Lahore University of Management Sciences

ACCT 220- Corporate Financial Reporting I

Spring 2025
Instructor Mahin Moazzam
Room No. SDSB 4-0035
Office Hours TBA
Email [email protected]
Telephone TBA
Secretary/TA Saba Yaqub
TA Office Hours TBA
Course URL (if any) N/A
Support Services LUMS offers a range of academic and other services to support students. These are mentioned below, and you are
encouraged to use these in addition to in-class assistance from course staff. For a complete list of campus support services
available for you click here (https://advising.lums.edu.pk/#supportservices)

Course Basics
Credit Hours
Lecture(s) Nbr of Lec(s) Per Week 2 Duration 75 minutes
Recitation/Lab (per week) Nbr of Lec(s) Per Week N/A Duration N/A
Tutorial (per week) Nbr of Lec(s) Per Week On need basis Duration On need basis

Course Distribution
Core Core
Elective N/A
Open for Student Category
Close for Student Category

COURSE DESCRIPTION
The course builds on your knowledge of accounting theory and techniques used to record, process, and report financial
information. While some emphasis is placed on analysis, interpretation, and use of accounting data for investing, credit, and
management decisions, the reporting function of accounting to external users (investors and creditors) will be stressed. The
course will focus on the Asset side of the Balance Sheet, covering some elements of the Liabilities / Equity side and the Income
Statement. This course will build the base for more complex reporting issues which will be covered in CFR 2. Please note that this
course is a building block for the financial reporting issues encountered in daily professional life and will partially serve the
purpose of preparing students for professional exams (Reporting)

COURSE PREREQUISITE(S)
ACCT 100 Principles of Financial Accounting

COURSE OBJECTIVES
Upon successful completion of the course, students should be able to:
• Describe the purpose of Financial Reporting
• Discuss and apply the conceptual framework for Financial Reporting.
• Apply main reporting requirements of International Financial Reporting Standards (IFRS) to assets and
revenue financial statement line items.
• Identify presentation and disclosure requirements within real financial statements

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Learning Outcomes

General Learning Goals and Outcomes

Goal 1 - Effective Written and Oral Communication

Learning outcome: Students will demonstrate effective writing and oral communication skills.

Goal 2 - Ethical Understanding and Reasoning

Learning outcome: Students will demonstrate that they are able to identify and address ethical issues
in an organizational context.

Goal 3 - Analytical Thinking and Problem-Solving Skills

Learning outcome: Students will demonstrate that they are able to identify key problems and generate
viable solutions.

Goal 4 - Application of Information Technology

Learning outcome: Students will demonstrate that they are able to use current technologies in
business and management context.

Goal 5 - Teamwork in Diverse and Multicultural Environments

Learning outcome: Students will demonstrate that they are able to work effectively in diverse
environments.

Goal 6 - Understanding Organizational Ecosystems

Learning outcome: Students will demonstrate that they have an understanding of Economic, Political,
Regulatory, Legal, Technological, and Social environment of organizations

Goal 7 – Program Specific Knowledge and Understanding

Learning outcome: Students will demonstrate knowledge of key business disciplines and how they
interact including application to real world situations. (including subject knowledge)

Grading Breakup and Policy

Attendance: 5%
Class participation: 10%
Assignment(s): 10%
Quizzes(s): 20% (4, n-1)
Midterm Examination: 25%
Final Examination: 30%

Policies
• Attendance: Attendance will be marked in accordance with SDSB policies. Max 4 absences allowed before grade reduction. 8 absences
or more will result in an automatic D in the class.
• Class participation: combination of verbal and written.
• Assignment: Groups of 4 will attempt assignment based on a set of financial statements.
• Quizzes: The n-1 policy is set to cater to a missed quiz due to an unforeseen emergency. No further petitions will be allowed.

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Examination Detail

Yes/No: Yes
Midterm Combine Separate: N/A
Exam Duration: 1.5 hours
Preferred Date: TBA
Exam Specifications: 60% Objective and 40% Long questions

Yes/No: Yes
Final Exam Combine Separate: N/A
Duration: 2 hours
Exam Specifications: 60% Objective and 40% Long questions

Campus supports & Key university policies

Campus Supports

Students are strongly encouraged to meet course instructors and TA’s during office hours for assistance in course-content, understand the course’s
expectations from enrolled students, etc. Beyond the course, students are also encouraged to use a variety of other resources. (Instructors are also
encouraged to refer students to these resources when needed.) These resources include Counseling and Psychological Services/CAPS (for mental
health), LUMS Medical Center/LMC (for physical health), Office of Accessibility & Inclusion/ OAI (for long-term disabilities), advising staff dedicated
to supporting and guiding students in each school, online resources (https://advising.lums.edu.pk/advising-resources), etc. To view all support
services, their specific role as well as contact information click here (https://advising.lums.edu.pk/#supportservices).

Academic Honesty/Plagiarism
LUMS has zero tolerance for academic dishonesty. Students are responsible for upholding academic integrity. If unsure, refer to the student
handbook and consult with instructors/teaching assistants. To check for plagiarism before essay submission, use [email protected]. Consult
the following resources: 1) Academic and Intellectual Integrity (http://surl.li/gpvwb), and 2) Understanding and Avoiding Plagiarism
(http://surl.li/gpvwo).

LUMS Academic Accommodations/ Petitions policy

Long-term medical conditions are accommodated through the Office of Accessibility & Inclusion (OAI). Short-term emergencies that impact studies
are either handled by the course instructor or Student Support Services (SSS). For more information, please see Missed Instrument or ‘Petition’
FAQs for students and faculty (https://rb.gy/8sj1h )

LUMS Sexual Harassment Policy

LUMS and this class are a harassment-free zone. No behavior that makes someone uncomfortable or negatively impacts the class or individual's
potential will be tolerated.
To report sexual harassment experienced or observed in class, please contact me. For further support or to file a complaint, contact OAI at
[email protected] or [email protected]. You may choose to file an informal or formal complaint to put an end to the offending behavior.
You can also call their Anti-Harassment helpline at 042-35608877 for advice or concerns. For more information: Harassment, Bullying & Other
Interpersonal Misconduct: Presentation (http://surl.li/gpvwt )

COURSE OVERVIEW
Recommended Objectives/
Lecture Topics
Readings Application
1. Introduction to the course and its placement in
• Course outline Chapter 1 the program
1 • Financial Financial Reporting and 2. Brief run through of the Course Outline & class
Accounting Standards norms
Reporting and
3. Introduction to the instructor and the
Accounting
course structure
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Standards 4. Describe the growing importance of global
financial markets and its relation to
financial reporting.
5. Explain the objective of financial reporting.
6. Explain how accounting assists in the efficient
use of scarce resources.
7. Explain the need for high quality standards.
8. Identify the major policy-setting bodies and their
role in the standard-setting process.
9. Describe the challenges facing financial
reporting.

1. Describe the usefulness of a conceptual framework.

2&3 Conceptual Framework Chapter 2 2. Identify the qualitative characteristics
for Financial Reporting Conceptual Framework for of accounting information and the
Financial Reporting basic elements of financial statements.
3. Describe the basic assumptions of accounting.
4. Explain the application of the basic principles
of accounting.

1. Understand the uses and limitations of an

4&5 Income Statement and Chapter 4 income statement.
Retained Earnings Income Statement and 2. Describe the content and format of the
Retained Earnings income statement.
3. Explain how to report items in the
income statement.
4. Understand the reporting of accounting
changes and errors.
5. Describe related equity statements and
how to report other comprehensive
income.

6,7 Valuation of Inventories Chapter 8: Valuation of 1. Identify major classifications of

and Additional Valuation Inventories inventory and different inventory
Issues Chapter 9: Inventories systems (revision)
Additional Valuation Issues 2. Determine the goods included in inventory and
the effects of inventory errors on the financial
Students have covered the statements (revision)
objectives marked as 3. Compare the cost flow assumptions used to
revision above in PoFA and account for inventories (revision)
expected to review before 4. Determine the effects of inventory errors on
class. the financial statements (revision)
5. Describe the LIFO cost flow assumption.
6. Describe and apply the lower-of-cost-or-
net realizable value rule (focus area)
7. Identify other valuation issues (focus area)
8. Determine ending inventory by applying the
gross profit method. (focus area)
9. Determine ending inventory by applying the
retail inventory method.
10.Explain how to report and analyze
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inventory (focus area)

8&9 Acquisition and Chapter 10 1. Describe property, plant, and equipment (revision)
disposition of PP&E Acquisition and disposition 2. Identify the costs to include in the initial
of PP&E valuation of property, plant, and equipment
(revision)
Students have covered the 3. Describe the accounting problems associated
objectives marked as with self-constructed assets (focus area)
revision above in PoFA and 4. Describe the accounting problems associated
expected to review before with interest capitalization (focus area)
class. 5. Understand accounting issues related to
acquiring and valuing plant assets (focus area)
6. Describe the accounting treatment for
costs subsequent to acquisition (focus
area)
7. Describe the accounting treatment for the
disposal of property, plant, and equipment
(revision)
8. Define and account for non-current assets held
for sale and discontinued operations (focus)
Chapter 11 1. Explain the concept of depreciation (revision)
10, 11 & 12 Depreciation and Depreciation and 2. Identify the factors involved in the
Impairment Impairment depreciation process (revision)
3. Compare activity, straight-line, and
Students have covered the diminishing-charge methods of depreciation
objectives marked as (revision)
revision above in PoFA and 4. Explain component depreciation (focus area)
expected to review before 5. Explain the accounting issues related to
class. asset impairment (focus area)
6. Explain the accounting for revaluations
(focus area)
7. Explain how to report property, plant &
equipment (focus area)
8. Overview of investment properties and
their accounting treatment
9. Distinguish between investment properties
and property, plant and equipment
10. A brief review of investment property

13 & 14 Intangible Assets Chapter 12 1. Describe the characteristics of intangible assets.

Intangible assets 2. Identify the costs to include in the initial
valuation of intangible assets.
3. Explain the procedure for amortizing
intangible assets.
4. Describe the types of intangible assets.
5. Explain the accounting issues for
recording goodwill.
6. Explain the accounting issues related to
intangible asset impairments.
7. Identify the conceptual issues related to
research and development costs.
8. Describe the accounting for research
and development costs.
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9. Indicate the presentation of intangible
assets and related item
Current Liabilities, Chapter 13 1. Describe the nature, type, and valuation of
15 and 16 Provisions and Current Liabilities, current liabilities.
Contingencies Provisions and 2. Explain the accounting for different types
Contingencies of provisions.
3. Identify the criteria used to account for
and disclose contingent liabilities and
assets.
4. Indicate how to present liability-related
information
Mid term
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Revenue Recognition Chapter 18 1. Understand revenue recognition issues.
18, 19, 20, 21 (IFRS 15) Revenue Recognition 2. Identify the five steps in the revenue
and 22 recognition process.
3. Identify the contract with customers.
4. Identify the separate performance obligations in
the contract.
5. Determine the transaction price.
6. Allocate the transaction price to the
separate performance obligations.
7. Recognize revenue when the company satisfies
its performance obligation.
8. Identify other revenue recognition issues.
9. Describe presentation and disclosure regarding
revenue.
10. Apply the percentage-of-completion method
for long-term contracts.
11. Apply the cost-recovery method for long-
term contracts.
12. Identify the proper accounting for losses on
long-term contracts.
13. Explain revenue recognition for franchises
Investments Chapter 17 1. Describe the accounting framework for
23,24,25 & Investments financial assets.
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2. Understand the accounting for debt investments
at amortized cost.
3. Understand the accounting for debt investments
at fair value.
4. Describe the accounting for the fair value option.
5. Understand the accounting for equity
investments at fair value.
6. Explain the equity method of accounting and
compare it to the fair value method for
equity investments.
7. Discuss the accounting for impairments of
debt investments.
Describe the accounting for transfer of
investments between categories.

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Related party 1. Discuss the disclosure requirements for
27 transactions and related-party transactions.
reporting 2. Describe the accounting problems associated
with interim reporting
Final exam review
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Textbook(s)/Supplementary Readings
Textbook:
• Intermediate Accounting, 4th edition, Kieso, Weygandt, Warfield.

Additional Recommended Readings:

• IAS/IFRS Text
• Further material provided during course progress