COM 3502 Advance Financial Accounting


Advanced financial accounting is an extension course of the financial accounting course that was offered in the first year of the degree programme. This course deals with advanced concepts and techniques of financial accounting. This course imparts students with knowledge in financial reporting concepts and practices and makes them appraise the issues and constructively criticize current practices.

  • To enable students to apply Sri Lanka Accounting Standards for different accounting and financial reporting issues in separate and group financial statements.
  • To enable students to prepare financial statements of public companies complying with Sri Lanka Accounting standards.
  • To teach students how to prepare group financial statements and their special applications.
  • To require students to more fully develop their critical thinking skills.
  • To make learning accounting both interesting and fun.

Upon completion of this course, the students will be able to:

  • prepare financial statements of public companies in a manner suitable for publication in accordance with Sri Lanka Accounting Standards (SLFRSs / LKASs)
  • Describe consolidation and when it must be used.
  • Prepare consolidated Balance Sheet (Statement of Financial Position),Consolidated Income Statement( Statement of Comprehensive Income) for a group of companies

Use different methods for analyzing financial statements

1. Company accounts
1.1 Legal background
1.2 Stated capital, issue and redemption of shares
1.3 Issue and redemption of preference shares
1.4 Financial statements for directors
1.5 Financial statements for publication purposes

2. Group accounts
2.1 Legal background
2.2 Fundamental of a group environment
2.3 Intercompany transactions
2.4 Consolidated statement of comprehensive income
2.5 Consolidated statement of financial position

3. Financial statement analysis
3.1 Usefulness of financial statements
3.2 Interpretation of financial statements
3.3 Ratio analysis

4. Branch accounts
4.1 Centralized accounting
4.2 Decentralized accounting
4.3 Foreign branches

5. Accounting for leases
5.1 Introduction and legal background
5.2 Accounting in the books of lessor
5.3 Accounting in the books of lessee

6. Sri Lanka Accounting Standards (SLFRSs and LKASs)
7. Corporate governance and Corporate social responsibility
8. Current trends and developments in accounting

Lectures, seminars, course manuals, workshops, assignments, self study.

  1. Annual Reports of Public Listed Companies (PLCs).
  2. Code of best practice and corporate governance in Sri Lanka.
  3. Financial Reporting Framework Study text, Diploma in Accounting and Business I (DAB I), Institute of Chartered Accountants of Sri Lanka.
  4. Sri Lanka Accounting and Auditing Standards Act No 15 of 1995.
  5. Sri Lanka Accounting Standards Text book 2011, Institute of Chartered Accountants of Sri Lanka.

 

Web resources