PURPOSE OF THE COURSE

The course provides quantitative information, primary financial in nature, about economic entities that is intended to be useful in making economic decisions. It also introduces standards that accountants use for guidance in the conduct of their professional activities which are professional’s ultimate foundation. These standards are the bedrock upon which the professional’s service to society rests and upon which its public image and public trust are built. They are the defining criteria that ensure quality in the services that accountants render. These standards will help to enhance the professional ethical standards of the students at the end of this course.

EXPECTED LEARNING OUTCOMES

At the end of the course unit, students should be able to:

·         Explain the element of the financial statements.

·         Prepare financial statements and accounting records for the business organisations

·         Calculate ratios and explain their use in the interpretation of accounting information.

·         Discuss the requirements of international financial reporting standards (IFRSs).

COURSE OUTLINE

Measurement of the Elements of Financial Statements Bases

·         Bases: historical cost, realization (settlement) values, present value.

·         Valuation of assets.

·         Measurement of profits.

·         Maintenance of capital.

·         Strengths and weaknesses of each base.

·         Preparation of income statements and balance sheet using various bases.

Financial Analysis and Interpretation

·         Purposes of ratios

·         Types of ratios

·         Benefits of and limitations of ratios

·         Computation and interpretation of activity, investment and financial ratios.

Accounting Standards

·         The role of accounting standards in Uganda.

·         History of standard setting

·         Major influence on standards

·         The structure of the standards setting process

·         Framework for the preparation and presentation of financial statement under IFRSs.

·         First time adoption of IFRSs

·         Presentation of financial statements

·         Cash flow statement

·         Accounting policies, changes in accounting estimates and errors.

Application of international financial reporting standards balance sheet and income statement-recognition and measurement standards.

·         Insurance contracts

·         Construction contracts

·         Inventories

·         Property, plant and equipments

·         Investment property

·         Business combination

·         Leases

·         Revenue

·         Income taxes

·         Employee benefits

·         Government grants and government assistance

·         Borrowing costs

·         Impairment of assets.

·         Provision, contingent liabilities and contingent Assets

·         Intangible assets

·         Agriculture

Disclosure accounting standards

·         Non-current assets held for sale and discontinued operations

·         Exploration for evaluation of mineral resources.

·         Events after the balance sheet date

·         Accounting and reporting by retirement benefit plans

·         Earnings per share

·         Interim financial reporting

Preparation of financial statement of limited companies for External use

·         Income statement

·         Balance sheet

·         Cash flow statements

·         Statement of changes in equity

·         Accounting policies and note to the financial statements

·         Prepare financial statement in accordance with IFRS and the companies Act

Course Assessment

Continuous tests 20%

Group and individual project (course work) 20%

End of semester examination 60%

Reading materials/list

Hoyle, Schaefer, Donpnik (2004). Advanced accounting, seventh edition Fess and Warren 17e (1993). Accounting principles, seventeenth edition

Joe B – Holyle, Thomas F. Schaefer, Timothy S Doupnik (1998). Advanced accounting fifth edition.

http://cgi. Com/advanced-accounting-text book-A’ Fischer-Cheng-Tatlor.

Weygandt, Kieso, Kimmel (2003). Financial accounting, four edition.

J.David Spiceland, James F Sepe, Lawrence.

Tomassini (2001). Intermediate accounting, second edition.

A.n. Mosich, E. John Larsen (1995) modern advanced accounting, fourth edition.

Wyatt, Arthur (1997). “Review: the accounting profession – major issue: Progress and concerns” accounting Horizons (June): 127-131.