Summary Syllabus
Course Code and Title:
Course Credits:
ACC 5207 / ACC 3204 IFRS
3 credits
International Financial Reporting Standards
Prerequisite: AC 3202, Intermediate Financial Accounting II
1. Course Description
In 2005, the European Union (“EU”) began requiring companies incorporated in its member
states whose securities are listed on an EU-regulated stock exchange to prepare their
consolidated financial statements in accordance with International Financial Reporting
Standards (“IFRS”), formerly known as International Accounting Standards (“IAS”). Today
the globalization of business and finance has led more than 12,000 companies in almost 100
countries to adopt and require or allow the use of IFRS for the preparation of financial
statements by publicly held companies. The growing acceptance of IFRS as a basis for U.S.
financial reporting represents a fundamental change for the U.S. accounting profession. In
the United States, the Securities and Exchange Commission (“SEC”) is considering taking
steps to set a date to allow U.S. public companies to use IFRS, and perhaps make its adoption
mandatory.
The goal of IFRS is to make international comparisons as easy as possible. This is difficult
because, to a large extent, each country has its own set of rules. For example, US GAAP are
different from Canadian GAAP. Synchronizing Australia, New Zealand and Israel have
essentially adopted IFRS as their national standards. Canada, which previously planned
convergence with U.S. Generally Accepted Accounting Principles (“GAAP”), now plans to
require IFRS for publicity accountable entities in 2011. The Accounting Standards Board of
Japan (“ASBJ”) and the International Accounting Standards Board (“IASB”) plan
convergence by 2011.
The international standard-setting process began several decades ago as an effort by
industrialized nations to create standards that could be used by developing and smaller
nations unable to establish their own accounting standards. But as the business world became
more global, regulators, investors, large companies and auditing firms began to realize the
importance of having common standards in all areas of the financial reporting chain.
IFRS are a set of international accounting standards stating how particular types of
transactions and other events should be reported in financial statements issued by the
International Accounting Standards Board. IFRS are sometimes confused with International
Accounting Standards, which are the older standards that IFRS replaced. (IAS were issued
from 1973 to 2000). IFRS in a broad sense comprise:
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Statements, stating basic principles and grounds of IFRS.
IAS – standards issued before 2001
IFRS – standards issued after 2001
IFRIC (International Financial Reporting Interpretations Committee) interpretations
of accounting standards, giving specific guidance on unclear issues.
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Framework for the Preparation and Presentation accounting standards across the globe is an
ongoing process in the international accounting community.
2. Learning Objectives
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To introduce students to some of the main concepts of IFRS and provide them with
the foundational knowledge about the IFRS
To develop among students the basic understanding of the financial reporting and
equip students with the knowledge they may use later
To expose students the various practical issues of financial reporting
3. Intended Learning Outcomes
By the end of the class students will be expected to be familiar with key International
Financial Reporting Standards, conceptual issues underlying these IFRS, and their practical
application
4. Indicative Assessment Scheme
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Quizzes
Final exam
60% (20% each)
40%
Final exam will comprise written problems using the techniques learned in the course.
Quizzes will include material up to the last class held prior to the quiz.
5. Indicative Content
Introduction to IFRS
Introduction to IFRS (Presentation of financial statements)
Leases
Property, plant and equipment and capital'n of borrowing costs
Investment property
Income Taxes
Segment reporting
Intangible assets and Exploration and Evaluation of Mineral
Resources
Inventories
Financial Instruments
Foreign exchange
Impairment of fixed assets and goodwill
Earnings per share
Associates and Joint Ventures
Provisions, contingent liabilities and assets
Cash Flow Statement
Related party disclosures
Share-based payment
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First-time adoption
Consolidated and separate FS
Business combinations and goodwill - part 1
Business combinations and goodwill - part 2
Events after the balance sheet date
Employee benefits
Non-current Assets Held for Sale and Discontinued Operations
Interim financial reporting
Revenue recognition
6. Indicative Instructional Resources
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Ernst & Young, Application of IFRS (3rd edition in Russian), available in library
Wiley, 2006, IFRS: Interpretation and Application of International Accounting and
Financial Reporting and Wiley, 2007, Applying International Financial Reporting.
International Accounting Standards Board - www.iasb.org
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