Current Issues in Financial Reporting

Course Director: Milda Tylaite

Purpose

In the world of high business reporting complexity, it is crucial for the users of the financial statements to understand the assumptions and principles that determine the financial reporting outcomes. This is particularly important in areas where substantial judgment is applied and when reporting requirements change. Understanding these issues gives a competitive advantage for the students aiming for careers in investment management, internal financial function, as well as audit.

The purpose of this course is to critically review the areas of key interest in light of recent reporting regulation developments. In this course, we focus on the International Financial Reporting Standards (IFRS) context but also discuss related reporting regulations.

The course prepares the student to become informed users of financial statements in an investor, creditor, and managerial capacity and introduces them to the critical debate around the developments of the financial reporting requirements.

Content

The course addresses the above issues by focusing on four major topic areas that are crucial in understanding and evaluating financial statements:

• revenue recognition (IFRS 15),
• hedging strategies, including managing exposure to exchange rate risks (IFRS 9),
• issues with ownership and control (IFRS 3 & IFRS 10)
• leasing (IFRS 16).

Presentation and disclosure of financial statements (IFRS 18)
IFRS 15, IFRS 9, and IFRS 16 came into effect on 1st January 2018 (IFRS 9 and IFRS 15) and 1st January 2019 (IFRS 16) and have meant substantial changes to the financial statements for many companies. IFRS 18 adoption is mandatory for the financial years starting on or after 1st January 2027. Many questions have been raised in terms of how these requirements balance the reporting demands, the usefulness of the financial reports, and the effects of these standards on firms’ business practices.

Throughout the course, we will be discussing the challenges associated with adopting these changes from the preparer’s perspective, and the analytical implications arising in relation to the new reporting standards from the user’s perspective.

Format & Structure

The course consists of an introduction, five topic-based modules, and a forward-looking discussion on the developments of the financial reporting requirements.

The introduction sets out the framework for the course. This includes the relationship between the conceptual framework and specific standards as well as guidance on how to read, understand, and apply accounting standards.

The topic-based modules each start with one or more lectures and/or guest lectures. The objective of these lectures is to introduce relevant standards and discuss the key issues faced by practitioners in preparing information relevant to the external users of this information. The lectures are followed by sessions on practical applications of the financial reporting standards and by case discussion sessions.

In the practical applications sessions, we will be looking into the applications of the IFRS standards to specific events, and will evaluate how different assumptions affect the financial reporting outcomes observed by the external users.

The case discussion sessions (45 min each) will be formulated as a role play where students will be assigned to play a role of a firm representative (preparer), auditor, or investor in discussing how a specific event should be accounted for. Each group will be asked to hand in a summary of their proposed solution before the session. The focus of the discussions is on the critical judgments needed for the specific case in relation to the relevant standards.

Course Administrator: Christina.Ekelin@hhs.se

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

1. read and understand IFRS and the IASB conceptual framework as an integrated structure
2. analyze business transactions and other events from an IFRS perspective
3. evaluate the different reporting approaches available under IFRS from the external user’s perspective
4. provide required financial statement information (i.e. account for the relevant transactions and events in accordance with IFRS)

Students taking this course are expected to have taken M03301 - International Financial Reporting, M03310/M03314 Accounting and Financial Statement Analysis, or similar advanced financial reporting course, and be familiar with the principles of group-level financial reporting.

Mandatory:

IASB, The Annotated Required IFRS Standards 2026

The IFRS Standards are available free of charge. However, they are difficult to use for a non-experienced user. The annotated IFRS Standards include cross-references and relevant guidance that significantly enhance the user experience and learning process. The annotated standards can be acquired through the IFRS Foundation Online shop. Make sure that your discount has been approved before ordering the books. Price for the digital version £ 127. E-version (in .pdf form) can also be used in the course. Due to sustainability considerations, the participants are encouraged to use the e-version.

Note that a 20% discount is available on all eligible products to full-time University students. Please email with written documentation from your University confirming your academic role or full-time student status and duration of your course to: publications@ifrs.org. Make sure to do so before ordering the materials.

Note that older editions of the IFRS Standards can also be used in the course as long as they include IFRS 18 (issued in 2024).

**Additional materials: **

Other reading materials provided throughout the course will be available on Canvas.

Examination consists of three components:

1. Written exam. Individual. Calculator & print IFRS Standards (or computer with the .pdf version) allowed. Total of 70 points.
2. Hand-in and participation in seminar discussion total of 20 points.
3. Individual project on a selected accounting issue issue within the scope of the course. Maximum 10 points.

Find the course schedule in TimeEdit

Have you been granted educational support because of a documented disability? If so, please contact the course director as soon as possible so that adequate accommodations can be made.

Contact specialneeds@hhs.se if you have questions about being granted educational support or need a copy of your educational support certificate.

For more information, visit the Specific Educational Needs page on the Student Hub (login required).