Financial accounting frameworks

AFM010-01

Financial accounting frameworks provides an introduction to core accounting principles and their applications, both internal and external, to a business organisation.

 

This module aims to provide a good grounding in and an appreciation of the financial accounting essentials that any analyst, manager or business owner should possess. It also provides a base for further studies in the accounting and financial management arena.

A key aim is to show and understand how the financial transactions and activities of a business in a particular financial period are constructed, and how they depict the financial story of that period through the subsequent construction and publication of core financial statements: the Statement of Financial Position, the Income Statement, and the Cash Flow Statement.

Topics covered: 

Main topics of the module include: 

  • Financial frameworks for financial statements 
  • Conceptual underpinnings of financial reporting 
  • Issues in revenue recognition and expense determination
  • Issues in valuation of assets and liabilities 
  • Construction of income and cash flow statements, and balance sheets 
  • Accounting for limited companies 
  • The Accounting Equation and double-entry bookkeeping 
  • The trial balance and adjustments 
  • Financial analysis through ratios 

Learning outcomes:

On successful completion of this module, you will be expected to be able to:  

  • Understand why it is important for commercial businesses, and in particular limited companies, to account for the financial value of transactions, events and activities. 
  • Understand the conceptual framework underpinning financial accounting systems. 
  • Identify and explore a range of selected issues and challenges within financial reporting. 
  • Be able to record the financial value of transactions, events and activities in financial accounting systems. 
  • Be able to construct key financial statements and recognise their strengths and weaknesses. 
  • Calculate and interpret financial ratios for a range of users of financial information. 

Assessment:  

There are two assessment components: 

  • Online open book test: 2 hours; weighted at 25%  
  • Coursework: up to 3,000 words; weighted at 75%