MMM8010 - FINANCIAL ACCOUNTING

Module Identifier

MMM8010

Module Title

FINANCIAL ACCOUNTING

Academic Year

2004/2005

Co-ordinator

Mr Teerooven Soobaroyen

Semester

Semester 1

Course delivery

Lecture

18 Hours

Seminars / Tutorials

5 Hours

Assessment

Assessment Type	Assessment Length/Details	Proportion
Semester Exam	2 Hours	70%
Semester Assessment	One written assignment	30%
Supplementary Exam	2 Hours	100%

Learning outcomes

Having completed this module, student should be able to:

explain the various roles of the accounting function in organisations
explain, apply and illustrate the rules by which assets, liabilities, income and expense are determined for insertion into financial accounts.
describe and explain the conventions which underpin financial accounting.
describe, compare and contrast the different forms of UK business organisations
Interpret a simple company trial balance and then prepare a set of accounting statements (profit and loss account, balance sheet and cash flow statement).
interpret simple company financial statements, perform financial ratio analysis and prepare a simple analyst style report to interpret underlying business history, position and prospects.
explain and evaluate the effects of selected earnings management reporting issues that can impact on the financial analysis excercise.

Aims

This module aims to give students a practical grasp of the basics of financial reporting (context, purposes, and the regulatory framework), the recording of business transactions and the preparation, understanding and analysis of financial accounts (being the profit and loss account, balance sheet and cash flow statement). The over-riding concern is that students should not be panicked or cowed when faced with financial accounting information; rather, that they should be able properly to discern and interpret financial accounting information, and contribute usefully to discussions and decision making based on or about it.

The module also aims to assist the development of a variety of personal transferable skills by encouraging students to:

identify and distil the key issues covered by lectures, tutorials and recommended readings
develop basic information accessing and research skills; discriminate between relevant and irrelevant information for the purposes of decision making; analyse data, apply judgement and solve problems
communicate effectively both orally and in writing; participate actively in tutorials either by leading discussions or responding to issues raised; and work under pressure and meet deadlines

Brief description

This module is intended to provide a practical understanding of the context, preparation and analysis of financial accounts, as pertinent to the non-specialist general manager.

Content

context and purposes of financial reporting in the UK
regulatory framework and standards for financial reporting
accounting concepts, policies and treatments
recording business transactions
preparation of financial staments (profit and loss account, balance sheet and cash flow statement)
interpretation and analysis of financial statements
selected issues in interpreting financial statements

Reading Lists

Books
Lyn M Fraser and Aileen Ormiston (1998) Understanding Financial Statements, Pearson
R H Parker (1999) Understanding Company Financial Statements, Penguin
P Attril and E McLaney (2004) Accounting and Finance for Non-specialists, Prentice Hall
T Davies and B Pain (2002) Business Accounting and Finance, McGraw Hill

Notes

This module is at CQFW Level 7