AC5062 - Financial Reporting (2021/22)
|Module specification||Module approved to run in 2021/22|
|Module title||Financial Reporting|
|Module level||Intermediate (05)|
|Credit rating for module||15|
|School||Guildhall School of Business and Law|
|Total study hours||150|
|Running in 2021/22||
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 need and sources of regulation, the purpose of accounting standards and worldwide use of IFRS.
This core module aims to enable students to:
1) demonstrate ability to explain the basic principles of regulations.
2) develop an interest in the need for International Financial Reporting Standards (IFRS)
3) understand the role of the regulatory framework for corporate reporting;
4) prepare financial statements for UK limited companies in a format suitable for
5) conduct a critical assessment of company performance.
The module also aims to help students in the development of the following skills:
. academic writing;
. analysis and presentation of financial data;
. communication, including oral presentations;
. interpersonal, including effective team working;
. self-assessment and reflection.
- Sources of regulation and the standard-setting process LO1 and LO2
- Legislation, Companies Act 2006 UK; stock exchange regulation
- The GAAP, IFRS and Conceptual framework
- Preparation of financial statements: LO3- Interpretation of accounts: using ratio analysis to assess companies’ performance LO4
• statement of financial position
• statement of comprehensive income
• statement of changes in equity
• statement of cash flows
Balance of independent study and scheduled teaching activity
Teaching will take the form of a 2-hour lecture and 1-hour seminar sessions.
The lecture will introduce the context and outline of each subject area using illustrated examples and scenarios, pre-distributed to the student.
The seminar session 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.
On successful completion of this module, students will be able to:
LO1) demonstrate an understanding of the need of regulations and sources of regulation
LO2) demonstrate an understanding of the process of international standard setting and
regulations for financial reporting;
LO3) 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.
LO4) calculate, interpret and report on ratios for UK public companies.
Students will complete two kinds of assignments:
• Some assignments will contribute to overall mark and grades – summative assessment.
• Some assignments will not contribute to overall mark and grades but will be important to help you progress in your understanding of the subject – formative assessment.
Formal Assessment will comprise of individual coursework (40%) and written examination (60%).
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 2-hour closed book assessment that will require students to answer a mix of numerical and theoretical questions on financial reporting.
International Financial Reporting: A Practical Guide, Melville, A., 6th edition, 2017, published by Pearson Education, ISBN-: 9781292200743
Other Recommended textbooks
Financial Accounting, Reporting and Analysis, Maynard, J., 1st edition, 2013, published by Oxford University Press, ISBN-13: 9780199606054
Financial Accounting and Reporting, Elliott, B., and J. Elliott, 17th edition, 2015, published by Pearson Education, ISBN-13: 9781292080505
Accountancy Magazine – www.accountancymagazine.com
ACCA Student Newsletter – www.accaglobal.com
ICAEW online journal www.accountancymagazine.com
CIMA Student – www.cimaglobal.com
Financial Reporting Council – www.frc.org.uk
International Accounting Standards Board Council – www.ifrs.org