| Module Identifier |
AC10120 |
| Module Title |
INTRODUCTION TO FINANCIAL ACCOUNTING |
| Academic Year |
2001/2002 |
| Co-ordinator |
Professor Kevin Holland |
| Semester |
Semester 1 |
| Mutually Exclusive |
AC11020 |
| Course delivery |
Lecture | 15 Hours |
| |
Tutorial | 4 Hours |
| |
Practical | 2 Hours |
| |
Practical | 2 Hours |
| Assessment |
Exam | 3 Hours AC10210: plus an objective test (20%). CI28220: plus accounting software based assessment (20%). | 80% |
Brief description
This module will provide non-accounting and finance students with an introduction to: the assumptions and techniques underlying the preparation of financial statements, the information needs of the various stakeholders, interpretation of financial statements, and current issues in financial reporting.
Objectives
By law limited companies are required to produce financial statements on a regular basis. A set of financial statements typically consists inter alia of three main documents:
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A list of assets and liabilities as at a given date ? the balance sheet
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A summary of the income and costs during a period ? the profit and loss account
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A summary of the cash received and paid during a period ? the cash flow statement
The purpose for requiring companies to produce financial statements is to help various stakeholders in their decision making.
This module will provide non-accounting and finance students with an introduction to: the assumptions and techniques underlying the preparation of financial statements, the information needs of the various stakeholders, interpretation of financial statements, and current issues in financial reporting. Students taking CI28220 will receive instruction in the use of SAGE a commercial bookkeeping package.
Learning outcomes
On completion of the module the student should be able to:
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Prepare financial statements
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Critically discuss the assumptions underlying the preparation of financial statements
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Appreciate the extent to which financial statements meet the information needs of stakeholders
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Use financial statements to appraise the relative strength of a company
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Demonstrate an understanding of the limitations of current financial reporting practices
In addition, students taking CI28220 will be able to record transactions and prepare summary financial statements using SAGE a commercial bookkeeping package.
Outline syllabus
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Introduction to financial accounting and financial reporting; contents of financial reports; users of financial reports.
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Valuation of assets and liabilities; recognition of income and expenditure; regulation of financial reporting; accounting conventions; international considerations; limitations of financial accounting.
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Financing and structuring of companies; ownership and control; balance sheet equation.
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Calculation of profit: stock, prepayments, accruals, depreciation, bad debts, and taxation.
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Double entry bookkeeping.
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Cashflow statements.
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Unincorporated entities: sole traders.
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Segmental reporting; inflation; environmental reporting; foreign currency translation.
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Interpretation of financial reports; limitation of financial reports; Creative accounting.
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Course conclusions and current developments in financial reporting.
Reading Lists
Books
P. Ateril and E. McLaney. (1999)
Accounting and Finance for Non-specialists. 3rd. Prentice Hall
A. Thomas. (1999)
An Introduction to Financial Accounting. 3rd. McGraw Hill