IFRS FOR SMES (ACCT 311)

Small and Medium-Sized Entities

1. Distinguish between entities that may and may not apply IFRS for SMEs (CK1)
2. Describe the components of a financial report prepared in accordance with IFRS for SMEs (CC2)
3. Explain the advantages of IFRS for SMEs (CK1)

Lecture (T)
Kahoot (A)

Reading: IFRS for SMEs, Preface pp 6-9, Section 1 pp 10-11, Section 3 pp 22-26

Statement of Financial Position

1. Organize accounts in a statement of financial position according to IFRS for SMEs’ format (CC2

Lecture (T)
Group case study (T, A)
Discussion (T, A)

Reading: IFRS for SMEs, Section 4 pp 27-30; Reference: Module 4

Statement of Comprehensive Income

1. Explain the acceptable formats and classification in the statement of income or statement of income and retained earnings (CC2)
2. Classify expenses by nature and function (CC2)

Lecture (T)
Kahoot (T, A)

Reading: IFRS for SMEs, Section 2 pp 12-13, 18, Section 8 pp 41-42, Section 10 page 50; Reference: Module 8

Concepts, Pervasive Principles, Notes

1. Describe the pervasive principles (CK1)
2. Explain how the objective of IFRS for SMEs influences application of IFRS for SMEs (CK1)
3. Distinguish between relevant and irrelevant information for deciding on inclusion in the notes  (CC2)

Lecture (T)
Kahoot (T, A)

Reading: IFRS for SMEs, Section 2 pp 12-13, 18, Section 8 pp 41-42, Section 10 page 50; Reference: Module 8

ACCA Code of Ethics and Conduct

1. Describe the fundamental principles of the ACCA Code of Ethics and Conduct (CIP1)
2. Apply the fundamental principles of the ACCA Code of Ethic and Conduct to resolve ethical dilemmas arising in financial reporting (CIP1)

Lecture (T)
Group case study (T, A)
Kahoot (T, A)

Reading: ACCA Code of Ethics and Conduct, pp 18-23; Reference: ACCA Code of Ethics and Conduct pp 24-31

Accounting Policies, Estimates and Errors

1. Define and distinguish changes in accounting policies, changes in estimates, and errors (CK1)
2. Determine how to account for changes in accounting policies, changes in estimates and errors  (CC2)

Lecture (T)
Group case study (T, A)

Reading: IFRS for SMEs, Section 10 pp 50-54; Reference: Module 10

Basic Financial Instruments

1. Describe the types of financial instruments covered by IFRS for SMEs section 11 (CK1)
2. Calculate the amount a financial instrument should be recorded on initial recognition (CC1)

Lecture (T)
Group case study (T, A)

Reading: IFRS for SMEs, Section 11 pp 55-59; Reference: Module 11

Basic Financial Instruments – Bad Debts

1. Estimate bad debts for a company (CC1)
2. Prepare the journal entries to account for bad debts (CC1)
3. Prepare the disclosure note for receivables (CC2)

Lecture (T)
Group case study (T, A)

Reading: IFRS for SMEs, Section 11 pp 62-65; Reference: Module 11

Accounting for Loans Payable

1. Prepare an amortisation schedule for a loan using Excel. (CCIT1)
2. Prepare the journal entries for a loan. (CC1)

Demonstration (T)
Case study (T, A)

Reading: IFRS for SMEs, Section 11 pp 60-62; Reference: Module 11

Controlled Case Study 1

1. Review and assess learning outcomes of lecture 1-8

Accounting for Loans Payable – Effective Interest Rate

1. Calculate the effective interest rate using Excel or Google Sheets (CCIT1)
2. Account for borrowing costs in accordance with section 25 (CC1)
3. Prepare the disclosure note for loans payable (CC2)

Demonstration (T)
Group problems using Excel
Discussion

Reading: IFRS for SMEs, Section 11, pp 60-62, 68-70; Reference: Module 11

Business and Industry Analysis – Porter’s Five Forces

1. Prepare a business analysis using Porter’s Five Forces and sources of competitive advantage. (CC2)

Lecture (T)
Discussion (T, A)
Presentation (T, A)

Reading: Harvard Business Review, pp 25-39

Inventories – Part 1

1. Determine the components of cost to include in inventory (CC1)
2. Distinguish between normal and abnormal costs (CC1)

Lecture (T)
Group problems (T, A)

Reading: IFRS for SMEs, Section 13 pp 79-81; Reference: Module 13

Inventories – Part 2

1. Determine inventory cost using the FIFO periodic method (CC1)
2. Record cost of goods sold following both expense by nature and expense by function (CC1)

1. Prepare a disclosure note for inventories (CC2)

Demonstration (T)
Group problems (T, A)

Reading: IFRS for SMEs, Section 13 pp 82-83; Reference: Module 13

Student Presentation – Porter’s Five Forces

1. Prepare and present a Porter’s Five Forces business analysis

Discussion (T, A)
Presentation (A)

Reading: Harvard Business Review, pp 25-39

Investment Property

1. Distinguish between investment property and other types of property ( CC1)
2. Record the gains and losses related to investment property (CC1)
3. Prepare a disclosure note for investment property (CC2)

Lecture (T)
Group problems (T, A)

Reading: IFRS for SMEs, Section 16 pp 92-94 ; References: Module 16

Property, Plant and Equipment – Part 1

1. Calculate the depreciation for property, plant and equipment (CC1)
2. Determine gains and losses on disposal (CC1)

Demonstration (T)
Group problems (T, A)

Reading: IFRS for SMEs, Section 17 pp 95-101; Reference: Module 17

Property, Plant and Equipment – Part 2

1. Account for renovation of property, plant and equipment (CC1)
2. Account for revaluation of property classified as property, plant and equipment (CC1)

Demonstration (T)
Group problem (T, A)

Reading: IFRS for SMEs, Section 17 pp 95-101; Reference: Module 17

Property, Plant and Equipment – Part 3

1. Prepare a disclosure note for property, plant and equipment (CC2)

Intangible Assets other than Goodwill

1. Account for software (CC1)
2. Calculate the amortisation of intangible assets with change in estimated useful life (CC1)

Lecture (T)
Group problem (T, A)
Kahoot (T, A)

Reading: IFRS for SMEs, Section 18 pp 102-106; Reference: Module 18

Impairment of Assets – Part 1

1. Explain when impairment needs to be tested (CC1)
2. Determine the recoverable amount of a potentially impaired asset (CC1)
3. Explain how to avoid value in use (CC1)

Group problems (T, A)
Kahoot (T, A)

Reading: IFRS for SMEs, Section 27 pp 163-170; Reference: Module 27

Impairment of Assets – Part 2

1. Calculate impairment expense of an individual asset (CC1)

Case study (T, A)
Group problem (T, A)

Reading: IFRS for SMEs, Section 27 pp 163-170; Reference: Module 27

Controlled Case Study 2

1. Review and assess learning outcomes lecture 10 – 17

Leases – Part 1

1. Distinguish between operating leases and finance leases (CC1)
2. Account for operating leases, including transaction costs and discounts (CC1)

Lecture (T)
Group problem (T, A)
Kahoot (T, A)

Reading: IFRS for SMEs,Section 20 pp 113-120; Reference: Module 20

Leases – Part 2

1. Prepare a disclosure note for operating leases (CC2)

Lecture (T)
Group problem (T, A)
Kahoot (T, A)

Reading: IFRS for SMEs,Section 20 pp 113-120; Reference: Module 20

Revenue – Part 1

1. Explain the recognition criteria for revenue (CC1)
2. Account for revenue for sale of goods and services      (CC1)

Lecture (T)
Group case study (T, A)
Kahoot (T, A)

Reading: IFRS for SMEs Section 23
pp 140-154; Reference: Module 23

Controlled Csea Study 3

1. Review and assess learning outcomes lecture 23 – 29

Revenue – Part 2

1. Account for deferred income (CC1)
2. Identify the revenue attributable to services in a bundle of goods and services (CC1)

Lecture (T)
Case study (T, A)
Kahoot (T, A)

Reading: IFRS for SMEs Section 23
pp 140-154; Reference: Module 23

Revenue – Part 3

1. Prepare the journal entries to record a construction contract using the input method (CC1)
2. Prepare a statement of profit or loss, including revenue  (CC2)

Lecture (T)
Group problems (T, A)
Discussion (T, A)

Reading: IFRS for SMEs Section 23
pp 140-154; Reference: Module 23

Employee Benefits – Part 1

1. Account for basic employee benefits and the related withholding tax (CC1)

Lecture (T)
Group problem (T, A)
Discussion (T, A)

Reading: IFRS for SMEs, Section 28 pp 171-172; Reference: Module 28

Employee Benefits – Part 2

1. Determine the withholding tax component of employee benefits (CC1)

Lecture (T)
Group problem (T, A)

Reading: IFRS for SMEs, Section 28 pp 171-172; Reference: Module 28

Employee Benefits – Part 3

1. Prepare disclosure note for employee benefits (CC2)

Lecture (T)
Group problem (T, A)

Reading: IFRS for SMEs, Section 28 pp 171-172; Reference: Module 28

Income Tax – Part 1

1. Prepare the journal entries to prepayment of income tax (tax on profit) (CC1)
2. Prepare the journal entries to record income tax related withholding taxes (CC1)

Lecture (T)
Case study (T, A)
Group problem (T, A)

Reading: IFRS for SMEs, Section 29 pp 182, 189; Reference: Module 29

Income Tax – Part 2

1. Prepare the year-end journal entry to record income tax payable (tax on profit) (CC1)
2. Prepare a statement of profit or loss with tax  (CC2)

Lecture (T)
Case study (T, A)

Reading: IFRS for SMEs, Section 29 pp 182, 189; Reference: Module 29

Income Tax – Part 3

1. Distinguish between the carrying amount of net assets and the tax base of net assets (CC1)
2. Calculate the taxable and deductible differences arising from temporary differences (CC1)

Demonstration (T)
Group problem (T, A)

Reading: IFRS for SMEs, Section 29 pp 183-186, 188-189; Reference: Module 29

Income Tax – Part 4

1. Prepare the journal entries to record income tax expense and deferred tax (CC1)
2. Prepare a disclosure note for income tax and deferred tax (CC2)

Demonstration (T)
Group problem (T, A)

Reading: IFRS for SMEs, Section 29 pp 189-191; Reference: Module 29

Cash Flow Statements – Part 1

1. Define cash and cash equivalents (CC1)
2. Explain the difference between the direct and indirect methods of preparing a cash flow statement (CC1)
3. Define operating cash flows, investing cash flows, and financing cash flows (CC2)

Lecture (T)
Group Problem (T, A)

Reading: IFRS for SMEs, Section 7 pp 36-40; Reference: Module 7

Cash Flow Statements – Part 2

1. Prepare the investing and financing portions of a cash flow statement (CC2)
2. Present exchange rate changes in foreign currency cash and cash equivalents in the cash flow statement (CC2)

Demonstration (T)
Group problem (T, A)

Reading: IFRS for SMEs, Section 7 pp 36-40; Reference: Module 7

Cash Flow Statements – Part 3

1. Prepare a full cash flow statement (CC2)

Case study (T, A)
Discussion (T, A)

Reading: IFRS for SMEs, Section 7 pp 36-40; Reference: Module 7

Cash Flow Statements – Part 4

1. Prepare a full cash flow statement (CC2)

Case study (T, A)
Discussion (T, A)

Reading: IFRS for SMEs, Section 7 pp 36-40; Reference: Module 7

Foreign Currency Translation – Part 1

1. Determine the exchange rate for currency income, expense, assets, liabilities (CC2)
2. Record gains and losses arising from remeasurement and settlement of foreign currency receivables and payables (CC2)

Demonstration (T)
Group problems (T, A)
Discussion (T, A)

Reading: IFRS for SMEs, Section 30 pp 192-194; Reference: Module 30

Foreign Currency Translation – Part 2

1. Explain the concept of functional currency (CK1)
2. Prepare a disclosure note for functional currency and presentation currency (CCIT1)

Lecture (T)
Case study (T, A)

Reading: IFRS for SMEs, Section 30 pp 195-197; Reference: Module 30

Related Party Disclosures

1. Define a related party (CK1)
2. Identify transactions with a related party that would warrant disclosure in the notes (CC2)
3. Prepare a related party disclosure note (CC2)

Lecture (T)
Group problems (T, A)

Reading: IFRS for SMEs, Section 33 pp 204-207; Reference: Module 33

Controlled Case Study 4

1. Review and assess learning outcomes lecture 31 – 38

Transition to the IFRS for SMEs

1. Define first time application of IFRS for SMEs (CK1)

1. Describe the additional disclosures when an entity applies IFRS for SMEs for the first time (CC2)
2. Explain the simplifications allowed on transition (CC2)

Case study (T, A)
Group problem (T, A)

Reading: IFRS for SMEs, Section 35 pp 213-218; Reference: Module 35