APC316: International Financial Reporting (2021/22) All Learning outcomes to be assessed: Knowledge:
1. Critical appreciation of the current key issues in international financial reporting
2. Critical understanding of the conceptual framework as a paradigm for accounting
3. Critical understanding of the uses and limits of financial information
4. Critical understanding of financial reports for strategic decision making Skills
5. An ability to demonstrate cognitive skills of critical thinking and analysis Instructions: • This assessment is in two (2) parts. • Part A is compulsory. Answer all questions in
Part A. • Answer any other two (2) questions in Part B Assessment weight: 100% of module Word Count – 3,000 words (plus or minus 10%) Please note that this is an individual assignment and the policy of the University on “Policy on Cheating, Collusion and Plagiarism” applies.
PART A Question 1: IASB’s Conceptual Framework (a) The International Accounting Standards Board (IASB) devises and publishes International Financial Reporting Standards (IFRS Standards) while it revised versions of International Accounting Standards (IAS Standards) originally published by the International Accounting Standards Committee (IASC). The IASB has also published the Conceptual Framework for Financial Reporting reflecting some of the attributes that make financial information useful to the various users of financial statements.
You are required to: (a) explain the main purposes of the IASB’s Conceptual Framework document? (6 marks) (b) discuss the assumption which (according to the IASB’s Conceptual Framework) underlies the preparation of financial statements. (5 marks) (c) explain the main concepts of capital maintenance, making references to the IASB’s Conceptual Framework. (6 marks) (d) identify and explain the meanings of five qualitative characteristics and attributes of financial statements including how they respectively make financial information useful as entrenched in the IASB’s Conceptual Framework. (10 marks) (e) critically discuss how concept of materiality is fundamental to financial reporting. (5 marks) Question
2: IFRS1 – First-time Adoption of International Financial Reporting Standard Prisca Plc adopts international standards for the first time in its financial statements for the year to 31 December 2019.
These financial statements provide comparative figures for the previous five years. According to the IFRS 1 – First-time Adoption of International Financial Reporting Standard, you are required to: (a) explain the terms “first IFRS reporting period” and “date of transition” as defined by IFRS1. (3 marks) (b) what are the requirements of IFRS1 which must be satisfied by Prisca Plc when preparing these fin
