040657 KU Internationale Rechnungslegung A (MA) (2021S)

This course focuses on contemporary development in financial accounting and the international harmonization process. IASB, and the EU are major players in the harmonization process of financial accounting, and they have specific implication in national contexts. On the one hand, accounts have to be suitable for the national context and on the other hand, financial accounting requirements must also be internationally useful. These dual requirements on accounting necessitate specific demands on the development of models and standards for financial accounting. As of 2005, all public companies in the EU use the IASB's accounting standards.
This implied new conditions for recognition in all EU Member States. Multinational companies must also handle financial accounting and contextual differences regarding their financial reporting, which are parts also covered in the course.
The course will provide participants with knowledge of accounting and reporting for international groups by introducing students to International Financial Reporting Standards (IFRS) at an intermediate level.

Intended Learning Outcomes (ILO)
On completion of the course the students will be able to

1. understand a business combination and how to account for it; understand the accounting for goodwill
2. be able to determine goodwill in more complex situations, such as non-controlling interests and step acquisitions
3. know how to account for disposals, both with and without loss of control and know the requirements of IFRS 3 Business Combinations
4. outline the need for consolidated financial statements
5. prepare consolidated financial statements in accordance with IFRS Standards
6. understand and apply the mechanics of preparing consolidated financial statements
7. identify an associate and a joint venture
8. identify the need to disclose related party transactions
9. consider the mechanics of accounting for an associate and a joint venture
10. explain the requirements of IAS 24 Related Party Transactions
11. explain the requirements of IAS 28 Investments in Associates and Joint Ventures
12. explain the requirements of IFRS 11 Joint Arrangements
13. explain the necessity for foreign currency conversion and translation
14. understand the concept of functional currency and presentation currency
15. describe the IFRS Standards regulations in respect of foreign currency transactions
16. describe the IFRS Standards regulations in respect of translating foreign entities
17. explain the basics of hedging foreign currency exposure and the application of hedge accounting
18. understand specific issues as extending the net investment, translating goodwill, accounting for disposals, translating into currencies of hyperinflationary economies
19. understand the IFRS Standards disclosure requirementsapply research-based literature to describe and analyze particular aspects of voluntary corporate disclosures related to own projects

Judgement and approach
The course is aimed at the student's acquirement of in-depth knowledge of financial accounting for various types of companies. Furthermore, students will deepen their capacity for independent analysis of different financial accounting problems in an international context.

Type of instruction
Lectures, exercises, case studies, and seminars.
The teaching is conducted in English