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International Financial Reporting

Course code
Course type
MSc Course
Weekly Hours
HS 2019
Prof. Dr. Martin Glaum
Please note that exchange students obtain a higher number of credits in the BSc-program at WHU than listed here. For further information please contact directly the International Relations Office.

This course is designed to familiarize you with today’s world of accounting under International Financial Reporting Standards (IFRS). IFRS are global accounting standards independent from individual national jurisdictions. They are developed by the International Accounting Standards Board (IASB) in London, and theyare required or allowed as the basis for the financial reporting of companies in more than 100 countries around the globe. In the European Union, all exchange-listed companies are required to prepare their consolidated financial statements in accordance with IFRS.

The course objectives are as follows:
· To acquaint you with the institutional foundations of financial reporting under IFRS; to make you appreciate why IFRS are relevant in Europe and in other countries around the world; and to familiarize you with the organizations and regulations behind IFRS accounting, in particular the IASB, the institution that develops IFRS.

· To introduce to you the Conceptual Framework that underlies IFRS. Financial accounting is based on informed judgments and estimates. Therefore, in order to competently prepare, or to interpret, IFRS financial statements one needs not only technical expertise, but also a sound and critical understanding of the objectives and the other concepts of IFRS.

· To advance your knowledge and understanding of IFRS financial statements (Balance Sheet, Income Statement, Cash Flow Statement etc.) and of the most important IFRS topics and requirements that are of relevance to practitioners, i.e. to managers, auditors, regulators, analysts and investors.

· To raise your awareness of the economic consequences of financial reporting.

· And to expose you to empirical research in the area of financial reporting.

Overall, the course is intended to develop your skills in applying key IFRS rules, critically questioning them, and evaluating their economic consequences, in your roles as preparers and as analysts of IFRS financial statements. The course will also prepare you for the more specialized and advanced accounting courses that will be offered to you in the coming quarters.

Date Time
Tuesday, 03.09.2019 11:30 - 15:15
Tuesday, 10.09.2019 11:30 - 15:15
Tuesday, 17.09.2019 08:00 - 11:15
Wednesday, 18.09.2019 09:45 - 11:15
Tuesday, 24.09.2019 11:30 - 15:15
Wednesday, 25.09.2019 15:30 - 18:45
Tuesday, 08.10.2019 08:00 - 11:15
Tuesday, 15.10.2019 11:30 - 15:15
Thursday, 24.10.2019 13:45 - 15:15
Theories featuring in this course include accounting theory, information economics, and agency theory. To apply and critically assess accounting methods, students will employ critical reasoning skills. Research articles discussed in this course frequently apply multiple regression analysis and other econometric techniques.
The readings are based mainly on the following two textbooks: Alexander/Britton/Jorissen/Hoogendoorn/van Mourik (2017), International Financial Reporting and Analysis, 7th edition, Cengage Learning.Picker/Leo/Loftus/Wise/Clark/Alfredson (2016), Applying International Financial Reporting Standards, 4rd edition, Wiley.
The course will feature a combination of preparatory readings, in-class lectures and discussions, individual and group case studies as well as a final exam.
Grading is based on the following components and weights:

- A written exam in the end (75%)

- A graded group assignment (25%)

International Accounting (BSc, or equivalent)
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