Hawassa University College of business & Economics Department of Accounting & Finance

Course Outline
Course Title Advanced Financial Accounting II
Credit Hour 3 hrs. ECTS 5
Program BA Degree in Accounting & Finance
Course Code ACFN4102 Course Type Major
Pre-requisite Advanced Financial Accounting I
Course Instructor Tekalign Negash
Course Content:

Chapter One: Joint Arrangements (IFRS 11)

 Meaning and types of joint arrangements  Accounting for joint ventures
 Accounting for investments in joint ventures  Disclosure requirements
 Accounting for joint operations

Chapter Two: Accounting for Public Enterprises in Ethiopia

 Overview of Proc. No. 25/1992 and other  Accounting for Formation and Operation
related Provisions  Privatization of Public Enterprises

Chapter Three: Accounting for Sales Agencies and Branch Operations

 Characteristics and Principles  Accounting for Sales Agencies
 Distinction between Agencies and Branches  Accounting for Branch Operations
 Accounting Systems and the Accounting Entity
 Reciprocal (Intracompany) Accounts
 Merchandise Shipments to Branches
 Allocation of Expenses incurred by Home Office to Branches
 Accounting for Branch Fixed Assets
 Combined Financial Statements for Home Office and Branch
 Reconciliation of Home Office and Branch Accounts
 Transactions among Branches
 Disposal of a Branch
Chapter Four: Business Combinations (IFRS 3)
 Definitions and Motives  The Acquisition Method
 Methods of arranging Business Combinations
 Identifying the acquirer  Determining the acquisition date
 Recognition and measurement of the identifiable net assets of the Acquiree
 Recognition and measurement of goodwill or again from a bargain purchase
 Disclosure requirement
 Overview of business combinations in Ethiopian context

Chapter Five: Consolidation on Date of Acquisition (IFRS 10)

 Definition of subsidiary and control  Loss of Control
 Assessing control  Consolidated Statement of Financial Position:
 Accounting Requirements Wholly owned subsidiary
 Definition & presentation of non-controlling  Consolidated Statement of Financial Position:
interests Partially owned subsidiary
 Different reporting dates & accounting policies  Disclosure Requirements
Hawassa University College of business & Economics Department of Accounting & Finance

Chapter Six: Consolidation Subsequent to Acquisition (IFRS 10)

 Accounting for investments in subsidiaries
 Consolidated financial statements for wholly owned subsidiary
 Consolidated financial statements for partially owned subsidiary
 Consolidated financial statements: Intra-group trading (Upstream and Downstream Transactions)
 Disclosure requirements
Chapter Seven: The Effects of Changes in Foreign Exchange Rates (IAS 21)
 Definition of terms  Recognition and reporting of exchange
 Exchange Rates and Meaning of Translation differences
 Types of currency-related exposures  Translation of foreign operations
 Determination of functional currency  Rationale/Objectives of translation
 Accounting for foreign currency transactions  Translation methods & criteria for applications
 Disclosure requirements
Assessment/Evaluation
Test 1 15%
Test 2 10%
Individual Assignment 8%
Group Assignment 7%
Final Exam (All Chapters 50%
Total 100%

Text & References books

 Herauf D. & Hilton M. (2016). Modern Advanced Accounting in Canada. Eighth ed. McGraw-Hill
 Baker, R. E., Lembke, V. C., King, T. E., Jeffrey, C. G., & Christensen, T. (2016). Advanced Financial
Accounting. Eleventh edition. McGraw-Hill/Irwin
 Cotter, D. (2012). Advanced Financial Reporting: A complete guide to IFRS. Financial Times/Prentice
 Beechy, T. H., & Farrell, E. (2015). Advanced Financial Accounting. Seventh edition. Prentice Hall.
 Hoyle, J. B., Schaefer, T. F., & Doupnik, T. S. & Wang, X. (2016). 13th edition. Advanced Accounting.
 Ernst & Young LLP, International GAAP, John Wiley & Sons Ltd. (Latest edition).
 Richard E.Baker et al. Advanced Accounting. 7th Edition, FT Prentice Hall- Financial Times, United
Kingdom, 2004
 Larsen, J. Modern Advanced Accounting. 11th edition. McGraw-Hill.
 Commercial Code of Ethiopia
 Public Enterprises Proclamation No. 25/1992
 IFRS Blue Book (Latest edition)
 IFRS Green Book (Latest edition)
 IFRS Red Book (Latest edition)
Hawassa University College of business & Economics Department of Accounting & Finance