Irst Adoption of IFRS by an entity in particular country a a case study

Assessment
The assessment for this module consists of one part. Submission dates vary.

Part Type of assessment Word or time limit Submission method Submission dates
1 Written assignment 3 000 TurnitinA®UK GradeMark or in hard copy (TBA) NO LATER THAN:
16th May, 2014 by 5pm

Part 1 a Assignment
This module is assessed by an assignment, which is due to be submitted on Thursday 16th May, 2014

First Adoption of IFRS by an entity in particular country a a case study

Scenario:
You are an accounting adviser in an entity in particular country. The entity faces the problem of first translating its financial statements into IFRS. You are asked to explain the process of first adoption of IFRS.
Note: your case study is not based on any existing company for the reason that you cannot make a translation without additional information gathered from the top management of the company.

Required:
1. Select the country an entity comes from and list the main differences between the local accounting requirements (local GAAP) and IFRS.
2. Prepare the statement of financial position and income statement (or equivalent of statement of comprehensive income, if applicable) according to the local GAAP for two accounting periods. Preparing these two statements, include some (minimum 3) typical differences between local GAAP and IFRS from the list you have produced in question 1.
3. Translate the statement of financial position and income statement (or equivalent of statement of comprehensive income, if applicable) into IFRS for the year 2. (I.e. the opening statement of financial position is at the beginning of year 2. Use the a?Translation Tablea?. The impact of related tax (deferred tax) has also to be included.
4. Prepare all financial statements required by IAS 1 Presentation of Financial Statements. (Notes are not required)
5. Explain the impact of the first adoption of IFRS on the entityas financial position and performance according to the requirements of IFRS 1.
6. Write a commentary describing the problems regarding first time adoption of IFRS in the chosen country and the particular entity.
Note: Do NOT try to translate a real companyas financial statements as this is impossible without certain knowledge gained from the company.

This assignment is in the form of a scenario, which covers the main learning outcomes for this module (the learning outcomes can be also found on page 3 of your module guides).

1 Knowledge and understanding Discuss the purpose of, and progress towards, the international harmonisation of accounting practices.
2 Knowledge and understanding Identify some of the key emerging issues in international accounting.
3 Intellectual, practical, affective and transferable skills Critically evaluate the similarities and differences in financial accounting practices globally and their implications for international business activity.


Expectations and Assessment Criteria

Task Expectations / Marking Criteria Learning outcome
1. Select the country the entity comes from and list the main differences between the local accounting requirements (local GAAP) and IFRS. Students must describe the differences between local GAAP and IFRS in particular country and provide the source of information used (10 marks) 3
2. Prepare the statement of financial position and income statement (or equivalent of statement of comprehensive income, if applicable) according to the local GAAP for two accounting periods. Students prepare the statement of financial position and the income statement comprising some typical transactions in the business chosen. Students must include at least 3 differences between local GAAP and IFRS. (10 marks) 3
3. Translate the statement of financial position and income statement into IFRS for the year 2. The opening Balance sheet for translation is the Balance sheet at 31st December of the year 1. Students are required to construct a?Translation tablea? that includes the translation from local GAAP into IFRS. (30 marks) 3
4. Prepare all financial statements required by IAS 1 Presentation of Financial Statements Students need to demonstrate the knowledge of IAS 1. Mark allocation:
Financial statements 5 marks each (total 20 marks). 1 & 2
5. Explain the impact of the first adoption of IFRS on an entityas financial position and performance according to the requirements of IFRS 1. Students must demonstrate knowledge of IFRS 1 and its disclosure requirements. (15 marks) 1 & 2
6. Write a commentary describing the problems regarding the first time adoption of IFRS in chosen country and the particular entity. This document should be in a basic report format. Students must write the report explaining the situation to the users, ie. non accountants. (15 marks) 1 & 3
Total marks 100

Irst Adoption of IFRS by an entity in particular country a a case study

Assessment
The assessment for this module consists of one part. Submission dates vary.

Part Type of assessment Word or time limit Submission method Submission dates
1 Written assignment 3 000 TurnitinA®UK GradeMark or in hard copy (TBA) NO LATER THAN:
16th May, 2014 by 5pm

Part 1 a Assignment
This module is assessed by an assignment, which is due to be submitted on Thursday 16th May, 2014

First Adoption of IFRS by an entity in particular country a a case study

Scenario:
You are an accounting adviser in an entity in particular country. The entity faces the problem of first translating its financial statements into IFRS. You are asked to explain the process of first adoption of IFRS.
Note: your case study is not based on any existing company for the reason that you cannot make a translation without additional information gathered from the top management of the company.

Required:
1. Select the country an entity comes from and list the main differences between the local accounting requirements (local GAAP) and IFRS.
2. Prepare the statement of financial position and income statement (or equivalent of statement of comprehensive income, if applicable) according to the local GAAP for two accounting periods. Preparing these two statements, include some (minimum 3) typical differences between local GAAP and IFRS from the list you have produced in question 1.
3. Translate the statement of financial position and income statement (or equivalent of statement of comprehensive income, if applicable) into IFRS for the year 2. (I.e. the opening statement of financial position is at the beginning of year 2. Use the a?Translation Tablea?. The impact of related tax (deferred tax) has also to be included.
4. Prepare all financial statements required by IAS 1 Presentation of Financial Statements. (Notes are not required)
5. Explain the impact of the first adoption of IFRS on the entityas financial position and performance according to the requirements of IFRS 1.
6. Write a commentary describing the problems regarding first time adoption of IFRS in the chosen country and the particular entity.
Note: Do NOT try to translate a real companyas financial statements as this is impossible without certain knowledge gained from the company.

This assignment is in the form of a scenario, which covers the main learning outcomes for this module (the learning outcomes can be also found on page 3 of your module guides).

1 Knowledge and understanding Discuss the purpose of, and progress towards, the international harmonisation of accounting practices.
2 Knowledge and understanding Identify some of the key emerging issues in international accounting.
3 Intellectual, practical, affective and transferable skills Critically evaluate the similarities and differences in financial accounting practices globally and their implications for international business activity.


Expectations and Assessment Criteria

Task Expectations / Marking Criteria Learning outcome
1. Select the country the entity comes from and list the main differences between the local accounting requirements (local GAAP) and IFRS. Students must describe the differences between local GAAP and IFRS in particular country and provide the source of information used (10 marks) 3
2. Prepare the statement of financial position and income statement (or equivalent of statement of comprehensive income, if applicable) according to the local GAAP for two accounting periods. Students prepare the statement of financial position and the income statement comprising some typical transactions in the business chosen. Students must include at least 3 differences between local GAAP and IFRS. (10 marks) 3
3. Translate the statement of financial position and income statement into IFRS for the year 2. The opening Balance sheet for translation is the Balance sheet at 31st December of the year 1. Students are required to construct a?Translation tablea? that includes the translation from local GAAP into IFRS. (30 marks) 3
4. Prepare all financial statements required by IAS 1 Presentation of Financial Statements Students need to demonstrate the knowledge of IAS 1. Mark allocation:
Financial statements 5 marks each (total 20 marks). 1 & 2
5. Explain the impact of the first adoption of IFRS on an entityas financial position and performance according to the requirements of IFRS 1. Students must demonstrate knowledge of IFRS 1 and its disclosure requirements. (15 marks) 1 & 2
6. Write a commentary describing the problems regarding the first time adoption of IFRS in chosen country and the particular entity. This document should be in a basic report format. Students must write the report explaining the situation to the users, ie. non accountants. (15 marks) 1 & 3
Total marks 100