| Module Identifier |
AC30920 |
| Module Title |
FINANCIAL ACCOUNTING 3: GROUP FINANCIAL REPORTING |
| Academic Year |
2004/2005 |
| Co-ordinator |
Ms Megan R Williams |
| Semester |
Semester 2 |
| Pre-Requisite |
AC30820 |
| Course delivery |
Lecture | 18 Hours |
| |
Seminars / Tutorials | 5 Hours |
| Assessment |
| Assessment Type | Assessment Length/Details | Proportion |
|---|
| Semester Exam | 2 Hours | 80% |
| Semester Assessment | Class test | 20% |
| 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 'fair 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 overseas 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
-
list the various accounting treatments to the underlying conceptual framework set out in the ASB's Statement of Principles
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.
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.
Content
-
various methods of group accounting
-
treatment of goodwill and fair 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 Lists
Books
** Recommended Text
Pierce, A and Brennan, N (2003) Principles and Practice of Group Accounts A European Perspective
1st edition. Thomson Learning
Dodge, R (1996) Group Financial Statements
Chapman and Hall
Ernst & Young (2001) UK & International GAAP
7th edition. Macmillan
Taylor, P. (1996) Consolidated Financial Reporting
Paul Chapman Publishing
** Supplementary Text
Lewis, R and Pendrill, D (2004) Advanced Financial Accounting
7th edition. Prentice Hall
Alexander, D, Britton, A and Jorissen, A (2003) International Financial Reporting and Analysis
Thomson
Elliot, B and Elliot J (2005) Financial Reporting and Accounting
9th edition. Prentice Hall
Notes
This module is at CQFW Level 6