Module Identifier |
AC10120 |
Module Title |
INTRODUCTION TO FINANCIAL ACCOUNTING |
Academic Year |
2006/2007 |
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:
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appreciate the extent to which financial statements meet the information needs of stakeholders
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compare and contrast the various types of business entity
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describe and explain the conventions which underpin financial accounting
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explain the logical basis of the accounting equation
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explain the purpose and structure of the main financial statement
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identify, define and explain the elements of financial statements
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explain, apply and illustrate and rules by which assets, liabilities, income and expense are determined for insertion into financial accounts
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interpret a trial balance and thence prepare a set of accounting statements
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critically discuss the assumptions underlying the preparation of financial statements
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evaluate the position and performance of a business using ratio analysis
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describe, explain and criticise the common simple methods of financial statement analysis
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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:
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develop a continuing interest in accounting, and obtain satisfaction from its study and practice
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identify and distil key features covered by lectures, tutorials and recommended readings
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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
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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.
Full reading list - contact module Co-ordinator
Content
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Introduction to financial accounting and financial reporting; contents of financial reports; users of financial reports.
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Valuation of assets and liabilities; recognition of income and expenditure; regulation of financial reporting; accounting conventions; international considerations; limitations of financial accounting.
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Financing and structuring of companies; ownership and control; balance sheet equation.
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Calculation of profit: stock, prepayments, accruals, depreciation, bad debts, and taxation.
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Double entry bookkeeping.
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Cashflow statements.
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Unincorporated entities: sole traders.
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Segmental reporting; inflation; environmental reporting; foreign currency translation.
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Interpretation of financial reports; limitation of financial reports; Creative accounting.
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Course conclusions and current developments in financial reporting.
Reading Lists
Books
** Recommended Text
Ateril, P. and McLaney, E. (2003) Accounting and Finance for Non-specialists
4th edition. Prentice Hall
Davies, T and Pain, B Business Accounting and Finance
McGraw Hill
Dyson, J R (2004) Accounting for Non-Accounting Students
6th edition. Prentice Hall
Notes
This module is at CQFW Level 4