Gwybodaeth Modiwlau

Module Identifier
AC32920
Module Title
Financial Accounting 2
Academic Year
2018/2019
Co-ordinator
Semester
Semester 2 (Taught over 2 semesters)
Also available in
Pre-Requisite
Other Staff

Course Delivery

Delivery Type Delivery length / details
Seminar 12 x 1 Hour Seminars
Lecture 22 x 1 Hour Lectures
Lecture 22 x 2 Hour Lectures
 

Assessment

Assessment Type Assessment length / details Proportion
Semester Exam 3 Hours   Unseen written examination sat in Semester 2  70%
Semester Exam 3 Hours   Class Test  Class Test - Sat in Semester 1 examination period  30%
Supplementary Exam 3 Hours   Unseen written examination  Repeat failed element  70%
Supplementary Exam 3 Hours   Test  Repeat failed element  30%

Learning Outcomes

On successful completion of this module students should be able to:

Prepare and present financial statements (including notes) in accordance with the regulatory framework.

Explain, discuss, evaluate and calculate the presentation in and impact upon accounts of the following, with a comparison of latest versus previous treatment where pertinent:

  • government grants
  • borrowing costs
  • inventories and work in progress

Explain, discuss, evaluate and calculate the presentation in and impact upon accounts of the following, with a comparison of latest versus previous treatment where pertinent:

  • long-term contracts/ construction contracts
  • research and development
  • intangible assets
  • gains and losses on revaluation
  • long term liabilities
  • pensions
  • leases

Explain, discuss, evaluate and calculate the effect of economic and accounting approaches to income and capital measurement.

Explain and discuss the conceptual framework upon reporting financial performance.

Aims

This module aims to build upon the foundations of financial accounting established in AC11020. The module will deepen and extend knowledge of theoretical and practical issues which are currently debated in financial accounting.

Brief description

This module is concerned with the preparation of company accounts, and of the calculation of particular items included within those accounts. It provides a further analysis to the layout of company accounts and an appreciation of some of the contentious issues relating to their preparation - for example valuation methods and the accurate measurement of resources.

The module will cover various theoretical attempts to measure income and wealth and relates these to current financial reporting practices (International Financial Reporting Standards IFRS) with respect to asset valuation and profit measurements. In addition students are encouraged and introduced to legal and economic ways of thinking about income and value and to relate them to actual and potential accounting practice.

Content

1. FINANCIAL STATEMENTS
- Regulatory framework
- Definition, recognition and measurement of income and expenses, assets and liabilities
- Capital maintenance concept
- Components, presentation, structure, disclosure and formats of financial statements in accordance with the current regulatory framework
- Reporting company performance in accordance with the current regulatory framework
- Further analysis and requirements of non-current assets in accordance with the current regulatory framework especially in relation to property, plant and equipment (PPE).
- Methods of calculating depreciation and revaluation of PPE in accordance with the current regulatory framework
- Government grants and borrowing costs in relation to current accounting standards
- Stock, work in progress and long-term contracts/ construction contracts in relation to current accounting standards
- research and development and other intangible assets (including goodwill and brands) in relation to current accounting standards

2. INCOME AND CAPITAL MEASUREMENT
- Income measurement
- Economic and Accounting Income
- Hicks (No 1 and No 2 expost and exante)

3. CONCEPTUAL FRAMEWORK
- History of conceptual framework
- Underpinnings of the framework
- Framework issues
- Future of the framework

4. ACCOUNTING FOR PENSIONS
- Types of pensions
- History of accounting for pensions
- Accounting for pensions under current regulation

5. ACCCOUNTING FOR LONG TERM LIABILITIES AND LEASES
- Valuation issues
- Accounting under current regulation


- Why the need for deferred taxation
- Difference between accounting profit and taxable profit
- Regulatory requirements
- Compare and apply the various methods

Module Skills

Skills Type Skills details
Application of Number * Develop an easy familiarity with numerical data sources and numerical data * Apply numerical data to problem solving with care and accuracy * Assess the reasonableness of and interpret numerical solutions * Support assertions/arguments with appropriately developed and presented numerical data
Communication * Develop confidence in and clarity of oral communication via example class/tutorial participation * Develop clarity and focus of written communication via development of answers to self study questions * Develop and use appropriate subject-specific vocabulary in oral and written communication
Improving own Learning and Performance * Identify and distil the key issues covered by lectures, tutorials and self study * Identify and use a range of learning resources * Investigate benefits of small group working on self study * Structure study to accommodate intensive learning
Information Technology * Use a variety of electronic web- and library-based resources to review available information and retrieve pertinent information * Use spreadsheet software to complete elements of the self study
Personal Development and Career planning * Preparation for seminar tasks will encourage initiative, independence and self-awareness
Problem solving * Identify the precise problem to be solved * Assess which data are pertinent to the problem * Recognize that alternative solution methods might be available * Select and apply appropriate methods for solving the problem * Assess the reasonableness of problem solutions and interpret those solutions
Research skills * Identify which information sources are available to: * facilitate module study (understanding, wider reading) * provide data which allow application of module learning in a real world context * Properly reference/attribute information sources
Subject Specific Skills * Develop competence in interpreting and applying current accounting standards and be able to produce financial reporting standards * Understand that there are areas of further analysis that should be considered when dealing with the issues of valuation.
Team work * Develop experience of team work and develop team working skills via small group working on self study * Group work during seminars

Notes

This module is at CQFW Level 6