ESF:MPF_MUST IFRS 1 - Course Information

MPF_MUST International Financial Reporting 1

Extent and Intensity

2/2/0. 8 credit(s). Type of Completion: zk (examination).
In-person direct teaching

Teacher(s)

Mgr. Ing. Filip Hampl, Ph.D., LL.M. (lecturer)
prof. Ing. Eva Horvátová, CSc. (lecturer)
Mgr. Ing. Filip Hampl, Ph.D., LL.M. (seminar tutor)

Guaranteed by

prof. Ing. Eva Horvátová, CSc.
Department of Finance – Faculty of Economics and Administration
Contact Person: Kristina Charvátová
Supplier department: Department of Finance – Faculty of Economics and Administration

Prerequisites

The course assumes knowledge of financial accounting and financial statements within the scope of the course BPF_FIU1 Financial Accounting 1, economic knowledge related to the asset and financial structure of business companies, business financing and financial instruments within the scope of the course BPF_FIMG Financial Management, as well as basic legal knowledge and skills within the scope of the course BPP_ZAPR Introduction to Law.

Course Enrolment Limitations

The course is also offered to the students of the fields other than those the course is directly associated with.
The capacity limit for the course is 95 student(s).
Current registration and enrolment status: enrolled: 0/95, only registered: 136/95, only registered with preference (fields directly associated with the programme): 111/95

fields of study / plans the course is directly associated with

• Finance (programme ESF, N-FIN)
• Corporate Finance, Accounting, and Taxes (programme ESF, N-FIN)
• Financial Markets, Institutions and Technologies (programme ESF, N-FIN)

Abstract

This course aims to acquaint students with the principles and requirements of International Financial Reporting Standards (IFRS), focusing on the recognition, initial and subsequent measurement and derecognition of financial statement items, along with the preparation and presentation of financial statements. Students will develop knowledge of and skills in understanding and applying IFRS standards to evaluate economic transactions and events within a reporting entity, establish accounting policies and prepare, interpret and analyse financial statements.

Learning outcomes

After completing the course, the student should be able to do the following:

1. Discuss and explain the role of International Financial Reporting Standards (IFRS) in achieving global consistency in financial reporting.
2. Understand the theoretical framework for preparing financial statements and evaluate the qualities of useful accounting information.
3. Apply the principles and guidelines of the Conceptual Framework for Financial Reporting and specific IFRS standards for the recognition, initial and subsequent measurement and derecognition of items in financial statements.
4. Develop accounting policies that fairly represent economic transactions and other events in compliance with IFRS standards.
5. Present, interpret and analyse financial statements prepared in accordance with IFRS standards.

Key topics

Lectures:

1. Introduction to International Financial Reporting Standards (IFRS), regulatory framework, distinctions between unification and harmonisation in accounting, the IFRS Foundation and the roles of the IASB and ISSB boards. Conceptual Framework for Financial Reporting – objectives, purpose, qualitative characteristics of useful financial information, elements of financial statements, recognition and derecognition criteria, capital maintenance concept. Measurement principles and bases in the Conceptual Framework for Financial Reporting, fair value under IFRS 13 Fair Value Measurement. Accounting conservatism vs. fair value accounting.
2. Principles for preparing financial statements in accordance with IFRS I. Standards IFRS 18 Presentation and Disclosure in Financial Statements and IAS 7 Statement of Cash Flows. Components, structure and content of financial statements, limitations in interpreting and analysing financial statements.
3. Principles for preparing financial statements in accordance with IFRS II. Standards IAS 8 Basis of Preparation of Financial Statements and IAS 10 Events after the Reporting Period. Principles for the preparation of financial statements. Retrospective changes in accounting policies, retrospective correction of errors, and prospective changes in accounting estimates in financial statements. Reporting of subsequent events and their significance for users of the financial statements.
4. Tangible non-current assets I. IAS 16 Property, Plant and Equipment. Requirements for recognition and derecognition, initial measurement, subsequent measurement models and disclosure of tangible non-current assets under IAS 16.
5. Tangible non-current assets II. Other standards for reporting tangible non-current assets – IAS 40 Investment Property and IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. Requirements for recognition and derecognition, initial and subsequent measurement and disclosure of investment property and non-current assets held for sale. Reporting of discontinued operations. Related standards – IAS 20 Accounting for Government Grants and Disclosure of Government Assistance and IAS 23 Borrowing Costs.
6. Intangible non-current assets under IAS 38 Intangible Assets. Recognition criteria for purchased and internally generated intangible assets, measurement and disclosure. Accounting for research and development. Distinguishing goodwill from other intangible assets in relation to IFRS 3 Business Combinations.
7. Leases under IFRS 16 Leases. Definition of a lease and identifying a lease in a contract. Recognition, measurement and reporting of leases by lessees. Distinguishing, recognising, measuring and reporting finance and operating leases by lessors. Disclosure requirements.
8. Impairment of assets under IAS 36 Impairment of Assets. Procedure for carrying assets at an amount corresponding to the ability of the asset to generate economic benefits for the reporting entity. Defining a cash-generating unit, determining the recoverable amount and testing assets for impairment, including goodwill and corporate assets. Reversal of previously recognised impairment losses. Disposal of a part of a cash-generating unit that includes goodwill. Disclosure requirements.
9. Financial assets and financial liabilities under IAS 32 Financial Instruments: Presentation, IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures I. Recognition, measurement and reporting of financial assets measured at amortised cost (AC), financial assets measured at fair value through other comprehensive income (FVOCI) and financial assets measured at fair value through profit or loss (FVPL).
10. Financial assets and financial liabilities under IAS 32 Financial Instruments: Presentation, IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures II. Impairment of financial assets, including the ECL model and the simplified impairment approach using a provision matrix. Recognition, classification, measurement and reporting of financial liabilities. Disclosure requirements.
11. Inventories under IAS 2 Inventories in relation to IAS 41 Agriculture. Recognition requirements, measurement principles and disclosure of inventories. IAS 37 Provisions, Contingent Liabilities and Contingent Assets. Recognition, measurement and reporting requirements for provisions. Disclosure of contingent assets and contingent liabilities in the notes to the financial statements.
12. Non-financial reporting according to IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures.

Seminars:

1. The importance of the Conceptual Framework for Financial Reporting. Definitions of financial statement elements (assets, liabilities, equity, expenses, income), measurement bases and the concept of capital maintenance.
2. Determination and calculation of fair value in accordance with IFRS 13 requirements. Application of valuation techniques.
3. Preparation of the statement of financial position, statement of comprehensive income and statement of changes in equity in compliance with IFRS 18.
4. Preparation of the statement of cash flows in accordance with IAS 7. Corrections of errors in financial statements and changes in estimates under IAS 8. Effects of corrections of errors, changes in accounting policies and changes in estimates on users of financial statements.
5. Classification of tangible non-current assets under IAS 16, IAS 40 and IFRS 5. Determination of costs, depreciation calculation and application of the historical cost model and revaluation model.
6. Accounting and reporting for asset disposals and government grants under IAS 20. Calculation of the capitalisation rate. Comprehensive case study on reporting tangible non-current assets.
7. Reporting of intangible assets, both acquired and internally developed, in accordance with IAS 38. P-I-R-A-T-E conditions for recognising development and presenting it in the statement of financial position. Comprehensive case study.
8. Recognition, measurement and reporting of leases by lessees and lessors. Calculation of the implicit interest rate, accounting for the right-of-use asset, lease liability and investment in the lease. Comprehensive case study.
9. Identification of indicators of impairment of an asset and a cash-generating unit under IAS 36. Determination of the recoverable amount. Testing individual assets, cash-generating units and corporate assets for impairment. Recognition of impairment losses.
10. Specific issues in testing goodwill for impairment under IAS 36. Reversal of impairment losses. Comprehensive case study of asset impairment in the reporting entity, interpretation and analysis of the prepared financial statements.
11. Classification of financial assets – performing the business model test and the SPPI test. Measurement, accounting and reporting of financial assets at amortised cost (AC), fair value through profit or loss (FVPL) and fair value through other comprehensive income (FVOCI). Calculation of allowances using the provision matrix. Distinguishing equity instruments and debt instruments, including differences in financing costs.
12. Reporting of inventories in financial statements in accordance with IAS 2 and the application of cost formulas. Recognition and calculation of provisions under IAS 37. Distinguishing provisions from contingent assets and contingent liabilities. Comprehensive case study.

Study resources and literature

required literature
• HÝBLOVÁ, Eva and Filip HAMPL. Mezinárodní standardy účetního výkaznictví. Studijní text (International Financial Reporting Standards. Study text). 1., elektronické vydání. Brno: Masarykova univerzita, 2020, 189 pp. ISBN 978-80-210-9580-9. URL, URL info
• HAMPL, Filip. Mezinárodní účetní výkaznictví 1: Cvičebnice příkladů k přednáškám a seminární výuce. Brno: Masaryk University, 2026. Available online in the interactive syllabus in IS MUNI.
• ERNST YOUNG. International GAAP 2026: Generally Accepted Practice for IFRS Accounting and IFRS Sustainability Disclosures [online]. Ernst & Young Global Limited, 2025. 4962 s. Dostupné online.
• Aktuální znění IFRS standardů a IFRIC interpretací dostupné v nařízení Komise (EU) 2023/1803 ze dne 13. srpna 2023, kterým se přijímají některé mezinárodní účetní standardy v souladu s nařízením Evropského parlamentu a Rady (ES) č. 1606/2002 (konsolido

recommended literature
• BRAGG, Steven M. IFRS guidebook. Centennial, Colorado: Accounting Tools, 2019, xiv, 433. ISBN 9781642210316. info
• KRUPOVÁ, Lenka. IFRS : mezinárodní standardy účetního výkaznictví, interpretace a aplikace v podnikové praxi. 3. vydání. Praha: 1. Vox, 2019, iv, 740. ISBN 9788087480700. info
• DVOŘÁKOVÁ, Dana. Finanční účetnictví a výkaznictví podle mezinárodních standardů IFRS. 5. aktualizované vydání. Brno: BizBooks, 2017, 368 pp. ISBN 978-80-265-0692-8. info
• ROBERT, Mládek. IFRS and US GAAP: accounting policies and procedures. 2017. ISBN 978-80-7502-194-6. info

Approaches, practices, and methods used in teaching

The course includes 2 hours of lectures and 2 hours of seminars each week. Lectures provide theoretical explanations, supplemented by the solving of example problems and accounting scenarios. Seminars emphasise discussion and practical work through exercises and case studies focused on the recognition, valuation and derecognition of assets and liabilities, as well as the recognition of expenses and revenues in accordance with International Financial Reporting Standards (IFRS). Students are required to engage in self-study of the assigned literature during the semester.

Method of verifying learning outcomes and course completion requirements

A written exam concludes the course. The requirements to sit for the exam are (i) seminar attendance (max. 3 unexcused absences), (ii) active participation in the form of presentations of assigned tasks and participation in discussion or problem-solving during the semester (min. 6 points), and (iii) passing the mid-term assessment. To complete the course, students must obtain at least 60 points in total from the exam (max. 80 points) and the mid-term assessment (max. 20 points). When achieving the minimum of 60 points, points obtained for active participation in seminars during the semester (max. 12 points) are also included in the final evaluation.

Caution: "Any copying, recording or leaking of the exam; use of unauthorised tools, aids or communication devices; or other disruptions of the objectivity of exams (credit tests) will be considered noncompliance with the conditions for course completion as well as a severe violation of the scholastic rules. A student found in violation will have a grade of F recorded in the Information System of Masaryk University, and the dean will initiate disciplinary proceedings that may result in suspension or expulsion. The aforementioned disciplinary procedure relates to all the activities comprising the final evaluation of the course."

Alternate completion

The exact above-mentioned requirements for completing the course apply to students studying abroad (e.g. Erasmus) with an individual study plan (ISP), except for compulsory attendance (an alternative assignment is provided). More information on the alternative assignment is given in the course interactive syllabus. Students are required to contact the guarantor in the first teaching week of the semester and arrange the deadlines for fulfilling the assignment.

Language of instruction

Czech

Follow-Up Courses

• MPF_KLIN Accounting and Tax Clinic
• MPF_UOKK International Financial Reporting 2

Study support

https://is.muni.cz/auth/el/econ/podzim2026/MPF_MUST/index.qwarp

Further Comments

Study Materials
The course is taught annually.
The course is taught every week.

Listed among pre-requisites of other courses

• MPF_KLIN Accounting and Tax Clinic
  MPF_MUST  
• MPF_UOKK International Financial Reporting 2
  MPF_MUST && !MPF_FIU3 && !MPF_UCFI  

• Enrolment Statistics (recent)
  
• Permalink: https://is.muni.cz/course/econ/autumn2026/MPF_MUST