Financial Accounting 2
Run by Bangor Business School
10 Credits or 5 ECTS Credits
Organiser: Mr Colin Bradley
Overall aims and purpose
NOTE: If you are registered for BA/BSc Accounting and Finance, you must achieve a grade of at least 40% in this module in order to proceed to Year 3.
To provide further advanced coverage of financial accounting and financial reporting, by examining the objectives and contents of selected key international accounting and financial reporting standards. The focus will be on the selction and disclosure of accounting policies, accounting for joint ventures, the disposal of subsidiaries, statements of cash flows, foreign currency translation, and earnings per share. In each case current international accounting standards will be critically examined in the context of the range of accounting methods available. The course will conclude by examining the limitations of current financial reporting and the problem of creative accounting.
Accounting policies; restatement of prior period results; accounting for the disposal of subsidiaries and accounting for discontinued operations; joint ventures; statements of cash flow; accounting for foreign currency transactions and translation; earnings per share; limitations of financial statements and creative accounting.
B- to B+ Techniques used in accounting and financial statement preparation are fully shown but with some errors made in the detail of the computation. Final accounts and financial statements are substantially correct, but may contain a few errors. Conceptual awareness is shown beyond the basic level with evidence of some reading and development of ideas outside lecture material, but still with some misunderstanding not of a fundamental nature.
D- to D+ Basic techniques of accounting or financial statement preparation are shown but significant errors are made in accounting or in the final financial statements. Conceptual issues are covered in a superficial way with only limited additional material shown beyond the lecture content.
C- to C+
C- to C+ A sound grasp of the techniques of accounting or financial statement preparation are shown but some errors are made in accounting or in the final financial statements. Conceptual issues are covered well, but with some misunderstanding, with use of additional material shown beyond the lecture content.
A- to A* Accounting and financial statement preparation shows full competence at the technical level, with correct or substantially correct accounts, disclosures and financial statements. There is demonstration of reading and thorough understanding at the conceptual level, with very few examples of misunderstanding.
Prepare individual and consolidated financial statements, including joint ventures and foreign currency adjustments, in accordance with international accounting and financial reporting standards.
Apply a critical and analytical approach to accounting and the development of accounting and financial reporting standards.
Understand and apply the accounting adjustments and disclosures required when a company disposes of its investment in another company.
Discuss the limitations of financial reporting and the problem of creative accounting.
Understand the objective, development and application of international accounting and financial reporting standards in relation to the disclosure of accounting policies, restatement of results, discontinued operations, statements of cash flow and foreign currency.
|EXAM||S2 Examination 2hrs||70|
|CLASS TEST||Class Test: Multiple Choice and Short Questions||30|
Teaching and Learning Strategy
Guidance to appropriate reading, and the use of computational examples to practice accounting and financial reporting.
Classroom lectures, including the use of worked examples to demonstrate accounting computations.
Computational workshops, using pre-set examples.
- Literacy - Proficiency in reading and writing through a variety of media
- Numeracy - Proficiency in using numbers at appropriate levels of accuracy
- Computer Literacy - Proficiency in using a varied range of computer software
- Self-Management - Able to work unsupervised in an efficient, punctual and structured manner. To examine the outcomes of tasks and events, and judge levels of quality and importance
- Exploring - Able to investigate, research and consider alternatives
- Information retrieval - Able to access different and multiple sources of information
- Inter-personal - Able to question, actively listen, examine given answers and interact sensitevely with others
- Critical analysis & Problem Solving - Able to deconstruct and analyse problems or complex situations. To find solutions to problems through analyses and exploration of all possibilities using appropriate methods, rescources and creativity.
- Argument - Able to put forward, debate and justify an opinion or a course of action, with an individual or in a wider group setting
- Self-awareness & Reflectivity - Having an awareness of your own strengths, weaknesses, aims and objectives. Able to regularly review, evaluate and reflect upon the performance of yourself and others
Subject specific skills
- knowledge of some of the contexts in which accounting can be seen as operating (examples of contexts include the legal, ethical, social and natural environment; the accountancy profession; the business entity; the capital markets; the public sector)
- knowledge of the main current technical language and practices of accounting (for example, recognition, measurement and disclosure in financial statements; managerial accounting; auditing; taxation) in a specified socio-economic domain
- knowledge of some of the alternative technical languages and practices of accounting (for example, alternative recognition rules and valuation bases, accounting rules followed in other socio-economic domains, alternative managerial accounting approaches to control and decision-making)
- skills in recording and summarising transactions and other economic events; preparation of financial statements; analysis of the operations of business (for example, decision analysis, performance measurement and management control); financial analysis and projections (for example, analysis of financial ratios, discounted cash flow analysis, budgeting, financial risks)
- knowledge of contemporary theories and empirical evidence concerning accounting in at least one of its contexts (for example, accounting and capital markets; accounting and the firm; accounting and the public sector; accounting and society; accounting and sustainability) and the ability to critically evaluate such theories and evidence age
- Analysis, deduction and induction. Economic reasoning is highly deductive, and logical analysis is applied to assumption-based models. However, inductive reasoning is also important. The development of such analytical skills enhances students' problem-solving and decision-making ability.
- An ability to understand financial statements, and a basic appreciation of the limitations of financial reporting practices and procedures (eg financial statement analysis; the relation between cash flow accounting and accrual accounting; discretionary accounting practices).
- Problem solving and critical analysis: analysing facts and circumstances to determine the cause of a problem and identifying and selecting appropriate solutions.
- Numeracy: the use of quantitative skills to manipulate data, evaluate, estimate and model business problems, functions and phenomena.
- Ability to work with people from a range of cultures.
- Articulating and effectively explaining information.
- Conceptual and critical thinking, analysis, synthesis and evaluation.
- Self-management: a readiness to accept responsibility and flexibility, to be resilient, self-starting and appropriately assertive, to plan, organise and manage time.
- Self reflection: self-analysis and an awareness/sensitivity to diversity in terms of people and cultures. This includes a continuing appetite for development.
Resource implications for students
Students are advised to purchase the core textbook for the course.
Core textbook: Elliott, B. & Elliott, J. 2015. Financial Accounting and Reporting.Harlow, Pearson.
Pre- and Co-requisite Modules
Courses including this module
Compulsory in courses:
- NN45: BA Accounting and Banking year 2 (BA/AB)
- NN36: BA Accounting and Banking with International Experience year 2 (BA/ABIE)
- N400: BA Accounting and Finance year 2 (BA/AF)
- N401: BA Accounting & Finance (with International Experience) year 2 (BA/AFIE)
- LN14: BA Economics/Accounting year 2 (BA/ECA)
- LN15: BA Accounting & Economics (with International Experience) year 2 (BA/ECAIE)
- N2N4: BA Management with Accounting year 2 (BA/MAF)
- NN44: BSc Accounting and Banking with International Experience year 2 (BSC/ABIE)
- NN43: BSc Accounting and Banking year 2 (BSC/ACCB)
- NL41: BSc Accounting and Economics year 2 (BSC/ACCEC)
- NN4H: BSc Accounting and Finance year 2 (BSC/ACCFIN)
- N402: BSc Accounting & Finance (with International Experience) year 2 (BSC/ACCFINIE)
- NL42: BSc Accounting and Economics with International Experience year 2 (BSC/AEIE)
- N2NK: BSc Management with Accounting year 2 (BSC/MWACC)