This module is concerned with the recording of financial events and transactions, how the effects of these events and transactions are reported in Financial Statements, and the analysis and interpretation of information in Annual Reports.
The aim of the module is to enable students to understand and interpret the financial statements and other elements of the annual report produced by organisations for external users. Oral and written communication skills and group working skills are developed throughout the module in addition to the exercise of judgement in making decisions based on narrative and financial information provided.
The Regulatory Framework of Accounting
- The framework and context of accounting
- Current Developments in Financial Reporting
- The users of financial statements and their uses of the information.
- The characteristics of useful financial information.
- The effects of the regulatory framework on the interpretation of financial statements
Financial statements
- The terminology used in published financial statements
- The major features of the narrative elements of the Annual Report and the significance of the information contained within them.
Financial Analysis
- Prepare relevant financial statistics and ratios in order to assess the performance and financial position of an organisation.
Cash Flow Statements
- Analyse the information contained in a cash flow statement.
- Distinguish between cash flow and profit.
International Financial Reporting Standards
The key requirements of core financial reporting standards including;
- Tangible Non-current Assets
- Intangible Assets
- Impairment
- Inventories
- Provisions and Contingencies
- Events after the Reporting Period
- Revenue Recognition
- Taxation
Groups of companies
- The basic principles of the preparation of consolidated accounts for groups of companies
- Subsidiaries, Associates and Joint Ventures
- The differences between group accounts and the financial statements for a single company
Audit
- The role of the external auditor
- The status and content of the Report of the Auditor to the Members
- The role and function of the Internal Audit Department, and contrast this with the role of the external auditor.
Corporate Social Responsibility
- The status and content of CSR reports
- An overview of Corporate Governance and Ethical issues in Financial Reporting
Lectures, case studies, class discussion and assignment work with an emphasis on the analysis of recent Annual Reports of plc’s
Groupwork involving analysis, reporting and presentation skills
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 70 |
| Other Assessment(s) | 30 |