Financial Reporting II

Introduction

This course develops advanced competence in the preparation, interpretation, and critical assessment of financial statements prepared in accordance with International Financial Reporting Standards (IFRS), with a particular emphasis on consolidated financial statements. IFRS is the globally accepted financial reporting framework for listed entities in the EU/EEA and in many other jurisdictions, and plays a central role in ensuring transparency, comparability, and accountability in capital markets. Robust expertise in IFRS is therefore essential for professional auditors, financial statement preparers, and advanced users of financial information.

In addition to technical proficiency, the course emphasizes the role of professional judgment and ethical responsibility in financial reporting. Students are encouraged to reflect on how accounting choices, estimates, and classifications affect the faithful representation of economic reality, the interests of different stakeholders, and the credibility of financial reporting. The course thereby reinforces professionalism, integrity, and responsibility as core elements of the accounting profession.

The course is compulsory for students in the Master of Accounting and Auditing.

The course is delivered using a flipped classroom model. Students are expected to engage independently with core theoretical material through the textbook, recorded lectures, and structured online exercises prior to class sessions. Classroom sessions focus on more complex applications, discussion of judgment-intensive issues, and the evaluation of alternative accounting treatments.

Consistent with developments in professional practice, the course also introduces students to the potential role of artificial intelligence (AI) in accounting work. Without requiring technical implementation, students are encouraged to critically consider how AI-based tools may support analysis, judgment, and efficiency in financial reporting and auditing, as well as the limitations and professional responsibilities associated with their use.

Course content

The course covers advanced topics in financial reporting under International Financial Reporting Standards (IFRS), with a particular focus on judgment-intensive areas and consolidated financial statements. Emphasis is placed on the application of IFRS in complex settings, the evaluation of alternative accounting treatments, and the ethical and professional challenges associated with advanced financial reporting.

• Fair value accounting: theory and measurement
  Principles of fair value measurement, valuation techniques and inputs, and the use of observable and unobservable data. Particular attention is given to estimation uncertainty, reliability, and the ethical challenges associated with measurement discretion and model-based valuations.

• Financial instruments
  Recognition, measurement, and classification of financial instruments under IFRS, including impairment and hedge accounting. Analysis of judgment and complexity in accounting for financial assets and liabilities, and the implications for risk reporting and financial statement users.

• Tax accounting in a consolidation setting
  Accounting for income taxes in separate and consolidated financial statements, including deferred tax assets and liabilities, temporary differences arising from consolidation adjustments, and intra-group transactions. 

• Consolidation
  Preparation of consolidated financial statements, including business combinations, intra-group eliminations, non-controlling interests, and changes in ownership interests. 

• Impairment of cash-generating units
  Identification of cash-generating units, estimation of recoverable amounts, and allocation of goodwill. Particular emphasis is placed on assumptions, forward-looking estimates, and behavioral and ethical risks associated with impairment testing in practice.

• Leasing
  Accounting for leases under IFRS in both separate and consolidated financial statements, including initial recognition, subsequent measurement, and complex arrangements such as sale-and-leaseback transactions. 

Other contemporaneous topics can be included.

Across all topics, students are encouraged to critically reflect on the role of professional judgment and ethical responsibility.

Disclaimer

This is an excerpt from the complete course description for the course. If you are an active student at BI, you can find the complete course descriptions with information on eg. learning goals, learning process, curriculum and exam at portal.bi.no. We reserve the right to make changes to this description.