FRANK

LIMITED LIABILITY COMPANIES

• Distinguish between public and private limited liability companies.
• List the conditions which apply to a private limited liability company.
• State the rights of shareholders of public limited liability company.
• Distinguish between ordinary shares and preference shares.
• Discuss the difference between cummulative and non cumulative preference shares.
• Describe the meaning of nominal capital and issued capital.
• Explain why loan stocks and debentures are issued and describe the difference between them.

PUBLISHED FINANCIAL STATEMENTS OF LIMITED LIABILITY COMPANIES

• Discuss the amount of information which profit and loss accounts of companies must/may contain as

specified in the IFRS.

• Discuss the functions of the income surplus account.
• Demonstrate accounting entries for issues, redemption of shares and debentures.
• Prepare balance sheet of limited liability companies giving details of share capital, assets, liabilities and reserves as indicated in the framework of the IFRS.
• Discuss in detail the framework for the preparation and presentation of financial statements.

INTERPRETATION OF FINANCIAL STATEMENTS

• Identify users of financial statements.
• Learn to calculate accounting ratios.
• Use accounting ratios for trend analysis and inter-company comparisons.

MODE OF DELIVERY

• Lectures.
• Presentations.
• Seminars.

MODE OF ASSESSMENT

• Assignments:two in all :Deadlines:

-first assignment:three weeks after start of session. -second assignment:seven weeks after start of session.

Further Reading

Case studies of IFRS implementation in Brazil, Germany, India, Jamaica, Kenya, Pakistan, South Africa and Turkey. Prepared by the United Nations Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR).

External Links

Deloitte | International Financial Reporting Standards (IFRS) - Keep up to date with current IFRS projects

Original texts of IAS/IFRS, SIC and IFRIC adopted by the Commission of the European Communities and published in Official Journal of the European Union http://ec.europa.eu/internal_market/accounting/ias_en.htm#adopted-commission

International Accounting Standards Board (2007): International Financial Reporting Standards 2007 (including International Accounting Standards (IAS(tm)) and Interpretations as at 1 January 2007), LexisNexis, ISBN 1-4224-1813-8