Event

Increasing globalization coupled with related regulations continues to put pressure on moving towards a common global accounting framework - International Financial Reporting Standards (IFRS). Currently, more than 140 countries use IFRS, so if a firm's business include global transactions, it is critical to know about the impact of IFRS on the financial reporting process and business. In the EU, IFRS are compulsory for listed companies's consolidated statements but have also gained factual significance for companies without statutory duty to use IFRS. The course introduces the conceptual framework of IFRS, discuss the primary financial statements according to IFRS and explains the underlying principles, concepts, and methods to prepare the financial statements. Special focus is given to some more complex accounting issues related to revenue recognition from contracts with customers, consolidation of different types of intercorporate investments, and foreign currency translation.

The lecture covers the following topics:

• The context of financial accounting for global firms
• The mechanics of financial accounting
• Accounting frameworks and concepts
• Content and presentation of financial statements
• Preparing financial statements
• Revenue recognition from contracts
• Tangible and intangible non-current assets
• Financial assets, liabilities, and equity
• Consolidation and the assessment of control
• Investment in associates and joint arrangements
• Business combinations
• Foreign currency translation

Learning outcomes: Students

• understand the IFRS conceptual framework and its significance for global firms,
• are able to read and interpret IFRS compliant financial statements,
• know about key differences between IFRS and U.S. GAAP and its impact on financial reporting,
• can apply the multi-step model for the recognition of revenues from contracts with customers,
• are able to evaluate alternative measurement bases for assets and liabilities,
• are able to classify intercorporate investments by the concept of control and to apply the appropriate accounting method,
• know about the impact of foreign exchange translation on financial statements.