Module Identifier AC30920  
Module Title FINANCIAL ACCOUNTING 3: GROUP FINANCIAL REPORTING  
Academic Year 2001/2002  
Co-ordinator Ms Megan Williams  
Semester Semester 2  
Pre-Requisite AC30820  
Course delivery Lecture   16 Hours  
  Seminar   6 Hours  
Assessment Course work   Class test   20%  
  Exam   2 Hours   80%  

Aims


Objectives, content and learning outcomes: The majority of large business organizations comprise a number of companies under common ownership, i.e. are groups of companies. In reporting on the activities, position and performance of such organizations, combination of the financial reports of the individual group companies is necessary. The objectives of this module are to introduce the conceptual and regulatory issues involved in this process and the techniques of group accounting.


The module will also address accounting for foreign currency transactions and translation, as required when groups or companies have activities / companies located overseas. Finally, the module will cover calculation of and accounting for deferred taxation.


At the end of the module students should:


a) be able to recognize the need for group accounting and appreciate the differences between, uses and relative merits of the various methods of group accounting;
b) be aware of relevant issues, e.g. those of “fair valuation” and the treatment of goodwill, which are important to the understanding of group accounting;
c) be competent in the use of basic acquisition accounting (including accounting for associated undertakings) and merger accounting techniques;
d) have a basic understanding of accounting for foreign currency transactions and be able to apply this; and
e) have a basic understanding of accounting for deferred taxation and be able to apply this; and
f) be knowledgeable as to the associated current UK regulatory (including statutory) requirements.

Reading Lists

Books
R Dodge. (1996) Group Financial Statements. Chapman and Hall. OR
P Taylor. (1996) Consolidated Financial Reporting. Paul Chapman Publishing