FINANCIAL ACCOUNTING AND REPORTING 3

About this Course

This is the third level and it builds on knowledge and skills introduced in FAR410 and FAR460. This course were built on what they have learnt in FAR410 and FAR460 and deals with more complex items. Students are introduced to non-current assets and the concept of subsequent measurement for property, plant and equipment, intangibles and investment properties. Students need to compare and contrast the differences between these categories of assets and their treatment including impairment on non-current assets. Students are also introduced to borrowing cost, government grant and leases.

Course Learning Outcomes

1) Explain appropriate assets and liabilities measurement bases for financial statements presentation.
2) Construct financial statements in accordance with Malaysian Financial Reporting Standards (MFRS).
3) Explain different types of assets and liabilities together with its effects on financial statements in accordance with Malaysian Financial Reporting Standards (MFRS).

Course Syllabus

+ Course Syllabus

1) Property,Plant and Equipment
-Definition of property, plant and equipment
-Initial recognition of property, plant and equipment
-Initial measurement incorporating borrowing cost and government grant
-Subsequent cost of property, plant and equipment
-Subsequent measurement of property, plant and equipment
-Derecognition of property, plant and equipment
-Disclosure of property, plant and equipment
-Reclassification of property, plant and equipment to ‘held for sale’
-Incorporating foreign currency transaction
-IFRIC 1/ IC int 1
-IFRIC 18/ IC int 18
-MPERS for private entities

2) Impairment of Assets
-Definition of impairment assets
-Identifying assets that may be impaired
-Measuring recoverable amount
-Recognition of impairment loss
-Measurement of impairment loss
-Reversal of impairment loss
-Disclosure of impairment of assets
-MPERS for private entities on impairment of assets

3) Leases
-Definition of leases
-Classification of leases – finance lease and operating lease
-Leases in the financial statements of lessees
-Leases in the financial statements of lessors
-Sale and leaseback transactions
-MPERS for private entities on leases

4) Borrowing costs
-Definition of borrowing costs
-Recognition as part of assets
-Commencement of capitalisation
-Suspension of capitalisation
-Cessation of capitalisation
-Disclosure in financial statements

5) Government Grant
-Definition of government grant
-Recognition as capital or income
-Disclosure in financial statements

6) Investment property
-Definition of investment property
-Initial recognition of investment property
-Initial measurement of investment property
-Subsequent measurement of investment property
-Transfers from/to investment property to/from inventories
-Derecognition of investment property
-Reclassification to ‘held for sale’
-Disclosure of investment property
-MPERS for private entities on investment property

7) Intangible assets
-Definition of intangible assets
-Initial recognition of intangible assets
-Initial measurement of intangible assets
-Subsequent measurement of intangible assets
-Derecognition of intangible assets
-Disclosure of intangible assets
-Reclassification to ‘held for sale’
-MPERS for private entities on intangible assets

8) Preparation and presentation of financial statements
-Statement of financial position
-Statement of profit or loss and other comprehensive income
-Statement of changes in equity
-Statement of cash flows
-Notes to the financial statements
-Incorporate earnings per share (MFRS 133)
-Financial statement analysis and interpretation of the financial ratios

Frequently Asked Questions

Q1 : Who should enroll the course?
A1 : All students who enroll the subject for Financial Accounting and Reporting 3 FAR510