Aims

To develop intermediate skills in financial accounting in order to be able to:

1. Apply and explain the appropriate accounting treatment for various scenarios for limited companies under relevant International Accounting Standards.

2. Understand the effect of technical accounting entries on reported income, net assets and capital.

3. Interpret financial statements through the calculation of relevant ratios and the analysis of a business's key financial statements.

4. Apply and explain the appropriate accounting treatment for consolidated group companies under relevant International Accounting Standards.

This is an intermediate financial reporting module. Most of the examples relate to companies reporting to shareholders. We shall consider how to account for a range of situations, including accounting for provisions, contingent liabilities and contingent assets, tangible and intangible assets and consolidation of group companies with reference to international accounting (IFRS/IAS) standards. The module will provide an introduction to the regulatory and IASB frameworks governing the production of financial statements.

Outline Of Syllabus

1. Company financial statements

2. The frameworks of financial reporting

3. Interpretation of financial statements            

4. Preparation of consolidated group accounts

Teaching Rationale And Relationship

Lecture material introduces the course material to students, and concentrates upon some of the more challenging aspects of financial reporting. Students are given a programme of required reading to supplement the lecture materials and are encouraged to attempt questions as well as reading around subjects as widely as possible. The seminar sessions consolidate the course material by allowing students to tackle problems in a small group environment, where the seminar leader is available to provide explanations and give extra help as required. The practice questions set will help students to develop problem-solving, numeracy and written-communication skills. The seminar sessions are designed to encourage discussion by probing the implications of alternative accounting policy choices and trends in financial reporting. Students are required to attend seminar sessions with their attempts at set questions ready to discuss these with the rest of the group.

Assessment Rationale And Relationship

The semester 2 examination tests the students' intended knowledge and skills outcomes, in particular their ability to write succinct essays and solve numerical problems, covering content from both semesters. The semester 1 MCQ examination will provide an assessment of students' core knowledge of IFRS standards covered in semester 1.

In the case of an alternative semester 2 assessment (worth 75% of the overall module mark) being necessary due to circumstances, the module leader will in the first instance consult with the DPD as to the requirements of the professional accrediting body to discuss possible acceptable alternatives.