Description

Introduction to Financial Accounting

Description - summary of the module content

Module description

This is an introductory financial accounting module that is aimed at students who intend to progress to an accounting degree in their undergraduate studies. This module will teach students the skills needed to evaluate the financial performance and position of a business.  The module aims to give students a good grounding in financial reporting through both a conceptual and procedural approach.  This will enable students to complete financial statements using an understanding of the accounting equation and on a transactional basis using double entry bookkeeping.

This module is equivalent to Module BEA1008.No prior knowledge of accounting is needed for this module.

Module aims - intentions of the module

The aim of this module is to introduce the skills needed to evaluate the financial performance and position of a business.  The module aims to give students a good grounding in financial reporting through both a conceptual and procedural approach.  This will enable students to complete financial statements using an understanding of the accounting equation and on a transactional basis using double entry bookkeeping.

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

• 1. Describe the nature, uses and purposes of financial accounting, and outline both the conceptual frameworks that govern the preparation and reporting of financial information
• 2. Explain the accounting equation and its link with financial statements and illustrate the impact of economic transactions on the accounting equation
• 3. Describe and apply the transactions recording process from source documentation to financial statements via the books of prime entry, ledgers and the trial balance. Apply to the manual system and explain the production of accounts using computerised systems
• 4. Explain and apply the recognition and measurement principles relating to: non-current assets (including depreciation), inventories (and cost of sales) and other current assets and liabilities (including receivables and bad debts, prepayments and accruals etc) in accordance with IFRSs
• 5. Explain and apply the recognition and measurement principles relating to non-current liabilities and equity in accordance with IFRSs
• 6. Explain the nature and purposes of control accounts and apply appropriate correcting techniques for errors and omissions
• 7. Explain the characteristics of a range of types of entity and prepare financial statements for these entities

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

• 8. Apply accounting principles, concepts and conventions in practical situations
• 9. Aggregate accounting data for a range of entities into meaningful statements

ILO: Personal and key skills

On successfully completing the module you will be able to...

• 10. Demonstrate basic problem solving skills

Syllabus plan

Syllabus plan

1. The accounting conceptual framework.
2. The accounting equation and the analysis of transactions.
3. Recording of external transactions and internal transactions.
4. Preparation of financial statements and closing entries, including income statements, recognised gains and losses.
5. Inventory and cost of sales.
6. Property, plant and equipment.
7. Account receivable / Cash and bank.
8. Non-current and current liabilities.
9. Accounting for sole traders, companies and partnerships.

Learning and teaching

Learning activities and teaching methods (given in hours of study time)

Details of learning activities and teaching methods

Assessment

Formative assessment

Summative assessment (% of credit)

Details of summative assessment

Re-assessment

Details of re-assessment (where required by referral or deferral)

Re-assessment notes

Deferral – if you miss an assessment for reasons judged legitimate by the Mitigation Committee, the applicable assessment will normally be deferred. See ‘Details of reassessment’ for the form that assessment usually takes. When deferral occurs there is ordinarily no change to the overall weighting of that assessment.

Referral – if you have failed the module overall (i.e. a final overall module mark of less than 40%) you will be required to take a re-sit exam. Only your performance in this exam will count towards your final module grade. A grade of 40% will be awarded if the examination is passed.

Resources

Indicative learning resources - Basic reading

Basic reading: Schemes of work are given to students at the beginning of the module with suggested text as preparatory reading.

Thomas, A. & Ward, A. (2019) Introduction to Financial Accounting (9th Ed) McGraw Hill

Indicative learning resources - Web based and electronic resources

Module has an active ELE page

Indicative learning resources - Other resources

Other resources: Frank Wood's business accounting (electronic link to University library)

Extra handouts

Key words search

Financial accounting; conceptual framework;  accounting equation; analysis; transactions; recording; statements; entries; inventory; cost of sales; property, plant and equipment;  receivable; cash; Non-current; current liabilities ; partnerships; companies; income statement; recognised gains; losses.