UGANDA CHRISTIAN UNIVERSITY

MBALE UNIVERSITY COLLEGE

DEPARTMENT OF BUSINESS ADMINISTRATION
ASSIGNMENT ONE, SEPTEMBER, 2022
COURSES & SESSION : BBA WEEKEND
PAPER : ADVANCED ACCOUNTING
YEAR : THREE
SEMESTER : ADVENT
DATE : 19TH SEPTEMBER, 2022

INSTRUCTIONS:
Neatness and clarity of expression are essential and will earn you extra marks.
It should be typed in Font type Tahoma, Font size 12, 1.5 line spacing.
It should be submitted on 24th September, 2022 by 2p.m in hardcopy.

Question One:

Historically financial reporting throughout the world has differed widely. The IFRS Foundation is
committed to developing, in the public interest, a single set of high quality, understandable and
enforceable global accounting standards that require transparent and comparable information in
general purpose financial statements. The various pronouncements of the IFRS Foundation are
sometimes collectively referred to as International Financial Reporting Standards (IFRS).
Required:

a) Describe the IFRS Foundation's standard setting process including how standards are produced,
enforced and occasionally supplemented. (8 marks)
b) Jimtex Ltd is a public listed company that currently uses local Accounting Standards for its
financial reporting. The board of directors of Jimtex Ltd is considering the adoption of
International Financial Reporting Standards (IFRS) in the near future. The company has ambitious
growth plans which involve extensive trading with many foreign companies and the possibility of
acquiring at least one of its trading partners as a subsidiary in the near future.
Required:
Identify the advantages that Jimtex Ltd could gain by adopting IFRS for its financial reporting
purposes. (7 marks)

1
c) The IASB's Conceptual Framework for Financial Reporting requires financial statements to be
prepared on the basis that they comply with certain accounting concepts, underlying assumptions
and (qualitative) characteristics. Five of these are:
Matching/accruals
Going concern
Verifiability
Comparability
Materiality
Required:
Briefly explain the meaning and importance of each of the above concepts/assumptions.
( (10 marks)

Question Two:
The conceptual framework published by IASB is called the framework. It includes guidance with
regards to:
❖ The qualitative characteristics of financial information

❖ The elements of financial statements

❖ Recognition of the elements of financial statements

Required:
a) Describe the conceptual frame clearly explain its objectives. (4 marks)
b) Briefly explain the attributes that make financial information provided in the financial
statements useful to the users. (4 marks)
c) Explain the various elements of financial statements and clearly show the financial statement
where they are recorded. (10 marks)