DEPARTMENT OF ACCOUNTANCY
INTRODUCTION TO EXTERNAL FINANCIAL REPORTING
ACC2143/ACC2543
COURSE OUTLINE
FOR
2025
LECTURER
: MR. M.P. NDOU
OFFICE NO.109
: OLD ADMIN. BLD
TEL
: (015) 962 8385
E-mail address
: Muhali.Ndou@univen.ac.za
MODULE
COURSE CODE
: INTRODUCTION TO EXTERNAL FINANCIAL
REPORTING
: ACC 2143/ACC2543
SEMESTER
: ONE
PRE-REQUISITES
: ACC 1541& ACC 1641 or 1141 &1241
EXAM DURATION
: 3 HOUR
1. Welcome
On behalf of the Department of Accountancy, I would like to extend my sincere word of welcome to
every student taking Company this module. We wish you every success for the first semester and
trust that the knowledge you gain will be used fruitfully in your future career. We hope you will find
the module interesting and stimulating, and that you will develop an understanding of accounting and
its application.
2. The Objectives of the Module
The objective of this module is to introduce principles of accounting according to the relevant
International Reporting Standards (IFRS) for routine and non-routine transactions. On
completion of this module, students should be able to, among others:
o
o
o
Identify transactions and apply the appropriate IFRS standard to record the
transaction.
Determine amounts for recording according to IFRS principles
Prepare all financial statements namely:
Statement of Financial Position
Statement of profit and Loss & other comprehensive income
Statement of changes in Equity
Statement of cash flows
-
o
o
Disclose financial information in the notes to financial statements.
Discuss the appropriate accounting principles in challenging theory questions.
3. The fundamental Departmental principles:
A student of the Department is required to comply with the following fundamental principles:
Integrity
The quality of having a sense of honesty, truthfulness and consistency in regard to the
motivations for your behaviour towards fellow students, lecturers and other staff members of
the Department.
Respect
Students must respect the diversity and differences of opinions of their fellow students,
lectures and other staff members of the Department. This entails:
Respect for the learning of other students; and
Respect for their lecturers
Discipline
Students shall adhere to acceptable behaviour that is not contrary to the principles set out in
the Code and the behaviours’ set out in the University of Venda Student Regulations.
Responsibility and Accountability
Students recognise that they are responsible for their learning and take ownership of the
learning process. Students are accountable to themselves and their lecturers for the outcome
of their learning process.
Fairness
Students acknowledge and respect the rights of other students, the lecturers and other staff
members of the Department.
4. Module information
Module name
Pre-requisites for module
Introduction to External Financial Reporting
ACC1541 & ACC1641 or 1141 &1241
Module NQF level
7
NQF Credits
15
Duration of module
(Weeks/Semester)
1 Semester
5. Purpose of the module and Content
The purpose of this module is to build on the foundations laid in ACC 1541 and ACC 1641
with regards to IFRIS, and to further enhance the students’ knowledge and understanding of
the elementary of financial statements, their measurement, recognition, presentation and
disclosure.
Module outcomes
Module assessment criteria
At the end of this module you should be
able to do the following:
You will be assessed as competent if you can
Conceptual framework and
presentation of financial
statements
Property, plant and equipment
Revision of conceptual Framework and
definition and recognition criteria of
assets and liabilities:
- When and how an asset be
recognized (or expensed)
- Whether a liability should be
recognized, and at what value
Preparation and presentation of Financial
Statements (overview of IAS 1)
- Components of financial statements
- Financial reporting dates and
changes in financial reporting dates
- Use and estimates and judgements
made
identify, measure, record, present and
disclose the following items:
-
property,
plant
and
equipment
(in
accordance with IAS 16 Property, Plant
and Equipment/IFRS for SME’s – Section
17: Property, plant and equipment);
-
intangible assets (in accordance with IAS
38 Intangible Assets/IFRS for SME’s –
Section 18: Intangible assets other than
goodwill); and
-
financial assets (in accordance with IAS
39 Financial Instruments/IFRS for SME’s
–
Section
11:
Basic
financial
instruments);
adjust depreciation as the result of a change
in useful lives;
explain the following:
-
treatment
of
leased
accordance
with
assets
(in
IAS
17
Leases/IFRS for SME’s
-
Section 20: Leases);
control of property, plant and equipment;
and
Calculate and record insurance claims in
respect of property, plant and equipment.
Inventories
define inventories according to statement IAS
2 Inventories
name and discuss the following methods to
measure the cost of inventories:
-
first-in-first-out method;
-
weighted average cost method;
-
specific identification method;
-
standard cost method; and
-
retail method;
apply the following methods to measure the
cost of inventories:
- first-in-first-out method; and
- weighted average cost method;
define and calculate net realisable value;
measure inventories at the lower of cost and
net realisable value;
define fair value;
calculate closing inventories when a physical
count is not possible;
calculate and record insurance claims in
respect of inventories;
present and disclose inventories in the
financial statements; and
determine physical quantities of
inventories
Investment properties
Definition and recognition criteria of an
investment asset
Initial recognition of a property at cost, and
consideration/settlement
Subsequent recognition:
-
Cost model
-
Fair value model
Disclosure of investment properties
-
Accounting policy notes
-
Disclosure – depreciation, fair
value adjustments
Leases
Finance leases
Lessee accounting
Impairment of assets
Description of impairment:
-
When
to
undertake
an
impairment
Asset impairment:
Provisions and contingencies
Collecting evidence
Calculating recoverable amount
Recognizing impairment loss
identify,
recognise,
measure,
present
and
disclose routine accounting transactions and
events on a basic level in relation to:
Provisions; and
Contingent liabilities
Accounting
policies,
changes
in
accounting estimates, and errors
Criteria
for
selecting
appropriate
accounting policy
Correction of errors
Changes in estimates and effect on
profit and loss
Cash flow statements.
prepare a statement of cash flow with
notes under the following headings in
accordance with IAS 7 Statement of
Cash Flows:
cash flows from operating activities;
cash flows from investing activities;
cash flows from financing activities; and
net change in cash and cash equivalents.
6. Textbooks
Prescribed
6.1. Gripping GAAP, CL Service 2024/2025 Edition
Recommended textbooks
6.2. Accounting Standards
By Oppermann, Booysen, Van Der Merwe
6.3. Financial Accounting - IFRS Principles
By Ilse Lubbe, Goolam Modack, Shelly Herber
7.Timetable
Date
Venue
Time
Monday
Tuesday
Thursday
D1
E2
D1
08h00 – 08:50
12:00 – 12:50
08:00 – 08:50
Assessment schedule/opportunities
Assessment
Topic
Date
Weighting
Assessment method
TBA
TBA
TBA
TBA
TBA
TBA
TBA
20%
40%
40%
Marked assignment submitted.
Test
Test
opportunity
Group assignment
Assessment 1
Assessment 2
Replacement assessment
opportunity 1**
Total module mark
TBA
40%
100%
8. Delivery/Learning methods and estimated notional study
hours per week
FORMAL CREDITS: ( ACC1541)
Lectures:
3hpw x 13 weeks
Assessments:
Test 1
Test 2
39 hours
1.5 hrs
1.5 hrs
3.9 credits
0.15
0.15
SELF-STUDY CREDITS:
Self-study
4hpw x 13 weeks
Exam preparation
Assignment research
Total
52hrs
15hrs
15hrs
124hrs
5.2 credits
1.5
1.5
12 credits
9. Admission criteria: last assessment opportunity
A minimum module mark of 40% is required in order to gain access to the last
assessment opportunity/exam.
10.
Lecturer evaluation
As means of Quality Control on service delivery, students will be required to complete
lecturer evaluation questionnaire forms periodically provided online. Your genuine
responses to the questions will be helpful for the lecturer to adjust his/her lectures and
other service delivery accordingly, if necessary, for the benefit of the students.
11. CLASS ATTENDANCE AND PARTICIPATION
Class participation is encouraged to assist in the development of your communication
skills. Class attendance is necessary (but not sufficient) for high-quality class participation.
Class attendance, high-quality class participation entails frequent positive contribution
(voluntarily or when called upon) to class discussion. Positive contribution may take the
form of answers, questions, and observations that reflect serious preparation for class.
This positive expression of learning may be used to impact on your promotion mark when
you are near a promotion “break point”. Absences, late arrivals, and early departures
(whatever the reason) adversely affect your promotion marks in class. The measurement
of class participation is necessarily a subjective process.
12. ACADEMIC HONESTY
University policy regarding academic honesty is an explicit part of this syllabus. All
students are expected to be familiar with and abide by the University of Venda policy on
Academic Honesty as prescribed in the current University calendar (See 1.3 General
Regulations). This policy specifically addresses plagiarism, cheating in examinations,
unauthorized collaborations, falsifications, and multiple submission of the same work.
As members of the academic community, students are expected to recognize and uphold
standards of intellectual and academic integrity. The university assumes as a basic and
minimum standard of conduct in academic matters that students be honest and that they
submit for credit only the products of their own efforts. Both the ideals of scholarship and
the need of fairness require that all dishonest work be rejected as a basis of academic
credit. They also require that students refrain from all forms of dishonorable or unethical
conduct related to their academic work.
13.
Consultation Hours
Monday
10H00 – 12H00
Tuesday
09H00 – 11H00
Thursday
09H00 – 11H00
0
