This module deals with financial accounting i.e. the preparation and interpretation of financial statements for business stakeholders. The module will commence with a discussion of the nature and role of accounting and will consider who uses accounting information and for what purposes. After this, the module will be concerned with the processes used to record, summarise and present accounting data. The objective is to enable students to prepare simple financial statements. After learning the basic accounting concepts and most of the financial statements in term 1, the focus in term 2 will be on the discussion of the techniques that can be used to analyse and interpret financial statements. This will be followed by an investigation of the development and role of regulation in governing accounting practice. The module will finish with a discussion on the role and usefulness of information system in accounting and project management skills.
Learning outcomes
After completing this module students should be able to:
1. Discuss the need and usefulness of accounting.
2. Discuss the major sources and applications of funds for a business.
3. Describe the role and limitations of financial reporting in providing useful information to decision-makers.
4. Prepare a set of different financial statements for a company.
5. Identify the need for double entry system, and extract financial statements from a trial balance and incorporating a variety of simple adjustments.
6. Analyse a set of financial statements and explain the limitations of techniques of analysis.
7. Describe the need for regulating the practice of financial reporting.
8. Have introductory knowledge of business information systems and computers.
9. Be able to have a general grounding in information systems and technology.
10. Understand how to place the computer applications in a business context.
Syllabus
1. The need for accounting
2. Accounting concepts
3. The accounting equation
4. The double-entry system
5. The trial balance
6. Assets, liabilities and ownership interest: The balance sheet
7. Principles and measurement of financial performance: The income statement
8. Treatment of non-current assets
9. Treatment of current assets and liabilities
10. Treatment of long-term finance
11. Valuation of inventories
12. The cash flow statement
13. Analysis and interpretation of financial statements
14. Narrative reports: Chairman's statement, directors' report and the business review
15. The accounting regulatory framework
16. Corporate governance and auditing
17. Corporate social responsibility
18. Designing and implementing information systems
19. Financial and management information systems
20. Introducing accounting information systems and project management skills
Assessment
One in-class test in the autumn term (weighting 40%) due in Week 10
An individual essay in the spring term (weighting 60%); 2000 words due in Week 24
Learning outcomes
After completing this module students should be able to:
1. Discuss the need and usefulness of accounting.
2. Discuss the major sources and applications of funds for a business.
3. Describe the role and limitations of financial reporting in providing useful information to decision-makers.
4. Prepare a set of different financial statements for a company.
5. Identify the need for double entry system, and extract financial statements from a trial balance and incorporating a variety of simple adjustments.
6. Analyse a set of financial statements and explain the limitations of techniques of analysis.
7. Describe the need for regulating the practice of financial reporting.
8. Have introductory knowledge of business information systems and computers.
9. Be able to have a general grounding in information systems and technology.
10. Understand how to place the computer applications in a business context.
Syllabus
1. The need for accounting
2. Accounting concepts
3. The accounting equation
4. The double-entry system
5. The trial balance
6. Assets, liabilities and ownership interest: The balance sheet
7. Principles and measurement of financial performance: The income statement
8. Treatment of non-current assets
9. Treatment of current assets and liabilities
10. Treatment of long-term finance
11. Valuation of inventories
12. The cash flow statement
13. Analysis and interpretation of financial statements
14. Narrative reports: Chairman's statement, directors' report and the business review
15. The accounting regulatory framework
16. Corporate governance and auditing
17. Corporate social responsibility
18. Designing and implementing information systems
19. Financial and management information systems
20. Introducing accounting information systems and project management skills
Assessment
One in-class test in the autumn term (weighting 40%) due in Week 10
An individual essay in the spring term (weighting 60%); 2000 words due in Week 24