BAC 302: Advanced Financial Accounting II Notes and Course Outline

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COURSE DESCRIPTION

The course is designed to provide in-depth coverage of valuation of assets and liabilities, inventory
valuation, impairment of assets, borrowing costs, accounting for pensions, value added statements,
human resource accounting, capital structure and reconstruction and business combinations.

Pre-requisite: BAC 301

MODULE LEARNING OUTCOMES

The general objective of the course is to develop the candidate’s ability to exercise professional
judgment and competence in financial reporting. Specifically a student after completing this course
should be able to:

 Prepare financial statements for groups
 Apply accounting standards in the preparation of financial statements
 Prepare value added statements and employee benefit plans.
 Discuss current issues in accounting

COURSE CONTENT
TOPIC ONE VALUE ADDED STATEMENTS (VAS)

 Definition of terms
 Preparation of VAS

TOPIC TWOACCOUNTING FOR PENSION (IAS 19/ IAS 26)

 Definition of terms
 Administration of retirement benefits, pension schemes and funds
 Preparation of pension funds accounts

TOPIC THREE INVENTORY VALUATION (IAS2)

 Definition of terms as per IAS 2
 Accounting for raw materials ,WIP and finished goods

TOPIC FOUR: HUMAN RESOURCES AND SOCIAL ACCOUNTING

 Social responsibility accounting and reporting
 Human resource accounting and reporting

TOPIC FIVE: IMPAIRMENT OF ASSETS (IAS 36)

 Definition of Impairment of assets
 Internal and External indicators of impairment:
 Accounting for impairment of assets

TOPIC SIX: BORROWING COSTS (IAS 23)
 Definition of borrowing costs
 Capitalization of borrowing costs
 Accounting for borrowing costs

TOPIC SEVEN: CAPITAL STRUCTURE AND RECONSTRUCTION

1. Schemes of reconstructions and reorganizations
2. Internal and external reconstructions
3. Journal entries

TOPIC EIGHT: BUSINESS COMBINATIONS (IFRS 3, IAS27, IAS28)

– The legal and institutional requirements for business combinations
– The consolidated income statement of changes in equity, balance sheet and cash flow statement
– Accounting for investments in associates
– Published group accounts.

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