Financial Accounting A
| Module title | Financial Accounting A |
|---|---|
| Module code | BEA2019 |
| Academic year | 2024/5 |
| Credits | 15 |
| Module staff | Dr Chen Lim (Lecturer) Mr David Kolitz (Lecturer) |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 11 |
| Number students taking module (anticipated) | 280 |
|---|
Module description
Financial accounting is that branch of accounting that focuses on producing information for external users of financial reports, including shareholders and creditors. The information produced by the financial reporting system is crucial for the efficient operation of world financial markets. The accounting information system collects data, processes that data and produces information. This information manifests itself in the form of the annual report, issued by all companies (the financial statements forming part of the annual report).
The module begins with a discussion of the regulatory environment in which accounting operates followed by an examination of the Conceptual Framework (which sets out the concepts that underlie the preparation and presentation of financial statements for external users). Through the International Financial Reporting Standards (IFRS), you will be exposed to the recognition, measurement and disclosure issues relating to a wide variety of financial statement items including the overall presentation of financial statements and specifically property, plant and equipment, intangible assets, investment properties, leases, and provisions and events after the reporting period.
The module builds on the foundation laid by BEA1008 Introduction to Financial Accounting. Students must be familiar with and be able to apply the definitions of the elements of the financial statements and the accrual basis of accounting. You must also be proficient in double entry accounting as well as adjusting and closing entries. In addition, you need to know how to produce a basic set of financial statements (incorporating a statement of comprehensive income, statement of financial position and a statement of changes in equity).
Module aims - intentions of the module
The module aims to give you a solid foundation in the theory and practice of financial reporting. . You will be exposed to current issues within the financial reporting environment and will engage with International Financial Reporting Standards (IFRS). Use is also made of the published financial statements of listed companies as a practical illustration of the concepts taught.
The module is focused on real world financial reporting issues and you will be encourage to relate what is taught with the practical application in published financial statements as well as to engage with the analysis and opinions published by the professional accountancy bodies and the professional accountancy firms.
The ability to communicate clearly is essential to business and this will be emphasised in the module.
The module will provide you with the knowledge and skills that you need to progress to further study of financial reporting and / or to the exams of the professional accountancy bodies.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. process accounting entries using the accrual basis of accounting, record transactions in a journal and ledger, process adjusting and closing entries;
- 2. identify and explain the issues relating to the regulatory environment of financial reporting and the development of accounting standards;
- 3. state and apply the principles and definitions in the Conceptual Framework;
- 4. prepare a set of financial statements in compliance with IAS 1, Presentation of Financial Statements;
- 5. discuss as well as explain and apply the recognition, measurement and disclosure principles of the International Financial Reporting Standards dealing with a wide variety of financial statement items including the overall presentation of financial statements and including property, plant and equipment, intangible assets, investment properties, leases, provisions and events after the reporting period; tax and deferred tax
- 6. explain and discuss some of the theoretical and practical issues relating to the application of accounting standards.
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 7. demonstrate problem solving skills;
- 8. use analysis and critical thinking to evaluate financial reporting issues, to make judgements and recommendations;
- 9. identify key problems and then use relevant qualitative and quantitative information to solve them;
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 10. demonstrate well-developed numeracy skills;
- 11. communicate effectively in writing.
Syllabus plan
- The accounting process
- The financial reporting environment
- The conceptual framework
- Presentation of financial statements
- Property, plant & equipment
- Investment property
- Intangible assets
- Provisions and contingencies / Events after the reporting period
- Tax and deferred tax
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 36 | 114 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Scheduled learning and teaching activities | 20 | Lectures |
| Scheduled learning and teaching activities | 15 | Tutorials |
| Scheduled learning and teaching activities | 1 | Revision Lecture |
| Guided independent study | 114 | Reading of the relevant accounting standards and related commentary (text books and web-based), preparation for seminars and tutorials, review of lecture, seminar and tutorial work. |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Weekly Tutorials | 3-4 hours preparation by Student. Followed by tutorial discussion and explanation of solutions | 1-10 | Discussion in tutorial and suggested solutions on ELE |
| Weekly on-line MCQs | 1/2 hour for Student to complete | 1-5 | On-line responses |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 0 | 100 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| In class test | 20 | 1 hour | 1-6; 7-9 | Online responses |
| End of module exam | 80 | 2 hours 30 mins | 1-11 | Solutions on ELE |
Details of re-assessment (where required by referral or deferral)
| Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
|---|---|---|---|
| In class test (20%) | In class test (20%) [1 hour] | 1-6; 7-9 | Referral/deferral period |
| End of module exam (80%) | Examination - written component [2 hours 30 mins] | 1-11 | Referral/deferral period |
Re-assessment notes
** If you pass the module overall you will not be referred in any component – even if you have not passed one of the individual components.
Deferral – if you have been deferred for any assessment you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of deferral will not be capped and will be treated as it would be if it were your first attempt at the assessment.
Referral – if you have failed the module overall (i.e. a final overall module mark of less than 40%) you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of referral will be capped at 40%.
Indicative learning resources - Basic reading
Core text:
Melville, A. (2022). International financial reporting: A practical guide (8th ed.). Harlow: Pearson Education.
Additional texts:
Service, C.L. (2020). Gripping GAAP (2020 ed.), Durban: LexisNexis.
Connolly, C (2018). International Financial Accounting and Reporting, The Institute of Chartered Accountants in Ireland
Maynard, J. (2017). Financial accounting, reporting and analysis (2nd ed.). Oxford: Oxford University Press.
Indicative learning resources - Web based and electronic resources
ELE – https://vle.exeter.ac.uk/course/view.php?id=8860
The following websites are useful to bookmark and visit on a regular basis:
Professional accountancy bodies and financial reporting websites
- The International Accounting Standards Board (IASB) website that has up to date information on the latest developments in IFRS as well as technical summaries of the IASB standards, http://www.ifrs.org/Home.htm
- IAS PLUS, a Deloitte hosted website with summaries of all the IASB’s standards (IFRS and IAS), model financial statements and much more, www.iasplus.com
- The Institute of Chartered Accountants of Scotland (ICAS) has a financial reporting section, http://icas.org.uk/default.aspx
- The Institute of Chartered Accountants in England and Wales (ICAEW) has a financial reporting section, http://www.frc.org.uk/Home.asp
The websites of the Big 4 practices all have sections devoted to financial reporting, including latest updates, discussions and model financial statements
- KPMG, www.kpmg.co.uk
- PWC, www.pwc.co.uk
- Ernst & Young, www.ey.co.uk
- Deloitte, www.deloitte.co.uk
Accounting education websites:
- IFRS Box, a site covering technical IFRS issues, with good summaries and innovative diagrams, http://www.ifrsbox.com/
- Accounting Coach, a resource consisting of easy to read text, quizzes, crosswords etc aimed mainly at introductory level so useful for revision but also has some relevant intermediate topics, http://www.accountingcoach.com/
- Learn Accounting, a collection of shrt video lectures covering a range of accounting topics (no cost to register), http://learnaccounting.uct.ac.za/
| Credit value | 15 |
|---|---|
| Module ECTS | 7.5 |
| Module pre-requisites | BEA1008/INT1008 Introduction to Financial Accounting |
| NQF level (module) | 5 |
| Available as distance learning? | No |
| Origin date | 01/02/2016 |
| Last revision date | 31/01/2024 |
