International Financial Reporting (ACCT 511)

OVERVIEW

1. COURSE DESCRIPTION

This course teaches knowledge and skills relating to the tax system as applicable to individuals and
companies. The students will use the knowledge gained from the class to identify which taxes should be
relevant applied to individuals or companies.
In this course, assessments include a quiz, tax simulation in which students will prepare monthly tax
declarations for local companies and final exams.

2. REASON FOR THE COURSE

Accountants and (or) tax consultants must be able to prepare monthly tax returns and tax on income for a
company. In Cambodia, Tax laws have been updated from time to time. Therefore, program graduates will
be preparing tax returns and solving tax issues following Cambodian tax law and regulation.

3. STUDY HOURS

4. ROLE IN CURRICULUM


Prerequisites:
There is no prerequisite for this course other than the program entrance requirements.

SKILLS

  • LEARNING OUTCOMES
  • ASSESSMENT AND GRADING
  • TEACHING METHODS
  • STUDY PLAN
  • TEXTBOOKS AND REFERENCES

5. COURSE LEARNING OUTCOMES (CLO)

On successful completion of this course, students will be able to:

Knowledge Level of Learning Related PLO
Describe IFRS (CK1)
Explain the objective and applicability of IFRS to various business transactions		 Understand PC5
Cognitive Skills Level of Learning Related PLO
Apply IFRS (CC1)
Apply IFRS to a broad range of transactions and recognition and measurement of assets and liabilities common to large companies and multinationals.		 Apply PC5
Prepare a Financial Report (CC2)
Construct the four main financial statements for a large company in compliance with IFRS.		 Create PC5
Communication, Information Technology, and Numerical Skills Level of Learning Related PLO
Prepare financial statements of a listed company in Cambodia (CCIT1)
Utilize spreadsheets to facilitate financial statement analysis and financial reporting.		 Apply PCIT1
Interpersonal Skills and Responsibilities Level of Learning Related PLO
Work Ethically (CIP1)
Exercise professionalism and professional skepticism in financial reporting and analysis.		 Characterize PIP2

6. ASSESSMENT AND GRADING

Grades will be determined based on the following assessments and score allocations:

SKILL Assessment Skill Weighting
for Grade
Participation Project Controlled
Case Studies		 Final Controlled
Case Study
Describe IFRS (CK1) 25%   50% 25% 15%
Apply IFRS (CC1)     50% 50% 20%
Prepare a Financial Report (CC2) 25%   50% 25% 25%
Prepare financial statements of a listed company in Cambodia (CCIT1)   100%     20%
Work Ethically (CIP1) 100%       20%

7. TEACHING METHODS

This course is primarily lecture based; assigned readings will support learning and serve as a reference
to material covered in class. During class, approximately half of the class will be devoted to lectures with
another half of the class for working on and reviewing the solutions to case studies and problem sets.
During the course, there is one Project:

Assignment 1

Work Arrangement: Groups of 1 – 4
Output format : Presentation, Annotated Financial
Report Language : English
Assignment : Critique a published financial report prepared in accordance with IFRS or CIFRS,
giving recommendations to improve the presentation quality, usefulness and
understandability of the report.

8. STUDY PLAN

The course has 50 lessons detailed below. Each lesson is 1.5 class hours each; there are a total of 75 class hours. The study plan below describes the learning outcome for each lesson, described in terms of what the student should be able to do at the end of the lesson. Readings should be done by students as preparation before the start of each class. Implementation of this study plan may vary somewhat depending on the progress and needs of students.

  Lesson Learning Outcomes Teaching and Learning Activities,
Assessment
1 Course Introduction, Financial Statement Analysis

  1. Describe the objectives and elements of financial reporting in accordance with the IFRS Framework (CC1)
  2. Explain the source and applicability of international financial reporting standards and Cambodian international financial reporting standards (CK1)
  3. Define, calculate and interpret key financial ratios relevant for investors and managers (CC3, CCIT1, CIP1, CIP2)
  • Lecture
  • Discussion
  • Kahoot!

Reading:
References: BPP Text Chapter 1 pp 4-8, Chapter 2 pp 31-35, Chapter 19
2 Property, Plant and Equipment

  1. Define and compute the initial measurement of a non-current asset (CC1)
  2. Identify subsequent expenditure that may be capitalised, distinguishing between capital and revenue items (CC1)
  3. Compute depreciation based on cost for assets that have two or more significant parts (complex assets) (CC1, CIP1)
  • Lecture
  • Demonstration
  • Example, exercise and group problem solving

Reading:
References: BPP Text Chapter 3 pp 45-70
3 Revaluation of Property Plant and Equipment

  1. Account for the depreciation of property that has been revalued (CC1)
  2. Account for revaluation and disposal gains and losses for non-current assets (CC1)
  • Lecture
  • Demonstration
  • Example, exercise and group problem solving

Reading:
References: BPP Text Chapter 3 pp 45-70
4 Investment Property

  1. Identify and distinguish PPE and investment property (CC1)
  2. Prepare the accounting entries for investment property (CC1)
  • Lecture
  • Demonstration and discussion
  • Example and exercise

Reading:
References: BPP Text Chapter 3 pp 45-70
5 Borrowing Costs

  1. Determine and account for borrowing costs to be capitalised in PPE and investment property (CC1)
  • Lecture
  • Case study discussion
  • Group problem solving

Reading:
References: BPP Text Chapter 3 pp 45-70
6 Intangible Assets

  1. Define and identify intangible assets (CC1)
  2. Determine and account for the amortization of an intangible asset (CC1)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 4 pp 71-90
7 Impairment of Assets

  1. Determine the recoverable amount of an asset (CC1)
  2. Define and describe fair value (CC1)
  3. Determine and account for impairment of PPE, Investment Property and Intangible Assets (CC1, CIP1)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 5 pp 91-106
8 Provisions

  1. Explain why an accounting standard on provisions is necessary (CC1)
  2. Explain how provisions should be measured (CC1)
  3. Account for recognition of a provision and a change in a provision (CC1)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 13 pp 329-354
9 Inventory, Biological Assets

  1. Determine and account for a write-down of inventory (CC1)
  2. Define biological asset, agricultural activity, bearing plant (CC1)
  3. Account for fair value changes of biological assets (CC1)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 14 pp 355-368
10 Financial Instruments

  1. Identify, define, and account for the main types of financial instruments as per IFRS 9 (CC1)
  2. Determine the value of financial assets using the amortized cost method (CC1, CCIT1, CIP1)
  • Lecture
  • Demonstration and discussion
  • Example and exercise

Reading:
References: BPP Text Chapter 11 pp 277-298
11 Convertible Loans

  1. Calculate the equity portion of a convertible loan (CC1)
  2. Account for the issuance of a convertible loan and the related accrued interest (CC1)
  3. Account for conversion of a convertible loan (CC1)
  • Lecture
  • Discussion
  • Group Exercise

Reading:
References: BPP Text Chapter 11 pp 277-298
12 Lessee Lease Accounting

  1. Account for right of use assets and lease liabilities in the records of the lessee (CC1, CCIT1, CIP1)
  2. Explain the exemption from the recognition criteria for leases in the records of the lessee (CC1)
  • Lecture
  • Example and exercise
  • Group problem solving
  • Case study discussion

Reading:
References: BPP Text Chapter 12 pp 299-322
13 Lessor Lease Accounting

  1. Distinguish between lessor operating leases and finance leases (CC1)
  2. Account for operating leases of a lessor (CC1)
  3. Account for finance leases of a lessor (CC1)
  • Lecture
  • Example and exercise
  • Group problem solving
  • Case study discussion

Reading:
References: BPP Text Chapter 12 pp 299-322
14 Sale and Leaseback Transactions

  1. Describe the nature and role of sale and leaseback transactions (CC1)
  2. Account for sale and leaseback agreements (CC1, CCIT1, CIP1)
  • Lecture
  • Example and exercise
  • Group problem solving
  • Case study discussion

Reading:
References: BPP Text Chapter 12 pp 299-322
15 Leases: Review and Practice

  1. Calculate and present the carrying amounts of lease assets and liabilities (CC1)
  2. Calculate and present income and expense related to lease assets and liabilities (CC1, CCIT1, CIP1)
  • Lecture
  • Case study discussion
  • Group exercise

Reading:
References: BPP Text Chapter 12 pp 299-322
16 Revenue

  1. Explain the principles of recognition of revenue (CC1)
  2. Apply the principles of recognition of revenue (CC1)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 6 pp 117-142
17 Revenue from Construction Contracts

  1. Explain and apply the criteria for recognizing revenue from contracts (CC1)
  2. Explain and apply the criteria for the recognition of contract costs (CC1)
  3. Describe the acceptable methods for measuring progress towards complete satisfaction of a performance obligation (CC1)
  4. Prepare financial statement extracts for contracts where performance obligations are satisfied over time (CC2, CIP1)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 6 pp 117-142
18 Government Grants

  1. Describe the two main methods for recognizing benefits from government grants (CC1)
  2. Account for government grants using the deferred grant income method (CC1)
  3. Account for government grants using the reduction in cost method (CC1)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 6 pp 117-142
19 Foreign Currency Gains and Losses

  1. Identify the functional currency of an entity (CC1)
  2. Calculate and account for gains and losses on exchange (CC1)
  • Lecture
  • Discussion
  • Group Exercise

Reading:
References: BPP Text Chapter 17 pp 421-442
20 Foreign Currency Translations

  1. Translate an income statement and statement of financial position from a functional currency to a presentation currency (CC1, CCIT2, CIP2)
  2. Explain the role of translation gain or loss in other comprehensive income (CC1)
  • Lecture
  • Discussion
  • Group Exercise

Reading:
References: BPP Text Chapter 17 pp 421-442
21 EPS

  1. Calculate the EPS in accordance with relevant accounting standards, including bonus issues, full market value issues and rights issues (CC1)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 18 pp 455-476
22 Diluted EPS

  1. Describe diluted earnings per share (CC1)
  2. Calculate diluted EPS involving convertible debt and share options/warrants (CC1)
  • Lecture
  • Demonstration and discussion
  • Case study discussion

Reading:
References: BPP Text Chapter 18 pp 455-476
23 Changes in Policy and Estimates, Errors,
Events After the Reporting Period

  1. Define and designate the accounting treatment for accounting errors, changes in estimate, and changes in policy (CC1)
  2. Describe and identify adjusting events and non-adjusting events, giving recommendations for their treatment (CC2, CIP2)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 13 pp 328-355, Chapter 17 pp 421-442
24 Non-Current Assets Held for Sale, Discontinued Operations

  1. Prepare a statement of profit or loss including a discontinued operation (CC2)
  2. Identify and account for assets and disposal groups held for sale (CC1)
  • Lecture
  • Case study discussion
  • Group problem solving

Reading:
References: BPP Text Chapter 17 pp 421-442
25 Income Tax – Deferred Tax

  1. Account for current tax in accordance with relevant accounting standards (CC1)
  2. Distinguish between taxable differences and deductible difference (CC1)
  3. Calculate and account for deferred tax (CC1)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 15 pp 369-392
26 Income Tax – Deferred Tax

  1. Account for changes in deferred tax liabilities and assets (CC1)
  2. Account for deferred tax in OCI, including that arising from revaluation of property (CC1)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 15 pp 369-392
27 Income Tax – Disclosures

  1. Describe the required disclosures for income tax and deferred tax (CC1)
  2. Prepare a disclosure note for changes in deferred tax assets and liabilities and temporary differences (CC1)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 15 pp 369-392
28 Financial Statement Adjustments for Financial Statement Analysis

  1. Make appropriate adjustments to comparable companies’ statement of financial position (CC3, CIP2)
  2. Make appropriate adjustments to comparable companies’ statement of comprehensive income (CC3, CIP2)
  • Case study discussion

Reading:
References: BPP Text Chapter 19 pp 477-510, Chapter 20 pp 511-524
29 Cash Flow Statement

  1. Describe the sections of a cash flow statement (CC2)
  2. Conduct basic interpretation of cash flows and changes in cash flows (CC3)
  3. Prepare the operating cash flow section of a statement of cash flows (CC2)
  • Lecture
  • Demonstration and discussion
  • Case Study

Reading:
References: BPP Text Chapter 21 pp 525-546
30 Cash Flow Statement

  1. Prepare a full cash flow statement according to IFRS (CC2, CCIT2, CIP2)
  • Case Study

Reading:
References: BPP Text Chapter 21 pp 525-546
31 Consolidated Statement of Financial Position

  1. Prepare a consolidated statement of financial position for a simple group (parent and one subsidiary and associate) dealing with pre and post-acquisition profits, non-controlling interests and consolidated goodwill (CC2)
  2. Describe the concept of a group as a single economic unit (CC1)
  3. Account for the effects in the financial statements of intra-group trading (CC1)
  4. Explain why it is necessary to eliminate intra group transactions (CC1)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 7 pp 153-176, Chapter 8 pp 177-218
32 Consolidated Statement of Financial Position – Unrealised Profit, Goodwill

  1. Calculate and adjust for unrealised profit on consolidation (CC1)
  2. Identify and calculate deferred consideration and its impact to goodwill (CC1)
  3. Consolidate the statement of financial position (CC2)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 8 pp 177-218
33 Consolidated Statement of Financial Position – Fair Value Adjustments

  1. Calculate goodwill, adjusting for fair value adjustments of acquisition target’s assets and liabilities (CC1)
  2. Consolidate the statement of financial position with required adjustments needed for fair value adjustments on acquisition (CC2, CIP1)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 8 pp 177-218
34 Consolidated Statement of Profit and Loss and Other Comprehensive Income

  1. Consolidate revenue (CC1)
  2. Consolidate cost of goods sold (CC1)
  3. Prepare a consolidated statement of profit or loss, adjusting for inter-company transactions and NCI (CC2, CIP1)
  • Lecture
  • Demonstration
  • Case study discussion
  • Group exercise

Reading:
References: BPP Text Chapter 9 pp 219-242
35 Group Disposals

  1. Determine the gain or loss on disposal of a subsidiary (CC1)
  2. Account for the disposal and/or loss of control of a subsidiary (CC1)
  • Lecture
  • Demonstration
  • Case study discussion
  • Group exercise

Reading:
References: BPP Text Chapter 9 pp 219-242
36 Financial Statement Analysis of Groups

  1. Adjust group financial statements for the purpose of comparison (CC3)
  2. Analyze segment performance (CC3, CIP2)
  3. Adjust risk-based measures to reflect segment risk (CC3)
  • Case study discussion

Reading:
References: BPP Text Chapter 9 pp 219-242
37 Accounting for Associates

  1. Identify an associate (CC1)
  2. Account for an associate in the statement of financial position (CC1)
  3. Account for an associate in the statement of profit or loss (CC1)
  4. Adjust for inter-company transactions with an associate (CC1)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 10 pp 243-266
38 Consolidation with Associates

  1. Prepare a consolidated statement of profit or loss for a group including a single subsidiary and an investment in an associate (CC2)
  2. Prepare a consolidated statement of financial position for a group including a single subsidiary and an investment in an associate (CC2)
  • Lecture
  • Discussion
  • Group exercise

Reading:
References: BPP Text Chapter 10 pp 243-266
39 Financial Statement Analysis

  1. Describe limitations of financial statement analysis (CC3, CIP2)
  2. Define, calculate and interpret key financial ratios relevant for investors and managers (CC3)
  • Lecture
  • Discussion
  • Case study

Reading:
References: BPP Text Essential Reading 19 pp 704-706, Chapter 19
40 Business and Industry Analysis

  1. Perform a PESTLE analysis to analyze a business (CC3, CIP2)
  2. Perform a Porter’s Five Forces analysis to analyze a business (CC3, CIP2)
  3. Perform a SWOT analysis for a business (CC3, CIP2)
  4. Construct a risk matrix for a business (CC3, CIP2)
  • Lecture
  • Demonstration and discussion
  • Example and exercise

Reading:
References: BPP Text Chapter 19 pp 477-510
41 Exam Review
42 Exam Review
43 Exam Review
44 Exam Review
45-50 Final Assignment Presentations
Total Hours: 75 hours

9. TEXTBOOKS AND REFERENCES

Textbook

1. Kaplan Publishing, Paper F7 Financial Reporting (FR), (For exams from 1 September 2023 to 31
August 2024).
2. BPP Learning Media, Practice & Revision Kit Paper F7 Financial Reporting, (For exams from 1
September 2023 to 31 August 2024)

References

1. IFRS Foundation, IFRS Standards, 2021.
2. BPP Learning Media, Paper F7 Financial Reporting, (For exams from 1 September 2023 to 31
August 2024).
3. Kaplan Publishing, Practice & Revision Kit Paper F7 Financial Reporting, (For exams from 1
September 2023 to 31 August 2024).

Education Resources