|| AC10120 |
|| INTRODUCTION TO FINANCIAL ACCOUNTING |
|| 2007/2008 |
|| Mr Iain McDougall |
|| Semester 1 |
|| AC11020 |
| Course delivery
|| Lecture || 14 Hours. |
|| Seminars / Tutorials || 5 Hours. |
|| Practical || 2 Hours. |
|| Practical || 2 Hours. |
|Assessment Type||Assessment Length/Details||Proportion|
|Semester Assessment||1 Hours Objective Test ||20%|
|Semester Exam||3 Hours ||80%|
|Supplementary Exam||3 Hours ||100%|
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
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
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.
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.
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.
** 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
Dyson, J R (2004) Accounting for Non-Accounting Students
6th edition. Prentice Hall
This module is at CQFW Level 4