Financial Reporting

MOMN075S6

Lecturer: Mr Alan Parkinson, autumn term;

This module builds on Financial Accounting 1 and covers the preparation and analysis of financial accounts to an advanced level. In addition, it also provides you with an in-depth appreciation of the theoretical and practical issues associated with selected topics in financial accounting and to assess the role and effectiveness of financial accounting and reporting.

Assessment

One three-hour written examination (75%), one mid-term test (12.5%) in the autumn term and one mid-term test (12.5%) in the spring term. You are required to prepare answers to numerical exercises, which are reviewed in weekly seminars/ workshops, and to prepare material for discussion topics. Mid-term tests in both the autumn and spring terms will count for 25% of the final grade (12.5% each x 2 = 25%).

Aims

The module aims to enable you to:

• develop an understanding of the theory and practice of accounting;
• critically assess accounting practices;
• develop technical accounting skills to an advanced level;
• understand and critically assess accounting regulation in the UK including an understanding of a selection of accounting standards;
• understand and critically assess theoretical issues and recent developments in accounting;
• prepare and analyse financial statements including the preparation of consolidated accounts and the preparation of accounts from incomplete financial data;
• gain an understanding of the current regulatory framework surrounding accounting, including the provisions of a selection of accounting standards and the statement of principles;
• develop communication skills, both oral and written;
• develop skills in summarising and critically assessing professional reports and statements and academic articles.

Learning objectives

By the end of this module, you should be able to:

• outline, apply and critically assess the provisions of a selection of accounting standards;
• prepare consolidated accounts and understand when group accounts should be prepared and when companies can be excluded from consolidated accounts;
• critically assess the current standard setting process in the UK;
• critically assess accounting concepts including historic cost accounting;
• critically assess the statement of principles project of the Accounting Standards Board in the UK;
• critically assess the objectives of accounting, users of accounting and characteristics of accounting;
• prepare, understand and critically assess advanced group accounts;
• prepare and understand accounting for acquisitions and mergers;
• prepare and understand accounting for foreign exchange transactions, both in single company accounts and in consolidated accounts;
• critically assess accounting for changing prices;
• critically assess economist’s interpretations of income;
• critically assess accounting for intangible assets including accounting for goodwill and research and development;
• critically assess the concepts of off balance sheet finance and substance over form;
• critically assess different theories in accounting;
• critically assess standard setting in the UK, since it was introduced in the 1970s;
• critically assess what is meant by the politics of accounting.

Recommended reading

Elliott, B. and J. Elliott (2007) Financial Accounting and Reporting. Harlow: FT Prentice Hall (please buy the latest edition).