IFRS Reporting and Capital Markets

Exam number: 6620

Semester: from 1st semester

Duration of the module: One semester

Form of the module (i.e. obligatory, elective etc.): Elective

Frequency of module offer: Each summer semester

Prerequisites: Basic knowledge of accounting under IFRS is required. An introductory course into the basics of financial accounting under IFRS is offered at the beginning of the course. Please find more information on Moodle.

Applicability of module for other study programmes:
Obligatory or elective in other study programmes. For further information check regulations of the study programme.

Person responsible for module: Prof. Dr. Sonja Wüstemann

Name of the professor: Prof. Dr. Sonja Wüstemann

Language of teaching: English

ECTS-Credits (based on the workload): 6

Workload and its composition (self-study, contact time):
Contact time (Lecture, tutorial etc.): 45 h; self-study: 135 h

Contact hours (per week in semester): 3

Methods and duration of examination:
T-Module (new examination regulation): Successful completion of the exam (90 min) and successful preparation of a term paper of 5 pages plus presentation (group work).
G-Module (old examination regulation): Successful completion of the exam (90 min).   Students studying according to the old study regulation should send an e-mail to accounting@europa-uni.de.

Emphasis of the grade for the final grade: Please check regulations of the study programme

Aim of the module (expected learning outcomes and competencies to be acquired):
The module aims at making students familiar with the objectives, principles as well as the most important standards of IFRS accounting and their implication on international capital markets. By the end of the module students should
- know about economic consequences of financial reporting and about the role accounting information plays on capital markets, 
- understand the special role of IFRS on international capital markets and how the IASB conducts IFRS standard-setting,
- be able to critically assess political influence on IFRS and IFRS standard-setting, 
- discuss the objectives and principles of IFRS and evaluate the relevance of these for respective IFRS standards, 
- demonstrate orally and in writing their comprehension in the solution of case studies.

Contents of the module:
Key element of this module is the analysis of relevant IFRS standards against the background of their informational impact on the capital market. Therefore, we will shortly discuss the internationalization of accounting, the relevance of IFRS in this context and the effect of internationalization and IFRS on capital markets. After this introduction we will touch highly important aspects of accounting – e.g. revenue recognition, recognition and measurement of assets or financial instruments. We will also have an insight into the basics of group accounting. All accounting topics discussed will be analysed with respect to their capital market relevance. We will illustrate the effects using current accounting practices of multinational entities, go into major findings in research concerning the link between accounting and capital markets’ effects and apply the knowledge in case studies discussed and solved in exercise classes. The schedule will be concluded by a guest lecture held by Bettina Krause (KPMG) regarding the importance of the Management Commentary (Lagebericht).

Teaching and learning methods:
Lecture, exercises and case studies

Special features (e.g. percentage of online-work, practice, guest speaker, etc.):
-

Literature (compulsory reading, recommended literature):
Kothari, Jagdish/Barone, Elisabetta: Advanced financial accounting: an international approach, Harlow (UK): Pearson, 2011.
Picker, Ruth/Leo, Ken J./Loftus, Janice/Wise, Victoria/Clark, Kerry/Alfredson, Keith: Applying International Financial Reporting Standards, 3 rd edn., Wiley 2013.

Further information:
Registration in Moodle Viadrina required.