This module introduces students to the preparation of consolidated financial statements. It also expands
students’ knowledge of the application of International Financial Reporting Standards to the preparation of
both consolidated and single company financial statements. It also aims to introduce students to the
requirements and application of FRS 102.
Group International Accounting Standards
Discuss and apply International Accounting Standards relating to Group Consolidated Financial Statements.
Group Consolidated Statement of Financial Position
Concepts and principles of consolidated accounts / recognition and measurement of acquired assets and liabilities / key definitions. SOFP - Goodwill and impairment thereof / non-controlling interest / pre-acquisition reserves / inter-company balances and transactions / dividends paid by subsidiary / fair value adjustments / preference shares and loans held by parent.
Group Consolidated Statement of Comprehensive Income and SOCE
Impact in the SOCI and consolidated retained earnings movement of the consolidated adjustments outlined above.
Other International Accounting Standards
Discuss and apply the requirements of a range of International Accounting Standards in particular accounting policies, changes in accounting estimates and errors and financial instruments.
Discussion & Application requirements of FRS102
Preparation of adjustments for the impact of FRS 102 on a range of accounting issues.
Financial accounting/Reporting is a core module in seven of the eight semesters of the Honours Degree programme. The teaching strategy for all of these modules is one which emphasises the need for the student to be actively engaged in the learning process, both in class and when they are studying in their own time. In order to achieve this, students are encouraged to ask and answer questions during class, to do examples in class as well as following solutions prepared by the lecturer. Where a new topic is introduced lecturers sometimes use brainstorming techniques to gauge what knowledge students already have of the topic. Accounting is a subject where cumulative knowledge is very important – thus, lecturers use a teaching strategy, which helps to build on students’ prior knowledge of accounting thereby encouraging a constructivist learning approach among students. At each stage of the teaching of these modules, double entry is used to help in this regard. Lecturers also use a concept-based approach to teaching International Financial Reporting Standards, which emphasises the underlying assumptions that inform these standards. At all levels there is a balance between explaining the theoretical aspects of this subject and demonstrating the practical impacts of that theory in the financial statements of a variety of organisation types. Knowledge of material covered in this and other pillars form the basis for an understanding of the advanced material covered in this pillar. Accounting, and in particular the study of International Financial Reporting Standards, is constantly changing. As the syllabi coverage in these modules is largely exemption driven the material covered is regularly updated, as International Financial Reporting Standards change. This requires lecturers to keep up to date through continuous professional development courses and their own research and ensures that material being learned by students is current. Class handouts and a comprehensive textbook support the teaching of the material in all years. Published accounts are also widely used in class by lecturers to emphasise the real- world nature of what students are learning and this aspect is also informed by the experience gained by lecturers who have practical knowledge of Financial Accounting in a business environment. Some companies now include a range of non-financial information in their financial statements including their use of clean technology, details about energy and water consumption and their efforts to protect local habitat and their involvement in local community issues. In our teaching of this pillar we will ensure students acquire knowledge regarding such disclosures and their impact in supporting sustainability.
|Module Content & Assessment