Course

Unit 1

Ethical Code of Conduct and Conceptual Framework

Ethical & professional issues in financial reporting – relevance & importance of ethical & professional issues while complying with accounting standards – potential ethical implications of professional & management decisions in preparation of corporate reports – consequences of not upholding ethical principles – Importance of Conceptual Framework, Definition of elements of financial statements and their recognition & recognition criteria – Objective of financial reporting – Nature of qualitative characteristics of useful financial information- Role of prudence and Substance over form.

Unit 2

Reporting of financial performance

Recognition of revenue for goods & services, 5 step model for revenue recognition, contracts, sale with right of return, agency, warranties -Non-current tangible & intangible assets recognition & derecognition- Income taxes including deferred taxes – Provisions & contingencies – Share based payments – Fair value measurement – Recognition and measurement principles for transactions related to – Leases (books of lessee and lessor) – Financial instruments (financial assets, financial liabilities, equity, impairment of financial assets, hedge accounting) – Employee benefits (including defined contribution plans & defined benefit plans) – Reporting requirement for SME’s –Other reporting issues such as accounting for government grants, changes in accounting policy, estimates and prior period errors

Unit 3

Financial Statements of Group Entities Group financial statements

Definition and application of business combination concept – Identifying the acquirer & applying the control principle C – Cost of business combination – Principles of recognition & measurement of identifiable assets & liabilities in acquisition – Business combination achieved in stages – Circumstances when group financials must be prepared and situations in which group accounting can be exempted – Group financial statement including cash flows – Consolidating joint arrangements & associates

Changes in group structure – Acquisition of subsidiary with a view to sale – Implications of loss of control over subsidiary on group accounts – Group accounts of a complex – Accounting for acquisition in stages – Disposal of entities with or without loss of control

Foreign transactions & entities – Principles of identifying the functional currency of a parent entity – Consolidation of a foreign subsidiary & associate – Applying the rules for

translation of foreign currency balances into functional currency of a parent – Accounting for foreign assets & liabilities

Unit 4

Interpretation of financial statements

Analysis & interpretation of financial information and measurement of performance information. & non-financial performance measures including earnings per share and additional pinformation. measures, impact of environmental, social, and ethical factors on additional performance measures – Practice of integrated reporting, concept of integrated reporting including objectives, concepts, guiding principles and contents thereof – performance of operating segments, Evolution of sustainability reporting, importance of effective sustainability reporting – Importance and need of segmental information, Disclosure of segmental information

Unit 5

Potential changes in accounting regulations

Current issues in financial reporting include criticisms on accounting standards – accounting implications of first-time adoption of new accounting standards – potential implications of the relevant exposure drafts issued. Discuss the impact of current issues in corporate reporting such as presentation and disclosures, materiality in context of financial reporting, Management commentary.

Course Objective:

The paper aims to discuss, apply and evaluate the concepts, principles and practices that underpin the preparation and interpretation of corporate reports in various contexts including the ethical assessment of managements’ stewardship and the information needs of a diverse group of stakeholders. Furthermore, it also focuses on the understanding of the corporate reporting practices in a globalized environment.

Course Outcomes Students will be able to

CO1: Describe the implications of professional and ethical duties and unethical practices of the accountant in the context of corporate reporting.

CO2: Evaluate the principles and practice of financial reporting framework critically.

CO3: Generate report on the financial performance and position of entities in the context of various accounting issues discussed in IAS/IFRS

CO4: Construct the financial statement of groups of entities showing the treatments of changes in group structure and cash flow statement as per relevant accounting standards.

CO5: Examine and interpret the implications of changes in accounting regulations and the current issues on financial reporting.

Learning Outcome

LO1: Understand the importance of ethics and professional behavior and its implication on financial reporting. Apply the guidance in the Conceptual Framework in financial reporting LO2: Report the financial performance and financial positions of a corporate entity in accordance with accounting & reporting standards.

LO3: Prepare consolidated financial statements for a group of companies, including a subsidiary, associates, and joint ventures. Understand step acquisitions and disposal of group entities.

LO4: Interpret financial performance applying financial and non-financial measures for different stakeholders.

LO5: Assess impact of changes in accounting regulation

References Books:

• ACCA approved study material by Kaplan
• S Anil Kumar, V Rajesh Kumar & B Mariyappa: Himalaya Publishing House
• B S Raman,: Advance Financial Accounting, United Publishers
• R L Gupta, M Radhaswamy: Sultan Chand & Sons
• Institute of Cost & Works Accounts of India, Advanced Financial Accounting