Lahore University of Management Sciences. ACCT 202 Theory and Concepts of Accounting Islamic Perspective Fall Semester 2016

Transcription

1 ACCT 202 Theory and Concepts of Accounting Islamic Perspective Fall Semester 2016 Instructor Abdul Rauf Room No Office Hours Telephone Ext TA TA Office Hours Course URL (if any) suraj.lums.edu.pk/~ro/ COURSE BASICS Credit Hours 3 Lecture(s) Nbr of Lec(s) Per Week 2 Duration One hour and fifty minutes, each. Recitation/Lab (per week) Nbr of Lec(s) Per Week N/A Duration N/A Tutorial (per week) Nbr of Lec(s) Per Week On need basis Duration Appropriate to cover the content. COURSE DISTRIBUTION Core Elective Open for Student Category Close for Student Category Elective COURSE DESCRIPTION This course introduces students with theory and concepts of Islamic accounting, the contemporary accounting practices for Islamic Finance and accounting for Zakat. This course emphasizes the need of appropriate accounting framework and acceptable accounting practices to promote an equitable and just economic system. Students will learn the role that accounting functions performs in the Islamic society, what type of information should be captured, and how that information should be processed and presented to the society and different stakeholders. This course will also give an orientation towards accounting standards set by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) as an alternative accounting framework.

2 COURSE PREREQUISITE(S) Lahore University of Management Sciences Principles of Financial Accounting COURSE OBJECTIVES The objectives of the course are to develop an understanding of: Role of accounting function in the Islamic society; Nature of information that should be reported under Islamic accounting; Accounting treatment of business transactions under AAOIFI; Accounting for Zakat; and Importance of ethical accounting practices. LEARNING OUTCOMES On completion of this course, students should be able to: Discuss the role of accounting function in the Islamic society; Describe nature of information that should be reported under Islamic accounting; Account for business transactions under AAOIFI; Work out Zakat liability and discuss its usages; and Demonstrate importance of ethical accounting practices. UNDERGRADUATE PROGRAM LEARNING GOALS & OBJECTIVES General Learning Goals & Objectives Goal 1 Effective Written and Oral Communication Objective: Students will demonstrate effective writing and oral communication skills Goal 2 Ethical Understanding and Reasoning Objective: Students will demonstrate that they are able to identify and address ethical issues in an organizational context. Goal 3 Analytical Thinking and Problem Solving Skills Objective: Students will demonstrate that they are able to identify key problems and generate viable solutions. Goal 4 Application of Information Technology Objective: Students will demonstrate that they are able to use current technologies in business and management context. Goal 5 Teamwork in Diverse and Multicultural Environments Objective: Students will demonstrate that they are able to work effectively in diverse environments. Goal 6 Understanding Organizational Ecosystems Objective: Students will demonstrate that they have an understanding of Economic, Political, Regulatory, Legal, Technological, and Social environment of organizations. Major Specific Learning Goals & Objectives Goal 7 (a) Program Specific Knowledge and Understanding Objective: Students will demonstrate knowledge of key business disciplines and how they interact including application to real world situations (Including subject knowledge). Goal 7 (b) Understanding the science behind the decision-making process (for MGS Majors) Objective: Students will demonstrate ability to analyze a business problem, design and apply appropriate decision-support tools, interpret results and make meaningful recommendations to support the decision-maker

3 PROGRAM LEARNING GOALS AND OBJECTIVES Goal 1 Effective Written and Oral Communication Goal 2 Ethical Understanding and Reasoning Goal 3 Analytical Thinking and Problem Solving Skills Goal 4 Application of Information Technology Goal 5 Teamwork in Diverse and Multicultural Environments Goal 6 Understanding Organizational Ecosystems Goal 7 (a) Discipline Specific Knowledge and Understanding Goal 7 (b) Understanding the science behind the decision-making process Lahore University of Management Sciences COURSE LEARNING OBJECTIVES Demonstrate importance of ethical accounting practices. Discuss the role of accounting function in the Islamic society; Describe nature of information that should be reported under Islamic accounting; Account for business transactions under AAOIFI; Work out Zakat liability and discuss its usages; and COURSE ASSESSMENT ITEM GRADING BREAKUP AND POLICY Quizzes (n-1) : 15% (four announced quizzes) Attendance: 10% Class Participation 55% Midterm Examination: 30% Final Examination: 40% EXAMINATION DETAIL Midterm Exam Yes/No: Combine Separate: Duration: Preferred Date: Exam Specifications: Yes N/A 2 hours Scenario based MCQs Final Exam Yes/No: Combine Separate: Duration: Exam Specifications: Yes N/A 2 hours Scenario based MCQs

4 SESSION TOPICS READINGS SESSION OBJECTIVES 1 Introduction to the course Role of accounting function in Islamic society IFRS framework AAOIFI s FAS 1 Explore the specific role accounting function plays in society 4 Stakeholder of accounting information and their information needs 5-6 The forms of business organizations The Principle Of Limited Liability By Justice Mohammad Taqi Usmani 7-8 Measuring performance of the business difference approaches Accounting Theory (Book Chapter) Social Accounting (Book Chapter) 9 Islamic accounting worldview Islamic Accounting A Primer (Shahul Hameed) Introduction to AAOIFI framework Accounting for Islamic Finance A Primer (Abdul Rauf, Saad Azmat) 13 Review and consolidation - 14 Mid Term Exam Identify the stakeholders of accounting function Define different information needs of the stakeholders Discuss uses of accounting information Discuss the legitimacy of modern business model and the concept of limited liability Discuss the mechanism to measure performance of a business Give a complete sketch of Islamic accounting Introduce students to financial reporting framework developed by AAOIFI Accounting for Musharka and Mudarba Discuss accounting treatment of Musharka and Mudarba financing Discuss the Musharka and Mudarba for accepting deposits Accounting for Ijara Discuss the accounting treatment of Ijara and Ijara munthiya bittamleek in the books of lessee and lessor Accounting trade based financing Discuss the accounting treatment of murabaha, musawwama, salam and istisna Zakat Accounting FAS 9 Waseela Foundation: Accounting for Zakat Reading annual report of Islamic Technical Note financial institutions Islamic banks 27 Code of ethics for accountants and auditors of Islamic financial institutions Code of ethics (statement 1 and 2 by AAOIFI) Discuss the concept of zakat and its working Describe the process to calculate zakat liability and its disposal Describe the process to decode information presented in annual reports Introduce with codes of ethics for accountants and auditors developed by AAOIFI and ICAP

5 28 Review and consolidation - TEXTBOOK(S)/SUPPLEMENTARY READINGS Reading Material IFRS Framework AAOIFI text Case studies and technical notes will be provided during the classes