Principles of Financial Reporting

Convenor: Dr Paul Guest
Assessment: A two-hour, formal unseen examination (75% of the overall mark) and coursework of 2,500 words (25% of the overall mark). The deadline for the coursework is 9th December 2011 (Absolute Cut-Off deadline – 30th December 2011)

Aims

This module introduces students to the basic Principles of Financial Reporting and explores the current issues relating to financial reporting.

Learning Objectives

By the end of this module, students should be able to:

• understand and critically assess the objectives of accounting, users of accounting and characteristics of accounting;
• Be able to understand the main principles underlying the balance sheet and the income statement;
• understand and critically assess the current accounting issues such as fair value accounting and income recognition;
• Be able to understand and carry out double entry ledger accounting;
• Understand and be able to apply transactions that impact the share capital and reserves;
• Develop an understanding of the main accounting rules and standards;
• Understand the nature of the cash flow statement and be able to prepare one;
• understand and critically assess the different issues involved with group accounting such as the different types of group relationships, treatment of goodwill and inter-company transactions;
• analyse a live set of accounts using financial ratio analysis;
• have an understanding of the increasing scope of financial reporting, in particular with regard to segmental reporting and corporate governance reporting;
• understand and critically assess the accounting information and its limitations.

Background Reading

• Atrill, P and McClaney, E (2011), Financial Accounting for Decision Makers, 6th Edition, FT Prentice Hall. ISBN: 978-0-273-74039-1.