Course Information Undergraduate prospectus

Financial Accounting

Course summary

Course code: ACCO1124
Level: 5
Credits: 30
School: Business Faculty
Department: Accounting and Finance
Course Coordinator(s): Kathryn Hearn

Specification

Aims

Advanced Financial Accounting (AFA) aims to develop students' understanding of financial reporting and to enhance their ability to understand and to analyse published financial statements logically and coherently. The course is based on International Financial Reporting Standards (IFRS) compliance with which is compulsory in the consolidated financial statements for firms with listings in a number of jurisdictions, including all states within the European Union.

The AFA course also aims to place financial accounting in a computerised context and therefore the course is designed so that students develop a practical understanding of accounting information systems using a computerised accounting programme such as SAGE 50 Accounts Professional.

Learning outcomes


Prepare the Consolidated Statement of Financial Position (Consolidated Balance Sheet), Consolidated Statement of Profit or Loss and Other Comprehensive Income (Consolidated Statement of Comprehensive Income) and Consolidated Statement of Changes in Equity, for groups with subsidiaries and associates.
Explain and apply IFRS including the concepts set out in the International Accounting Standards Board’s Conceptual Framework and the requirements of a variety of international accounting standards.
Explain the methods of regulating financial reporting.
Analyse financial ratios in a detailed way, with respect to their interpretation in particular, having an overall perspective of the usefulness and limitations of using ratios to assess and compare companies.
Organise, manage and develop computerised accounting information systems, understanding the need for control and security of information systems to ensure integrity of data and continuity of processing.
Apply theoretical principles to the processing of accounting data using computerised accounting software such as SAGE 50 Accounts Professional.

Indicative content

The concepts within the IASB’s Conceptual Framework, including the objective of financial reporting, qualitative characteristics of useful financial information and principles for the recognition and measurement of assets and liabilities
Sources of regulation and control of financial reporting
IAS 1: Presentation of financial statements; IAS 2: Inventories; IAS 7: Statement of cash flows; IAS 8: Accounting policies, changes in accounting estimates and errors; IAS 10: Events after the reporting period; IAS 12: Income taxes; IAS 16: Property, plant and equipment; IAS 20: Accounting for government grants and disclosure of government assistance; IAS 23: Borrowing costs; IAS 28: Investments in associates; IAS 36: Impairment of assets; IAS 37: Provisions, contingent liabilities and contingent assets; IAS 40: Investment property; IFRS 3: Business combinations; IFRS 10: Consolidated financial statements; IFRS 5: Non-current assets held for sale and discontinued operations; IFRS 11: Joint arrangements; IFRS 15: Revenue from contracts with customers
Setting up accounting software to manage accounting information, processing routine payments and receipts using a computerised system and producing standard accounting reports

Teaching and learning activity

This course will be delivered by a combination of lectures and supporting seminars. Contact through lectures will provide a subject focus for the course. The lectures will stimulate a critical approach to the study of the subject through reflection on the strengths and weaknesses of financial reporting under IFRS.

Each week students will be given exercises which they will be required to prepare for the following week’s seminar. These exercises will require students to be able to discuss the requirements of IFRS and also to perform calculations which support the information included in the financial statements. The seminars will also provide a forum for considering questions and issues which students raise as a result of their private study.

The computerised accounting part of the course will be delivered through computer lab sessions using a case study approach to develop the skills and understanding required to meet the learning outcomes.
In order to facilitate and support independent learning, students will be provided with a reading list that will cover general background, and more specialist and topical material drawn from the prescribed textbooks and also commentaries issued by practitioners.

Assessment

SAGE test - 30% weighting, 40% pass mark, learning outcomes 7-8. 1 hour.

Exam - 70% weighting, 40% pass mark, learning outcomes 1-6. 3 hours.

Students are required to pass all components in order to pass the course.