THE INSTITUTE OF FINANCE MANAGEMENT
BACC – II, BAIT-II, BBF-II, & BTX-II
SEM I 2025/26
PRINCIPLES OF FINANCIAL REPORTING/ INTERMEDIATE FINANCIAL ACCOUNTING
GROUP ASSIGNMENT
1.0 ASSIGNMENT OBJECTIVES
This is a group assignment of 15 students. The assignment is designed to give you an opportunity to
demonstrate your ability to apply the analytical and research skills learnt in the programme to analyse
problems, provide solutions and/or advise on potential courses of action. In addition, you will enjoy exploring
a subject area in detail, gain valuable experience in communicating your knowledge via the written word, and
enhance your grade.
2.0 OBJECTIVES OF THIS ASSIGNMENT
The main objective is to read the financial statements of a commercial company and examine the application
of the reporting standards
3.0 THE ASSIGNMENT PROBLEM
Collect five consecutive sets of financial statements (audited) (Range from 2019-2025) from any
company/organization listed on the Dar es Salaam Stock Exchange and Uganda Stock Exchange (For BTX
2), Nairobi Stock Exchange and Rwanda Security Exchange (For BAIT 2), and London Stock Exchange (For
BAC 2 and BBF 2) company/organisation with some of its assets are under lease contracts.
3.1 Part 1
(i) Examine with analytical examples how those companies treated Lease contracts in their financial
statements before and after adopting IFRS 16. (6 Marks)
(ii) Determine how the company's EBIT, EBITDA and Debt/Equity ratio have been impacted by
adopting IFRS 16. (10 Marks)
(iii) Also illustrates how the change of accounting standards from IAS 17 to IFRS 16 has been accounted
for in their financial statement as per IAS 8. (6 Marks)
(iv) Assume on 1st January 2023; Your company agreed to extend the Lease contracts for another five
years and obtain a 2% discount each year with payment commencing on 31st December 2022. The
incremental borrowing rate (IBR) on 1st January 2022 was 8%. Show the impact of the lease
arrangement in the financial statements of your company for the year ended 2022 and 2023. (30
Marks)
3.2 Part 2
Study the cash flow statements of your chosen company then perform the following
(i) Show how cash flows arising from revenue within the scope of IFRS 15 Revenue from Contracts with
Customer have been treated. Also, suggest how cash flow relating capitalised costs in scope of IFRS
15 (e.g incremental cost of obtaining a contract) will be treated. (8 Marks)
(ii) Illustrate how payments made on the inception of the lease, lease Payments that settle lease liability,
and lease payments not included in the measurement of lease liability will be treated. (8 Marks)
(iii) Illustrate treatment cash flows from discontinued operations (20 Marks)
3.5 Part 3
Provide a good summary of your findings and discuss them in terms of the performance of the company based
on Lease Contracts and Cashflow trends. Can you explain any variations? Do the annual reports refer to any
particular problems or future developments? (12 Marks)
3.6 References
This section provides you an opportunity to practice appropriate ways of writing references. There are several
text books which guide this (e.g. Saunders, M.N.K., Lewis, P., & Thornhill, A. (2012) Research methods for
business students. 4th edition. Harlow: FT Prentice Hall; and many others).
3.7 Appendices
Append all relevant workings and materials (e.g. copy of the financial statements). Number them in the order
in which you refer to them in the text.
4.0 Other Guidelines to the Paper
Must be well structured and to the point, typed, double-spaced (Times New Roman), font size 12, with ten (10)
pages maximum excluding title page, references and any appendices. All sources of authoritative statements
must be acknowledged properly.
5.0 Paper Due Date
The paper must be submitted on 20th February 2026 at 10:00 AM. Submission should be in soft copy (in a
Word format) that will also be used to check for plagiarism. Your soft copy should be sent to the following
email: financialreporting2024@[Link]. Your assignment's cover page should include your group
members' names and registration numbers listed in a table. Note that: copying somebody's work and buying
from other sources will result in the nullification of all papers involved. To be safe, try as much as possible to
be original.
6.0 Evaluation of the Paper
The Paper will be graded for a clear order and evidence that you have researched the given topic to a
sufficient degree. The paper caries not less than 15 percent of your total course evaluation. Such weight means
that you should give the assignments your best effort.