AC5005 - Financial Accounting and Company Law (2020/21)
|Module specification||Module approved to run in 2020/21|
|Module title||Financial Accounting and Company Law|
|Module level||Intermediate (05)|
|Credit rating for module||30|
|School||Guildhall School of Business and Law|
|Total study hours||300|
|Running in 2020/21||
The module is a Level 5 30 credit core module which 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 international environment within which companies operate.
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.
Formation and constitution of private and public companies. The management, administration and regulation of companies. LO1
Apply the regulatory framework for financial reporting, in line with international accounting standards to business transactions and preparation of single entity financial statements. LO2
Analysing and interpreting financial statements LO3
Balance of independent study and scheduled teaching activity
Teaching will take the form of a 1.5-hour lecture and a 1.5-hour seminar programme.
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.
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.
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) Critically evaluate the process of international standard setting and regulations for financial reporting and its application in preparation of financial statements for UK companies.
3) Calculate, interpret and report on ratios for UK public companies from the perspective of key stakeholder groups.
Formal Assessment will comprise 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 on Financial Accounting will require a demonstration of ability to calculate and interpret relevant accounting ratios and a critical assessment of company performance.
The financial accounting exam paper will contain a mix of multiple choice, computational and short answer questions.
A Financial accounting 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.
Wild, C., and Weinstein, S., Smith and Keenan’s Company Law, 17th edition, 2016, published by Pearson Education, ISBN-13: 9781292088556
Digman, A., and Lowry, J., Company Law, 9th edition, 2016, published by Oxford University Press, ISBN-13: 9780198753285
McLaughlin, S., Unlocking Company Law, 3nd ed., 2015, published by Routledge,
Hicks and Goo, Cases and Materials on Company Law, 7th edition, 2011, published by Oxford University Press, ISBN-13: 9780199564293
Sealy, L., and Worthington, S., Cases and Materials on Company Law, 10th edition, 2013, published by Oxford University Press, ISBN-13: 9780199676446
Mujih, E., Bespoke, Company Law Statutes, 2011/2012.
Westlaw – www.westlaw.co.uk
Lawtel – www.lawtel.co.uk
Department of Trade and Industry – www.dti.gov.uk
Office of Fair Trading – www.oft.gov.uk
Statutes and Conventions – www.lexmercatoria.org.uk
International Financial Reporting: A Practical Guide, Melville, A., 6th edition, 2017, published by Pearson Education, ISBN-: 9781292200743
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, 18th edition, 2017, published by Pearson Education, ISBN-13: 9781292162409
Library Journal Databases : Academic Search Complete, Business Source Ultimate, Emerald Management, Science Direct
Financial Reporting Council www.frc.org.uk
ICAEW online journal www.accountancymagazine.com
Accountancy Age www.accountanyage.com
International Accounting Standards Board Council – www.ifrs.org
Financial Times www.ft.com
Electronic Databases: FAME