|Delivery length / details
|20 x 2 Hour Lectures
|20 x 1 Hour Lectures
|8 x 1 Hour Seminars
|Assessment length / details
|2 Hours Unseen written examination
|2 Hours Unseen written examination Repeat failed element
|Test Repeat failed element
On successful completion of this module students should be able to:
* Describe and explain the need for and uses of accounting for business combinations, and compare and contrast the alternative methods/approaches to group accounting.
* Describe and explain the importance of fair valuation and the treatment of goodwill in group accounting.
* Prepare consolidated accounts under acquisition accounting (including accounting for associated undertakings); and compare acquisition with merger accounting techniques.
* Explain, discuss, evaluate and calculate the presentation in and impact upon (group) accounts of the following, with a comparison of latest versus previous treatment where pertinent for foreign currency translation.
* Explain and discuss the conceptual framework upon reporting financial performance as it pertains to group accounting and foreign currency translation.
* Explain, discuss and contrast the accountability, governance, stewardship, and financial regulation in the public and not-for profit sector.
The module covers three main topic areas namely group accounting, foreign currency translation and deferred taxation, which are essential subject matter within any high-quality undergraduate degree in accounting and/or finance; and which are expected by:
- Honours Degree Subject Benchmark Statement: Accounting (2007), Quality Assurance Agency for Higher Education
- Honours Degree Subject Benchmark Statement: Finance (2007), Quality Assurance Agency for Higher Education
- Institute of Chartered Accountants in England and Wales
- Association of Chartered Certified Accountants
- Chartered Institute of Management Accountants
- Institute of Chartered Accountants of Scotland
The module will also address accounting for foreign currency transactions and translation, as required when groups or companies have activities / companies located overseas.
1. GROUP ACCOUNTING (Lectures 1 to 20)
- Why do group accounting
- Regulatory requirements
- Difference between book value and fair value
- Understanding control
- Comparing and understanding the different methods of group accounting (current methods and history) for acquisition accounting techniques
- Full consolidation (entity and proprietary)
- Proportional consolidation
- Merger accounting (background and history)
- Subsidiaries and non controlling interests
- Regulatory requirements and accounting for associates and joint arrangements
- Goodwill and intangible assets
- Impairment reviews
- Why the need for foreign currency translation
- Regulatory requirements
- Individual company translation of transactions
- Translation of company accounts for consolidation
- Effects of changes in foreign exchange rates
- Impact and effects of hyperinflation
- What is earnings management?
- For what purposes might earnings management be attempted
- In which settings is propensity to attempt to manage earnings heighted?
- What methods and mechanisms are employed in order to manage earnings?
- How may researchers, investment analysts, etc. detect earnings management?
- What is the effect of earnings management?
|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
|* 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
|* 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
|* 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
|* 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 understanding and appropriately applying Group accounting techniques comparing theory to practice * Develop competence in understanding the difficulties for large organisations to provide financial information that is both useful, understandable, and relevant.
|* Develop experience of team work and develop team working skills via small group working on self study * Group work during seminars
This module is at CQFW Level 6