BMM6632 - Financial Accounting

Objectives:

On successful completion of the module, students will be able to:
define and critically apply accepted concepts and rules of accounting, including those governing the recording of transactions and events in double entry accounting systems, and explain the context and purpose of financial reporting;
prepare trial balances, profit & loss accounts and balance sheets for unincorporated and incorporated companies, evaluate and employ a range of commonly-occurring adjustments;
interpret and compare accounting statements from different periods/companies;
apply accounting standards in the production of consolidated financial statements;
interpret and evaluate financial statements and draw conclusions on the financial position of an organisation.

Content:

Concept and purpose of financial reporting, the qualitative characteristics of financial information and use of double entry and accounting systems. Accounting concepts and rules. Preparation of company trial balance, profit & loss accounts and balance sheets. Adjustments for debtors, creditors, bad debts and depreciation. General interpretation of financial statements. International Accounting Standards (IAS and GAAP). Treatment of property & plant, inventories, issue and redemption of shares, construction contracts, research and development, intangible assets, impairment of assets, provisions and contingencies and post balance sheet events. Analysis of financial statements using ratio analysis to interpret business growth, profitability, liquidity, investment and financing. Business taxation, taxable profits, disallowable expenses and tax depreciation. Preparation of consolidated financial statements.

Learning and Teaching Information:

The module will be delivered via a series of weekly 3-hour whole-group interactive lectures, supported by small group tutorial/workshop sessions. Questions/exercises will be set at each lecture meeting for students to complete before the associated small group session. Students will be provided with, and/or directed to, relevant reading and additional questions/exercises to support their progress through the module material.
Some lectures and workshops will be shared with Level 5 students but separate tutorials will be organised for Level 6 (BA Accounting Top Up) students to prepare them for a Level 6 appropriate examination.

Lectures
Contact hours: 20
Intended Group size: Whole cohort

Tutorials/workshops
Contact hours: 20
Intended group size: Groups 8-10

Guided Independent Study
Hours: 160

Further details relating to assessment
Marginal condonement of failure is allowed for this module within the degree programme but no marginal condonement of failure is allowed in relation to ACCA exemptions.

Assessment: