AC4052 - Financial Accounting (2026/27)
| Module specification | Module approved to run in 2026/27 | ||||||||
| Module title | Financial Accounting | ||||||||
| Module level | Certificate (04) | ||||||||
| Credit rating for module | 15 | ||||||||
| School | Guildhall School of Business and Law | ||||||||
| Total study hours | 150 | ||||||||
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| Assessment components |
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| Running in 2026/27(Please note that module timeslots are subject to change) | No instances running in the year |
Module summary
AC4052 is a 15-credit core module which is designed to lay the foundation for understanding the accounting requirements of business organisations for internal and external reporting and decision making. It examines the financial accounting techniques for sole traders and limited companies. The module is considered as the fundamental basis for the accounting specialism and the advanced accounting modules that students will study in levels 5 and 6. The main focus of the module is the financial accounting and reporting cycle, its underlying concepts and principles, its implementation steps, and the interpretation of its outputs. This is in addition to explaining the main depreciation methods of firms’ assets, which is a critical issue within the accounting cycle. The module starts with setting the basics of the double entry system, until reaching the four financial statements, i.e. Profit/Loss statement, Owners’ Equity Statement, Statement of Financial Position, and the Cash Flow Statement, at the end of the cycle. Moreover, the module enable students to translate the data disclosed in the financial statements into implications for practices required by different users and decision makers.
This module aims to:
1. Enable students to understand the underlying principles of the financial accounting processes and to prepare/construct relevant accounting statements.
2. Enable students to evaluate the strengths and weaknesses of accounting information. systems and how they relate to the decision-making aspects of financial accounting statements 3. Enable students to analyse and interpret the financial accounting statements of a limited company.
4. Enable students to understand the context of the professional accountancy framework and to enhance their employability skills.
Syllabus
1. Introduction to Double-entry Bookkeeping and accounting equation (LO1, LO2, LO3)
2. The Statement of Profit or Loss (LO1, LO2)
3. The Statement of Financial Position (LO1, LO2)
4. Accounting for Depreciation and Bad Debts (LO1, LO2)
5. Company Accounts (LO1, LO2)
6. The Statement of Cash Flows (LO1, LO2)
7. Interpreting Financial Statements (LO2, LO3)
8. Capital Structure and Investment Ratios (LO2, LO3)
Balance of independent study and scheduled teaching activity
The scheduled teaching activities for the module consist of a weekly two-hour lecture, which provides a comprehensive overview of key concepts and theories relevant to the financial accounting and reporting cycle. Lectures are designed to facilitate understanding and encourage active participation, allowing students to engage with the material in a meaningful way. In support to the lecture, the module team delivers a one-hour seminar that offers a more interactive environment for students, as the main focus of seminars is the practical application of the theoretical concepts covered during the lectures. During seminars, students have the opportunity to delve deeper into the topics discussed in the lecture, fostering critical thinking and collaborative learning. Accordingly, such practices not only reinforces students’ understanding, but also them to ask questions and engage in discussions with their peers and instructors.
In addition to the previously mentioned structured activities, independent study is a crucial element of the learning process, which also develops students’ abilities toward academic reading and reasoning. To enhance their understanding and retention of the material, students are encouraged to refer to recommended textbooks, and undertake practice exercises and past coursework questions that are shared via the module’s weblearn page. Fulfilling this guided independent study allows students to apply theoretical knowledge to practical context.
Learning outcomes
On successful completion of this module, students will be able to:
LO1. Construct a set of financial accounting statements for a sole trader and a limited company, starting from the double entry bookkeeping aspect of recording transactions.
LO2. Understand and implement the underlying concepts/conventions and comment on the usefulness to users of financial statements prepared.
LO3. Highlight the decision-making needs of external users of financial reports.
Bibliography
https://rl.talis.com/3/londonmet/lists/95B32677-4CB5-2A42-2FD1-C4430FAB0827.html
Core readings:
Scott, P (2018), Introduction to Financial Accounting OUP.
https://bblearn.londonmet.ac.uk/webapps/blackboard/content/launchLink.jsp?
Additional readings:
Carey M., Knowles C. and Towers-Clark J. (2016) Accounting a smart approach Oxford University Press.
http://www.oxfordtextbooks.co.uk/orc/carey/
Websites:
Financial Reporting Council www.frc.org.uk
ICAEW www.icaew.com
ACCA www.accaglobal.com
CIMA www.cimaglobal.com
Accountancy Age www.accountancyage.com
Financial Times www.ft.com
Library Journal Databases:
Academic Search Complete, Business Source Ultimate, Emerald Management, Science
Direct.
Electronic Databases:
FAME