MINISTRY OF SCIENCE AND EDUCATION OF THE REPUBLIC OF KAZAKHSTAN
NEI «ALMATY MANAGEMENT UNIVERSITY»
DEPARTMENT: “VALUATION, ACCOUNTING AND AUDIT”
Approved
at the meeting of the Educational
and Methodic Council
Chairman
______________ N. Duysengulova
«_»____________ 2014., №__
Academic program: Bachelors
Specialty: 5B050900 - “Finance”
WORKING PROGRAM
on the course: « Financial accounting according to IFRS »
Almaty, 2014
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Completed by: MBA, PhD candidate _____________________
Alma Karshalova
The working program has been developed on the basis of the Sample Program of the course (for
mandatory component): “Financial accounting according to IFRS” for students of the specialty:
5B050900 - “Finance”
The working curriculum was reviewed at the meeting of the Department of “Valuation,
accounting and audit”
Protocol №1 from “25” August 2014.
Head of the department “Valuation, accounting and audit”
c.ec.s., Docent_____________________
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L.Nurgazieva
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1 Preface
This discipline considers and examines the fundamental themes in International financial
reporting standards, which contribute to the development of professional thinking.
Methodology of teaching this discipline provides for:
- Lecturing;
- Practical classes conduction;
- IWST;
- IWS.
The purpose of teaching this discipline is to consider during the course of the fundamental
fact involving the study of international financial reporting standards, including consideration of
short-term assets such as cash and accounts receivable, inventories, income tax, capital and
reserves, the consolidation of financial statements, the impact of changes in exchange courses.
The objectives of teaching this discipline are: Is to acquire the skills of collecting, recording
and processing information necessary for the formation of groups of organizations financial
statements in conformity with international standards.
Prerequisites: Accounting
Postrequisites: Managerial accounting
Upon completion of this discipline students must:
master the following competencies according to the competence model of the bachelor
General competencies:
- to know theoretical principles of natural sciences (social, humanitarian, economic), which
contribute to the formation of a well-educated person with a spacious mind; Foundations of
Economics, Management, Marketing, Finance, Taxation; Basics of the legal system of the
Republic of Kazakhstan;
- to be able to adequately navigate various social situations; Work in a team; to defend their
positions, and suggest new approaches; Reach compromise, correlate their opinions with the
opinions of the team members; Aim or professional and personal development; Use information
technologies in their professional work; Navigate information streams, and be able to face
challenges of the world economy;
- to have skills in: research skills necessary for day-to-day professional activities and possible
study at master’s programs; Operating an office equipment; Compliance with ethical and legal
norms;
Subject-specialized:
- to know theoretical principles of IFRS accounting and reporting, its nature, purpose, basic
terms and definitions; Accounting methods to prepare financial reports in accordance with IFRS,
namely: accounting for current and non-current assets and liabilities; equity and earnings per share;
- to be able to understand the provisions of International financial Reporting Standards;
Analyze and interpret IFRS provisions in practical scenarios; Prepare basic financial statements
in accordance with IFRS;
- to have skills in preparing basic financial statements in accordance with IFRS;
Economic and organizational and managerial competencies:
- to know objectives of the governmental regulation of the economy, and a role of public
sector; Business ethics;
- to be able to follow the common social and ethical norms in their professional life;
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- to have skills in decision-making;
2 THEMATIC PLAN OF THE DISCIPLINE
FINANCIAL ACCOUNTING ACCORDING TO IFRS
Contact hours
including
Practical
Lectures
classes
4
5
2
1
IWS/
IWU
IWST/
IWUT
7
1
8
5
1
1
5
2
1
1
5
9
2
1
1
5
Impairment of assets (IFRS
IAS 36)
Accounting of liabilities in
the organization
9
2
1
1
5
9
2
1
1
5
7
Revenue,
income
and
expense recognition (IFRS
IAS 18)
18
4
2
2
10
8
Accounting of Capital and
reserves
18
4
2
2
10
9
Presentation of Financial
Statements (IFRS IAS1)
9
2
1
1
5
10 Consolidated
Financial
Statements (IFRS IAS 27)
9
2
1
1
5
11 Effect of exchange rate
changes. Foreign activities.
(IFRS IAS 21)
12 Income taxes. (IFRS IAS 12)
9
2
1
1
5
18
4
2
2
10
135
30
15
15
75
№
Theme
In total
1
1
2
Accounting of short-term
assets: Cash and receivables
3
9
2
Accounting of inventories
(IFRS IAS 2)
9
2
3
Accounting of fixed assets
(IFRS IAS 16)
9
4
Accounting of intangible
assets (IFRS IAS 38)
5
6
Total
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3 Content of the discipline
Theme 1. Accounting of short-term assets: Cash and receivables
Classification of assets: short-term assets. Recognition of cash and cash equivalents.
Restrictions on the use of funds. Control over cash. Organization of accounting of cash
transactions. The recognition and classification of receivables. The initial assessment. Account
receivables buyer and customers. Discounts and refunds of goods. Write-off bad debts. Methods
for estimating allowance for doubtful accounts. Account receivables affiliated, associated
companies. Accounts receivable from employees, according to rent, fees receivable and other.
Allowance for other assets: prepayments, prepaid expenses, assets under construction and other
assets.
Theme 2. Accounting of inventories (IFRS IAS 2)
Recognition of stock. Assessment of stocks. Net realizable value. The actual cost of
acquisition. Methods for stock assessment. Disposal of stocks. Provision for write-off of stocks.
Accounting for the finished products, goods, work in progress. The system of periodic and
continuous inventory. Warehouse inventory and accounting.
Theme 3. Accounting of fixed assets (IFRS IAS 16)
Criteria for the recognition of fixed assets. Future economic benefits. The initial cost of
fixed assets. Accounting for the acquisition of fixed assets. Follow-up costs and capitalization of
expenses of the period. Subsequent asset accounting: accounting at historical cost, revaluation of
fixed assets. Depreciation: useful lives and methods of calculation, be accounted for. Disposals of
fixed assets: Recognition and Disclosure in accounting.
Theme 4. Accounting of intangible assets (IFRS IAS 38)
Recognition of intangible assets. Control. Future economic benefits. Recognition and
evaluation at the time of the acquisition of intangible assets. The cost of internally generated
intangible asset. Internally generated brands, goodwill. Subsequent costs. Models subsequent
treatment of intangible assets. The model accounting for the cost. Model of the revaluation. The
useful life. Intangible assets with indefinite useful lives. Methods of amortization of intangible
assets. Termination of the use and disposal of intangible assets.
Theme 5. Impairment of assets (IFRS IAS 36)
Impairment of assets, its definition and characteristics. May reimburse the cost. Fair value
less costs to sell. The value in use. Cash-generating unit. Recognition of impairment losses.
Reversal (recovery) of the impairment loss. A synthetic account of depreciation of assets.
Theme 6. Accounting of liabilities in the organization
Definition and classification of liabilities. Accounting for financial liabilities: bank and
other borrowings, dividends and earnings of participants. Accounting for tax liabilities.
Recognition of liabilities for other mandatory and voluntary payments. Account payable: suppliers
and contractors; subsidiary (associate, joint) organizations, subsidiaries and business units, the
Remuneration payable, the recognition of borrowing costs IAS 23. Accounting for short-term debt
to pay. Accounting for other necessarily proof: advances received, deferred income, liabilities of
disposal group; other liabilities.
Theme 7. Revenue, income and expense recognition (IFRS IAS 18)
The criteria for revenue recognition. Identification of the transaction. The recognition of
revenue from the sale of goods from the provision of services in the form of interest, royalties and
dividends. The concept of income and expenses. Accounting for revenue from the sale of
production and services. Accounting for revenue funding. Accounting for other income.
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Accounting for cost of goods sold and services rendered. Cost accounting period. Allowance for
miscellaneous expenses. Recognition of the final profit or loss, closing entries, cost accounting on
corporate income tax.
Theme 8. Accounting of Capital and reserves
Initial recognition of financial instruments issued (IFRS IAS 32 and 39). The division into
its own and borrowed capital. Accounting for share capital: the issued share capital, deposits and
shares. Accounting for unpaid capital. Redemption own equity instruments. Accounting for
emission income. Accounting for reserves of the organization: capital reserves, reserves for
revaluation of assets, reserves for foreign currency translation and other provisions. Retained profit
for the current and previous period. Reflection of uncovered loss in the accounting and financial
reporting.
Theme 9. Presentation of Financial Statements (IFRS IAS1)
Purpose of financial statements. Materiality and aggregation in the financial statements.
Offsetting the balance sheet items. Presentation of the balance sheet. Minimum requirements for
the balance. Minimum requirements for the profit and loss account. Two forms of the profit and
loss account. The structure of the statement of changes in equity. Two forms of the one changes
in equity. Submission of the statement of cash flows. Representation of flows from operating,
investing and financing activities. Reflection of folded cash flows. Submission of a report by the
direct method. Indirect method of the statement of cash flows. Disclosure in the notes. The concept
and structure of accounting policies. Subsequent events: corrective and non-adjusting.
Theme 10. Consolidated Financial Statements (IFRS IAS 27)
Presentation of consolidated financial statements. Scope of consolidated financial
statements. Procedures for consolidation balance sheet and profit and loss account. Investments in
subsidiaries, jointly controlled entities and associates in separate financial statements.
Consolidated Statement of Income.
Theme 11. Effect of exchange rate changes. Foreign activities. (IFRS IAS 21)
The functional currency. Reflection of transactions in foreign currency. Recognition of
exchange differences. Change in functional currency. Foreign activities. Using the reporting
currency other than the functional. Translation into presentation currency.
Theme 12. Income taxes. (IFRS IAS 12)
Tax base. Recognition of current tax liabilities and current tax assets. Permanent and
temporary differences. Taxable temporary differences. Deductible temporary differences. Unused
tax losses and unused tax credits. The calculation of deferred tax assets and liabilities. Recognition
of deferred tax liabilities and deferred tax assets. Deferred tax assets and liabilities: assignment of
the costs.
4 Themes for practical classes
Theme 1. Accounting of short-term assets: Cash and receivables
Questions to review:
1. Classification of assets: short-term assets.
2. Recognition of cash and cash equivalents.
3. Restrictions on use of funds. Control over cash.
4. The organization of accounting of transactions
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Theme 2. Accounting of inventories (IFRS IAS 2)
Questions to review:
1. Recognition of stock.
2. Assessment of stocks.
3. Net realizable value.
4. The actual cost of acquisition.
5. Methods for stock assessment.
6. Provision for write-off of stocks.
7. Accounting for the finished products, goods, work in progress.
8. The system of periodic and continuous inventory.
9. Warehouse inventory and accounting.
Theme 3. Accounting of fixed assets (IFRS IAS 16)
Questions to review:
1. Criteria for the recognition of fixed assets.
2. Future economic benefits.
3. The initial cost of fixed assets.
4. Accounting for the acquisition of fixed assets.
5. Follow-up costs and capitalization of expenses of the period.
6. Subsequent asset accounting: accounting at historical cost, revaluation of fixed assets.
7. Depreciation: useful lives and methods of calculation, be accounted for.
8. Disposals of fixed assets: Recognition and Disclosure in accounting.
Theme 4. Accounting of intangible assets (IFRS IAS 38)
Questions to review:
1. Recognition of intangible assets. Control.
2. Future economic benefits.
3. Recognition and evaluation at the time of the acquisition of intangible assets.
4. The cost of internally generated intangible asset.
5. Internally generated brands, goodwill.
6. Subsequent costs. Models subsequent treatment of intangible assets. The model accounting
for the cost. Model of the revaluation.
7. The useful life. Intangible assets with indefinite useful lives.
8. Methods of amortization of intangible assets.
9. Termination of the use and disposal of intangible assets.
Theme 5. Impairment of assets (IFRS IAS 36)
Questions to review:
1. Impairment of assets, its definition and characteristics.
2. The value in use.
3. Cash-generating unit.
4. Recognition of impairment losses.
5. Reversal (recovery) of the impairment loss.
6. A synthetic account of depreciation of assets.
Theme 6. Accounting of liabilities in the organization
Questions to review:
1. Definition and classification of liabilities.
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2. Accounting for financial liabilities: bank and other borrowings, dividends and earnings of
participants.
3. Accounting for tax liabilities.
4. Recognition of liabilities for other mandatory and voluntary payments.
5. Account payable: suppliers and contractors; subsidiary (associate, joint) organizations,
subsidiaries and business units, the Remuneration payable, the recognition of borrowing costs
IAS 23.
6. Accounting for short-term debt to pay. Accounting for other necessarily proof: advances
received, deferred income, liabilities of disposal group; other liabilities.
Theme 7. Revenue, income and expense recognition (IFRS IAS 18)
Questions to review:
1. The criteria for revenue recognition.
2. Identification of the transaction.
3. The recognition of revenue from the sale of goods from the provision of services in the
form of interest, royalties and dividends.
4. The concept of income and expenses.
5. Accounting for revenue from the sale of production and services.
6. Accounting for revenue funding.
7. Accounting for other income.
8. Accounting for cost of goods sold and services rendered.
9. Cost accounting period.
10. Allowance for miscellaneous expenses.
11. Recognition of the final profit or loss, closing entries, cost accounting on corporate income
tax.
Theme 8. Accounting of Capital and reserves
Questions to review:
1. Initial recognition of financial instruments issued (IFRS IAS 32 and 39).
2. The division into its own and borrowed capital.
3. Accounting for share capital: the issued share capital, deposits and shares. Accounting for
unpaid capital.
4. Redemption own equity instruments.
5. Accounting for emission income.
6. Accounting for reserves of the organization: capital reserves, reserves for revaluation of
assets, reserves for foreign currency translation and other provisions.
7. Reflection of uncovered loss in the accounting and financial reporting.
Theme 9. Presentation of Financial Statements (IFRS IAS1)
Questions to review:
1. Purpose of financial statements.
2. Materiality and aggregation in the financial statements. Offsetting the balance sheet items.
3. Presentation of the balance sheet.
4. Minimum requirements for the balance. Minimum requirements for the profit and loss
account.
5. Two forms of the profit and loss account.
6. The structure of the statement of changes in equity. Two forms of the one changes in equity.
7. Submission of the statement of cash flows.
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8. Representation of flows from operating, investing and financing activities. Reflection of
folded cash flows.
Theme 10. Consolidated Financial Statements (IFRS IAS 27)
Questions to review:
1. Presentation of consolidated financial statements.
2. Scope of consolidated financial statements.
3. Procedures for consolidation balance sheet and profit and loss account.
4. Investments in subsidiaries, jointly controlled entities and associates in separate
financial statements.
5. Consolidated Statement of Income.
Theme 11. Effect of exchange rate changes. Foreign activities. (IFRS IAS 21)
Questions to review:
1. The functional currency.
2. Reflection of transactions in foreign currency.
3. Recognition of exchange differences.
4. Change in functional currency. Foreign activities. Using the reporting currency other than
the functional.
5. Translation into presentation currency.
Theme 12. Income taxes. (IFRS IAS 12)
Questions to review:
1. Tax base.
2. Recognition of current tax liabilities and current tax assets.
3. Permanent and temporary differences. Taxable temporary differences.
4. Deductible temporary differences.
5. Unused tax losses and unused tax credits.
6. The calculation of deferred tax assets and liabilities.
7. Recognition of deferred tax liabilities and deferred tax assets.
8. Deferred tax assets and liabilities: assignment of the costs.
5 Themes, questions and assignments to fulfill IWS
Theme 1. Accounting of short-term assets: Cash and receivables
Summary presentation -1 page, Short Quiz
1. Classification of assets: short-term assets.
2. Recognition of cash and cash equivalents.
3. Restrictions on use of funds. Control over cash.
4. The organization of accounting of transactions
Theme 2. Accounting of inventories (IFRS IAS 2)
Summary presentation -1 page, Short Quiz
1. Recognition of stock.
2. Assessment of stocks.
3. Net realizable value.
4. The actual cost of acquisition.
5. Methods for stock assessment.
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6. Provision for write-off of stocks.
7. Accounting for the finished products, goods, work in progress.
8. The system of periodic and continuous inventory.
9. Warehouse inventory and accounting.
Theme 3. Accounting of fixed assets (IFRS IAS 16)
Summary presentation -1 page, Short Quiz
1. Criteria for the recognition of fixed assets.
2. Future economic benefits.
3. The initial cost of fixed assets.
4. Accounting for the acquisition of fixed assets.
5. Follow-up costs and capitalization of expenses of the period.
6. Subsequent asset accounting: accounting at historical cost, revaluation of fixed assets.
7. Depreciation: useful lives and methods of calculation, be accounted for.
8. Disposals of fixed assets: Recognition and Disclosure in accounting.
Theme 4. Accounting of intangible assets (IFRS IAS 38)
Summary presentation -1 page, Short Quiz
1. Recognition of intangible assets. Control.
2. Future economic benefits.
3. Recognition and evaluation at the time of the acquisition of intangible assets.
4. The cost of internally generated intangible asset.
5. Internally generated brands, goodwill.
6. Subsequent costs. Models subsequent treatment of intangible assets. The model accounting
for the cost. Model of the revaluation.
7. The useful life. Intangible assets with indefinite useful lives.
8. Methods of amortization of intangible assets.
9. Termination of the use and disposal of intangible assets.
Theme 5. Impairment of assets (IFRS IAS 36)
Summary presentation -1 page, Short Quiz
1. Impairment of assets, its definition and characteristics.
2. The value in use.
3. Cash-generating unit.
4. Recognition of impairment losses.
5. Reversal (recovery) of the impairment loss.
6. A synthetic account of depreciation of assets.
Theme 6. Accounting of liabilities in the organization
Summary presentation -1 page, Short Quiz
1. Definition and classification of liabilities.
2. Accounting for financial liabilities: bank and other borrowings, dividends and earnings of
participants.
3. Accounting for tax liabilities.
4. Recognition of liabilities for other mandatory and voluntary payments.
5. Account payable: suppliers and contractors; subsidiary (associate, joint) organizations,
subsidiaries and business units, the Remuneration payable, the recognition of borrowing costs
IAS 23.
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6. Accounting for short-term debt to pay. Accounting for other necessarily proof: advances
received, deferred income, liabilities of disposal group; other liabilities.
Theme 7. Revenue, income and expense recognition (IFRS IAS 18)
Summary presentation -1 page, Short Quiz
1. The criteria for revenue recognition.
2. Identification of the transaction.
3. The recognition of revenue from the sale of goods from the provision of services in the
form of interest, royalties and dividends.
4. The concept of income and expenses.
5. Accounting for revenue from the sale of production and services.
6. Accounting for revenue funding.
7. Accounting for other income.
8. Accounting for cost of goods sold and services rendered.
9. Cost accounting period.
10. Allowance for miscellaneous expenses.
11. Recognition of the final profit or loss, closing entries, cost accounting on corporate income
tax.
Theme 8. Accounting of Capital and reserves
Summary presentation -1 page, Short Quiz
1. Initial recognition of financial instruments issued (IFRS IAS 32 and 39).
2. The division into its own and borrowed capital.
3. Accounting for share capital: the issued share capital, deposits and shares. Accounting for
unpaid capital.
4. Redemption own equity instruments.
5. Accounting for emission income.
6. Accounting for reserves of the organization: capital reserves, reserves for revaluation of
assets, reserves for foreign currency translation and other provisions.
7. Reflection of uncovered loss in the accounting and financial reporting.
Theme 9. Presentation of Financial Statements (IFRS IAS1)
Summary presentation -1 page, Short Quiz
1. Purpose of financial statements.
2. Materiality and aggregation in the financial statements. Offsetting the balance sheet items.
3. Presentation of the balance sheet.
4. Minimum requirements for the balance. Minimum requirements for the profit and loss
account.
5. Two forms of the profit and loss account.
6. The structure of the statement of changes in equity. Two forms of the one changes in equity.
7. Submission of the statement of cash flows.
8. Representation of flows from operating, investing and financing activities. Reflection of
folded cash flows.
Theme 10. Consolidated Financial Statements (IFRS IAS 27)
Summary presentation -1 page, Short Quiz
1. Presentation of consolidated financial statements.
2. Scope of consolidated financial statements.
3. Procedures for consolidation balance sheet and profit and loss account.
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4. Investments in subsidiaries, jointly controlled entities and associates in separate
financial statements.
5. Consolidated Statement of Income.
Theme 11. Effect of exchange rate changes. Foreign activities. (IFRS IAS 21)
Summary presentation -1 page, Short Quiz
1. The functional currency.
2. Reflection of transactions in foreign currency.
3. Recognition of exchange differences.
4. Change in functional currency. Foreign activities. Using the reporting currency other than
the functional.
5. Translation into presentation currency.
Theme 12. Income taxes. (IFRS IAS 12)
Summary presentation -1 page, Short Quiz
1. Tax base.
2. Recognition of current tax liabilities and current tax assets.
3. Permanent and temporary differences. Taxable temporary differences.
4. Deductible temporary differences.
5. Unused tax losses and unused tax credits.
6. The calculation of deferred tax assets and liabilities.
7. Recognition of deferred tax liabilities and deferred tax assets.
8. Deferred tax assets and liabilities: assignment of the costs.
6 List of main and additional literature
Main literature
1. Wiley, IFRS Policies and Procedures, 2012, by Barry J. Epstein, Eva K. Jermakowicz*
2. Wiley, IFRS: Practical Implementation Guide and Workbook, 2011, by Abbas A. Mirza,
Graham Holt, Liesel Knorr, Canada: WILEY
3. Charles T. Horngren, Gary L. Sundem, Introduction to Financial Accounting/ Seventh edition.
USA: Prentice Hall Europe, 1999*
Additional literature
4. International Financial Reporting Standards (IFRSs), London: IASB, 2005
5. Карибжанов, О.М. , Основы формирования финансовой отчетности в соответствии с
МСФО: учебное пособие , 2012, Алматы: ТОО "Центральный дом бухгалтера"
6. B. Mackenzie, D. Coetsee, T. Njikizana, R. Chamboco , Interpretation and Application
of IFRS , 2012 , Canada: WILEY.*
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