ACC301 Advanced Financial Accounting

Level: 3
Credit Units: 5 Credit Units
Presentation Pattern: EVERY SEMESTER
Synopsis:
ACC301 expands the skill, knowledge and understanding students have gained in ACC201 Financial
Accounting, ACC205 Financial Reporting and Analysis and ACC207 Corporate Accounting and
Financial Statement Analysis. The aim of the course is to provide a good understanding of accounting
for long-term equity investments, business combinations, accounting for subsidiaries and associates. It
covers issues and accounting standards relating to inter-company transactions and consolidation;
deferred taxation; and financial instruments, derivatives and hedge accounting.
The practical skill acquired will be the ability to determine the balances of a deferred tax liability and a
deferred tax asset, illustrate the consolidation process, explain the categories of classification of
financial assets and liabilities, account for derivatives and illustrate hedge accounting.
Topics:
Accounting for Income Taxes
Accounting for Group I Concepts and Context
Accounting for Group II Acquisition Method under FRS 103
Accounting for Group III Consolidation under FRS27 on Intragroup Transactions
Accounting for Group IV Equity Accounting under FRS28
Translation of Foreign Currency Financial Statements
Financial Instruments: Classification, Recognition and Measurement
Accounting of Derivatives and Hedge Accounting
Textbooks:
Tan, Pearl Hock Neo and Lee, Peter Lip Nyean: Advanced Financial Accounting: An IAS and IFRS
Approach 1 McGraw-Hill
ISBN-13: 9780071269339

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Learning Outcome:
Examine the rationale for group reporting and the impact on financial reporting
Test the concept of control and significant influence and the determination of the relationships in
business combinations
Appraise the theories relating to consolidation
Discuss the significance of the acquisition method and its implications for consolidation
Compare the differences between the cost and equity method of accounting for associates
Distinguish whether a financial instrument is debt or equity, and separate compound financial
instruments into debt and equity components
Examine the concept of temporary differences and tax base of an asset and tax base of a liability
Prepare the balance sheet approach in determining the balances of a deferred tax liability and a
deferred tax asset
Demonstrate the presentation and disclosures requirements of income tax
Prepare the accounting for business combinations
Apply the principles underlying the elimination of intragroup balances and transactions in
consolidation
Discuss the primary difference between a single entity and consolidated cash flow statement and
statement of changes in equity
Demonstrate the different accounting policies for investment in an associate as reflected in an
investors separate financial statements and the consolidated financial statements
Illustrate the application of equity method in accounting for investment in an associate in the
consolidated financial statements
Demonstrate the accounting treatment of foreign currency transactions
Apply the requirements for the disclosure, recognition and measurement of financial instruments
Appraise hedge accounting, its rationale and the conditions for applying hedge accounting
Assessment Strategies:
Continuous Assessment Component
QUIZ
GROUP BASED ASSIGNMENT
Sub-Total

Weightage (%)
20
30
50

Examinable Component
Written Exam
Sub-Total

Weightage (%)
50
50

Weightage Total

100

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