Overview

In this course, you will gain an introduction to the fundamental concepts and practices of financial accounting. You will learn about the role of accounting in recording, categorizing, and summarizing financial transactions, and how accounting information is used for monitoring, planning, control, and decision making. You will also investigate a number of models used in accounting and book-keeping in a variety of organization types and regulatory environments.

During this course, students will focus on the following:

1. The role of financial accounting including the need for recording, categorizing and summarizing financial transactions for internal and external users in planning and decision making process.

2. The dual aspect concept – the purpose and uses of the double entry bookkeeping system and the trial balance, processing financial transactions to trial balance, evaluating the usefulness of the double entry bookkeeping concept.

3. Accounting adjustments - making an adjustment and record an adjustment in the ledgers which includes inventory, depreciation, accruals and prepayments, bad and doubtful debts.

4. Other accounting concept and terminology - an overview of the key concepts; going concern, historical cost, money measurement, materiality, comparability through consistency, prudence, objectivity, separate determination, and relevance.

5. The accounting equation; Assets = Liabilities + Capital and its relationship to the balance sheet.

6. Types of entities– an overview of the different types of organizations including; sole trader, partnerships, non-profit making organizations, private and public limited companies.

7. Statement of cash flows - the purpose of cash flow statement and be able to prepare a basic cash flow statement based on regulatory framework

8. The financial reporting – an overview of the list and purpose of reports in company annual report and accounts in accordance to accounting regulatory framework

9. Interpretation of the accounts and ratio analysis – compare and contrast the final accounts of different organizations, analyze the results and the implications for business decision making.

Assessment Strategy

Threshold (40-49% / D- to D+): Student has made sufficient progress in the study of this module to achieve the lowest level of pass allowing for progression onto an undergraduate degree.

Satisfactory (50 – 59% / C- to C+): Student demonstrates reasonably comprehensive coverage of learning outcomes, indicating generally accurate understanding, based on lecture material and some core readings. Some gaps in knowledge and/or understanding evident.

Good (60-69% / B- to B+): Student has displayed a sound basic knowledge and understanding of much of the material studied in this module and achieved a high enough grade to indicate a clear ability to cope with the demands of an undergraduate level degree.

Excellent (70% + / A- to A*): Student has engaged consistently well with all aspects of the module and strong achievement in assessments indicates the ability to perform effectively at undergraduate degree level.

Learning Outcomes

• Identify and explain the role of accounting in business and the importance of keeping accurate financial records.

• Interpret financial accounting statements

• Prepare a report which applies financial accounting concepts and is based on regulatory frameworks