Topic outline

  • Welcome to International Accounting course!

    This course will teach you how to understand, apply and explain fundamental concept and principles of most important IFRS standards. At the course you will get a good overall picture of IFRS standards including preparation of financial statements in accordance with IFRS.  You will also understand the main challenges that entities and auditors are facing in applying IFRS standards.

    After successfully completing the course, you will have achieved the following learning outcomes:

    1. Recognize the underlying concept and principles of IFRS

    2. Identify the required format and content of a complete set of financial statements, including identify entity's reportable segments

    3. Identify the classification, recognition, measurement, and disclosure of common financial statement assets and liabilities.

    4. Indicate how to measure fair value when required by IFRS standards.

    5. Indicate and apply the requirements of new standards on revenue recognition (IFRS 15) and leases (IFRS 16).

    6. Identify and account for an impairment loss with respect to a nonfinancial asset.

    7. Classify and measure of non-current assets as either held for use or held for sale

    8. Recognize the accounting treatment applied to share-based payments and employee benefits, as well as to provisions

    9. Recall accounting requirements for business combinations, joint arrangements, and investments in associates.

    10. Indicate tax amounts to be recognized in the financial statements.

    11. Indicate and apply the requirements of new standards on financial instruments (IFRS 9)

    12. Identify the presentation and disclosure requirements of a statement of cash flows, including the proper classification of operating, financing, and investing activities.

    Why study accounting?

    In case you are still in a doubt about the importance of learning and understanding accounting, have a look at what Professor Norm Nemrow has to say (you do not have to agree with his taste of home furnishing, but you can surely agree with what he hays).




    • assign icon
      Mandatory pre-assignment. Submission deadline Tuesday 19, 2022 at 23:00
      Not available unless: You are a(n) Student
    • choicegroup icon
      SELECT AN IAS/IFRS STANDARD FOR YOUR TERM PAPER Group choice
      Not available unless: You are a(n) Student

      This is a group work (4-5 students in each group). Select an IAS/IFRS standard for your term paper from the provided groups. 

    • questionnaire icon
      Course feedback Questionnaire
      Not available unless: You are a(n) Student
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      Announcements Forum

  • Term Papers

    Instructions: approximately 15-20 pages, paragraph 1,5 and font Times New Roman 12. Page numbers shall be inserted top right corner of each page. 

    Choose one IFRS/IAS standard covered at the lectures. Additionally, choose one Finnish Nasdaq listed company and two foreign companies operating in the same industry. Please make sure that the other groups have not chosen the same standard. In case all of the standards are already chosen, you may use the same standard as some other group. Term paper shall be conducted as follows:

    1. Describe how the companies have interpreted the IFRS/IAS standard you have chosen  
    2. Conduct a comparison versus requirements of the standard. 
    3. Conduct a cross-comparison among the companies you have chosen. Describe pros and cons in how the companies have implemented the standard. Describe in specific how the companies have interpreted the main concepts and which type of information they have included in their main financial statements and related notes. 
    4. Come up with three research topics for master’s thesis which are related to the main concepts of the chosen standard as well as the particular line of industry. Remember to check the prior academic literature. 

    The main purpose (also an assessment criteria) of the term paper is that the other students would learn as much as possible from the standard based on the term paper as well as presentation. You should be able to answer the following questions:

    • What is the standard about?
    • How the companies are applying the standard?
    • What are the differences how companies have applied it, any pros or cons?
    • What research topics could be linked to the standard based on prior research?  

    High quality term paper clearly describes the main purpose and content of the standard and how it shall be applied in terms of practice. Additionally, high quality term paper clearly describes relevant research topics.


  • Module 1: Conceptual Framework, Presentation of Financial Statements, Fair Value & Operating Segments

    Not available unless: You are a(n) Student

    This class will address IASB Conceptual Framework, Presentation of Financial Statements, Fair Value and Operating Segments. It addresses the following learning outcomes:

    • Main purpose and introduction of IASB Conceptual Framework 
    • Components and features of a complete set of financial statements in accordance with IFRS (IAS 1)
    • Definition and measurement of fair value, including valuation approaches and techniques (IFRS 13)
    • Identifying entity's operating and reportable segments (IFRS 8)

  • Module 2: Leases and Revenue from Contracts with Customers

    Not available unless: You are a(n) Student

    This class will address the fairly new IFRS standards, namely IFRS 16 & IFRS 15. It addresses the following learning outcomes:

    • New model for recognizing leases and its impacts
    • Requirements of IFRS 16 
    • 5 step model introduced by IFRS 15

  • Module 3: Intangible assets, impairment & discontinued operations

    Not available unless: You are a(n) Student

    This class will address IAS 38, IAS 36 and IFRS 5 and the learning outcomes are summarized as follows:

    • Recognition & measurement criteria for intangible assets 
    • Factors that may indicate that an asset is impaired and accounting treatment for impairments
    • Classifying and measurement of non-current assets as held for sale and definition of discontinued operations

  • Module 4: Provisions, Employee Benefits & Share Based Payments

    Not available unless: You are a(n) Student

    This class will address IAS 37, IAS 19 and IFRS 2 and the learning outcomes are summarized as follows:

    • Purpose of IAS 19 Standard versus IFRS 2
    • Categories of employee benefits and accounting for different benefits
    • Recognition of share-based payments
    • Required accounting treatments for provisions, contingent assets and liabilities

  • Module 5: Sustainability reporting

    Not available unless: You are a(n) Student

    Guest Speaker: Jani Alenius, Head of the Sustainability and ESG Services (DNV)

    Participation is mandatory and 1 extra point is given for participation AND feedback 

  • Module 6: Associates and Joint Arrangement and Income Taxes

    Not available unless: You are a(n) Student

    This class will address IAS 12, IFRS 11 and IAS 28 and the learning outcomes are summarized as follows:

    • Define the term "associate" and "significant influence"
    • Explain the equity method of accounting and apply this method when accounting for an investment in associates
    • Distinguish between a joint operation and a joint venture
    • Account correctly for an interest in a joint operation or a joint venture
    • Understand and calculate current tax as well as deferred tax assets and liabilities arising from temporary differences

  • Module 7: Business Combinations and Financial Instruments

    Not available unless: You are a(n) Student

    This class will address IFRS 3 and IFRS 9 and the learning outcomes are summarized as follows:

    • Indicate Business Combinations step-by-step
    • Explain circumstances in which a financial asset or liability should be recognised
    • Calculate the amounts at which financial assets and financial liabilities should be measured on initial recognition and subsequently

    This class will be organized by EY 


  • Zoom link

    International Accounting course will be organized in Zoom. Below you can find a zoom link that will be used throughout the course. 

    https://aalto.zoom.us/j/62180329511

    Meeting ID: 621 8032 9511


  • Exam 2 (2.9.2022)

    Not available unless: You are a(n) Student

    This is the second exam of International Accounting (22E00400) 2022 based on lectures, textbook and any other material covered during the course. You have 90 minutes to finalize this online exam.

    There are assignments in the exam (40p) as well as multiple choice questions (20p). During the exam you shall follow academic ethical code. Well-grounded suspicions of cheating, including messaging with others during the exam or use of text written by others will lead to a rejection of the exam.

    You can use the text book and other material used in the course during the exam. You are not allowed to search material on the internet during the exam, copy materials from others, nor discuss (or use any messaging application) during the exam. DO NOT COPY-PASTE FROM SLIDES OR TEXTBOOK (NOR INTERNET).

    Bear in mind that the timing of the exam is tight. You will NOT have time to look everything up, but as in a normal exam, are expected to know and understand the content beforehand and conduct your own analysis and conclusion based on IFRS standards.

    If your exam does not start at 13:00, please refresh your screen.

    The limited time in the exam is taken into account in the grading. 

    I wish you all the best in the exam.

    Nina Sormunen