ICMAB

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101. Intermediate Financial Accounting – 100

Course Objectives

This course is designed to achieve some specific objectives. These are to :

a. have an understanding as to how financial transactions are processed

b. know apply generally accepted accounting principles;

c. prepare a set of financial statements; and

d. applying basic tools to analyze financial statements

 

Preparation of Financial Statement

101.01 Conceptual Framework of Accounting

Financial accounting environment, Economic environment and financial reporting, Development of financial accounting and reporting standards,

The conceptual framework, Qualitative characteristics of accounting information, Elements of financial statements, Recognition and measurement concepts, Ethics in accounting.

 

101.02 Review of the Accounting Process

The basic model and accounting processing cycle, Review of the concepts, Closing process, Preparing the financial statements, Conversion from cash basis to accrual basis, Worksheet, Reversing entries, Subsidiary ledger and special journal.

 

101.03  Balance Sheet and Financial Disclosures (IAS-1, IAS-24, IAS-10 & IFRS-1)

Usefulness and limitations, Classification of assets, liabilities and equity, Financial disclosures, Disclosure notes, Significant accounting policies, and subsequent events, Management’s responsibilities, Auditors’ report, Risk analysis using financial statement information, International Accounting Standard . Accounting policies & notes to the accounts.

Explains the need to manage intangible assets (e. g. knowledge assets, intellectual property, etc.)

 

101.04 Income Statement and Statement of Cash Flows (IAS-1, IAS-24 & IAS-7)

Comprehensive income, Income from continuing operations, Earnings quality, Separately reported items, Correction of accounting errors, Income statement presentation, International Accounting Standard. The statement of cash flows, Usefulness of statement of cash flows, Classifying cash flows, Operating activities, Investing activities, Financing activities, Non-cash investing and financing activities, Statement of cash flows presentation, International Accounting Standard.

 

101.05 Income Measurement and Profitability Analysis IAS-18.

Revenue recognition, Revenue recognition at a point in time, Revenue recognition over time, Industry specific revenue issues, International Accounting Standard, Profitability analysis, Activity ratio, Liquidity ratio, Profitability ratio and Solvency ratio.

 

Accounting for Assets

101.06 Cash and Receivables (IAS-7)

Cash and cash equivalents, Internal control of cash, Restricted cash and compensating balances, Bank reconciliation, Petty cash, Current receivables, Accounts receivables, Valuation of accounts receivables, Notes receivables, Interest bearing and non-interest bearing notes, Valuation of notes receivable, Financing with receivables.

 

101.07 Inventories; Measurement (IAS-2)

Recording and measuring inventory, Types inventory, Perpetual inventory system, Periodic inventory system, Inventory cost flow assumptions, Inventory management, International Accounting Standard (IAS-2).

 

101.08 Inventories; Additional Issues

Reporting lower of cost or market, Adjusting cost to market, Inventory estimation techniques, Gross profit method, Retail inventory method, Taka value LIFO retail, Changes in inventory method and inventory errors.

101.09 Operational Assets; Acquisition and Disposal (IAS-16 & IFRS-5)

Types of operational assets, Costs to be capitalized, Disposition and exchanges, Self constructed assets and research and development, International Accounting Standard (IAS-16).

 

101.10 Operational Assets; Utilization and Impairment (IAS-16, IAS-38, 36 & IFRS-5).

Cost allocation and measuring cost allocation, Depreciation of operational assets, Group and composite depreciation methods, Depletion of natural resources, Amortization of intangible assets, Changes in estimates, Changes in depreciation method, Error correction, Impairment of value, International Accounting Standard IAS –16,38 & 36)

 

101.11 Investments (IAS-40, 32, 39)

Accounting for investment securities, Securities held to maturity, Trading securities, Equity method, Reporting investment, Investment derivatives, Impairment of an investment.

 

Accounting for Liabilities & Equities

101.12  Current liabilities and Contingencies (IAS-37)

Current liabilities, Open accounts and notes, Accrued liabilities, Advance collection from customers, Current maturities of long-term debt, Contingencies, Loss contingencies, Gain contingencies.

 

101.13 Bond and Long-Term Notes (IAS-39)

Nature of ling-term debt, Bonds, Recording bands at issue, Determining interest - effective interest method,

Zero-coupon bonds, Bonds sold at a premium or discount, Preparation of financial statements between interest payment dates, Straight line method, Issuing bonds and recording interest, Debt issue costs, Long-term notes, Notes issued for cash, Notes exchanged for assets or services, Installment notes, Financial statement disclosures, Debt retiring early, convertible into stock, or option to buy stock, Bonds with detachable warrants, Troubled debt restructuring.

 

101.14 Shareholders Equity (IAS-33)

Corporate organization, Paid in capital, Fundamental share rights, Classes of shares, Concept of par value, Accounting for issuance of shares, Shares buybacks, Resale of shares, Retained earnings, Characteristics of retained earnings, Dividends, Stock dividend and stock splits, EPS, Changes in retained earnings.

 

101.15 Financial Reporting & Analysis

Monitors and describes current trends and emerging issues in financial reporting (e. g. move toward international reporting standards, guidelines for accounting for investments, etc). the relevance of financial statement analysis to management decision making in a given organization.

 

 

Text Books:

1.  Intermediate Accounting , 3rd edition - Spiceland, Sepe & Tomassini (McGraw Hill).

2.  Intermediate Accounting, 3rd Canadian edition - Beechy and Conrod (McGraw-Hill Ryerson).

Reference books:

1. Intermediate Accounting, 11th edition - Kieso, Weygandt & Warfield (John Wily & Sons, Inc.).

2. Intermediate Accounting, 15th edition - Stice, Stice & Skousen (Thomson South-Western).

3. Ethics Reading Handbook - CGA, Canada (2nd edition).

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