share capital conversions
conversions or splits, including recording the necessary journal and splits, ensuring the correct application of journal entries and maintaining
entries. accuracy in financial reporting.
Present and disclose share capital properly in the annual financial Students will be assessed on their ability to present and disclose share capital in the
statements, in accordance with relevant accounting standards and financial statements clearly and accurately, ensuring compliance with applicable
regulations. accounting standards and providing relevant information to users of the financial
statements.

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TOPIC EARNINGS PER SHARE
Allocated time Two weeks

Learning Objectives Assessment Criteria

Define key terms related to earnings per share Students should be able to accurately define EPS, basic earnings per share, and related terms such as
(EPS). diluted EPS, preference shares, participating shares, and ordinary shares.
Apply definitions and principles of EPS in Students should be able to demonstrate the ability to apply the definitions of EPS in practical exercises
practical scenarios. involving both ordinary and preference shares, and understand their influence on EPS.
Calculate the basic earnings (numerator) Students should be able to correctly compute basic earnings, considering adjustments for ordinary
accurately in various contexts. shares, preference shares, and participating shares, based on given scenarios.

Calculate the basic number of shares Students should be able to determine the basic number of shares for EPS calculations, accounting for
(denominator) in different situations. movements such as share issuance, buybacks, and changes in value or no-value shares.

Present and disclose EPS figures in financial Students should be able to present EPS clearly in financial statements, ensuring that disclosures comply
statements. with relevant accounting standards, including basic EPS and any necessary adjustments.

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Topic Property Plant and Equipment
Allocated time Four weeks

Learning Objectives Assessment Criteria

Understanding Property, Plant, and Equipment Students should be able to:
(PPE) ▪ Define key terms related to PPE, including cost, depreciation, residual value, carrying amount,
and revaluation surplus/deficit.
▪ Explain the recognition and measurement principles for PPE in accordance with accounting
standards (IAS 16).
Measurement and Calculation of PPE Elements Students should be able to:
▪ Calculate the initial cost of PPE acquired through purchase, exchange, or self-construction.
▪ Determine depreciation using various methods (e.g., straight-line, diminishing balance).
▪ Compute the depreciable amount and residual value of assets.
▪ Calculate the carrying amount of PPE at any given reporting date.
▪ Determine the revaluation surplus or deficit and revalued amount under the revaluation model.
Accounting Treatment of PPE under Different Students should be able to:
Models ▪ Record journal entries for the acquisition, depreciation, impairment, revaluation, and disposal of
PPE.
▪ Apply the cost model and revaluation model appropriately in financial reporting
Presentation and Disclosure of PPE in Financial Students should be able to:
Statements ▪ Prepare and present PPE in the statement of financial position, in accordance with IFRS
disclosure requirements.
▪ Disclose relevant information regarding PPE, including depreciation methods, revaluation
adjustments, and changes in carrying amounts.

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TOPIC IMPAIRMENT OF ASSETS
Allocated time Three weeks

Learning Objectives Assessment Criteria

Understand and explain the concept of asset Students should be able to:
impairment ▪ Define impairment of assets as per the relevant financial reporting standards.
▪ Explain the significance of asset impairment in financial reporting and decision-making.
Identify indicators of asset impairment Students should be able to:
▪ Apply the prescribed principles to assess whether an asset is subject to impairment.
▪ Identify external and internal indicators of impairment based on accounting standards.
Determine the recoverable amount of an asset Students should be able to
▪ Explain and apply the principles for measuring the recoverable amount of an asset.
▪ Distinguish between value in use and fair value less costs of disposal.
Recognise and measure impairment losses Students should be able to
▪ Apply the principles for measuring and recognising impairment losses.
▪ Compute impairment losses based on recoverable amount calculations.
Apply impairment principles to cash-generating Students should be able to
units (CGUs) ▪ Explain the concept of cash-generating units and how they relate to impairment testing.
▪ Allocate impairment losses to assets within a CGU based on applicable accounting standards.
Account for the reversal of impairment losses Students should be able to
▪ Apply the criteria for recognising the reversal of impairment losses.
▪ Calculate the reversal amount and assess its impact on financial statements.
Present and disclose impairment of assets in Students should be able to
financial statements ▪ Identify the required disclosures related to impairment losses in financial statements.
▪ Prepare financial statement extracts to present impairment-related information accurately.

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TOPIC INTANGIBLE ASSET
Allocated time Two weeks

Learning Objectives Assessment Criteria

Understand the nature and characteristics of Students should be able to:
intangible assets. ▪ Define intangible assets and explain their key features.
▪ Differentiate between tangible and intangible assets with relevant examples.
▪ Describe the importance of intangible assets in financial reporting.
Recognise and measure purchased and Students should be able to:
internally generated intangible assets. ▪ Identify the criteria for recognising intangible assets in accordance with accounting standards.
▪ Explain the differences in measurement between purchased and internally generated intangible
assets.
▪ Calculate the cost of intangible assets, considering acquisition costs and development expenses.
Calculate key financial amounts related to Students should be able to:
intangible assets. ▪ Determine the initial cost of both purchased and internally generated intangible assets.
▪ Compute the amortization expense based on the asset’s useful life and method of allocation.
▪ Assess the residual value and calculate the carrying amount of intangible assets at different
reporting periods.
Understand and apply the principles of Students should be able to:
recognising and measuring research and ▪ Define research and development costs and explain their treatment under accounting standards.
development (R&D) costs. ▪ Differentiate between research costs (expensed) and development costs (capitalized).
▪ Apply the recognition criteria to classify and measure R&D expenditures correctly.
Distinguish between intangible assets with a Students should be able to”
finite useful life and those with an indefinite ▪ Explain the characteristics of finite and indefinite life intangible assets.
useful life. ▪ Determine appropriate accounting treatments for each category, including amortization for finite
life assets and impairment testing for indefinite life assets.
▪ Provide examples of each type and analyse their impact on financial statements.
Present and disclose intangible assets in the Students should be able to:
annual financial statements. ▪ Identify the required disclosures related to intangible assets under financial reporting standards.
▪ Prepare note disclosures, including key assumptions used in valuation and amortization
calculations.

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TOPIC BORROWING COSTS
Allocated time Two weeks

Learning Objectives Assessment Criteria

Understand and apply the principles of Students should be able to:
borrowing costs ▪ Explain the concept of borrowing costs and their significance in financial reporting.
▪ Identify different types of borrowing costs in accordance with relevant accounting standards (e.g.,
IAS 23).
Differentiate between capitalised and expensed Students should be able to:
borrowing costs ▪ Explain the criteria for capitalising borrowing costs versus expensing them.
▪ Classify borrowing costs based on whether they should be recognised as an expense or added to
the cost of a qualifying asset.
Calculate borrowing costs for capitalisation and Students should be able to:
expense recognition ▪ Compute the amount of borrowing costs to be capitalised using the appropriate formula and
applicable interest rates.
▪ Determine the portion of borrowing costs that should be immediately expensed.
Apply the correct accounting treatment for Students should be able to:
capitalisation periods ▪ Identify when capitalisation of borrowing costs should commence, temporarily pause, and
permanently cease based on the conditions of the project or asset development.
▪ Justify the timing of capitalisation with reference to accounting principles.
Record borrowing cost transactions in journal Students should be able to:
entries ▪ Prepare accurate journal entries to capitalise borrowing costs as part of the asset cost.
▪ Process journal entries for borrowing costs that need to be expensed.
Present and disclose borrowing costs in Students should be able to:
financial statements ▪ Correctly disclose capitalised and expensed borrowing costs in the notes to financial statements.
▪ Explain how borrowing cost disclosures impact financial reporting and decision-making.

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TOPIC GOVERNMENT GRANT
Allocated time Two weeks

Learning Objectives Assessment Criteria

Understand and apply key definitions related to Students should be able to:
government grants. ▪ Accurately define key terms related to government grants, such as grants related to assets
and income-related grants.
▪ Differentiate between government assistance and government grants as per accounting
standards.
▪ Provide real-world examples of government grants and their implications for financial
reporting.
Explain the recognition and measurement Students should be able to:
principles for government grants. ▪ Describe the conditions under which government grants should be recognised in financial
statements.
▪ Explain the criteria for measuring government grants, including their impact on financial
performance and position.
▪ Identify relevant accounting standards (e.g., IAS 20) governing the recognition and
measurement of government grants.
Apply various methods for the correct Students should be able to:
measurement and recognition of government ▪ Apply appropriate accounting treatments for different types of government grants.
grants. ▪ Demonstrate the correct allocation of grants received over time or in a lump sum.
▪ Solve case-based problems that require the application of correct measurement and
recognition methods.
Prepare the presentation and disclosure of Students should be able to:
government grants in annual financial ▪ Identify the sections in financial statements where government grants should be presented.
statements. ▪ Apply disclosure requirements in compliance with financial reporting standards.
▪ Analyse financial statement excerpts to determine whether government grants are correctly
reported.

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TOPIC INVENTORY
Allocated time One week

Learning Objectives Assessment Criteria

Understand and apply key inventory-related Students should be able to:
definitions ▪ Accurately define key terms related to inventory, such as inventory, historical cost, net
realizable value, and cost formulas.
▪ Demonstrate understanding of inventory concepts by applying definitions in practical
scenarios.
Determine the historical cost of inventory Students should be able to:
▪ Identify and apply the components included in the historical cost of inventory.
▪ Perform calculations to determine the historical cost based on different purchasing and
production costs.
Apply cost formulas to measure inventory cost Students should be able to:
▪ Differentiate between various cost formulas (e.g., FIFO, LIFO, Weighted Average) and
explain their applications.
▪ Accurately calculate inventory values using different cost formulas in various business
scenarios.
▪ Evaluate the impact of different cost formulas on financial statements and decision-
making.
Calculate the net realizable value (NRV) of Students should be able to:
inventory ▪ Explain the concept of NRV and its significance in financial reporting.
▪ Perform NRV calculations, considering market conditions and cost to sell.
▪ Identify when to apply NRV adjustments based on inventory valuation principles.
Present and disclose inventory in annual Students should be able to:
financial statements ▪ Identify the relevant IFRS standards governing inventory presentation and disclosure
▪ Prepare appropriate inventory disclosures, including measurement policies, valuation
methods, and changes in accounting estimates.
▪ Assess the impact of inventory disclosures on financial statement users.

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TOPIC PROVISIONS AND CONTINGENTS
Allocated time One week

Learning Objectives Assessment Criteria

Differentiate between liabilities, provisions, and Students should be able to:
contingent liabilities. ▪ Define and explain the key characteristics of liabilities, provisions, and contingent liabilities.
▪ Compare and contrast provisions, liabilities, and contingent liabilities based on recognition criteria
and accounting treatment.
Classify financial obligations correctly based on Students should be able to:
real-world scenarios. ▪ Evaluate given case studies or practical examples and determine whether the amounts should be
recognised as provisions, contingent liabilities, or contingent assets.
▪ Justify the classification based on applicable accounting standards (e.g., IAS 37 – Provisions,
Contingent Liabilities, and Contingent Assets).
Record journal entries for provisions in Students should be able to:
accordance with financial reporting standards. ▪ Apply the recognition and measurement criteria for provisions.
▪ Prepare journal entries to record the initial recognition, subsequent measurement, and
adjustments of provisions.
Present and disclose provisions in the financial Students should be able to:
statements. ▪ Identify the correct section of the financial statements for presenting provisions.
▪ Prepare disclosure notes explaining the nature, timing, and expected financial impact of
provisions.
Classify and account for contingent assets based Students should be able to:
on recognition criteria. ▪ Assess whether a contingent asset should be disclosed or recognised based on probability and
measurability.
▪ Prepare journal entries where necessary for contingent assets that meet recognition criteria.
Present and disclose contingent liabilities and Students should be able to:
contingent assets in the financial statements. ▪ Determine when and how to disclose contingent liabilities and contingent assets in financial
statements.
▪ Prepare clear and compliant disclosure notes for contingent liabilities and contingent assets
based on IFRS requirements.

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TOPIC EVENTS AFTER THE REPORTING DATE
Allocated time Two weeks

Learning Objectives Assessment Criteria

Identify and distinguish between adjusting and Students should be able to:
non-adjusting events after the reporting period. ▪ Accurately define adjusting events and non-adjusting events.
▪ Classify specific examples of events after the reporting period as either adjusting or non-
adjusting.
▪ Provide explanations of the recognition criteria for each type of event.
Understand the impact of events after the Students should be able to:
reporting period on the going concern ▪ Explain the concept of the going concern assumption in the context of financial reporting.
assumption. ▪ Analyse how specific events after the reporting period may affect the entity's ability to
continue as a going concern.
▪ Discuss the need for adjustments to financial statements when the going concern
assumption is no longer valid.
Demonstrate the proper presentation and Students should be able to:
disclosure of events after the reporting period in ▪ Present events after the reporting period accurately in the financial statements, following
financial statements. the relevant standards.
▪ Identify and disclose the necessary information regarding events after the reporting period
in accordance with applicable accounting standards.
▪ Communicate the impact of these events on the financial position and performance of the
entity.

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