AC10120 - INTRODUCTION TO FINANCIAL ACCOUNTING

Module Identifier

AC10120

Module Title

INTRODUCTION TO FINANCIAL ACCOUNTING

Academic Year

2004/2005

Co-ordinator

Mr Iain McDougall

Semester

Semester 1

Mutually Exclusive

AC11020

Course delivery

Lecture

14 Hours

Seminars / Tutorials

5 Hours

Practical

2 Hours

Practical

2 Hours

Assessment

Assessment Type	Assessment Length/Details	Proportion
Semester Exam	3 Hours	80%
Semester Assessment	1 Hours Objective test	20%
Supplementary Exam	3 Hours	100%

Learning outcomes

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

appreciate the extent to which financial statements meet the information needs of stakeholders
compare and contrast the various types of business entity
describe and explain the conventions which underpin financial accounting
explain the logical basis of the accounting equation
explain the purpose and structure of the main financial statement
identify, define and explain the elements of financial statements
explain, apply and illustrate and rules by which assets, liabilities, income and expense are determined for insertion into financial accounts
interpret a trial balance and thence prepare a set of accounting statements
critically discuss the assumptions underlying the preparation of financial statements
evaluate the position and performance of a business using ratio analysis
describe, explain and criticise the common simple methods of financial statement analysis
demonstrate an understanding of the limitations of current financial reporting practice

Aims

The module will provide non-accounting and finance students with an introduction to the preparation and analyse of the three main financial accounting statements: the balance sheet, profit and loss account and cash flow statement. The module also aims to assist the development of a variety of personal transferable skills by encouraging students to:

develop a continuing interest in accounting, and obtain satisfaction from its study and practice
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

Brief description

This module will provide non-accounting and finance students with an introduction to: the assumptions and techniques underlying the preparation of financial statements, the information needs of the various stakeholders, interpretation of financial statements, and current issues in financial reporting.

Content

Introduction to financial accounting and financial reporting; contents of financial reports; users of financial reports.
Valuation of assets and liabilities; recognition of income and expenditure; regulation of financial reporting; accounting conventions; international considerations; limitations of financial accounting.
Financing and structuring of companies; ownership and control; balance sheet equation.
Calculation of profit: stock, prepayments, accruals, depreciation, bad debts, and taxation.
Double entry bookkeeping.
Cashflow statements.
Unincorporated entities: sole traders.
Segmental reporting; inflation; environmental reporting; foreign currency translation.
Interpretation of financial reports; limitation of financial reports; Creative accounting.
Course conclusions and current developments in financial reporting.

Reading Lists

Books
** Recommended Text
Dyson, J R (2004) Accounting for Non-Accounting Students 6th edition. Prentice Hall
Davies, T and Pain, B Business Accounting and Finance McGraw Hill
Ateril, P. and McLaney, E. (2003) Accounting and Finance for Non-specialists 4th edition. Prentice Hall

Notes

This module is at CQFW Level 4