Financial Accounting

Course Description

CONTENT:

This module is designed to provide an introduction to financial accounting. The purpose and importance of financial accounting will be explained and you will learn how to produce financial statements from the original source documents through the recording of transactions to the final production of a profit and loss account and balance sheet for a non-complex business. The module will also explain the subjective nature of financial accounting with its need for professional judgement and you will be introduced to the concepts and principles that underpin financial accounting and reporting. You will also gain practical experience of inputting data into Sage accounting software and using spreadsheets to prepare financial information.

MODULE AIMS: 

• To develop an understanding of the purpose of financial accounting and the resulting financial statements 
• To provide an understanding of the concepts and principles that govern the practices of financial accounting 
• To enable students to prepare financial statements from transaction data

LEARNING OUTCOMES: 

• Explain the context and purpose of financial accounting and reporting 
• Explain and apply accounting concepts and principles 
• Record financial information using double-entry bookkeeping principles 
• Identify and correct errors 
• Construct financial statements appropriate for a variety of business types
• Discuss the role and use of computer systems within accounting

CURRICULUM CONTENT: 

• The purpose of financial accounting, users and uses of financial statements, different types of business organisations 
• Accounting concepts, the accounting equation, principles of double-entry bookkeeping, the conceptual framework 
• The regulatory framework, regulatory bodies, accounting standards, legal requirements 
• Double-entry bookkeeping, recording transactions, depreciation, bad and doubtful debts, control accounts, suspense accounts, valuation of stocks and stock accounts, extended trial balance 
• Financial statements: balance sheet and profit and loss account for: sole traders, partnerships, limited companies 
• The role of computers in accounting: advantages of computer systems, main factors to be considered in the design, operation and management of computer systems, limitations of computer systems 
• The different accounting roles in business: financial accountant, management accountant, external and internal auditor, tax accountant and forensic accountant.

TEXT:
Thomas, A & Ward, AM (2019) Introduction to Financial Accounting, 9th edition, Mcgraw-Hill Education

TEACHING:
2-hour lecture and 2-hour tutorial weekly

ASSESSMENT:

• Coursework 40%
• Examination 60%