UNIVERSITI UTARA MALAYSIA

SCHOOL OF ACCOUNTANCY
COLLEGE OF BUSINESS

COURSE CODE : BKAR3033

COURSE : FINANCIAL ACCOUNTING AND REPORTING III
PRE-REQUISITE : BKAR2023 FINANCIAL ACCOUNTING AND
REPORTING II

1.0 SYNOPSIS

This is the third level course for Financial Accounting and Reporting (FAR). This
course builds on knowledge and skills introduced in Financial Accounting and
Reporting II. Students need to be reminded constantly that in this course they will
build on what they have learnt in FAR I & II and deals with more complex items.
This course introduces comprehensive case studies to discuss issues related to plant
property and equipment, intangibles, investment properties, agriculture-biological
assets, financial assets and liabilities in more specialised industry setting. In
addition, this course introduces partnership account, deferred taxes, and
distinguishes and compare with treatment of financial assets and financial liabilities.

2.0 OBJECTIVES

Upon completion of the course, students are expected to:

1. Enhance competencies (using comprehensive case studies) to discuss issues
related to plant property and equipment, intangibles, investment properties,
agriculture-biological assets, fair value measurement, financial instruments,
derivatives and accounting for hedging.
2. Enable preparation of partnership account as well as compare and contrast
treatment of deferred taxes with treatment of financial assets and financial
liabilities.

3.0 LEARNING OUTCOMES

Upon completion of the course, students are able to:

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 1. Explain the different measurement bases appropriate for PPE, impairment,
intangible assets, and investment properties.
2. Apply accounting for fair value measurement financial instruments,
derivatives.
3. Apply accounting for deferred tax assets and deferred tax liabilities and
accounting for partnership.
4. Apply and communicate events after the reporting period, changes in
accounting policies, estimates, errors and analysis of financial statements.
5. Explain current developments at IASB and MASB relating to issues
discussed in the course.

4.0 COURSE CONTENT

No TOPIC REFERENCE Hours

1.0 PROPERTY, PLANT AND EQUIPMENT Kieso, D.E., 3

(MFRS116) Weygandt, J.J.,
1.1 Comprehensive case study using and Warfield,
specialized industries T.D (2018)
Chapter 10

MFRS116

Kieso, D.E.,
2.0 IMPAIRMENT (MFRS136) Weygandt, J.J., 6
Comprehensive case study using specialized and Warfield,
industries for: T.D (2018)
2.1 Property, Plant and Equipment
2.2 Investment property Chapter 11, 12
2.3 Intangibles Assets & 17
2.4 Financial Assets
2.5 Financial Liabilities MFRS136

3.0 FAIR VALUE MEASUREMENT (MFRS13) Picker, et al 6

2.1 The need for standard on fair value (2012)
measurement Chapter 3
2.2 Definition of fair value
Comprehensive case study using MFRS13
specialized industries:
2.3 Application to non-financial assets in
Property, Plant and Equipment
2.4 Application to liabilities
2.5 Application to measurement of equity

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 instruments
2.6 Issues relating to measurement of fair value
of financial instruments
2.7 Disclosures

4.0 FINANCIAL INSTRUMENTS (MFRS9, Picker, et al 6

MFRS139, MFRS7 & MFRS132) (2012)
4.1 Introduction to MFRS132, MFRS7, Chapter 7
MFRS139 and MFRS9
4.2 Financial Assets and Financial Liabilities MFRS132
4.3 Derivatives and embedded derivatives MFRS7
4.4 Hedge accounting MFRS139
MFRS9

5.0 DEFERRED TAXES (MFRS112) Kieso, D.E., 6

5.1 The nature of income tax Weygandt, J.J.,
5.2 Difference between accounting profit and and Warfield,
taxable profit T.D (2018)
5.3 Accounting for income tax
5.4 Calculation and recognition of current tax Chapter 19
5.5 Payment of tax
5.6 Tax losses MFRS112
5.7 Calculation of deferred tax
5.8 Recognition of deferred tax liabilities and
deferred tax assets
5.9 Change of tax rates
5.10 Presentation and disclosures
5.11 Other issues

6.0 EVENTS AFTER THE REPORTING 3

PERIOD AND CHANGES IN Kieso, D.E.,
ACCOUNTING POLICIES, ESTIMATES Weygandt, J.J.,
AND ERRORS (MFRS108, MFRS110) and Warfield,
6.1 Events after the reporting period T.D (2014)
6.2 Accounting policies, changes in
accounting estimates and errors Chapter 22
6.3 Financial statement analysis
MFRS108
MFRS110

7.0 ACCOUNTING FOR PARTNERSHIP Partnership 6

7.1 Nature of partnerships & provision by the Act 1961
Act

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 7.2 Partnership formation
7.3 Distribution of profit and loss
7.4 Preparation of financial statement
7.5 Changes in partnership interest
- Admission & retirement of partners
- Goodwill and bonus methods
7.6 Liquidation of Partnership
7.7 Liquidation guidelines
7.8 Simple liquidation
- Partnership liquidation with debit capital
balances
- Instalment liquidation
- Safe payment to partners
7.9 Cash distribution plan
- Degree of loss
- Loss absorption assumption
- Cash distribution plan
- Cash distribution schedule

5.0 REFERENCES

Kieso, D.E., Weygandt, J.J., and Warfield, T.D. (2018). Intermediate Accounting
IFRS Edition, 3nd Edition. NJ, USA: John Wiley & Sons , Inc.

Picker, R., Clark, K., Dunn, J., Kolitz, D., Livne,G., Loftus, J. Wise, van der Tas,
L. , (2016). Applying International Financial Reporting Standards, 4th. Edition,
John Wiley& Sons Inc., USA.

Ng E. J. (2012). A Practical Guide to Financial Reporting Standards (Malaysia),

CCH Asia.

Tan L. T., (2012). Financial Accounting & Reporting in Malaysia, Vol. 1 & 2, 4th
ed., CCH-Asia, Malaysia.

Lazar, J. and Huang, C. C. (2012), Malaysian Financial Reporting Standards,

Revised 3rd Edition, McGraw-Hill Education, Kuala Lumpur.

Malaysian Accounting Standards Board (n.d.). Malaysian Financial Reporting

Standards. Retrieved from http://www.masb.org.my

Companies Act (2016)

Partnership Act (1961)

.

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 (Notes: Students are advised to refer to books other than those listed above and to
read related journals in order to be well informed on the latest development in
the area of financial accounting)

6.0 ASSESSMENT

Course work 50%

Final Examination 50%
100%

7.0 TEACHING METHOD

The course will operate in a lecture/discussion format as much as possible.

Lectures will highlight major chapter topics, and solving problems of case
studies. Students are required to make the necessary preparation by reading
through the chapters and the related readings prior to attending lectures. Students
are encouraged to actively participate in the class activities including
presentation.

8.0 ATTENDANCE

Attendance for lectures and tutorials is compulsory. Students who do not fulfill
the 80% attendance requirement will be barred from taking the final examination
papers as stated in the Graduation Rules. The 20% absent from lectures and
tutorials will include all reasons including medical leave (MC), death and others.

9.0 ACADEMIC MISCONDUCT

Disciplinary action will be enforced to student caught for unethical behaviour

such as plagiarisms, cheating, copying, and sit exam for other student also other
academic misconducts.