GRADUATE SCHOOL OF MANAGEMENT
ST.PETERSBURG STATE UNIVERSITY
COURSE PROGRAM
International accounting
Bachelor program 080500 — «Management», Fall semester, 2009/2010 academic year
Lecturer: Associate Professor Yulia Sergeevna Leevik
email: leevik@gsom.pu.ru
Course annotation
Achieving consistency in financial reporting worldwide is the need of the hour, especially if
meaningful comparisons are to be made of financial information emanating from different countries
using accounting standards that, until recently, were vastly different from each other. Thus, there
has arisen the urgent need for promulgation of a common set of global accounting standards or, in
other words, global convergence into a common language of accounting for the financial world.
International Financial Reporting Standards (IFRS), the standards promulgated by the International
Accounting Standards Board (IASB), appear to be emerging as the global accounting standards.
The IASB standards are rapidly being adopted in a large number of countries all around the world.
Most countries in Europe, including the member states of the European Union, will require listed
companies to prepare their consolidated financial statements in accordance with IFRS instead of
local requirements. Understanding and appreciating the fundamental principles and requirements of
IFRS has become more important than ever before. In this new financial world, knowledge of the
fundamental principles of IFRS is essential to meet the growing demands of a changing regulatory
and market environment.
Course Status: 4th year Bachelor student’s, Elective course, 30 classroom hours
Prerequisites: «Financial accounting», «Financial analysis», «Managerial accounting».
Организация курса: лекции, семинары, самостоятельное выполнение домашних заданий.
Course objectives
The aim of the course is to provide students with the understanding of the fundamental principles
and requirements for preparing and disclosure financial statements in accordance with International
Financial Reporting Standards.
On completion of this course students should be able to:
 appraise and apply specified accounting concepts and theories to practical situations
 appraise and apply the International regulatory framework of financial reporting
 prepare financial statements for different entities to comply with specified International
Financial Reporting Standards
 prepare group balance sheet to include a single subsidiary and possibly an associated company
or a joint venture
 analyse, interpret and report on financial statements and related information to a variety of user
groups
Course contents
Part 1 . International accounting: framework and regulation (8 hours)
Topic 1. International accounting differences and the process of harmonization (2 hours)
Topic 2. The IFRS Framework (2 hours)
Topic 3. Structure and presentation of financial statements (4 hours)
Part 2. Annual financial statements (14 hours)
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Topic 4. Fixed tangible assets (2 hours)
Topic 5. Impairment and disposal of assets (4 hours)
Topic 6. Inventories (2 hours)
Topic 7. Revenue (2 hours)
Topic 8. Provisions, Contingent Liabilities and Contingent Assets (2 hours)
Topic 9. Financial Instruments (2 hours)
Part 3. Consolidated accounts and the multinational (8 hours)
Topic 10. Consolidated Financial Statements (4 hours)
Topic 11. Investments in Associates and Joint Ventures (2 hours)
Topic 12. Foreign currency translation (2 hours)
Course schedule
Topic 1. International accounting differences and the process of harmonization
Date: 06.11.2009
Topic contents:
 Origin of national differences
 Differences in accounting systems
 Country classification
 International financial reporting standards.
 New structure of the International accounting standards board
After studying this chapter you should be able to:
 Describe and explain how the elements (provision of finance, the
legal system, the system of taxation, cultural values) influenced
the development of financial reporting and the existing
accounting systems in a country;
 Explain how different systems of accounting regulation could
develop;
 Outline the history and changing role of the International
Standards Committee/Board in the development of accounting
harmonization.
Textbook, p. 22-63
Topic 2. The IFRS Framework
Date: 06.11.2009
Topic contents:
 Purpose and status
 The objective of financial statements
 Underlying assumptions
 Qualitative characteristics of financial statements
 Elements of financial statements
After studying this chapter you should be able to:
 Describe and discuss the contents of the IASB Framework;
 Appraise the overall effect of the Framework.
Textbook, p. 142-175
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Topic 3. Structure and presentation of financial statements
Date: 13.11.2009
Topic contents:
 Balance sheet
 Income statement
 Changes in equity
 Cash flow statement
 Notes to the financial statements
After studying this chapter you should be able to:
 Describe and apply the format and disclosure requirements of
IAS № 1;
 Discuss the adequacy of the disclosure requirements of IAS № 1.
Textbook, p. 175-194
Topic 4. Fixed tangible assets
Date: 20.11.2009
Topic contents:
 Determining the cost of a fixed asset
 Principles of accounting for depreciation
 Property, plant and equipment
 Investment property
After studying this chapter you should be able to:
 Discuss and apply the principles, concepts and major methods of
providing for depreciation;
 Explain what depreciation does and does not do;
 Describe, apply and appraise the requirements of IAS № 16
“Property, plant and Equipment”;
 Describe, apply and appraise the requirements of IAS № 40
“Investment Property”.
Textbook, p. 247-256, 265-287
Topic 5. Impairment and disposal of assets
Date: 20.11.2009
Topic contents:
27.11.2009
 Measurement of recoverable amount
 Cash-generating units
 Accounting for impairment loss
 Allocation of an impairment loss within a cash-generating unit
 Non-current assets held for sale and discontinued operations
After studying this chapter you should be able to:
 Describe, apply and appraise the requirements of IAS № 36
“Impairment of Assets”;
 Explain what is meant by non-current assets held for sale;
 Describe how non-current assets held for sale should be
recognized and measured in accordance with IFRS;
 Explain the purpose of issuing information on discounting
operations, and how much such information should be
disclosure.
Textbook, p. 305-333
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Topic 6. Inventories
Date: 27.11.2009
Topic 7. Revenue
Date: 04.12.2009
Topic contents:
 Cost components
 Cost formulas
 Net realizable value
 Recognition as an expense
After studying this chapter you should be able to:
 Explain the composition of inventories;
 Describe five inventory cost assumptions;
 Show the effect of annual profit and profit trends of using
different inventory cost assumptions.
Textbook, p. 358-370
Topic contents:
 Definition and measurement of revenue
 Sale of goods
 Rendering of services
 Interest, royalties and dividends
 Specific examples
After studying this chapter you should be able to:
 Define revenue and what type of transactions it arises from;
 Determine when revenue should be recognized by an entity;
 Explain how revenue should be measured;
 Critically apprise IAs № 18 “revenue” in relation to revenue
recognition and measurement.
Textbook, p. 416-433
Topic 8. Provisions, Contingent Liabilities and Contingent Assets
Date: 04.12.2009
Topic contents:
 The relation between provisions and contingent liabilities
 Accounting for provisions
 Contingent assets
After studying this chapter you should be able to:
 Define provisions and contingencies;
 Account for provisions and contingencies in accordance with
IAS № 17;
 Describe the presentation requirements in relation to provisions
and contingencies.
Textbook, p. 433-457
Topic 9. Financial Instruments
Date: 11.12.2009
Topic contents:
 Definition of financial instruments
 Categories of financial assets/liabilities
 Measurement of financial instruments
After studying this chapter you should be able to:
 Describe a financial instrument;
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 Identify the categories of financial assets/liabilities;
 Explain the requirements of the IASs for financial instruments.
Textbook, p. 386-408
Topic 10. Consolidated Financial Statements
Date: 11.12.2009
Topic contents:
18.12.2009
 Basic principles of consolidation
 Accounting for goodwill and minority interest
 Mid-year acquisitions
 Intercompany transactions and unrealized profit
After studying this chapter you should be able to:
 Explain a business combination;
 Describe the requirements of IAS № 27, IFRS № 3;
 Practice the preparation of consolidated balance sheet involving
inter-entity trading, unrealized profits.
Textbook, p. 647-669, 689-735
Topic 11. Investments in Associates and Joint Ventures
Date: 18.12.2009
Topic contents:
 Significant influence
 Equity accounting
 Forms of joint venture
 Jointly controlled entities
After studying this chapter you should be able to:
 Identify an associated undertaking and a joint venture;
 Describe the requirements of IAS № 28, 31;
 Practice the preparation of consolidated balance sheet involving
an associated undertaking and a joint venture.
Textbook, p. 678-681
Topic 12. Foreign currency translation
Date: 25.12.2009
Topic contents:
 Currency conversion
 Currency translation
 Individual entity’s foreign currency translations
 Translation methods for financial statements of foreign
operations
After studying this chapter you should be able to:
 Explain the necessity for foreign currency conversion and
translation;
 Describe the IAS № 21 regulations in respect of foreign currency
translations for individual entities;
 Translate accounts of foreign entities;
Textbook, p. 735-760
Individual consultations
each Wednesday (November-December 2009), 15.00 – 16.30, room 419
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Evaluation
Student’s work for the course will be assessed in 4 key aspects:
 Group report and presentation – 10%
 Problem solving and exercises – 10%
 Midterm test –
10%
 Final written test –
70%
Total: 100%
Basic textbook

David Alexander, Anne Britton, Ann Jorissen. International Financial Reporting and Analysis.
Int. Thomson Business Press; 3d edition, 2007.
Additional reading



Barry J. Epstein, Ali Mirza. IFRS: Interpretation and Application of International Accounting
and Financial Reporting Standards. Wiley & Sons Inc., 2006.
Сhristopher Nobes and Robert Parker. Comparative International Accounting. 9th ed. Prentice
Hall International (UK) Limited, 2006.
International Accounting Standards, IASB, 2008.
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