Name of University:

Name of College/Faculty:

Name of Department: Accounting and Finance Program

Department Accounting & Finance
Program BA degree in Accounting & Finance
Module Title Basics of Accounting and Reporting
Module code ACFN-M2010
Objective of Upon the successful completion of this module, students should be able to:
the module  Understand basic features of International Financial Reporting Standards and the
structure of Accounting and Auditing Board of Ethiopia
 Summarize and apply basic financial accounting terms, concepts, and principles;
 Apply accounting terminology, concepts, and principles in analyzing, recording, and
reporting basic business transactions;
 Take a series of transactions through the accounting cycle
 Utilize and identify the implication of the various methods of valuation in respect to
common balance sheet items
 Analyze, record and report transactions for businesses organized as partnerships, private
limited companies, and companies
Total ETCTS ETCTS: 12
and Credit Credit Hours: 8
Hours of the
module
Courses of the Module
Course AcFn2011
Number
Course Title Fundamentals of Accounting I
ETCTS 6
Credits
Contact 4
Hours (per
week)
Course The course has the general objective of introducing students to the basics of accounting and
Objectives & reporting of financial activities of business organizations as per International Financial
Competence Reporting Standards. Upon the successful completion of this course, the students will be
expected to:
s to be
 Understand the role of Accounting in business and develop an awareness of the accounting
Acquired
profession
 Understand the purpose of the financial accounting function and standard financial
accounting practices
 Summarize and apply basic financial accounting terms, concepts, and principles.
 Define and apply accounting terminology, concepts, and principles in analyzing, recording,
and reporting basic business transactions
 Take a series of transactions through the accounting cycle
 Analyze, record, and report transactions for service, merchandising, and manufacturing
businesses.
 Prepare financial statements
 Analyze accounting system design and control
 Apply accounting principles and control of cash and receivables
Course This course is designed to provide introductory knowledge of accounting principles, concepts,
Description and practices as per International Financial Reporting Standards. The course deals with the
processes involved in financial statements preparation for service-giving businesses,
merchandising businesses, and manufacturing businesses. Topics covered includes the features
of accounting information, users of accounting information, nature of financial statements, the
double entry system, financial statements preparation process including journals, ledgers, trial
balance, adjustments, worksheets, accruals, adjusting and closing entries, and the accounting
system. This course provides a foundation for more advanced work in the fields of Accounting
and business. All topics are studied in accordance with the provisions of International Financial
Reporting Standards (IFRS).
Course Contents

1. Introduction to Accounting and Business

1.1. The nature of a business
1.2. Types of business organizations in Ethiopia
1.3. The role of accounting in business
1.4. The profession of Accounting
1.5. Overview of International Financial Reporting Standards (IFRS)
1.6. Overview of financial reporting requirements in Ethiopia and AABE
1.7. The accounting equation and elements of the equation
1.8. Business transactions and financial statements
2. Accounting cycle for service-giving business
2.1. Characteristics of an account
4 WEEKS 2.2. Classification of accounts
2.3. Chart of accounts
{3RD ,4TH ,5TH
2.4. Rules of debit and credit
&6TH }
2.5. Normal balances of accounts
2.6. Analyzing and recording transactions
2.7. Preparing a trial balance
2.8. The usefulness and limitations of a trial balance
2.9. The adjusting process-accrual vs. cash basis of accounting
2.10. Preparing a worksheet
2.11. Preparing financial statements from a worksheet
2.12. Adjusting and closing entries
2.13. Post-closing trial balance
3. Accounting cycle for merchandising business
3.1. Characteristics of merchandising business
2 WEEKS 3.2. Accounting for purchases of merchandises
3.3. Accounting for sales of merchandises
{7TH&8TH }
3.4. Merchandise transactions using perpetual and periodic inventory systems
3.5. Chart of accounts for a merchandising business
3.6. Financial statements for a merchandising business
3.7. Adjusting and closing entries for a merchandising business
2 WEEKS 4. Accounting Systems
4.1. Manual and computerized Accounting systems and Enterprise Resource Planning
{11TH&12TH } 4.2. Subsidiary ledgers and controlling accounts
4.3. Special journals and vouchers
 5. Cash and Receivables
5.1. Internal control over cash
4 WEEKS 5.2. Bank reconciliation
5.3. Petty cash and change funds
{13TH,14TH ,1
5.4. Classifications of receivables
5TH&16TH }
5.5. Internal control of receivables
5.6. Accounting for uncollectible accounts
5.7. Accounting for notes receivable
5.8. Presentation of cash and receivables on the statement of financial position
Assessment/ The evaluation scheme will be as follows:
Evaluation Component Weight coverage
Test 1 15% Chapter 1 & 2
Test 2 15% Chapter 3
Assignment 1 5% Chapter 1 &2
Assignment 2 5% Chapter 3 & 4
Quiz 1 5%
Quiz 2 5%
Final Exam 50% All chapters
Work load in Hours Required
hours Total
Assess Tutori Self- Assign Advi ECTS
Hrs
Lectures Lab ments als Studies ment sing
64 - 22 12 64 - - 162 6

Text and Text Book:

reference  Kieso, D. E., Weygandt, J. J., & Warfield, T. W. (2016). Financial
books Accounting, IFRS Edition, New York: John Willey & Sons.
 Commercial Code of Ethiopia
Name of University:

Name of College/Faculty:

Name of Department: Accounting and Finance Program

Department Accounting & Finance

program BA degree in Accounting & Finance
Module Title Basics of Accounting and Reporting

Module code ACFN-M2010

Course Number AcFn2012
Course Title Fundamentals of Accounting II
ETCTS Credits 6
Contact Hours (per 4
week)
 The course has the general objective of introducing students to the accounting basics of
recognizing, measuring, and reporting common balance sheet items.
Course Objectives & Upon the successful completion of this course, the students will be expected to:
Competences to be  Analyze and record payroll transactions in Ethiopian context.
Acquired  Utilize and identify the implication of the various methods of valuation in respect
to accounts and notes receivable, inventories, depreciation, tangible and intangible
assets, and natural resources.
 Analyze, record and report transactions for businesses organized as partnerships,
private limited companies, and share companies
Course Description This course is a continuation of Principles of Accounting I. The course is designed to
introduce students to the application of accounting principles and concepts to major balance
sheet items. The specific topics includes internal control over cash, accounting for
receivables, accounting for inventories, accounting for current liabilities, accounting for
plant asset, natural resources and intangibles and accounting for businesses organized as
partnerships and companies as per Ethiopian Commercial Code.

WEEKS Course Contents Reading

3 WEEKS 1. Inventories
{1ST,2ND&3RD } 1.1. Nature and definition of inventories
1.2. Internal control of inventories
1.3. The effect of inventory errors on the financial statements
1.4. Inventory cost flow assumptions
1.5. Inventory costing methods under a perpetual and periodic
inventory system
1.6. Valuation of inventory at other than cost (LCNRV)
1.7. Estimating inventory costs
1.8. Presentation of merchandise inventory in the financial
statements
3 WEEKS 2. Property, Plant & equipment, Intangible Assets and Natural Resources
{ 4TH ,5TH& 6TH } 2.1. Property, plant & Equipment
i. Nature of PPE
ii. Cost of PPE(Measurement at the time of recognition)
iii. Measurement after recognition
a. Depreciation of PPE
b. Capital expenditures and revenue expenditures
iv. Disposal(Derecognition) of PPE
v. Internal controls of plant assets
vi. Presentation of PPE on the balance sheet
2.2. Intangible Assets
i. Nature and classification of Intangible assets
ii. Recognition and measurement at the time of acquisition.
iii. Measurement after acquisition.
iv. Presentation of intangible assets on the balance sheet
2.3. Natural resources
i. Nature of natural recourses
ii. Recognition and measurement
iii. Presentation of natural resources on the balance sheet
1 WEEK 3. Current Liabilities
{ 7TH} 3.1. The nature of liabilities
3.2. Classification of liabilities
3.3. Types of current liabilities
3.4. Short-term notes payable
3.5. Presentation of current liabilities on the balance sheet
2 WEEK 4. Ethiopian Payroll System
{ 8THand 9TH} 4.1. Overview of Ethiopian labor laws
4.2. Overview of Ethiopian pension laws
4.3. Overview of Ethiopian employment income tax
4.4. Salary, allowances, and fringe benefits
4.5. Overtime payments
4.6. Types of leaves and termination benefits
4.7. Components of payroll sheet
4.8. Payroll-related journal entries

2 WEEKS 5. Accounting for Partnerships in Ethiopia

{10TH&11TH } 5.1. Type and basic characteristics of partnership
5.2. Formation of partnerships
5.3. Equity reporting for partnerships
5.4. Dividing partnership net income and net loss
5.5. Admission of new partners
5.6. Withdrawal or death of partners Liquidating partnerships

3 WEEKS 6. Accounting for Companies in Ethiopia

6.1. Type and basic characteristics of companies in Ethiopia
{12TH, 13TH, 14TH } 6.2. PLCs
6.2.1. Formation of PLC
6.2.2. Management of PLC
6.2.3. Meeting
6.2.4. Reserve requirements
6.2.5. Dividends
6.2.6. Dissolution
6.2.7. Reporting shareholders’ equity on the statement of
financial position
6.3. Share company in Ethiopia
6.3.1. Formation of share companies in Ethiopia
6.3.2. Classes of shares (Ethiopia vs. USA)
6.3.3. Issuing shares (Ethiopia vs. USA)
6.3.4. Types of shareholders’ meetings
6.3.5. Treasury shares transactions (Ethiopia vs. USA)
6.3.6. Accounting for dividends (Ethiopia vs. USA)
6.3.7. Reserve requirements
6.3.8. Earnings per ordinary share(IAS 33)
6.3.9. Reporting shareholders’ equity on the statement of
financial position (Ethiopia Vs USA)
2 WEEKS 7. Public enterprises in Ethiopia
7.1. Characteristics of public enterprises
{15TH, 16TH } 7.2. Overview of proclamations pertinent to public enterprises
7.3. Organization, operation, and liquidation of public enterprises
7.4. Privatization of public enterprises
Teaching & The teaching and learning methodology include lecturing, discussions, problem solving,
Learning and analysis. Take-home assignment will be given at the end of each chapter for submission
Methods/strategy within a week. Solution to the assignments will be given once assignments are collected.
Cases with local relevance will also be given for each chapter for group of students to
present in a class room. The full and active participation of students is highly encouraged.

Assessment/ The evaluation scheme will be as follows:

Evaluation Component Weight Coverage
Test 1 15% Chapter 1 & 2
Test 2 15% Chapter 3
Assignment 1 5% Chapter 1 &2
Assignment 2 5% Chapter 3 & 4
Quiz 1 5%
Quiz 2 5%
Final Exam 50% All chapters
Text Book:
 Kieso, D. E., Weygandt, J. J., & Warfield, T. W. (2016). Financial Accounting, IFRS
Text and reference Edition, New York: John Willey & Sons.
books  Commercial Code of Ethiopia

Name of University:

Name of College/Faculty:

Name of Department: Accounting and Finance Program

Department Accounting & Finance

program BA degree in Accounting & Finance
Module Financial Accounting and Reporting
Number
Module Code ACFN-M3020
Objective of Upon the successful completion of this module, students should be able to:
the module  understand financial accounting concepts and IFRS as they apply for external financial
reporting purpose
 understand the nature of financial statements and the inherent limitations in their
preparation and use
 explain the application of international financial reporting standards in the recognition,
measurement, and reporting of assets, liabilities, shareholders’ equity, and lease
operation
 Prepare statement of cash flows based on complex business transactions
 Analyze and correct the effects of accounting changes and errors

Total ETCTS ETCTS: 12

and Credit Credit Hours: 8
Hours of the
module
Courses of the Module
Course Number AcFn3021
Course Title Intermediate Financial Accounting I
ETCTS Credits 6
Contact Hours (per 4
week)
The objective of the course is to ensure that students have developed a thorough
 knowledge and understanding of accounting principles and concepts and can apply
Course Objectives & this grounding to the situations that they will typically encounter in practical work
Competences to be situations.
Acquired On completion of this module students should be able to:
 Explain the IASB’s conceptual framework underlying financial reporting;
 Demonstrate an awareness of the substance of and the standard-setting process for
international accounting standards;
 Perform the accounting functions of analyzing, recording and reporting as
accomplished by the accounting cycle and the preparation of the primary
financial statements
 Apply professional judgment in analyzing accounting issues and recommending
accounting policies;
 Demonstrate the recognition, measurement, and reporting of cash and receivables;
 Explain incentives and ethical issues underlying accounting policy decision
Course Description This course presupposes that the students are equipped with knowledge of basic
accounting principles. In this course, emphasis is made on accounting theory of
financial statements, recognition criteria, measurement, also reporting requirements
of the elements of financial statements are covered. Treatment of current assets,
namely, cash, receivables, and inventories form the central objective of this course.
WEEKS Course Contents

1. Development of Accounting Principles and

Professional Practice
2WEEKS 1.1 The environment of financial accounting
1.2 Financial reporting requirements in Ethiopia
{1ST&2ND }
1.3 The IASB and its governance structure
1.4 List of IASB pronouncements
1.5 The IASB’s conceptual framework for financial
reporting
1.5.1 Objectives of financial reporting
1.5.2 Qualitative characteristics of financial reports
1.5.3 Elements of financial statements
1.5.4 Recognition, measurement, and disclosure
concepts
1.6 IFRS-based Financial Statements (IAS 1)
 2. Fair value measurement and Impairment
2.1. Fair value measurement
2 WEEKS 2.1.1. Definition
2.1.2. Measurement of fair value
{3RD&4TH }
2.1.3. Fair value at initial recognition
2.1.4. Valuation methods
2.1.5. Fair value hierarchy
2.1.6. Disclosure
2.2. Impairment
2.2.1. Definition
2.2.2. Measurement of impairment
2.2.3. Reversal of impairment
2.2.4. Disclosure

3. Cash and Receivables

3.1 Cash and internal control
2 WEEKS 3.2 Types of main bank accounts
3.3 Bank reconciliation
{5TH&6TH}
3.4 Reporting of Cash and disclosure requirements
3.5 Recognition and valuation of accounts receivable
3.6 Recognition and valuation of notes receivable
3.7 Derecognition of receivables
3.8 Reporting of receivables and disclosure
requirements

4. Inventories
4.1 Nature and classification of inventory
4.2 Physical goods and costs included in inventory
4.3 Valuation of inventories: A cost-basis approach
2 WEEKS
4.4 Special inventory valuation methods
{7TH& 8TH} 4.4.1. Lower-of-cost-or-net realizable value
(LCNRV) method
4.4.2. Gross profit method
4.4.3. Retail-inventory method

5. Property, Plant, and Equipment

5.1. Acquisition and Disposition of Property,
3 WEEKS Plant, and Equipment
5.1.1. Characteristics of property,
{9TH, 10TH&11TH } plant, and equipment
5.1.2. Acquisition & valuation of
property, plant and
equipment
5.1.3. Costs subsequent to
acquisition
5.1.4. Disposition of property, plant
and equipment
5.2. Depreciation, Impairments, and
Revaluations
2 WEEKS 6. Investment property
6.1. Nature of Investment property
{12TH & 13TH} 6.2. Initial recognition and measurement of
investment property
6.3. Subsequent measurement of investment
property
6.4. Presentation and disclosure requirements

1 WEEK 7. Non-current Assets Held for Sale, and Discontinued

Operations
{14TH } 7.1 Nature of NCAHFS and discontinued operations
7.2 Initial recognition and measurement of NCAHFS
7.3 Subsequent measurement of NCAHFS
7.4 Presentation and disclosure requirements
7.5 Measurement, presentation and disclosure of
discontinued operations

2 WEEKS 8. Intangible assets

8.1. Characteristics and classifications
{15TH & 16TH} 8.2. Valuation and amortization
8.3. Impairments
8.4. Research and development costs
8.5. Website costs
Assessment/Evaluation The evaluation scheme will be as follows:
Component Weight coverage
Test 1 15% Chapter 1 & 2
Test 2 15% Chapter 3
Assignment 1 5% Chapter 1 &2
Assignment 2 5% Chapter 3 & 4
Quiz 1 5%
Quiz 2 5%
Final Exam 50% All chapters
Work load in hours Hours Required
Total
Assess Tutori Self- Assign Advi ECTS
Hrs
Lectures Lab ments als Studies ment sing
64 - 22 12 64 - - 162 6

Text Book:
 Kieso, D. E., Weygandt, J. J., & Warfield, T. W. (2016).
Text and reference Intermediate Accounting, IFRS Edition, New York: John
books Willey & Sons.
 Commercial Code of Ethiopia
 Ernst & Young LLP (2016), International GAAP, John
Wiley & Sons Ltd.
  www.ifrs.org
 IFRS Blue Book

Name of University:

Name of College/Faculty:

Name of Department: Accounting and Finance Program

Department Accounting & Finance
program BA degree in Accounting & Finance
Module Financial Accounting and Reporting
Number/Title
Module Code ACFN-M3020
Objective of Upon the successful completion of this module, students should be able to:
the module  understand financial accounting concepts and IFRS as they apply for external financial
reporting purpose
 understand the nature of financial statements and the inherent limitations in their
preparation and use
 explain the application of international financial reporting standards in the recognition,
measurement, and reporting of assets, liabilities, shareholders’ equity, and lease
operation
 Prepare statement of cash flows based on complex business transactions
 Analyze and correct the effects of accounting changes and errors

Total ETCTS ETCTS: 12

and Credit Credit Hours: 8
Hours of the
module
Courses of the Module
Course Number AcFn3022
Course Title Intermediate Financial Accounting II
ETCTS Credits 6
Contact Hours 4
(per week)
This course is the continuation of Intermediate Financial Accounting I. Upon completion of
this course, students will be able to:
Course  Explain the recognition, valuation and disposition of plant, property and equipment;
Objectives &  Describe the nature of current liabilities, provisions, and contingencies and their
Competences to respective accounting and reporting treatments;
be Acquired  Explain the recognition and valuation of intangible assets;
 Discuss the nature, valuation, recognition and presentation of investments in
financial assets;
 Discuss the accounting and reporting for transactions related to the components of
shareholders’ equity;
 Discuss the nature and accounting treatment of leases and pensions;
 Demonstrate the ability to apply disclosure requirements pertaining to the financial
statement items covered in this course; and
 Demonstrate the ability to exercise professional and ethical judgment in the
application of the proper accounting and reporting methods.
Course This course is the continuation of Intermediate Financial Accounting I. It is one of the core
Description accounting courses offered by the department. Like the first part, it basically deals with the
application of financial accounting theory for business organizations. It also tries to introduce
students with the financial accounting applications in the Ethiopian business environment.
The course includes topics, namely, plant, property, and equipment; Intangible assets;
investments; current and non-current liabilities; leases; statement of cash flows; and pension.

WEEKS Course Contents

1. Current Liabilities, Provisions, and Contingencies

2WEEKS 1.1. Nature and types of current liabilities
{1ST&2ND } 1.2. Recognition and measurement of provisions
1.3. Contingencies
1.4. Presentation of current liabilities

2. Non-Current Liabilities
2 WEEKS 2.1. Nature and classifications of non-current liabilities
{3RD& 4TH } 2.2. Recognition and valuation of bonds
2.3. Extinguishments

3. Investments
3 WEEKS 3.1. Nature and classification of investments
{5TH, 6TH& 7TH} 3.2. Accounting for debt investments
3.3. Accounting for equity investments
3.4. Impairment of value
3.5. Transfer between categories

4. Leases
7.1The leasing environment
1 WEEK 7.2Classifications of lease
{8TH } 7.3Overview of Ethiopian lease business law
7.4Accounting by the lessee
7.5Accounting by the lessor
7.6Special accounting problems

5. Deferred Taxation
2 WEEKS 5.1. Accounting income versus taxable income
{9TH&10TH } 5.2. Recap of temporary versus permanent differences
5.3. Deferred tax liabilities versus deferred tax assets
5.4. Tax losses carried forward
5.5. Disclosures

2 WEEKS 6. Revenue Recognition

{11TH &12TH} 6.1. Revenue recognition framework
6.2. Long-term construction contracts
6.2.1. Overview of Ethiopian construction sector
6.2.2. Basic terminologies in construction contracts
6.2.3. Revenue recognition
 1 WEEK 7. Accounting Policies, Changes in Accounting
{13TH } Estimates and Errors
7.1. Treatment of changes in accounting policy
7.2. Treatment of changes in accounting estimates
7.3. Treatment of changes in errors

2 WEEKS 8. Statement of cash flows

{14TH & 15TH} 9.1. Usefulness of the statement
9.2. Preparation of the statement
9.3. Significant non-cash financing and investing activities

1 WEEK {16TH} 9. Agricultural accounting

9.1. Basic terminologies in agricultural accounting
9.2. Recognition and measurement of agricultural produces
9.3. Reporting and disclosure requirements

Assessment/ The evaluation scheme will be as follows:

Evaluation Component Weight coverage
Test 1 15% Chapter 1 & 2
Test 2 15% Chapter 3
Assignment 1 5% Chapter 1 &2
Assignment 2 5% Chapter 3 & 4
Quiz 1 5%
Quiz 2 5%
Final Exam 50% All chapters
Work load in
hours
Hours Required
Total
Assess Tutori Self- Assign Advi ECTS
Hrs
Lectures Lab ments als Studies ment sing
64 - 22 12 64 - - 162 6
Text Book:
Text and reference  Kieso, D. E., Weygandt, J. J., & Warfield, T. W. (2016).
books Intermediate Accounting, IFRS Edition, New York: John Willey &
Sons.
 Commercial Code of Ethiopia
 Ernst & Young LLP (2016), International GAAP, John
Wiley & Sons Ltd.
 www.ifrs.org
 IFRS Blue Book

Name of University:

Name of College/Faculty:

Name of Department: Accounting and Finance Program

Department Accounting & Finance

program BA degree in Accounting & Finance
Module Number Advanced Financial Accounting
Module Code ACFN-M4100
Objective of the Upon the successful completion of this module, students should be able to:
module  understand financial accounting concepts and IFRS as they apply for external
financial reporting purpose
 understand the nature of financial statements and the inherent limitations in their
preparation and use
 explain the application of international financial reporting standards in the
recognition, measurement, and reporting of assets, liabilities, shareholders’ equity,
and lease operation
 Prepare statement of cash flows based on complex business transactions
 Analyze and correct the effects of accounting changes and errors

Total ETCTS and ETCTS: 12

Credit Hours of the Credit Hours: 8
module
Courses of the Module
Advanced Financial Accounting I
Advanced Financial Accounitng II
Course code ACFN4101

Course Title Advanced Financial Accounting I

Degree Program BA Degree in Accounting and Finance

Lecturer
information

ETCTS Credits 5

Contact Hours 3

Course Description This course addresses the skills needed to apply some selected financial reporting
standards in business environments. The topics covered in the course include
income taxes, share-based compensation, agriculture, insurance contracts,
statement of cash flows, and asset valuation.

Course Objectives In this, course students examine several complex topics and their effect on financial
reporting and disclosure. The course is designed to cover a selected group
of financial accounting topics under IFRS. Upon successful completion of this course
the student will be able to:

 Record, analyze and report financial information related to income taxes,

biological assets, insurance contracts, share-based compensations, and
employee benefits.
 Prepare and present statement of cash flows.
 Undertake valuation of financial assets for financial reporting purposes.
WEEKS Course Contents

1. Income Taxes
1.1. The tax base concept
1.2. Recognition of deferred tax liabilities and assets
1.2.1. Future taxable temporary differences
1.2.2. Future deductible temporary differences
1.3. Recognition of current and deferred tax
1.4. Accounting for net operating losses
1.5. Income tax presentation and disclosures

2. Share-based Compensation
2.1. Overview of Share-based Payments
2.2. Share-based Payments Settled with Equity
2.3. Share-based Payments Settled with Cash
2.4. Share-based Payments with Cash Alternatives
2.5. Counterparty Has Choice of Settlement
2.6. Issuer Has Choice of Settlement
2.7. Share-based Payment Disclosures

3. Accounting for Agriculture

3.1. Basic Terms and Scope
3.2. The Nature of Biological Assets
3.3. Recognition and Measurement of Biological
Assets
3.4. Presentation and Disclosure Issues

4. Insurance Contracts
4.1. Insurance Contract Aggregation
4.2. Initial Recognition of Insurance Contracts
4.3. Initial Measurement of Insurance Contracts
4.4. Estimated Future Cash Flows
4.5. Discount Rates Used
4.6. Risk Adjustment for Non-Financial Risk
4.7. Contractual Service Margin
4.8. Subsequent Measurement of Insurance
Contracts
4.9. Modification of Insurance Contracts
4.10. Derecognition of Insurance Contracts
4.11. Presentation of Insurance Contract Information
4.12. Disclosures
 5. Revisiting the Statement of Cash Flows
5.1. Importance of statement of cash flows
5.2. Classifications of cash flows
5.3. Preparing the statement of cash flows

6. Asset Valuation for Financial Reporting

6.1. Basics of valuation
6.2. Overview of International Valuation Standards (IVS)
6.3. Valuation approaches
6.3.1. Market approach
6.3.2. Income approach
6.3.3. Cost approach
6.4. Valuation report
Teaching & Learning The teaching and learning methodology include lecturing, discussions, problem
Methods/strategy solving, and analysis. Take-home assignment will be given at the end of each
chapter for submission within a week. Solution to the assignments will be given
once assignments are collected. Cases with local relevance will also be given for
each chapter for group of students to present in a class room. The full and active
participation of students is highly encouraged.

Assessment/
Evaluation
The evaluation scheme will be as follows:

Test Test 2 Test Case Analysis Assign Final Total

1 3 ment 1 exam

10% 10% 10% 10% 10% 50% 100%

Ch. 1 Ch. 2 Ch. 3 Ch. 4-6 Ch. 1-4 All Ch.

Work load in hours Hours Required

Total
Assess Tutor Self- Assign Advi ECTS
Hrs
Lectures Lab ments ials Studies ment sing
 48 - 10 12 55 135 5

Roles of the He/she will come to the class regularly on time and deliver the lecture in a well-
Instructor organized manner. Besides, at the end of each class he/she gives reading
assignment for the next class. He/she will make sure that proper assessments is
given. He/she is also responsible to give feedback for each assessment.

Roles of the The success of this course depends on the students’ individual and collective
students contribution to the class discussions. Students are expected to participate
voluntarily, or will be called upon, to contribute to set exercises and problems.
Students are also expected to read the assigned readings and prepare the cases
before each class so that they could contribute effectively to class discussions.
Students must attempt assignments by their own. Proficiency in this course comes
from individual knowledge and understanding. Copying the works of others is
considered as serious offence and leads to disciplinary actions.

Text and reference Text Book:

books
Kieso, Weygandt and Warfield, Intermediate Accounting, IFRS Edition (3rd Ed. John
Wiley & Sons, Inc. 2014).

IVSC (2013) International valuation standards.

Reference Books

Kieso, Weygandt and Warfield, Intermediate Accounting, (15th Ed. John Wiley &
Sons, Inc. 2013).

Intermediate Accounting (IFRS Edition). Authors: Spiceland J., Sepe J., Nelson M.,
Tan P., Low B., and Low, K.Y. Publisher: McGraw-Hill.

Nikolai, Bazley and Jones, Intermediate Accounting, (10th Ed. McGraw- Hill co.
2007).

http://www.ifrs.org/IFRSs/IFRs.html

Department Accounting & Finance

Program BA Degree in Accounting & Finance

Course Number ACFN4102

Course Title Advanced Financial Accounting II

ETCTS Credits 6
Contact Hours 4

Course Description The course specifically deals with the accounting concepts and practices pertaining
to investments in joint arrangements, home office-branch operations, business
combinations, consolidated financial statements, foreign currency transactions and
translation of foreign currency financial statements, segment and interim reporting.

Course Objectives This course builds on the knowledge you obtained in your introductory and
intermediate financial accounting courses. The primary objective of the course is to
help students gain an in-depth understanding of the theory and current practice of
advanced and complex financial accounting issues for business firms. Upon
successful completion of this course, students will be able to:

 Identify the alternative forms of a joint venture and describe the accounting
treatment for investments in joint arrangements;
 Apply proper accounting techniques to account for branch operations and
prepare combined financial statements for home office and branch;
 Explain the nature of business combinations and its accounting treatment;
 Explain the meaning and assessment of control;
 Prepare consolidated financial statements for companies with parent-subsidiary
relationship on date of acquisition and subsequent to date of acquisition;
 Explain and account for foreign currency transactions and translate foreign
currency financial statements; and
 Prepare segment and interim financial reports.
Weeks Course Contents

1. Joint Arrangements
1.1. Meaning and types of joint arrangements
1.2. Accounting for investments in joint ventures
1.3. Accounting for joint operations
1.4. Accounting for joint ventures
1.5. Disclosure requirements
2. Accounting for Public Enterprises in Ethiopia
2.1. Overview of Proc. No. 25/1992 and other related
 Provisions
2.2. Accounting for Formation and Operation
2.3. Privatization of Public Enterprises
3. Accounting for Sales Agencies and Branch Operations
3.1. Characteristics and Principles
3.2. Distinction between Agencies and Branches
3.3. Accounting Systems and the Accounting Entity
3.4. Accounting for Sales Agencies
3.5. Accounting for Branch Operations
3.5.1. Reciprocal (Intracompany) Accounts
3.5.2. Merchandise Shipments to Branches
3.5.3. Allocation of Expenses incurred by Home Office to
Branches
3.5.4. Accounting for Branch Fixed Assets
3.5.5. Combined Financial Statements for Home Office
and Branch
3.5.6. Reconciliation of Home Office and Branch
Accounts
3.5.7. Transactions among Branches
3.5.8. Disposal of a Branch

4. Business Combinations
4.1. Definitions and Motives
4.2. Methods of arranging Business Combinations
4.3. The Acquisition Method
4.3.1. Identifying the acquirer
4.3.2. Determining the acquisition date
4.3.3. Recognition and measurement of the identifiable
net assets of the Acquiree
4.3.4. Recognition and measurement of goodwill or a
gain from a bargain purchase
4.4. Disclosure requirements
4.5. Overview of business combinations in Ethiopian context

5. Consolidation on Date of Acquisition

5.1. Definition of subsidiary and control
5.2. Assessing control
5.3. Accounting Requirements
5.4. Definition and presentation of non-controlling interests
 5.5. Different reporting dates and accounting policies
5.6. Loss of Control
5.7. Consolidated Statement of Financial Position: Wholly
owned subsidiary
5.8. Consolidated Statement of Financial Position: Partially
owned subsidiary
5.9. Disclosure Requirements

6. Consolidation Subsequent to Acquisition

6.1. Accounting for investments in subsidiaries
6.2. Consolidated financial statements for wholly owned
subsidiary
6.3. Consolidated financial statements for partially owned
subsidiary
6.4. Consolidated financial statements: Intra-group trading
(Upstream and Downstream Transactions)
6.5. Disclosure requirements
7. The Effects of Changes in Foreign Exchange Rates
7.1. Definition of terms
7.2. Exchange Rates and Meaning of Translation
7.3. Types of currency-related exposures
7.4. Determination of functional currency
7.5. Accounting for foreign currency transactions
7.5.1. Recognition and reporting of exchange differences
7.6. Translation of foreign operations
7.6.1. Rationale/Objectives of translation
7.6.2. Translation methods & criteria for applications
7.7. Disclosure requirements

8. Segment and Interim Financial Reporting

8.1. Segment Reporting
8.1.1. Definition of an operating segment
8.1.2. Identifying externally reportable segments
8.1.3. Aggregation criteria
8.1.4. Quantitative thresholds
8.1.5. Disclosure
8.1.6. Measurement
8.1.7. Entity-wide disclosures
8.2. Interim Reporting
 8.2.1. Definitions
8.2.2. Content of an Interim Financial Report
8.2.3. Disclosure in Annual Financial Statements
8.2.4. Recognition and Measurement
8.2.5. Restatement of Previously Reported Interim
Periods

Assessment/ The evaluation scheme will be as follows:

Evaluation
Component Weight coverage

Test 1 15% Chapters 1-3

Test 2 15% Chapters 4-6

Assignment 1 5% Chapters 1-4

Assignment 2 5% Chapters 5-8

Quiz 1 5%

Quiz 2 5%

Final Exam 50% All chapters

Work Load in
Hours
Hours Required
Total
Assess Tutori Self- Assign Advi ECTS
Hrs
Lectures Lab ments als Studies ment sing

64 - 22 12 64 - - 162 6
Text and Text Book:
Reference Books
Herauf D. & Hilton M. (2016). Modern Advanced Accounting in Canada. Eighth ed.
McGraw-Hill Canada.

Baker, R. E., Lembke, V. C., King, T. E., Jeffrey, C. G., & Christensen, T.
(2016). Advanced Financial Accounting. Eleventh edition. McGraw-Hill/Irwin.

Reference Books:

Cotter, D. (2012). Advanced Financial Reporting: A complete guide to IFRS. Financial

Times/Prentice Hall.

Beechy, T. H., & Farrell, E. (2015). Advanced Financial Accounting. Seventh edition.
Prentice Hall.

Hoyle, J. B., Schaefer, T. F., & Doupnik, T. S. & Wang, X. (2016). 13th edition.
Advanced Accounting. McGraw-Hill Education.

Ernst & Young LLP, International GAAP, John Wiley & Sons Ltd. (Latest edition).

Richard E.Baker et al. Advanced Accounting. 7th Edition, FT Prentice Hall- Financial
Times, United Kingdom, 2004

Larsen, J. Modern Advanced Accounting. 11th edition. McGraw-Hill.

Commercial Code of Ethiopia

Public Enterprises Proclamation No. 25/1992

IFRS Blue Book (Latest edition)

IFRS Green Book (Latest edition)

IFRS Red Book (Latest edition)

Name of University:

Name of College/Faculty:

Name of Department: Accounting and Finance Program

Department Accounting & Finance

Program BA degree in Accounting & Finance

Module Cost & managerial Accounting

Number/Title

Module Code ACFN-3030

Objective of the This module will cover cost accumulation concepts and techniques for Product and Service
module Costing and Planning and Control, as well as Non-routine Managerial Decisions. Modern
management accountants are not only concerned with how cost data are transformed into cost
accounting information but more importantly how to use cost accounting information to aid
managerial goals. It is the case, however, that one cannot effectively use cost information
without a good understanding of how various cost accounting information are generated.
The module should develop the student's understanding, skill, and analytical ability in cost
and management accounting to the level where he or she can function effectively (and
efficiently) as a professional cost and management accountant in industry, public accounting,
management consulting, government, or personal business management.

Total ETCTS and ETCTS: 10

Credit Hours of Credit Hours: 6
the module
Courses of the Module
Course Number AcFn3031
Course Title Cost & management Accounting I
ETCTS Credits 5
Contact Hours 3
(per week)
Course Upon the successful completion of this module, students should be able to:
Objectives &  Use various classifications to analyze costs within the organization.
Competences to  Describe and apply the principles relating to the costing of the different resource
inputs into a business.
be Acquired
 Demonstrate output costing methods appropriate to a variety of different businesses.
 Illustrate and evaluate absorption, marginal costing, activity-based costing methods
and other management cost accounting methods and techniques.
 Apply and analyze different types of activity-based management tools through the
preparation of estimates.
 Describe, illustrate and comment on the planning and control uses of standard
costing, budgeting and variance analysis

Course Cost accounting course concerns with fundamental cost concepts, behavior, and analysis and
Description the use of cost information to develop superior decision making process and outputs. This
course introduces the production, communication, and the use of accounting information
within the context of business activities.
 .

WEEKS Course Contents

1. Overview of Cost and Management Accounting

1,1 Objectives of Cost & Management Accounting
2WEEKS 1.2 Cost and management accounting in comparison with
financial accounting: their purposes, the role of cost
{1ST&2ND } accounting as part of a management information system, and
the need for both financial as well as non-financial
information
1.3 Cost classification concepts and terms, such as:
 Direct and indirect costs,
 Fixed and variable costs,
 Period and product costs,
 Controllable and uncontrollable costs,
 Avoidable and unavoidable costs,
 “Sunk” costs,
 Budgeted, standard and actual costs and their
comparisons and analyses
1.4 The use of linear, curvilinear and step functions and how
their calculations are used to analyze cost behavior
1.5 The concepts of cost units, cost centers and profit centers

2:.Cost determination: The costing of resource inputs

3 WEEKS 2.1 Materials

 Accounting for stock (inventory)movements
{3RD- 5TH }  Determination of optimum purchase quantities
 Identification of accounting for stock losses
2.2 Labor
 The difference between direct and indirect labor
 Types of labor remuneration methods
2.3 Overheads
 Overhead cost analyses
 The apportionment and absorption of overhead costs,
including allocation of service department costs.
 Accounting for the over- and under absorption of costs
 IAS 2 inventories on Overhead allocations
2.4 Recording of costs and schedule of costs of products.

3. Costing methods: The costing of resource outputs

3.1 Job order, batch and contract costing methods
5 WEEKS  Characteristics of each method
 Accounting for direct and indirect costs, including
{6TH - 10 TH } the treatment of waste, scrap, spoilage and re work
costs,
4. The Process and Operation or service costing methods:
 Characteristics of the process costing method,
 Identification and use of appropriate cost units,
 Valuation of process transfers and workin-process
 using equivalent units of production and based on
FIFO and average costing methods,
 Accounting for normal and abnormal losses and
gains, joint and by-products
 Scope of operation or service costing,
 Identification of appropriate cost units,
 Considerations relating to the collection,
classification and ascertainment of costs

5. Cost Allocation
5.1 Explain the notions of ‘overhead costs’, ‘indirect
costs’, ‘direct costs’, ‘traceable costs’ and
‘allocated costs’.
2 WEEK 5.2 Explain how accountants choose to create ‘cost
centres or ‘cost pools’ in which to gather together
{11TH & 12tTH} cost data.
5.3 Explain why and how costs may be allocated from
one cost pool or centre to another.
5.4 Support department cost allocation
5.5 Joint and By-products
5.6 Common cost allocation

6. Activity-Based Costing and Management

6.1 Activity-based costing; use of cost drivers and
2 WEEKS activities
6.2 Activity Based Costing for Customer Profitability
{12TH & 14TH } 6.3 Activity Based Management

Assessment/ The evaluation scheme will be as follows:

Evaluation

Component Weight coverage

Test 1 15% Chapter 1 &5
Test 2 15% Chapter 3 & 4
Assignment 1 5% Chapter 1 &2
Assignment 2 5% Chapter 3-6
Quiz 1 5%
Quiz 2 5%
Final Exam 50% All chapters
Work load in
hours
Hours Required
Total
Assess Tutori Self- Assign Advi ECTS
Hrs
Lectures Lab ments als Studies ment sing
64 - 22 12 64 - - 162 6
Text Book:
Text and reference  Horngren, Foster, &Datar. Cost Accounting: A
books Managerial Emphasis. 9th Ed. 1997
 Horngren, Sunden& Stratton. Introduction to
Management Accounting. 11th Ed. 1999
Reference Books
 C.T Homgren, Introduction to Management Accounting 4th
to 8 th editions, 1999 USA
 C.T. Homgren, Cost Accounting: A Managerial Emphasis
5th to 8th ecitionsprentice Hall Inc. 1982 to 1994
 Homgren, foster, &Datar, Cost Accounting A Managerial
Emphasis. 10 thEcition
L.E. Heitger Managerial Accounting 1th and 2 nd editions,
McGraw Hill , 1998, India
 GetuJemaneh, Management Accounting 1996.
 Ray H.Garrison, Managerial Accounting. 6th edition
 Caluinengler, Managerial Accounting 2nd edition
 L. Gayle Rayburn Principles of cost Accounting using a
cost Mangement Approach 4th edition Richard DIR WIN Inc.
1989.
 Robert X. Kaplan Advanced Management Accounting 1st
and 2nd edition prentice Haill, Inc, 1982 and 1989 (Chapters
2, 11,12, and 13 only)
Name of University:

Name of College/Faculty:

Name of Department: Accounting and Finance Program

Department Accounting & Finance

program BA degree in Accounting & Finance

Module M9 Cost and Managerial Accounting

Number/Title

Module Code ACFN-3030

Objective of the This module will cover cost accumulation concepts and techniques for Product and Service
module Costing and Planning and Control, as well as Non-routine Managerial Decisions. Modern
management accountants are not only concerned with how cost data are transformed into cost
accounting information but more importantly how to use cost accounting information to aid
managerial goals. It is the case, however, that one cannot effectively use cost information
without a good understanding of how various cost accounting information are generated.
The module should develop the student's understanding, skill, and analytical ability in cost
and management accounting to the level where he or she can function effectively (and
efficiently) as a professional cost and management accountant in industry, public accounting,
management consulting, government, or personal business management.

Total ETCTS and ETCTS: 10

Credit Hours of the
module Credit Hours: 6

Courses of the Module

Course Number AcFn3032

Course Title Cost & management Accounting II

ETCTS Credits 5

Contact Hours 3
(per week)
After successfully completing this course, students will be able to:
Course Objectives  Apply managerial accounting and its objectives in a way that demonstrates a
& Competences to clear understanding of ethical responsibilities.
be Acquired  Analyze cost-volume-profit techniques to determine optimal managerial
decisions.
 Prepare a master budget and demonstrate an understanding of the relationship
between the components.
 Perform cost variance analysis and demonstrate the use of standard costs in
flexible budgeting.
 Prepare analyses of various special decisions, using relevant costing and
benefits.

Course Description Cost accounting course concerns with fundamental cost concepts, behavior, and analysis and
the use of cost information to develop superior decision making process and outputs. This
course introduces the production, communication, and the use of accounting information
within the context of business activities.
.

WEEKS Course Contents

1. Cost-Volume-Profit Analysis, Absorption, and Variable

2WEEKS Costing
{1ST&2ND } 1.1 Absorption versus Direct Costing
1.2 The concept of profit contribution
1.3 Cost-volume-profit (CVP) analysis: understanding the
concepts of break-even and margin of safety