Module Information

Module Identifier
AB31120
Module Title
Advanced Financial Accounting
Academic Year
2022/2023
Co-ordinator
Semester
Semester 2 (Taught over 2 semesters)
Pre-Requisite
Reading List
Other Staff

Course Delivery

 

Assessment

Assessment Type Assessment length / details Proportion
Semester Exam 2 Hours   Test  30%
Semester Exam 3 Hours   Exam  Exam  70%
Supplementary Exam 2 Hours   Test  30%
Supplementary Exam 3 Hours   Exam  Exam  70%

Learning Outcomes

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

1. ​Describe, explain and critically evaluate the need for and uses of accounting for business combinations, and compare and contrast the alternative methods/approaches to group accounting.

2. Describe, explain and critically evaluate the importance of fair valuation and the treatment of goodwill in group accounting.

3. Prepare consolidated accounts under acquisition accounting (including accounting for associated undertakings); and compare acquisition with merger accounting techniques.

4. Explain, discuss, evaluate and calculate the presentation in and impact upon (group) accounts of goodwill and intangible assets, with a comparison of latest versus previous treatment where pertinent for foreign currency translation.

5. Explain and discuss the conceptual framework upon reporting financial performance as it pertains to group accounting and foreign currency translation.​

Brief description

The majority of large business organisations are groups, comprising several or many companies under common ownership. In reporting on the activities, position and performance of such organisations, combination of the financial reports of the individual group companies is necessary. This module introduces the conceptual and regulatory issues involved in this process and the actual techniques of group accounting. The module also addresses accounting for foreign currency transactions and translation, as required when groups or companies have activities / companies located overseas.

Content

GROUP ACCOUNTING
Need for 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


FOREIGN CURRENCY TRANSLATION
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

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 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.
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