AC5001 - International Financial Reporting (2023/24)
| Module specification | Module approved to run in 2023/24 | ||||||||||||||||
| 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 | ||||||||||||||||
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| Running in 2023/24(Please note that module timeslots are subject to change) | No instances running in the year |
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.
To pass the module, a student must obtain an overall 40% pass mark.
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