Teaching methods • Pre-‐reading • Research • Lecture • Discussion • Exercises • Assignments • Q&A • Mid-‐term and final tests • Office hour each week
A 86045 AccounGng and Financial ReporGng 1
Ground Rules 1. Be on Gme and don’t leave early 2. Mobiles and laptops off 3. Don’t come and go 4. Hand in assignments on Gme
Please text or e-‐mail for an appointment beforehand
WHAT ARE THE IAS/IFRS?
A 86045 AccounGng and Financial ReporGng 2
ObjecGves of Session 1
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At the end of this session students will be able to: • Understand why there is a need for consistent
interna:onal financial repor:ng • Be able to iden*fy the interna:onal accoun:ng
standards currently in force • Know what the 4 financials statements required
by IAS1 are and the alternate presenta:ons available and understand their purpose
• Understand how the 4 financial statements interlink with each other.
The development of accounGng standards– a response to the
evoluGon of business • Cash accounGng • Accruals accounGng • Mergers and acquisiGons • InternaGonal trade • InternaGonal stakeholders • Cross-‐border investors • Foreign investments • Joint ventures • Conglomerates • Leasing • Pensions and OPEBS • Stock opGons • Intangibles • Financial instruments • MulGple elements • Accoun1ng scandals
A 86045 AccounGng and Financial ReporGng 4
Growing need for consistency and
comparability for the various stakeholders
Users of IFRS -‐ Stakeholder needs
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Stakeholder Needs Shareholders Stewardship of management
Creditors Safe to sell too?
Banks Safe to lend too? Need to recall loan
Customers Safe source of supply?
Tax authoriGes Share of profits, Sales taxes
Employees Profit sharing, job stability
Management Bonus calculaGon
Sales force Commissions
Credit raGng agencies Assign raGng
PotenGal investors Future prospects
How do you think that you might need to use published financial statements in the future?
The Current List of IAS and IFRS
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Warning! Not all IASs and IFRSs have been endorsed by the EU. Latest posiGon can be found at www.efrag.org
Status and History of IFRS
DateStandard Issued
IFRS 1 First-time adoption of International Financial Reporting Standards Nov 2008 From July 1 2009IFRS 2 Share-Based Payment Feb 2004 From January 1 2005IFRS 3 Business Combinations Jan 2008 From July 1 2009IFRS 4 Insurance Contracts Dec 2005 From January 1 2005IFRS 5 Non-current Assets Held for Sale and Discontinued Operations Mar 2004 From January 1 2005IFRS 6 Exploration for and Evaluation of Mineral Resource Dec 2004 From January 1 2006IFRS 7 Financial Instruments: Disclosures Aug 2005 From January 1 2007IFRS 8 Operating Segments Nov 2006 From January 1 2009IFRS 9 Financial Instruments Oct 2010 From January 1 2015IFRS 10 Consolidated Financial Statements May 2011 From January 1 2013IFRS 11 Joint Arrangements May 2011 From January 1 2013IFRS 12 Disclosure of Interests in Other Entities May 2011 From January 1 2013IFRS 13 Fair Value Measurement May 2011 From January 1 2013
IAS 1 Presentation of Financial Statements (Revised) Sep 2007 From January 1 2009IAS 2 Inventories Dec 2003 From January 1 2005IAS 3 Consolidated Financial Statements (Superseded by IAS 27 and 28)IAS 4 Depreciation Accounting (Replaced by IAS 16, 22 and 38)IAS 5 Information to be disclosed in Financial Statements (Replaced by IAS 1)IAS 6 Accounting Responses to Changing Prices (Superseded by IAS 15)IAS 7 Statement of Cash Flows Apr 2001 From January 1 1994IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors Dec 2003 From January 1 2005IAS 9 Accounting for Research and Development Activities (Superseded by IAS 38)IAS 10 Events after the Reporting Period Dec 2003 From January 1 2005IAS 11 Construction Contracts Apr 2001 From January 1 1995IAS 12 Income Taxes Apr 2001 From January 1 1998IAS 13 Presentation of Current Assets and Liabilities (Superseded by IAS 1)IAS 14 Segment Reporting (Superseded by IFRS 8)IAS 15 Information Reflecting the Effects of Changing Prices (Withdrawn in December 2003)IAS 16 Property, Plant and Equipment Dec 2003 From January 1 2005IAS 17 Leases Dec 2003 From January 1 2005IAS 18 Revenue Apr 2001 From January 1 1995IAS 19 Employee Benefits Jun 2011 From January 1 2013IAS 20 Accounting for Government grants and Disclosure of Government Assistance From January 1 1984IAS 21 The Effects of Changes in Foreign Exchange Rates Dec 2003 From January 1 2005IAS 22 Business Combinations (Replaced by IFRS 3)IAS 23 Borrowing Costs Mar 2007 From January 1 2009IAS 24 Related Party Disclosures Nov 2009 From January 1 2011IAS 25 Accounting for Investments (Superseded by IAS 39 and 40)IAS 26 Accounting and Reporting by Retirement Benefit Plans Apr 2001 From January 1 1988IAS 27 Separate Financial Statements (Revised in 2008) May 2011 From January 1 2013IAS 28 Investments in Associates and Joint Ventures Dec 2003 From January 1 2013IAS 29 Financial Reporting in Hyperinflationary Economies Apr 2001 From January 1 1990IAS 30 Disclosures in Financial Statements of Banks and Similar Financial Institutions (Superseded by IFRS 7)IAS 31 Interests in Joint Ventures (To be superseded by IFRS 11) Dec 2003 From January 1 2005IAS 32 Financial Instruments: Presentation Dec 2003 From January 1 2005IAS 33 Earnings per Share Dec 2003 From January 1 2005IAS 34 Interim Financial Reporting Apr 2001 From January 1 1999IAS 35 Discontinued Operations (Replaced by IFRS 5)IAS 36 Impairment of Assets Mar 2004 From March 31 2004IAS 37 Provisions, Contingent Liabilities and Contingent Assets Apr 2001 From July 1 1999IAS 38 Intangible Assets Mar 2004 From March 31 2004IAS 39 Financial Instruments: Recognition and Measurement Dec 2003 From January 1 2005IAS 40 Investment Property Dec 2003 From January 1 2005IAS 41 Agriculture Dec 2003 From January 1 2003
Replaced or supersededUnder revision
Effective Date
Link Between IFRS and Course Sessions
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A86045'Accounting'and'Financial'Reporting'7'Academic'Year'2013/2014'7'Second'Semester'7'Syllabus
Session Day Date Time Hours Session PrimaryText2Book2Reference* IAS/IFRS
1 Tues 182Feb 09.002C212.00 3 Financial2reporting2under2IFRS 2Chapter21 IAS21 IAS28 IFRS25 IFRS28 IAS210 IAS220 IAS221 IAS224 IAS2332 Thurs 202Feb 09.002C211.00 2 Financial2analysis 2Chapter293 Fri 212Feb 11.00C213.00 2 Review2session
4 Tues 252Feb 09.002C212.00 3 Revenues Chapter22 IAS218 IAS2115 Thurs 272Feb 09.002C211.00 2 Costs2and2expenses Chapter22 IFRS22 IAS219
6 Tues 42Mar 09.002C212.00 3 NonCcurrent2assets2C2Intangible2assets Chapter25 IAS2387 Thurs 62Mar 09.002C211.00 2 NonCcurrent2assets2CTangible2assets,2and2
Financial2assetsChapter25 IAS216 IAS217 IFRS27
8 Tues 112Mar 09.002C212.00 3 Impairment2of2assets 2Chapter25 IAS2369 Thurs 132Mar 09.002C211.00 2 Review2session
10 Tues 182Mar 09.002C212.00 3 Current2assets2C2Inventories Chapter23 IAS22 IAS21111 Thurs 202Mar 09.002C211.00 2 Current2assets2C2Accounts2receivable Chapter23
12 Tues 252Mar 09.002C212.00 3 NonCFinancial2liabilities Chapter24 IAS237 IAS219 IAS22613 Thurs 272Mar 09.002C211.00 2 Review2session
14 Mon 312Mar 09.002C211.00 MidCterm2testTues 12AprThurs 32Apr
15 Tues 82Apr 09.002C212.00 3 Financing2including2leases Chapter26 IAS217 IFRS27 IFRS29 IAS232 IAS22316 Thurs 102Apr 09.002C211.00 2 Review2session
17 Tues 152Apr 09.002C212.00 3 Taxation2C2Direct2&2Indirect Chapter27 IAS21218 Thurs 172Apr 09.002C211.00 2 Review2session
Tues 222Apr Pasqua2e2252aprileThurs 242Apr
19 Tues 292Apr 09.002C212.00 3 Group2accounts Chapter28 IFRS210 IFRS211 IFRS212 IAS227 IAS228 IAS229Thurs 12May Ponte2del212maggio
20 Tues 62May 09.002C212.00 3 Business2combinations Chapter28 IFRS2321 Thurs 82May 09.002C211.00 2 Review2session
22 Tues 132May 09.002C212.00 3 Cash2flow2statement 2Chapter29 IAS2723 Thurs 152May 09.002C211.00 2 Review2session
24 Tues 202May 09.002C212.00 3 Fair2value Various IFRS21325 Thurs 222May 09.002C211.00 2 Review2session
60
26 Mon 262May Exams52July
IASs2and2IFRSs2not2addressed IFRS21 IFRS24 IAS234 IAS240 IAS241
*2Financial2Reporting2under2IFRS2C2A2Topic2Based2Approach22Wolfganf2Dick2C2Franck2MissonierCPierra
Additional2relevant2IASs/IFRSs
What the ISAs and IFRSs Contain
• ObjecGve • Scope • DefiniGon • RecogniGon, measurement, and subsequent accounGng
• Disclosures • EffecGve date • TransiGon provisions
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