Module Information

Module Identifier

AC11020

Module Title

Financial Accounting 1

Academic Year

2014/2015

Co-ordinator

Ms Megan Ruth Williams

Semester

Semester 2 (Taught over 2 semesters)

Other Staff

Course Delivery

Delivery Type	Delivery length / details
Lecture	1 x 1 hour weekly help lectures
Lecture	1 x 2 hour weekly lecture
Seminars / Tutorials	6 Hours per semester

Assessment

Assessment Type	Assessment length / details	Proportion
Semester Exam	3 Hours Unseen written examination	70%
Semester Assessment	Coursework	10%
Semester Exam	1.5 Hours Class Test Assessment length added so that data comes through on the exam timetable	20%
Supplementary Exam	3 Hours Unseen written examination Repeat failed element	70%
Supplementary Assessment	Coursework Repeat failed elements	10%
Supplementary Exam	1.5 Hours Test Repeat failed elements	20%

Learning Outcomes

On successful completion of this module students should be able to:

* Describe and explain the conventions which underpin financial accounting

* Describe, compare and contrast the different forms of UK business organisations

* Explain, apply and illustrate and rules by which assets, liabilities, income and expense are determined for insertion into financial accounts

* Describe and evaluate the financial recording procedures followed by organisations

* Interpret a trial balance and thence prepare a set of accounting statements

* Prepare partnership accounts

* Describe, explain, apply, interpret and criticise the common simple methods of financial statement analysis

* Use accounting computer software to record business transactions

Aims

This module is a core module to the School's Accounting and Finance degree schemes (single, major, joint and minor) and N310 (Business Finance); it is also core to Financial Mathematics. It is also available to other students within the University who are looking for a financial 20 credit module.

This module provides a thorough grounding in the context, purposes and practices of financial reporting, and an introduction to the interpretation of financial accounts as expected by:

Honours Degree Subject Benchmark Statement: Accounting (2007), Quality Assurance Agency for Higher Education

Honours Degree Subject Benchmark Statement: Finance (2007), Quality Assurance Agency for Higher Education

Further, the module contributes to the maintenance of (or is anticipated to contribute to the achievement of [further]) accreditation from professional accountancy bodies, including:

Institute of Chartered Accountants in England and Wales
Association of Chartered Certified Accountants
Chartered Institute of Management Accountants
Institute of Chartered Accountants of Scotland

Brief description

This module aims to give students a thorough grasp of the basics of financial reporting (context, purposes, regulatory framework) and build towards a proficiency in the recording of business transactions, and the preparation and interpretation of the primary financial statements (income statement, balance sheet and cash flow statement). It also aims to build proficiency in the use of accounting computer software.

Content

The following topics are covered:

1. CONTEXT AND PURPOSES OF FINANCIAL REPORTING IN THE UK AND INTERNATIONALLY

Uses and purposes of financial accounting
Conceptual framework
Users of accounting information
Explain and contrast accounting concepts
Qualitative characteristics of financial information
True and fair view
Double-entry bookkeeping
'debit' and 'credit'
Write up and record business transactions into accounts
Account for closing stocks and other accounting adjustments
Explain and calculate the balancing of accounts
Extract a trial balance from a company'r transactions

3. PREPARATION OF FINANCIAL STATEMENTS

Identify the financial information shown in the financial statements of a company: balance sheet; income statements; cash flow statement
Construct simple financial statements
Outline the structure of the balance sheet
Classify the broad balance sheet categories of shareholders equity; liabilities; assets
Prepare a balance sheet
Evaluate some of the alternative methods of asset valuation
Appreciate the limitations of the conventional balance sheet
Outline the structure of the income statement
Classify levels of profit and format
Relevant disclosure
Reconciliation of movement in shareholders? funds
Appreciate links between income statement and balance sheet in regards to valuation of fixed assets and depreciation, stock and cost of sales, debtors and the doubtful debt provision, and the subjective aspects of profit measurement
Outline structure of cash flow statement
Direct / indirect method
Links between cash flow statement and income statement
Case study - preparing set of accounts from source data
History of partnership accounting
Differences between a limited company's accounts and a partnership's accounts
Appropriation accounts, capital and current accounts
Changes in partnership arrangements

5. INTERPRETATION AND ANALYSIS OF FINANCIAL STATEMENTS

Types of ratio analysis
Profitability
Investment
Gearing (sources of finance)
Efficiency
Investment
Horizontal and cross sectional analysis
Introduction to SAGE
Input
Producing financial statements

Module Skills

Skills Type	Skills details
Application of Number	Develop an easy familiarity with numerical data sources and numerical data Apply numerical data to problem solving with care and accuracy Assess the reasonableness of and interpret numerical solutions Support assertions/arguments with appropriately developed and presented numerical data
Communication	Develop confidence in and clarity of oral communication via example class/tutorial participation Develop clarity and focus of written communication via development of answers to self study questions Develop and use appropriate subject-specific vocabulary in oral and written communication
Improving own Learning and Performance	Identify and distil the key issues covered by lectures, tutorials and self study Identify and use a range of learning resources Investigate benefits of small group working on self study Structure study to accommodate intensive learning
Information Technology	Use a variety of electronic web- and library-based resources to review available information and retrieve pertinent information Use spreadsheet software to complete elements of the self study Use computer software to produce a set of financial statements
Personal Development and Career planning	Preparation for seminar tasks will encourage initiative, independence and self-awareness
Problem solving	Identify the precise problem to be solved Assess which data are pertinent to the problem Recognize that alternative solution methods might be available Select and apply appropriate methods for solving the problem Assess the reasonableness of problem solutions and interpret those solutions
Research skills	Identify which information sources are available to: facilitate module study (understanding, wider reading) provide data which allow application of module learning in a real world context Properly reference/attribute information sources
Subject Specific Skills	Develop competence in producing a simple set of accounts Ability to use, apply and understand double-entry book-keeping Producing a set of accounting books from source data manually and also through the use of computerised accounting software
Team work	Develop experience of team work and develop team working skills via small group working on self study Group work during seminars

Reading List

Recommended Text
Attrill, P and McLaney, E (2006) Accounting an Introduction 3rd edition Prentice Hall Primo search Bebbington, J., Gray, R. and Laughlin, R. (2001) Financial Accounting Practice and Principles 3rd edition Thomson Learning Primo search Britton, A and Waterson, C (2006) Financial Accounting 4th edition, Prentice Hall Primo search Thomas, A (2002) Introduction to Financial Accounting 4th edition McGraw-Hill Primo search Weetman, P. (2006) Financial Accounting: An Introduction 4th edition Prentice Hall Primo search Supplementary Text
Davies, T and Boczko, T (2005) Financial Accounting an Introduction McGraw Primo search Gowthorpe, Catherine (2005) Business Accounting and Finance for Non-specialists 2nd edition Thomson Primo search

Notes

This module is at CQFW Level 4