• Home
• Study
• Study Information
• Modules
• Module Information

Introduction to Financial Accounting

Module description

This module introduces financial accounting to students who are pursuing an accounting degree in their undergraduate studies. It teaches students the skills necessary to record, evaluate and process business transactions and events, and provides the necessary grounding in financial reporting at conceptual and procedural levels. By employing the accounting equation and double entry bookkeeping techniques students will gain the capability to prepare basic financial statements for different types of business entities. 

This module is equivalent to Module BEA 1008.No prior knowledge of accounting is needed for this module. 

Module aims - intentions of the module

This module aims to develop knowledge and understanding of the underlying principles and concepts relating to financial accounting and technical proficiency in the use of double-entry accounting techniques. It aims at developing the necessary skills for preparing financial statements and tools for evaluating financial position and performance of a business. 

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 trial balance
• 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

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

Details of learning activities and teaching methods

Formative assessment

Summative assessment (% of credit)

Details of summative assessment

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

Re-assessment notes

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

Access to an ELE page will be provided to students. 

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.