Learning outcomes

Since 2005, companies listed on any stock exchange in the European Union have been required to publish their consolidated accounts in accordance with international accounting standards (IAS/IFRS of the IASB), which have been approved by European regulations.


The objective of the "International Accounting Standards" course is to explain the accounting treatment of certain transactions under the international framework.

Goals

The main objective of this course is to:

- Review the key international accounting standards (IFRS) that are currently applicable and commonly used.

- Illustrate the principles contained in these standards through practical and concrete examples.

- Develop students’ ability to master these principles and to:

1° Explain their application in published financial statements.

2°Analyze their impact on the presentation of accounts.

3° Understand the implications for the recipients of annual reports (investors, analysts, regulators, etc.).

Content

In the framework of the "International Accounting Standards" course, the international accounting standards, both in terms of presentation of financial statements and in terms of valuation rules, are presented. These different standards are illustrated with the help of examples (practical cases, extracts from annual reports, etc.). The standards relating to consolidation methods are not covered in this course.

Table of contents

1. General Aspects

  • General introduction
  • Functioning of the IASB (International Accounting Standards Board)
  • International conceptual framework
  • Typology of international accounting standards and classification of standards and their interpretations
  • Approval of IFRS Standards within the European Union

2. Presentation of Financial Statements

  • Content of financial statements:
  • IAS 1 – Presentation of Financial Statements
  • IAS 7 – Statement of Cash Flows
  • Other relevant elements:
  • IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors
  • IAS 10 – Events After the Reporting Period
  • In brief - Standards specifically applicable to listed companies:
  • IAS 33 – Earnings per Share
  • IAS 34 – Interim Financial Reporting
  • IFRS 8 – Operating Segments

3. Measurement Methods

  • Property, plant and equipment (including revaluation), Government grants Impairment testing (IAS 16, IAS 20, IAS 23, IAS 36, IAS 40, IFRS 5)
  • Intangible assets – IAS 38 and Business combinations – IFRS 3
  • Lease contracts – IFRS 16
  • Inventories and work in progress – IAS 2, IFRS 15
  • Financial instruments (IAS 32 - IAS 39 - IFRS 7 - IFRS 9 - IFRS 13)
  • Current and deferred taxes – IAS 12
  • Revenue from ordinary activities – IFRS 15
  • Provisions / Contingent assets / Contingent liabilities – IAS 37
  • Effects of changes in foreign exchange rates – IAS 21
  • First-time adoption of IFRS – IFRS 1


Teaching methods

Presentation of the main accounting rules at international level by juxtaposing:

- a theoretical presentation of the principles prescribed by each standard

- the application of the principles through exercises

- the examination of published financial statements illustrating the principles presented.

The standards are approached by theme in order to give the students a global view.

A project is assigned to students in order to familiarize them with the practices of Belgian companies listed on a regulated market, based on published annual reports.

Assessment method

Students will submit a written examination on all the material presented in the lecture. This exam covers the principles contained in the International Accounting Standards through theoretical questions and/or exercises.

The exam is composed of two parts: A written exam worth 14 points and an individual assignment worth 6 points

Language of instruction

French