Module Information

Module Identifier
AC30900
Module Title
FINANCIAL ACCOUNTING 3: GROUP FINANCIAL REPORTING
Academic Year
2008/2009
Co-ordinator
Ms Megan R Williams
Semester
Semester 1
Pre-Requisite
AC32920

Course Delivery

Delivery Type Delivery length / details
Lecture 15 Hours.
Seminars / Tutorials 4 Hours.
 

Assessment

Assessment Type Assessment length / details Proportion
Semester Assessment Class test  20%
Semester Exam 2 Hours   80%
Supplementary Exam 2 Hours   100%

Learning Outcomes

Having followed this module a student should be able to:

* Describe and explain the need for group accounting and appreciate the differences between (and contrast), uses and relative merits of the various methods of group accounting

* Describe and explain the relevant issues in group accounting e.g. those of 'rair valuation? and the treatment of goodwill

* Prepare consolidated accounts applying basic acquisition accounting (including accounting for associated undertakings) and merger accounting techniques

* Describe, explain and apply the suitable methods for accounting/consolidating of foreign currency transactions and oversea'r company activities


  • Describe the various methods of deferred taxation and be able to apply and calculate the different methods

* Describe and explain the relevant regulatory framework covering group accounting, foreign currency translation and deferred taxation

Aims

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 actual 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.

Brief description

This module focuses on the particular accounting and reporting issues consequent upon various types of corporate structure. It covers merger and acquisition accounting, accounting for associates and joint ventures, and the treatment of goodwill. The module will also cover accounting for foreign currency transactions and accounting for deferred taxation.

Content

  • Various methods of group accounting
  • Treatment of goodwill and 'rair valuation?
  • Accounting for foreign currency transactions
  • Accounting for deferred taxation
  • The regulatory framework, covering group accounting including statutory requirements, foreign currency translation and deferred taxation

Transferable skills

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

  • Identify and distil key features 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

Reading List

Recommended Text
Dodge, R (1996) Group Financial Statements Chapman and Hall Primo search Ernst & Young International GAAP 2005, If purchase GAAP ensure that you fill in the student discount voucher - about £35 instead of £95!) Lexis Nexis Primo search Pierce, A and Brennan, N (2003) Principles and Practice of Group Accounts A European Perspective 1st edition Thomson Learning Primo search Taylor, P. (1996) Consolidated Financial Reporting Paul Chapman Publishing Primo search Supplementary Text
Alexander, D, Britton, A and Jorissen, A (2003) International Financial Reporting and Analysis Thomson Primo search Elliot, B and Elliot J (2005) Financial Reporting and Accounting 9th edition Prentice Hall Primo search Lewis, R and Pendrill, D (2004) Advanced Financial Accounting 7th edition Prentice Hall Primo search

Notes

This module is at CQFW Level 6