22E00400 - International Accounting, 25.04.2019-29.05.2019
This course space end date is set to 29.05.2019 Search Courses: 22E00400
Mandatory pre-assignment. Submission deadline on Friday April 26, 2019 at noon.
Prepare one page analysis (font size 12, normal margins) regarding one IFRS standard that you may choose from the attached excel sheet “IFRS standards and three concepts.xlxs”. Your analysis shall cover the following two (2) topics:
a) Describe how you understand the three concepts regarding the standard that you have chosen. Please note that the concepts are listed in the attached excel sheet.
b) Choose a listed Finnish company that you mention in your analysis. Take a look at the last published annual report of the company and describe how the company has applied the standard that you have chosen.
Standard / concepts to explain
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Framework / Relevance, Faithful representation, Other compehensive income
Fair value accounting (IFRS 13) / The most advantageous market, Highest and best use -principle, Inputs to valuation techniques
Contracts with customers (IFRS 15)/ Performance obligation, Control (from delivery terms point of view), Revenue recognition pattern (point-in-time / over time)
Investment property (IAS 40)/ Held to earn rentals, Capital appreciation, The regonition of the changes in fair value
Lease accounting (IFRS 16)/ Rigth-of-use assets, control, service vs. rent
Employee benefits (IAS 19)/ Defined benefit plans, Actuarian gains & losses, defined contribution plans
Agriculture (IAS 41)/ Capability for transformation, Management of transformation, Measurability of transformation
Share-based payments (IFRS 2)/ Valuation of share options, Expensing of share options, Balance sheet recognition of share options
Financial instruments and hedging (IFRS 7 & IFRS 9)/ Primary instruments & derivatives, Effective interest rate method, Hedging instrument-item-specific risk
Share Investments (IAS 28), IFRS 11 joint arrangements (IFRS 10)/ Significant influence, Joint arrangements vs. control, Equity method of accounting Control
Taxes (IAS 12 )/ Timing (or temporary) difference, Unused tax losses, Deferred tax assets / liabilities
Intangible assets (IAS 38)/ Criteria for recognizing development costs, Internally generated vs. externally purchased intangibles, types of intangible assets
Business Combinations (IFRS 3)/ Pooling versus purchase method, Components of goodwill, Non-controlling interest
Impairment of Assets (IAS 36)/ finite vs. indefinite useful life, Cash generating units, Carrying vs. recoverable amount
Assets for sale and discontinued operations (IFRS 5) / Non-current Assets Held for Sale, Discontinued Operations, Recognition of discontinued operations in income statement
Operating segments (IFRS 8)/ Operating segment, Reporting segment and reportable items, Enterprise wide disclosure
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You can find information about IFRS from IASB’s webpage (http://www.ifrs.org/) or alternatively you can find/read the publications published by Big 4 companies that you can find online. You might also want to check YouTube where you can find interesting videos regarding the standards.
Good luck and looking forward to meeting you! Hannu & Nina