This module explores the theory and application of financial reporting principles and their substance and associated reflections within published financial statements, together with the accompanying financial analysis through ratios and other analytical techniques.
Key areas considered are:
- theoretical frameworks underpinning the application of financial accounting; - financial statement construction building upon such theoretical frameworks; - natures of valuation issues relating to financial figures and the stories they are meant to tell; - accounting for overheads through a financial accounting lense; - corporate financial reporting and annual reports; - financial statement analyses and interpretation using a core tool kit any manager would need to help them make sense of the overall financial health of an organisation.
Upon successul completion of the module, a student will be able to:
- Understand why it is important for commercial businesses, and in particular limited companies, to account for the financial valaue of transactions, events and activities.
- Distinguish between different uses of accounting information and relate these uses to the needs of different groups of stakeholders.
- Understand the conceptual framework underpinning financial accounting systems and apply it to the generation of corporate financial reports.
- Identify and explore a range of selected issues and challenges within financial reporting.
- Understand how financial accounting systems operate.
- Interpret corporate financial statements through ratio analyses and other associated techniques.
- Provide a basis for communication with corporate stakeholders through financial analyses-based written reports
- Critique the relevance and suitability of applied accounting policies.
- Critique and evaluate the quality of reported earnings figures.
- Financial Frameworks for financial statements
International financial reporting issues
Issues in valuation relating to revenue recognition, expenses, assets and liabilities;
Financial statement construction and deconstruction
Cash flow statements for publication
Accounting for overheads
Financial statement analysis tools and techniques
Financial ratios 1
Financial ratios 2
Non-financial performance measurements
Quality of earnings
There are three (3) summative assessment components:
- Unseen written examination (3 hours) - 50% - this will normally be undertaken in Term 3 (summer term).
- A team based project assignment - 40%.
- A Moodle Quiz - 10% - this is an online test in Week 6 (Reading Week). It may be undertaken on or off campus. It lasts for one hour (60 minutes) and is automatically marked by Moodle.
There are a range of formative assessments usually delivered and assessed via Moodle, supplemented by in-class formative assessments.
Current students should refer to Moodle for specific details of the current year’s assessment.
Accounting and Finance an Introduction by Atrill and McLaney ISBN 978-1-292-20448-2