DAC 202 ACCOUNTING FOR EQUITIES- COURSE OUTLINE

UNIVERSITY OF NAIROBI

SCHOOL OF BUSINESS

DEPARTMENT OF FINANCE AND ACCOUNTING

DAC 202: ACCOUNTING FOR EQUITIES

COURSE OUTLINE

COURSE PRE-REQUISITE: DAC 102 Foundations of Accounting II

COURSE INSTRUCTORS:HERICK. O ONDIGO

COURSE OBJECTIVE

This is an intermediate course in accounting intended to enable the students to appreciate the theory, practice and proficiency in the accounting treatment of equities and liabilities (the claims of the owners and creditors against the assets of the entity) the course covers the measurement and reporting of income, liabilities and stockholders equity.

Course Conduct

Lectures will be the main mode of instruction. Students may also be required to make group or individual presentationson assigned topics or cases to test the understanding of the learner on presentation and analytical skills. It is recommended for the learner to read and appreciate the core issues relevant in the topics before the lecture sessions.

Evaluation

The course will be evaluated as follows:

  • Homework Assignments and readings or presentations10%
  • Continuous Assessment Tests20%
  • Final Written University Examination70%

Total Maximum Possible100%

MinimumPass Mark Required40%

Course Text

  1. Kieso E D, J J Weygand & T D Warfield., Intermediate Accounting 13th edition,John Wiley & Sons Publishers , 2010
  2. IASB,, International Financial Reporting Standards (IFRS’s) & International accounting Standards (IAS’s)

Other Recommended Reading Materials

  1. Smith J.M & F Skousen, Intermediate Accounting, 11th edition South-Western Publishing Company
  2. Spicelend J.D, J.F Sepe and L.A Tomassini: Intermediate Accounting, 4th Edition MacGraw Hill , 2007

COURSE CONTENT

  1. An over-view of the conceptual framework underlying financial accounting and financial reporting & the accounting cycle.
  2. Measurement and presentation of Income
  3. Nature of income
  4. Income measurement
  5. Reporting income
  6. Discontinued operations
  7. Exceptional items
  8. Reporting accounting changes and fundamental errors
  9. Reporting Earnings per share
  10. Accounting for shareholders equity- contributed capital
  11. The nature of shareholders equity
  12. Accounting for the issuance of shares
  13. Treatment of the stock issuance costs
  14. Basic records related to shares
  15. Accounting for shareholders equity- Retained Earnings
  • Nature of retained earnings
  • Prior period adjustments
  • Net income
  • Dividends
  • Reporting of retained earnings

CAT 1

  1. Accounting for current liabilities
  2. Nature of current liabilities
  3. Determining current liabilities
  4. Estimated current liabilities
  5. Reporting of current liabilities
  6. Accounting for contingent liabilities
  7. Nature of contingent liabilities
  8. Accounting issues
  9. Reporting of contingencies

7. Accounting for long term liabilities

  • Nature of long term liabilities
  • Reporting the issuance of bonds
  • Accounting for interest on bonds
  • Accounting for the extinguishment/retirement of bonds
  • Reporting of long term bonds

8. Accounting for leases

  • Nature of leases
  • Operating leases
  • Capital/finance leases
  • Reporting of finance leases

CAT II

1