module specification

AC5001 - International Financial Reporting (2017/18)

Module specification Module approved to run in 2017/18
Module title International Financial Reporting
Module level Intermediate (05)
Credit rating for module 30
School Guildhall School of Business and Law
Total study hours 300
 
81 hours Scheduled learning & teaching activities
219 hours Guided independent study
Assessment components
Type Weighting Qualifying mark Description
Group Presentation 20% 35 Oral group presentation and individual report
Coursework 20% 35 Calculation and short report
Unseen Examination 60% 35 3-hour unseen exam
Running in 2017/18
Period Campus Day Time Module Leader
Year City Thursday Afternoon
Year City Thursday Morning

Module summary

This module focuses on the preparation of financial statements for UK limited companies, the critical assessment of published accounts, with an understanding of the UK regulatory framework.  Students will also be exposed to the legal framework and environment within which companies operate. 

Prior learning requirements

Introduction to Accounting
Legal and Economic Framework
 

Module aims

This core module aims to enable students to:

1)   demonstrate ability to explain the basic principles of company law;

2)   develop an interest in legal issues in so far as they affect business organisations;

3)   understand the role of the regulatory framework for corporate reporting;

4)   prepare financial statements for UK limited companies in a format suitable for publication;

5)   conduct a critical assessment of company performance.


The module also aims to help students in the development of the following skills:

.    academic writing;
.    researching
.    analysis and presentation of financial data;
.    communication, including oral presentations;
.    interpersonal, including effective team working;
.    self assessment and reflection.
   

Syllabus


Company Law

Types of business organisations

Formation and constitution of private and public companies

Raising and maintenance of corporate capital 

Management, administration and regulation of companies

Insolvency and administration of companies

Corporate governance and ethical issues


Financial Reporting

Preparation of statements of comprehensive income, financial position and cash flows, with selected notes

Regulatory framework for financial reporting, concepts and principles

Measurement and valuation of non-current assets

Accounting for research and development costs

Valuation of stocks and revenue recognition for long-term contracts 

Provisions and liabilities  

Post reporting period events

Ratio analysis

Earnings per share

 

Learning and teaching


Teaching will take the form of a 1.5-hour lecture and a 1.5-hour seminar programme.

Company Law

The basic principles of company law will be conveyed via lectures, with the opportunity for student participation where appropriate.

The seminars will involve students in a number of activities which will provide the opportunity for formative feedback.  The activities will be as topical as possible, reacting to students’ needs and current company law issues.  Case studies and previous exam questions will be used for seminar discussion and students will be encouraged to work in teams and as individuals.


Financial Reporting

The lecture will introduce the context and outline of each subject area using illustrated examples and scenarios, pre-distributed to the student.

The seminar programme will focus on problem solving, discussion of the ethical reasons for presentation (where choice is possible) and current issues in financial reporting. Questions will be pre-distributed to allow students to attempt answers in advance of the seminar. Use will be made of actual published accounts wherever possible.

 

Learning outcomes

On successful completion of this module, students will be able to:

1)   demonstrate an understanding of the relevant principles of company law and explain the basic principles of law which affect business organisations;

2)   demonstrate an understanding of the process of international standard setting and regulations for financial reporting ;

3)   prepare financial statements for UK companies to comply with the legal and regulatory framework of financial reporting and prepare a range of supporting documentation to a professional standard;

4)   calculate, interpret and report on ratios for UK public companies.
 

Assessment strategy

Formal Assessment will comprise of coursework on law (20%), individual coursework (20%) and written examination (60%).

The coursework on law will require an oral group presentation in the form of a company law case reference, and through the submission of an individual written response to the same legal problem.

The individual coursework will require a demonstration of ability to calculate and interpret relevant accounting ratios and a critical assessment of company performance.

The written examination will be a 3-hour closed book assessment that will require students to answer a mix of numerical and theoretical questions on financial reporting. 

The financial reporting exam paper, by its very nature, consists predominantly of numerical questions which often require lengthy calculations.  The duration of three hours for the exam is, therefore, justified in attempting to minimise students’ anxiety about time constraint and, thereby, enhance their chances of successfully completing the assessment.
 

Bibliography


Company Law

Latest editions of:

Bourne on Company Law, 4th edition, 2008, published by Routledge-Cavendish

Smith and Keenan’s Company Law, published by Longmans

Dine and Koutsias, Company Law, 6th edition, 2007, published by Palgrave Macmillan


Case Books:

Hicks and Goo, Cases and Materials on Company Law, 6th edition, 2008, published by Oxford University Press

Sealy, Cases and Materials on Company Law, published by Butterworths

Financial Reporting

Essential text:

International Financial Reporting: A Practical Guide by Alan Melville, 3rd edition, 2011, published by Pearson Education


Recommended texts

Financial Accounting, Reporting and Analysis: International Edition by Elliott and Elliott, 2nd edition, 2006, published by Pearson Education

Global Financial Accounting and Reporting by Walton and Aerts, 2009, published by Cengage Learning

Other sources

Accountancy Magazine – www.accountancymagazine.com

ACCA Student Newsletter – www.accaglobal.com

CIMA Student  – www.cimaglobal.com

Financial Reporting Council – www.frc.org.uk

International Accounting Standards Board Council – www.iasb.org