Financial Accounting IAS/IFRS – 9 cfu

FINANCIAL ACCOUNTING IAS/IFRS

Prof. BIANCONE

biancone@econ.unito.it

Course description and objectives

Despite extensive regulation, managers have much discretion in implementing measurement, recognition and disclosure rules when reporting their firms’ performance. Managers can also reveal additional information voluntarily, leaving them to some extent free to make decisions about its quality and credibility.

These choices emerge from the complex interactions that managers have with investors, regulators. auditors, analysts, competitors, etc. Why and how managers make all these choices and what effects their choices have are difficult questions to answer. The one thing we do know for sure is that information in corporate financial reports tends to be noisy and biased.

This course focuses on the analysis of managers’ financial reporting and disclosure strategies, and the effects of such strategies on firms’ equity values and contracts. We will examine various institutional settings and economic contexts in which managers make financial reporting and disclosure choices, paying close attention to the quality and credibility of the information disclosed. The course should help you continue developing hands-on financial statement analysis skills in a variety of business decision contexts.

Finally through case studies, we will discuss specific decision contexts that you are likely to encounter in the business world. In each context, we will focus on the goal of the analysis, select the relevant analytic techniques, and apply them to the financial statements of EU or US companies in diverse industries.

Main topics

Introduction to financial reporting IAS/IFRS

Convergence process between IAS/IFRS and US GAAP

Presentation of Financial Statements.

Inventories.

Accounting Policies, Changes in Accounting Estimates and Errors.

Events After the Balance Sheet Date.

Construction Contracts.

Income Taxes.

Property, Plant and Equipment.

Leases.

Revenue.

Employee Benefits.

Accounting for Government Grants.

Borrowing Costs.

Related Party Disclosures.

Accounting and Reporting by Retirement Benefit Plans.

Earnings Per Share.

Interim Financial Reporting.

Impairment of Assets.

Provisions, Contingent Liabilities and Contingent Assets.

Intangible Assets.

Investment Property.

First time Adoption of International Financial Reporting Standards.

Non-current Assets Held for Sale and Discontinued Operations.

Operating Segments.

Textbook

P.P. Biancone, Financial Accounting IAS/IFRS, Celid, Torino, 2010;

Cases and class notes will be provided by the instructor.

Exam

In addition to presenting a work as a team, there be a final in class examination. The exam consists of a written test. You will be graded on your team presentation (30 %) and the final exam (70%).