Department Accounting & Finance

Program BA degree in Accounting & Finance

Module Number Financial Accounting and Reporting
Module Code ACFN-M3020
Objective of the module Upon the successful completion of this module, students should be able to:
 understand financial accounting concepts and IFRS as they apply
for external financial reporting purpose
 understand the nature of financial statements and the inherent
limitations in their preparation and use
 explain the application of international financial reporting
standards in the recognition, measurement, and reporting of assets,
liabilities, shareholders‟ equity, and lease operation
 Prepare statement of cash flows based on complex business transactions
 Analyze and correct the effects of accounting changes and errors
Total ETCTS and ETCTS: 12
Credit Credit Hours: 8
Hours of the module
Courses of the Module
Course Number AcFn3021
Course Title Intermediate Financial Accounting I
ETCTS Credits 6 Contact Hours (per week) 4
The objective of the course is to ensure that students have developed a thorough
knowledge and understanding of accounting principles and concepts and can
Course Objectives apply this grounding to the situations that they will typically encounter in
& Competences to practical work situations.
be Acquired On completion of this module students should be able to:
 Explain the IASB‟s conceptual framework underlying financial reporting;
 Demonstrate an awareness of the substance of and the standard-setting
process for international accounting standards;
 Perform the accounting functions of analyzing, recording and reporting as
accomplished by the accounting cycle and the preparation of the primary
financial statements
 Apply professional judgment in analyzing accounting issues and
recommending accounting policies;
 Demonstrate the recognition, measurement, and reporting of cash and
receivables;
 Explain incentives and ethical issues underlying accounting policy decision
Course Description This course presupposes that the students are equipped with knowledge of basic
accounting principles. In this course, emphasis is made on accounting theory of
financial statements, recognition criteria, measurement, also reporting
requirements of the elements of financial statements are covered. Treatment of
current assets, namely, cash, receivables, and inventories form the central objective
of this course.
WEEKS Course Contents

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 1. Development of Accounting Principles and Professional Practice

2WEEKS 1.1 The environment of financial accounting

1.2 Financial reporting requirements in Ethiopia
{1ST&2ND } 1.3 The IASB and its governance structure
1.4 List of IASB pronouncements
1.5 The IASB‟s conceptual framework for financial reporting
1.5.1 Objectives of financial reporting
1.5.2 Qualitative characteristics of financial reports
1.5.3 Elements of financial statements
1.5.4 Recognition, measurement, and disclosure concepts
1.6 IFRS-based Financial Statements (IAS 1)
2. Fair value measurement and Impairment

2 WEEKS 2.1. Fair value measurement

Definition
2.1.1.
{3RD&4TH } Measurement of fair value
2.1.2.
Fair value at initial recognition
2.1.3.
Valuation methods
2.1.4.
Fair value hierarchy
2.1.5.
Disclosure
2.1.6.
2.2. Impairment
2.2.1. Definition
2.2.2. Measurement of impairment
2.2.3. Reversal of impairment
2.2.4. Disclosure

3. Cash and Receivables

3.1 Cash and internal control
2 WEEKS 3.2 Types of main bank accounts
3.3 Bank reconciliation
{5TH&6TH} 3.4 Reporting of Cash and disclosure requirements
3.5 Recognition and valuation of accounts receivable
3.6 Recognition and valuation of notes receivable
3.7 Derecognition of receivables
3.8 Reporting of receivables and disclosure requirements
4. Inventories
4.1 Nature and classification of inventory
4.2 Physical goods and costs included in inventory
4.3 Valuation of inventories: A cost-basis approach
2 WEEKS 4.4 Special inventory valuation methods
4.4.1. Lower-of-cost-or-net realizable value (LCNRV) method
{7TH& 8TH} 4.4.2. Gross profit method
4.4.3. Retail-inventory method

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 5. Property, Plant, and Equipment
5.1. Acquisition and Disposition of Property, Plant, and Equipment
3 WEEKS 5.1.1. Characteristics of property, plant, and equipment
5.1.2. Acquisition & valuation of property, plant and equipment
{9TH, 10TH&11TH } 5.1.3. Costs subsequent to acquisition
5.1.4. Disposition of property, plant and equipment
5.2. Depreciation, Impairments, and Revaluations

2 WEEKS 6. Investment property

6.1. Nature of Investment property
{12TH & 13TH} 6.2. Initial recognition and measurement of investment property
6.3. Subsequent measurement of investment property
6.4. Presentation and disclosure requirements

1 WEEK 7. Non-current Assets Held for Sale, and Discontinued Operations

{14TH } 7.1 Nature of NCAHFS and discontinued operations

7.2 Initial recognition and measurement of NCAHFS
7.3 Subsequent measurement of NCAHFS
7.4 Presentation and disclosure requirements
7.5 Measurement, presentation and disclosure of discontinued
operations
2 WEEKS 8. Intangible assets
8.1. Characteristics and classifications
{15TH & 16TH} 8.2. Valuation and amortization
8.3. Impairments
8.4. Research and development costs
8.5. Website costs

Text Book:
 Kieso, D. E., Weygandt, J. J., & Warfield, T. W. (2016).
Text and reference Intermediate Accounting, IFRS Edition, New York: John Willey & Sons.
books  Commercial Code of Ethiopia
 Ernst & Young LLP (2016), International GAAP, John Wiley &
Sons Ltd.
 www.ifrs.org
 IFRS Blue Book

2
Department Accounting & Finance
program BA degree in Accounting & Finance
Module Number/Title Financial Accounting and Reporting
Module Code ACFN-M3020
Objective of the module Upon the successful completion of this module, students should be able to:
 understand financial accounting concepts and IFRS as they apply for
external financial reporting purpose
 understand the nature of financial statements and the inherent
limitations in their preparation and use
 explain the application of international financial reporting standards
in the recognition, measurement, and reporting of assets, liabilities,
shareholders‟ equity, and lease operation
 Prepare statement of cash flows based on complex business transactions
 Analyze and correct the effects of accounting changes and errors
Total ETCTS and ETCTS: 12
Credit Credit Hours: 8
Hours of the module
Courses of the Module
Course Number AcFn3022
Course Title Intermediate Financial Accounting II
ETCTS Credits 6 Contact Hours (per week) 4
This course is the continuation of Intermediate Financial Accounting I. Upon completion
of this course, students will be able to:
Course  Explain the recognition, valuation and disposition of plant, property and
Objectives & equipment;
Competences to  Describe the nature of current liabilities, provisions, and contingencies and
be Acquired their respective accounting and reporting treatments;
 Explain the recognition and valuation of intangible assets;
 Discuss the nature, valuation, recognition and presentation of investments in
financial assets;
 Discuss the accounting and reporting for transactions related to the components
of shareholders‟ equity;
 Discuss the nature and accounting treatment of leases and pensions;
 Demonstrate the ability to apply disclosure requirements pertaining to the
financial statement items covered in this course; and
 Demonstrate the ability to exercise professional and ethical judgment in the
application of the proper accounting and reporting methods.
Course Description This course is the continuation of Intermediate Financial Accounting I. It is one of the
core accounting courses offered by the department. Like the first part, it basically deals
with the application of financial accounting theory for business organizations. It also
tries to introduce students with the financial accounting applications in the Ethiopian
business environment. The course includes topics, namely, plant, property, and equipment;
Intangible assets; investments; current and non-current liabilities; leases; statement of
cash flows; and pension.
WEEKS Course Contents

3
 1. Current Liabilities, Provisions, and Contingencies
2WEEKS 1.1. Nature and types of current liabilities
{1ST&2ND } 1.2. Recognition and measurement of provisions
1.3. Contingencies
1.4. Presentation of current liabilities
2. Non-Current Liabilities
2 WEEKS 2.1. Nature and classifications of non-current liabilities
{3RD& 4TH } 2.2. Recognition and valuation of bonds
2.3. Extinguishments
3. Investments
3 WEEKS 3.1. Nature and classification of investments
{5TH, 6TH& 7TH} 3.2. Accounting for debt investments
3.3. Accounting for equity investments
3.4. Impairment of value
3.5. Transfer between categories
4. Leases
7.1 The leasing environment
1 WEEK 7.2 Classifications of lease
{8TH } 7.3 Overview of Ethiopian lease business law
7.4 Accounting by the lessee
7.5 Accounting by the lessor
7.6 Special accounting problems
5. Deferred Taxation
2 WEEKS 5.1. Accounting income versus taxable income
{9TH&10TH } 5.2. Recap of temporary versus permanent differences
5.3. Deferred tax liabilities versus deferred tax assets
5.4. Tax losses carried forward
5.5. Disclosures
2 WEEKS 6. Revenue Recognition
{11TH &12TH} 6.1. Revenue recognition framework
6.2. Long-term construction contracts
6.2.1. Overview of Ethiopian construction sector
6.2.2. Basic terminologies in construction contracts
6.2.3. Revenue recognition

1 WEEK 7. Accounting Policies, Changes in Accounting Estimates and Errors

{13TH } 7.1. Treatment of changes in accounting policy
7.2. Treatment of changes in accounting estimates
7.3. Treatment of changes in errors
2 WEEKS 8. Statement of cash flows
{14TH & 15TH} 9.1. Usefulness of the statement
9.2. Preparation of the statement
9.3. Significant non-cash financing and investing activities

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1 WEEK {16TH} 9. Agricultural accounting
9.1. Basic terminologies in agricultural accounting
9.2. Recognition and measurement of agricultural produces
9.3. Reporting and disclosure requirements

Text Book:
Text and reference  Kieso, D. E., Weygandt, J. J., & Warfield, T. W. (2016). Intermediate
books Accounting, IFRS Edition, New York: John Willey & Sons.
 Commercial Code of Ethiopia
 Ernst & Young LLP (2016), International GAAP, John Wiley & Sons Ltd.
 www.ifrs.org
 IFRS Blue Book