College of Business Peace Leadership and Governance

Department of Business Sciences

Advanced Accounting & Financial Theory MAC 404
Day and Time of Class Session…..
Semester 1

Lecturer Details: Mr.: I. RARAMI

Office Location: 122
Office Hours/Consultation Times:
Phone number (Office): Cell: 0777695064
Email: raramii@africau.edu

1.0 Course Description

This course builds on material covered in Intermediate Accounting 1 & 2 (MAC 202 & MAC 203) and Advanced
Accounting (MAC 401). It focuses on the application of International Financial Reporting Standards.

2.0 Prerequisites
The candidate should have passed Foundations of Accounting 1 & 2 (MAC 101 & MAC 102), Intermediate
Accounting 1 & 2 (MAC 202 & MAC 203) and Advanced Accounting (MAC 401).

3. 0 Course Intended Learning Outcomes or Learning goals

After successfully completing the course, students will be able to:

3.1 Prepare and present general purpose financial statements which comply with the
requirements of International Financial Reporting Standards (IFRSs);
3.2 Discuss and apply the disclosure requirements of IFRSs.

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4.0 Methods and Strategies of Teaching and Learning
Lecturing

Presentations

Discussions

5.0 Assessment

Assessment of students will be through coursework and examinations

Coursework:

CONTINUOUS ASSESSMENT (40%)

Components Weight
Assignments 25%
Tests 35%
Presentations/ Practical/Field Work 20%
Attendance/Contribution 10%
Independent Study 10%
   
Total 100%

Course Work 40%

Final Examination 60%
Final 100%

6.0 Course Content

The following course content will be covered in this course:

6.1 Income taxes (IAS 12)

6.2 IFRS 13 Fair value measurement

6.3 Financial Instruments

6.3.1 IAS 32 Financial instruments: Presentation

6.3.2 IAS 39 Financial instruments: Recognition and measurement

6.3.3 IFRS 7 Financial instruments: Disclosure

6.3.4 IFRS 9 Financial instruments

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6.4 Consolidated financial statements (IFRS 3 & IFRS 10)

6.4.1 Changes in interests in investments - acquisitions

6.4.2 Changes in interests in investments - disposals

6.4.3 IAS 7 Consolidated statement of cash flows

6.5 Reporting financial performance

6.5.1 IAS 33 Earnings per share

6.5.2 IAS34 Interim financial reporting

6.6 IAS 10 Events after the reporting period

7.0 Academic Integrity

Students are expected to abide by the University regulations on Academic Integrity.

8.0 Course Schedule

A course schedule is presented in the table below.

Week Topic Subtopics Readings Activities

/eResources
Week 1 1. Income taxes 1.1 Current tax and 1. GAAP Quiz
(IAS 12) deferred tax Handbook Discussion
1.2 Deferred tax principles 2018: Volume Forum
1.3 Deferred tax: individual 1 & 2.
company 2. Hand out on
Zim regulatory
forces

Week 2 1.4 Deferred tax business 1. GAAP Quiz

combinations Handbook In pairs class
1.5 Tax presentation 2018: Volume exercise
1.6 Disclosure 1 & 2.
2. Hand out on
Zim regulatory
forces
Week 3 2. IFRS 13 Fair 2.1 Introduction to IFRS 13 1. GAAP Quiz
value 2.2 Measurement Handbook Group in class
measurement 2.3 Valuation techniques 2018: Volume exercise
2.4 Liabilities and an 1 & 2.
entity’s own equity 2. Descriptive
instruments Accounting.

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 2.5 Disclosure IFRS Focus.
Week 4 3. Financial 3.1 Introduction to 1. GAAP Quiz
Instruments accounting for financial Handbook In pairs class
instruments 2018: Volume exercise
3.2 Measurement methods. 1 & 2.
3.3 Classification and 2. Descriptive
measurement of financial Accounting.
assets IFRS Focus.
3.4 Classification and
measurement of financial
liabilities

Week 5 3.5 Impairment of financial 1. GAAP Quiz

assets Handbook Group in class
3.6 Hedging accounting 2018: Volume exercise
3.7 IAS 32: Presentation 1 & 2.
3.8 IFRS 7: Disclosure 2. Descriptive
Accounting.
IFRS Focus.
Week 6 4. Consolidated 4.1 Changes in interests in 1. GAAP Quiz
financial investments – acquisitions Handbook In pairs class
statements (IFRS of additional equity interest 2018: Volume exercise
3 & IFRS 10 after control is achieved. 1 & 2.
4.2 Changes in interests in 2. Descriptive
investments – Accounting.
4.2.1 Full disposals IFRS Focus.
4.2.2 Part disposal
4.3 IFRS 5 and disposal

Week 7 4.4. IAS 7 Consolidated 1. GAAP Quiz

statement of cash flows Handbook Group in class
4.4.1 Consolidated 2018: Volume exercise
statement of cash flows 1 & 2.
4.4.2 Non-controlling 2. Descriptive
interest and associates in Accounting.
the SCF IFRS Focus.
4.4.3 Acquisition and
disposal of subsidiaries in
SCF
Week 8 5. Reporting 5.0 IAS 33 Earnings per 1. Handout and Quiz
financial share slides In pairs class
performance 5.1 Basic earnings per 2. GAAP exercise
share. Handbook
5.2 Basic earnings per 2018: Volume
share and a bonus issue of 1 & 2.
shares 3. Descriptive
Accounting.

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 IFRS Focus.
Week 9 5.3 Basic earnings per share 1. Handout and Quiz
and a rights issue. slides Group in class
.5.4 Diluted earnings per 2. GAAP exercise
share. Handbook
5.5 Dealing with multiple 2018: Volume
dilutions 1 & 2.
5.6 Diluted losses 3. Descriptive
Accounting.
IFRS Focus
Week 5.7 IAS34 Interim financial 1. Handout and Quiz
10 reporting slides In pairs class
5.7.1 Form and content of 2. GAAP exercise
interim financial Handbook
statements 2018: Volume
5.7.2 Recognition and 1 & 2.
measurement 3. Descriptive
5.7.3 Use of estimates in Accounting.
interim financial IFRS Focus
statements

Week IAS 10 Events 4.1 Purpose of IAS 10 1. Handout and Quiz

11 after the 4.2 Adjusting and non- slides Group in class
reporting period adjusting events 2. GAAP exercise
4.3 Accounting for Handbook
adjusting events after the 2018: Volume
reporting period 1 & 2.
4.4 Disclosures for non- 3. Descriptive
adjusting events after the Accounting.
reporting period IFRS Focus

Week 4.5 Dividends 1. Handout and Quiz

12 4.6 The going concern slides Discussion
assumption 2. GAAP
Handbook
4.7 Problems of
2018: Volume
accounting for events
1 & 2.
after the reporting 3. Descriptive
period Accounting.
IFRS Focus

9.0 Essential Readings

Association of Certified Chartered Accountants, (2007). Financial Reporting (International). BPP
Learning Media Ltd, London.
Association of Certified Chartered Accountants, (2019). F8 Study Material - Retrieved from
http://opentuition.com/acca/f8/f8-lectures-live/ on

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Badenhorst, W. M., Ferreira, P., & Pretorius, D. (2015): Volume 1. GAAP Handbook 2015.
Lexis Nexis Butterworths, Durban, South Africa.
Badenhorst, W. M., Kotze, L. J., & Pretorius, D. (2018). GAAP Handbook 2018: Volume 1 & 2
- Financial Accounting and Reporting Practice. LexisNexis, Butterworths, Durban, South
Africa.
Binnekade, C. S. Koppeschaar, Z.R., & Stegmann, N. Group Statements (2013): Volume 1 & 2.
LexisNexis, Butterworths, Durban, South Africa.
Brealey, R. A., Myers, S. C., & Allen, F. (2011). Principles of Corporate Finance. New York:
McGraw-Hill/Irwin.
Hove, M. R. (2006). Consolidated Financial Statements, An International Perspective. Juta & Co
Ltd, Cape Town.
Koppeschaar, Z. R., Rossouw, J,. & Deysel, D. J. (2015). Descriptive Accounting. IFRS Focus.
LexisNexis, Butterworths, Durban, South Africa.
Hove, M. R. (2006). Consolidated Financial Statements, An International Perspective. Juta & Co
Ltd, Cape TownKotze, L. J., Pretorius, D., & Badenhorst, W. M., (2019). GAAP
Handbook 2019 Volume 1 & 2. Financial Accounting and Reporting Practice.
LexisNexis, Butterworths, Durban, South Africa.
Oppermann, H. R. B., Booysen, F. S., & Van Der Merwe, N. (2014). Accounting Standards. (16 th
Edition). Juta & Co Ltd, Cape Town.