IFRS Financial Reporting and Analysis

Bachelor 2022/2023

Type: Elective course (Business Administration)

Area of studies: Management

Delivered by: Department of Financial Management

Where: Graduate School of Business

When: 4 year, 3 module

Mode of studies: distance learning

Open to: students of one campus

Instructors: Yulia Leevik

Language: English

ECTS credits: 4

Contact hours: 40

Full Syllabus

Abstract

This course is designed to develop knowledge and skills in understanding the framework of the preparation of financial statements and how to analyze and interpret those financial statements. The course combines theoretical concepts underlying the presentation of financial statements with the practical techniques of financial statement analysis. Topics include examination of the components of a balance sheet, income statement and statement of cash flows and application of various quantitative techniques of financial statement analysis, such as ratio interpretation from the point of view of a creditor and investor. Financial statements and other disclosures are impossible to understand without an awareness of the underlying accounting principles and business culture. It is also very important to be able to analyze and make decisions concerning profitability, operational and financial activity of a company on the base of financial statements. Once you have completed this course you will have a broader and in depth understanding of financial accounting, reporting and analysis to better prepare yourself for your future careers.

Learning Objectives

The core objective of the course is to sensitize students to the international dimensions of financial reporting and analysis. The course combines theoretical concepts underlying the presentation of financial statements with the practical techniques of financial statement analysis.

Expected Learning Outcomes

Use strong analytical skills and apply them to solve practical problems.
Demonstrate an innovative, open and ethical mindset.
Have an idea about the place and the role of financial accounting in the system of management of the economic entity.
Understand the conceptual framework of accounting and the purpose, structure and content of the financial reporting in the modern market economy.
Understand the essence of accounting terms and to use them properly.
Have basic practical skills in financial reporting and interpreting accounting information under International Financial Reporting Standards.

Course Contents

Topic 1. Financial statements and Business Decisions
Topic 2. Investing and Financing Decisions and the Accounting System
Topic 3. Operating Decisions and the Accounting System.
Topic 4. Financial Statements and the Quality of Earnings
Topic 5. Reporting and Interpreting Sales Revenue, Receivables, and Cash
Topic 6. Reporting and Interpreting Cost of Goods Sold and Inventory
Topic 7. Reporting and Interpreting Property, Plant, and Equipment; Intangibles
Topic 8. Reporting and Interpreting Liabilities
Topic 9. Reporting and Interpreting Owners’ Equity
Topic 10. Statement of Cash Flows

Assessment Elements

In-class activity
The course includes 10 topics. Each topic has a weight of 1 point, the maximum possible score is 10 points. For each topic of the course, it is possible to get a mark: topic passed (1): Strong evidence of understanding the subject. Good oral expression. A critical analysis which demonstrates original thinking. Respond to most aspects of the tasks with a clear, explicit arguments. May be occasional errors. Plus short trial test in SmartLMS (duration 15 min.), 50% and more correct answers. Topic failed (0): Limited evidence of relevant knowledge and an attempt to address the task. Unable to offer information or opinion in answering questions and exercises. Plus short trial test in SmartLMS (duration 15 min.), less than 50% of correct answers Since the weight of each topic is only 1 point, skipping the seminar for a valid or disrespectful reason is not a subject to working out at another time and in another format.
Team Project
The team project consists of two parts: video and in-class discussion. 1. Video: every group has to prepare a video about the findings of their analysis. The following requirements must be met: • Content: the video must include a descriptive analysis of any patterns across the companies that you as a team observe comparing and contrasting them according to the list of questions. • Length: 5 mins. • Format: as relevant and creative as it can be. 2. In-class discussion: after each video, a five-minute discussion session will follow. Each group member will be asked at least one content question to defend his/her contribution to the analysis and to reflect on findings.
Exam
Individual, in-class, online in SmartLMS, closed-book. Duration: 80 min.

Interim Assessment

2022/2023 3rd module
0.25 * In-class activity + 0.25 * Team Project + 0.5 * Exam

Bibliography

Recommended Core Bibliography

David Alexander, Ann Jorissen, Martin Hoogendoorn, Carien van Mourik, & Collette Kirwan. (2020). International Financial Reporting & Analysis, Edition 8: Vol. Eighth edition. Cengage Learning.
Weygandt, J. J., Kieso, D. E., & Kimmel, P. D. (2017). Financial Accounting (Vol. Tenth edition). Hoboken, NJ: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1639274

Recommended Additional Bibliography

Koppeschaar, Z. R., Rossouw, J., & Van Wyk, H. A. (2017). Introduction to IFRS (Vol. Seventh edition). Durban: LexisNexis SA. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=2139934
Nobes, C., & Parker, R. H. (2016). Comparative International Accounting (Vol. Thirteenth edition). Harlow, England: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1419658

Course Syllabus