Mewar International University
Masaka, Nasarawa state, Nigeria
Instructor: Nura Sani Uba
Contact details: E-mail: nura.sani@miu.edu.ng +2348060763777 (WhatsApp)
Facebook: @Nura Kwalwa Twitter: @nurakwalwa Linkedin: Nura Sani Uba
Office Hours: 2:30 – 4:00pm Monday to Friday
How to reach me. The best way of reaching me is through our LMS platform. Nevertheless, I can
be reached through any other medium mentioned in my contact.
CATALOG DESCRIPTION: “The course is designed to enable students to learn the application
of the double entry system of book keeping, as well as the underlying principles, concepts,
conventions and classification of accounts as applied in different types of transactions. The
course will examine students on their ability to apply their knowledge to practical tasks, their
ability to record transactions by double entry systems and their appreciation of the use of modern
methods in the preparation of final accounts of a sole trader”
ABOUT THIS COURSE: ACC 111 Introduction to Accounting & Financial Reporting I is a 3-credit
unit course. It covers the following topics: The Nature and Scope of Accounting: The Functions of
Accountants. Accounting Function and Its Relationship with the Information System of Organizations.
Accounting Procedure and Systems: Double Entry Book-keeping Systems, the Trial Balance, Accruals,
Prepayment and Adjustments: Classification of Expenditure between Capital and Revenue. Methods
of Recording Accounting Data: Manual and Mechanical. Trading, Profit and Loss Accounts and
Balance Sheets of a sole trader: Accounting Treatment of Control Accounts and Bank Reconciliations.
Accounts for Non-Profit Making Organization. Introduction to Conceptual framework for Financial
Accounting.
Learning objectives: at the end of the semester and upon completion of all learning activities, students
will be able to:
1. Explain the source documents used in posting accounting records;
2. Explain and prepare books of original entries;
3. Understand the double entry book-keeping systems.
4. Explain the concept of revenue and capital expenditures, and how they are classified.
5. Prepare the statement of profit or loss of a sole trader.
6. Explain types of errors and how they are corrected.
7. Prepare the statement of financial position of a sole trader.
8. Explain and prepare bank reconciliation statement.
1
Teaching Philosophy. I strongly believed that we all come to university to acquired knowledge and
knowledge is in the books. If we really have the thirst for thirst for knowledge, we have to read books
and for that purpose required and recommended readings are assigned for each week of the semester.
I also believed that learning can only take place when the learner is ready to learn. Therefore, my dear
students you need to make conscious effort to learn, while I will be available to guide throughout the
semester you need grit, resilience and determination to excel in this course.
Required Course Materials:
a. ACCA Paper F3 – Financial Accounting
https://www.academia.edu/35451157/ACCA_F3_Financial_Accounting_Study_Text
Recommended class readings:
a. Financial Accounting Made Simple, Vol. 1, by Robert.O. Igben
Course Requirements, Grading, & ASSESSMENT: Students will earn a passing grade upon
successful completion of the following
1. Weekly lectures 10 marks. To earn full points for this learning activity you need
to attend weekly classes
2. Weekly readings and summary of the readings 10 marks. Submission deadline for
this learning activity is every Tuesday by 5:00 pm
3. Weekly reflective journal entry 15 marks. Submission deadline for this
learning activity is a day before our next class.
4. Weekly discussion. 10 Marks. Submission deadline for this learning activity is
every Tuesday by 5:00 pm
5. Individual project 1 (10 marks). Submission deadline for this learning activity
is xxxxx.
6. Individual project 2 (guidelines to be provided later) 5 marks. Submission
deadline for this paper is xxxxx.
7. Mid- semester exam 20 marks
8. Final exam 20 marks
Extra marks. Extra marks openings are available. Students may earn up to 5 marks in addition to
their final exam grade if they successfully complete agreed-upon assignments.
Submission deadlines. The rationale behind submission deadline is to instill discipline in the
students as late assignment will not be condone. If and only if, there is a genuine reason due to
unforeseen eventualities that might prevent students from submitting the assignments on or before
the due date, a prior notice should be serve to the instructor.
Collaboration. Collaborations in terms of group discussions, tutorial classes and others are highly
recommended. Students can collaborate with peers on learning activities. It is, however,
unacceptable for students to plagiarize another person's work or idea.
Academic honesty: Academic trustworthiness is anticipated in this course. Thus, all practice of
dishonesty, cheating, unapproved teamwork, misrepresentation of citations, slanting and
falsification of data, and refusing to accurately acknowledge literature characterize academic
2
deceitfulness, and will be given a failing grade of "F" in addition to other punitive sanctions. Note
that every student is accountable for abiding with the ¨academic honesty" code (Statement on
Academic Honesty by faculty Senate). Every student is encouraged to review the Student Code of
Statement on Academic Honesty by faculty Senate and clarification of plagiarism. Again,
academic dishonesty attracts a failing grade of "F" in addition to disciplinary measures. Every
student should recognize the gravity of academic dishonesty in the form of misrepresentation of
scholarly ideas, plagiarism, and cheating. If you do require clarifications regarding references,
citations, and academic ethics contact the instructor.
1: WEEKLY LECTURES GRADING RUBRIC (10 marks)
Weekly lectures: lectures will be delivered weekly. Refer to class scheduled
for a description of weekly topics.
Attending and actively participating in the lecture attract 10 marks (refer to grading
rubric below).
8-10 marks
Always be fully prepared
for class by reading your
required and recommended
readings, active
participation during
lectures, and outlying 2
points from the assigned
reading
7-5 marks
get ready for class,
casually participate in
lectures while
contributing at least
one point in class
4-2 marks
Misses more
than two
lectures, rarely
prepares for
class, and
doesn't
participate in inclass learning
activities
2-0 marks
Consistently not
prepared for class
2: GRADING RUBRIC FOR WEEKLY READINGS AND SUMMARY OF
THE READINGS (10 marks)
There will be assigned readings for the students every week. The students are expected to
read ahead of the class and provide summary of their understanding. Each summary must
include your understandings and interpretations of the literature. To earn a passing grade
your summaries must include a critical evaluation and NOT reproduction of ideas. All
summaries must be submitted as and when due. Summaries attract 10 marks grade (refer to
grading rubric below).
8-10 marks
The review is well
organized containing all of
major key points as it
appears paragraph by
paragraph in the text
7-5 marks
The review is
organized by
paragraphs but
omitting 2 to 3 marks
4-2 marks
The review is
NOT organized
and missing
more than 4 key
ideas
2-0 marks
The review is NOT
organized and missing
over 5 ideas
articulated in the
article.
3
3. GRADING RUBRIC FOR WEEKLY REFLECTIVE JOURNAL ENTRY (15 marks)
Reflective journal writing: In this class students are required to write a weekly entry of
their learning activities that demonstrate understanding of the content taught. Each entry
must be written in English with correct grammar, spellings, and proper punctuation.
The reflective journal summarizes the learning journey for the week and effort should
be made to include all of the learning activities undertaken. In particular, each weekly
entry should document what has been learned that was not previously known, what you
did not understand, and how the ideas learned will be useful to you presently and in
future situation(s). The journal will be updated every week as a blog posting. You can
subscribe to blog sites such as Google blog or word press. Failure to submit weekly
journal will result in receiving a failing grade. Reflective journal attracts a 15 marks
grade (refer to grading rubric below).
15-11 marks
Entry include at least 15
major concepts and ideas
in the weekly learning
activities. Entries relate to
topics covered and/or
knowledge gained from the
Class
10-6 marks
Entry include at
least 10 major
concepts and ideas
in the weekly
learning activities.
5-0 marks
Entry include at
least 5 major
concepts and ideas
in the weekly class
activities.
Comprehensibility Entry demonstrate clear
understandings of the
major concepts through
critical analysis. All
concepts and ideas are
accurately defined,
understood using critical
analysis and/or reflections.
Understandings of
the major concepts
is hazy. Concepts
and ideas portrays
understandings
with little critical
analysis and/or
reflections.
Does not
demonstrate
understandings of
the major
concepts. Does
NOT provide
critical analysis
and/or reflections.
Organization,
grammar, and
punctuations.
Ideas are organized
but with minor
flaws, essay
contains 5
grammatical or
other writing errors
Ideas are not
organized, essay
contains more than
5 grammatical or
other writing
Errors
Content
Ideas are organized, clear
and logically written with
minimal error in grammar.
Submission deadline for this learning activity is every Tuesday by 11:59pm
4: WEEKLY DISCUSSION GRADING RUBRIC (10 marks)
There will be detailed discussion of readings every week. Every student MUST participate
actively in the discussion. The purpose of the course is not to study theories, models, and
4
frameworks of information systems for their own sake, but to use these as important
opportunities for applying theory in empirical inquiries. Accordingly, critical reflection,
thoughtful deliberations, and deeper thinking are essential in this class. To ensure deeper
reflections, students are required to formulate two questions from the readings every week
throughout the semester. The questions will be deliberated upon as part of the weekly class
discourse. Weekly discussion attracts 10 marks (refer to grading rubric below).
Rubric for Weekly Discussion
Criteria
10 marks
8-4 marks
5-1 marks
Unsatisfactory
Contribution to
discussions
contains posting
of 5 ideas relevant
to the learning
exercises for the
Week
Contribution to
discussions
contains
postings of 3
ideas relevant to
the learning
exercises for the
Week
Contribution to
discussion
include
responding to
and/or asking 2
questions
relevant to the
learning
exercises for the
Week
Contribution to
Discussions
include postings
of 2 ideas weekly
Fail to contribute to
class discussion
Responses to
discussion
occasionally
motivate peers
to participate in
Class
Reponses to
discussion is
Never
constructive and
does not
challenge the
accuracy and
relevance of
other people’s
Opinions
Contribution to
discussion include
responding to 3
questions or
asking 2
questions relevant
to the learning
exercises for the
Week
Level of
Engagement
Responses to
discussion always
motivate peers to
participate in
Class
Reponses to
discussion is
constructive in a
way that it
challenges the
accuracy of other
person’s opinions
Reponses to
discussion is
rarely
constructive in a
way that it
challenges the
accuracy and
relevance of
other persons
opinions
Contribution to
discussion is
limited to
responding to1
question or
Observation
Weekly
Response does not
stimulate comments
from peers
Responses to
discussion does
not motivate
peers to
participate in
Class
Submission deadline for this learning activity is every Monday by 11:59 pm
5: INDIVIDUAL PROJECT 1 GRADING RUBRIC 1 (10 marks)
6: INDIVIDUAL PROJECT 2 (5 points)
Details about the project will be posted on our eLMS
5
Class Schedule
SESSION & DATE, READINGS, ASSIGNMENT & DISCUSSION
WEEK 1: TWO ISSUES WILL BE ON OUR AGENDA THIS WEEK
1.
Introduction and overview of-the course, the syllabus include course requirements,
assignments, class schedule, course text and other reading resources
2.
We will discuss the definition of accounting, purpose of financial reporting, types of business
entity, Nature, principles and scope of financial Reporting, users of financial statement and accounting
information, Governance and elements of financial reports.
Learning objectives:
•
Define financial reporting – recording, analysing and summarising financial data.
•
Identify and define types of business entity – sole trader, partnership, limited liability company.
•
Recognise the legal differences between a sole trader, partnership and a limited liability
company.
•
Identify the advantages and disadvantages of operating as a limited liability company, sole
trader or partnership.
•
Understand the nature, principles and scope of financial reporting.
•
Identify the users of financial statements and state and differentiate between their information
needs.
•
Understand and identify the purpose of each of the main financial statements.
•
Define and identify assets, liabilities, equity, revenue and expenses.
•
Explain what is meant by governance specifically in the context of the preparation of financial
statements.
•
Describe the duties and responsibilities of directors and other parties covering the preparation
of the financial statements.
Required reading:
a. ACCA Paper F3 – Financial Accounting. Page 4-17
Recommended class readings:
b. Financial Accounting Made Simple, Vol. 1, by Robert.O. Igben.
a.
b.
c.
d.
Week 1: Assignment/Class Activities
Read and summarize the required readings in two paragraphs.
i. Define accounting and financial reporting in your own words. ii. what is the
purpose of financial reporting? iii. Discuss the elements of financial reports
Identify three issues that you require clarification in the course of your
readings and post the questions on to the discussion thread of week 1
Respond to at least two questions posted by your peers in the class
6
WEEK 2: THE REGULATORY FRAMEWORK
In this week, we introduce the regulatory system run by the International Accounting Standards
Board (IASB). We are concerned with the IASB's relationship with other bodies, and with
the way the IASB operates. The key topics to be discuss are; the regulatory system,
national/local legislation, accounting concepts and individual judgement, the international
accounting standards, International financial reporting standards
Learning objectives:
•
Understand the role of the regulatory system, including the roles of the IFRS Foundation
(IFRSF), the International Accounting Standards Board (IASB), the IFRS Advisory Council
(IFRS AC) and the IFRS Interpretations Committee (IFRS IC).
•
Understand the role of the International Financial Reporting Standards.
Required reading:
a. ACCA Paper F3 – Financial Accounting. Page 18 - 27
Recommended class readings:
Financial Accounting Made Simple, Vol. 1, by Robert.O. Igben
Week 2: Assignment/Class Activities
a. Read and summarize the required readings in two paragraphs.
b. Discuss the standard-setting process and list any 10 current IFRS
c. Identify three issues that you require clarification in the course of your
readings and post the questions on to the discussion thread of week 2
d. Respond to at least two questions posted by your peers in the class
WEEK 3: THE QUALITATIVE CHARACTERISTICS OF FINANCIAL INFORMATION
This week we will be dealing with the accounting conventions which lie behind accounts
preparation. We will be discussing the fundamental assumptions of going concern and accrual
basis and the qualitative characteristics of financial information such as; relevance faithful
representation, fair presentation, consistency and business entity concept.
Learning objectives:
(a) Define, understand and apply qualitative characteristics:
(i) Relevance
(ii) Faithful representation
(iii) Comparability
(iv) Verifiability
(v) Timeliness
(vi) Understandability
7
(b) Define, understand and apply accounting concepts:
(i) Materiality
(ii) Substance over form
(iii) Going concern
(iv) Business entity concept
(v) Accruals
(vi) Fair presentation
(vii) Consistency
Required reading:
a. ACCA Paper F3 – Financial Accounting. Page 28-40
Recommended class readings:
Financial Accounting Made Simple, Vol. 1, by Robert.O. Igben
Week 3: Assignment/Class Activities
e. Read and summarize the required readings in two paragraphs.
a. Distinguish relevance and reliability
b. Identify three issues that you require clarification in the course of your
readings and post the questions on to the discussion thread of week 3
c. Respond to at least two questions posted by your peers in the class
WEEK 4: THE USE OF DOUBLE ENTRY AND ACCOUNTING SYSTEMS
Our attention this week will be on the process by which a business transaction works its way
through to the financial statements. It is usual to record a business transaction on a document.
Such documents include invoices, orders, credit notes and goods received notes. In terms of
the accounting system these are known as source documents. The information on them is
processed by the system by, for example, aggregating (adding together) or classifying.
Specifically, we will be discussing the source documents, books of prime entry, the cash
book, bank statement and petty cash book.
Learning objectives:
• Identify and explain the function of the main data sources in an accounting system.
•
Outline the contents and purpose of different types of business documentation, including:
quotation, sales order, purchase order, goods received note, goods despatched note, invoice,
statement, credit note, debit note, remittance advice, receipt. Identify the main types of
business transactions, eg sales, purchases, payments, receipts.
•
Identify the main types of ledger accounts and books of prime entry, and understand their
nature and function. Understand and record sales and purchase returns.
•
Understand the need for a record of petty cash transactions.
8
Required reading:
a. ACCA Paper F3 – Financial Accounting. Page 41-56
Recommended class readings:
Financial Accounting Made Simple, Vol. 1, by Robert.O. Igben
Week 4 individual project 1.
Assignments Signup Sheet.
a. Pick a user of accounting information and identify the type of accounting
information the user needs and why? You will be given 5 minutes to present
your findings to the class.
b. Each student is required to read at least two other users of accounting
information in the book and formulate two questions. The questions will
form the basis of class discussions for the week.
Chapter
Name of student
5 minutes
presentation
User 1
User 2
User 3
User 4
User 5
User 6
User 7
User 8
User 9
User 10
User 11
WEEK 5: LEDGER ACCOUNTS AND DOUBLE ENTRY
Last we saw how to organise transactions into lists (i.e entered into books of prime entry). It is
not easy, however, to see how a business is doing from the information scattered throughout
these books of prime entry. The lists need to be summarised. This is ledger accounting. The
summary is produced in the nominal ledger by a process known as double entry bookkeeping.
This is the cornerstone of accounts preparation and is surprisingly simple, once you have
grasped the rules. We will also study the final book of prime entry: the journal. We will then
look in detail at posting transactions from the day books to the ledgers. Finally, we will
consider how to deal with credit transactions.
The major concepts this week are, nominal ledger, accounting equation, drawings, payables and
receivables, principle of double entry and the journal.
Learning objectives:
• Understand and apply the concept of double entry accounting and the duality concept.
9
•
Understand and apply the accounting equation.
•
Understand how the accounting system contributes to providing useful accounting
information and complies with organisational policies and deadlines.
•
Understand and apply the concept of double entry accounting and the duality concept.
•
Understand and apply the accounting equation.
•
Understand how the accounting system contributes to providing useful accounting
information and complies with organisational policies and deadlines.
Required reading:
a. ACCA Paper F3 – Financial Accounting. Page 59-85
Recommended class readings:
Financial Accounting Made Simple, Vol. 1, by Robert.O. Igben
a.
b.
c.
d.
Week 5: Assignment/Class Activities
Read and summarize the required readings in two paragraphs.
In no more 25 words, analyze the principle of double entry
Identify three issues that you require clarification in the course of your
readings and post the questions on to the discussion thread of week 5
Respond to at least two questions posted by your peers in the class
WEEK 6: FROM THE TRIAL BALANCE TO FINANCIAL STATEMENTS
Last week we learned the principles of double entry and how to post to the ledger accounts.
The next step in our progress towards the financial statements is the trial balance. Before
transferring the relevant balances at the end of the period to the statement of profit or loss and
putting closing balances carried forward into the statement of financial position, it is usual to
test the accuracy of double entry bookkeeping records by preparing a list of account balances.
This is done by taking all the balances on every account; because of the self-balancing nature
of the system of double entry, the total of the debit balances will be exactly equal to the
total of the credit balances.
In very straightforward circumstances, where no complications arise and where the records are
complete, it is possible to prepare accounts directly from a trial balance.
We will be looking at:
• The trial balance
• The statement of profit or loss
• The statement of financial statement
• Balancing of accounts and preparing financial statements
Learning objectives:
• Understand and identify the purpose of each of the main financial statements.
• Illustrate how to balance and close a ledger account.
• Identify the purpose of a trial balance.
• Extract ledger balances into a trial balance.
10
•
•
Prepare extracts of an opening trial balance.
Identify and understand the limitations of a trial balance.
Required Readings:
a. ACCA Paper F3 – Financial Accounting. Page 89-104
Recommended class readings:
Financial Accounting Made Simple, Vol. 1, by Robert.O. Igben
a.
b.
c.
d.
Week 6: Assignment/Class Activities
Read and summarize the required readings in two paragraphs.
Prepare the statement of profit or loss and profit financial position from a set
of question will be posted on eLMS
Identify three issues that you require clarification in the course of your
readings and post the questions on to the discussion thread of week 6
Respond to at least two questions posted by your peers in the class
WEEK 7: RECORDING TRANSACTIONS AND EVENTS - INVENTORY
Inventory is one of the most important assets in a company's statement of financial position.
As we will see, it also affects the statement of profit or loss, having a direct impact on gross
profit. So far you have come across inventories in the preparation of a simple statement of
financial position. Here we will look at inventories in the calculation of the cost of goods sold.
We will also explore the difficulties of valuing inventories. This is the first time that you will
be required to consider the impact of the relevant IFRS on the valuation and presentation of an
item in the accounts: IAS 2 Inventories.
Learning objectives:
• Recognise the need for adjustments for inventory in preparing financial statements.
•
Record opening and closing inventory.
•
Identify the alternative methods of valuing inventory.
•
Understand and apply the International Accounting Standards
•
Board (IASB) requirements for valuing inventories.
•
Recognise which costs should be included in valuing inventories.
•
Understand the use of continuous and period-end inventory records.
•
Calculate the value of closing inventory using first in, first out (FIFO) and average cost
(AVCO) – both periodic weighted average and continuous weighted average.
•
Understand the impact of accounting concepts on the valuation of inventory.
11
•
Identify the impact of inventory valuation methods on profit and on assets.
Required reading:
a. ACCA Paper F3 – Financial Accounting. Page 107-131
Recommended class readings:
Financial Accounting Made Simple, Vol. 1, by Robert.O. Igben
Week 7: Assignment/Class Activities
a. Read and summarize the required readings in two paragraphs.
b. State the provisions of IAS 2 in one paragraph.
c. Identify three issues that you require clarification in the course of your
readings and post the questions on to the discussion thread of week 7
d. Respond to at least two questions posted by your peers in the class
WEEK 8: RECORDING TRANSACTIONS AND EVENTS – TANGIBLE NONCURRENT ASSETS
Non-current assets can be expensive items and so can have a big impact on a business's
financial statements. It is therefore crucial that expenditure on non-current assets is accounted
for correctly. In this week, we focus on tangible non-current assets, ie those with physical
form. The main categories of tangible non-current assets are governed by IAS 16 Property,
plant and equipment, which is the main focus for this week.
Learning objectives:
• Define non-current assets.
•
Recognise the difference between current and non-current assets.
•
Explain the difference between capital and revenue items.
•
Classify expenditure as capital or revenue expenditure.
•
Prepare ledger entries to record the acquisition and disposal of non-current assets.
•
Calculate and record profits or losses on disposal of noncurrent assets in the statement
of profit or loss, including part-exchange transactions.
•
Record the revaluation of a non-current asset in ledger accounts, the statement of profit
or loss and other comprehensive income and in the statement of financial position.
•
Calculate the profit or loss on disposal of a revalued asset.
•
Illustrate how non-current asset balances and movements are disclosed in financial
statements.
•
Explain the purpose and function of an asset register.
12
Required reading
a. ACCA Paper F3 – Financial Accounting. Page 132- 167
Recommended class readings:
Financial Accounting Made Simple, Vol. 1, by Robert.O. Igben
a.
b.
c.
d.
Week 8: Assignment/Class Activities
Read and summarize the required readings in two paragraphs.
State the provisions of IAS 16 in one paragraph.
Identify three issues that you require clarification in the course of your
readings and post the questions on to the discussion thread of week 8
Respond to at least two questions posted by your peers in the class
WEEK 9: RECORDING TRANSACTIONS AND EVENTS – INTANGIBLE
NON-CURRENT ASSETS
Intangible non-current assets are long-term assets that have a value to the business because
they have been paid for, but which do not have any physical substance. The most significant
of such intangible assets are research and deferred development costs. In many companies,
especially those which produce food or 'scientific' products, such as medicines and 'high
technology' products, the expenditure on research and development (R&D) is considerable.
When R&D is a large item of cost its accounting treatment may have a significant influence on
the profits of a business and its statement of financial position valuation. Because of this,
attempts have been made to standardise the treatment, and these we will be discussing this
week.
Learning objectives:
•
•
•
•
•
•
Recognise the difference between tangible and intangible noncurrent assets.
Identify types of intangible assets.
Identify the definition and treatment of 'research costs' and 'development costs' in
accordance with IFRSs.
Calculate amounts to be capitalised as development expenditure or to be expensed from
given information.
Explain the purpose of amortisation.
Calculate and account for the charge for amortisation.
Required reading:
a. ACCA Paper F3 – Financial Accounting. 169-179
Recommended class readings:
Financial Accounting Made Simple, Vol. 1, by Robert.O. Igben
13
Week 9: Assignment/Class Activities
a. Read and summarize the required readings in two paragraphs.
b. State the provisions of IAS 38 in one paragraph.
c. Identify three issues that you require clarification in the course of your
readings and post the questions on to the discussion thread of week 9
d. Respond to at least two questions posted by your peers in the class
WEEK 10: RECORDING TRANSACTIONS AND EVENTS – ACCRUALS
AND PREPAYMENT
This week deals with the adjustments which may need to be made to the expenses in the
statement of profit or loss. Our learning objectives this week are:
•
•
•
•
•
Understand how the matching concept applies to accruals and prepayments.
Identify and calculate the adjustments needed for accruals and prepayments in
preparing financial statements.
Illustrate the process of adjusting for accruals and prepayments in preparing
financial statements.
Prepare the journal entries and ledger entries for the creation of an accrual or
prepayment.
Understand and identify the impact on profit and net assets of accruals and
prepayments.
Required reading:
a. ACCA Paper F3 – Financial Accounting. 181-192
Recommended class readings:
Financial Accounting Made Simple, Vol. 1, by Robert.O. Igben
Week 10: Assignment/Class Activities
a. Read and summarize the required readings in two paragraphs.
b. What is deferred or unearned income?
c. Identify three issues that you require clarification in the course of your
readings and post the questions on to the discussion thread of week 10
d. Respond to at least two questions posted by your peers in the class
WEEK 11: RECORDING TRANSACTIONS AND EVENTS – PROVISIONS
AND CONTINGENCIES
This chapter considers provisions and contingencies which are the subject of an IFRS – IAS
37 Provisions, contingent liabilities and contingent assets. Provisions are concerned with
anticipating losses. IAS 37 is an important standard and will be examined. You need to
14
understand the basic definitions given in IAS 37 and be able to work out whether an item needs
to be recognised or disclosed in the financial statements. Our learning objectives this week are:
•
Understand the definition of 'provision', 'contingent liability' and 'contingent asset'.
•
Distinguish between and classify items as provisions, contingent liabilities or
contingent assets.
•
Identify and illustrate the different methods of accounting for provisions, contingent
liabilities and contingent assets.
•
Calculate provisions and changes in provisions.
•
Account for the movement in provisions.
•
Report provisions in the final accounts.
Required reading:
b. ACCA Paper F3 – Financial Accounting. 195-206
Recommended class readings:
Financial Accounting Made Simple, Vol. 1, by Robert.O. Igben
Week 11: Assignment/Class Activities
a. Read and summarize the required readings in two paragraphs.
b. State the provisions of IAS 37 in one paragraph.
c. Identify three issues that you require clarification in the course of your
readings and post the questions on to the discussion thread of week 11
d. Respond to at least two questions posted by your peers in the class
WEEK 12: RECORDING TRANSACTIONS AND EVENTS
IRRECOVERABLE DEBTS AND ALLOWANCE FOR RECEIVABLES
–
In this week we look at two types of adjustment which need to be made in respect
of credit sales.
• Irrecoverable debts
•
Allowance for receivables
The learning objectives for this week are
•
Identify the benefits and costs of offering credit facilities to customers.
•
Understand the purpose of an aged receivables analysis.
•
Understand the purpose of credit limits.
•
Prepare the bookkeeping entries to write off an irrecoverable debt.
•
Record an irrecoverable debt recovered.
15
•
Identify the impact of irrecoverable debts on the statement of profit or loss and
statement of financial position.
•
Prepare the bookkeeping entries to create and adjust an allowance for receivables.
•
Illustrate how to include movements in the allowance for receivables in the statement
of profit or loss and how the closing balance of the allowance should appear in the
statement of financial position.
Required reading:
c. ACCA Paper F3 – Financial Accounting. 207-220
Recommended class readings:
Financial Accounting Made Simple, Vol. 1, by Robert.O. Igben
Week 12: Assignment/Class Activities
a. Read and summarize the required readings in two paragraphs.
b. State the conditions for writing a debt off.
c. Identify three issues that you require clarification in the course of your
readings and post the questions on to the discussion thread of week 12
d. Respond to at least two questions posted by your peers in the class
Week 13
Finals -revisions
16