School of Management, Unit Catalogue 2008/09 |
MN50325 Financial accounting II |
| Credits: 6 |
| Level: Masters |
| Semester: 2 |
| Assessment: CW 25%, EX 75% |
| Requisites: |
|
Aims: The aim is to provide students with a systematic and comprehensive understanding of:
* the accounting methods and techniques required to prepare and analyse the financial statements of groups of companies, reflecting the full range of elements encountered in the accounts of public companies, e.g. intangible fixed assets, foreign exchange and derivative instruments, * international variation in Generally Accepted Accounting Principles (GAAP) and its implications for the analysis and interpretation of accounts, * the importance of interpreting accounts in the context of the annual report and other sources of information, * ethical aspects of financial accounting and reporting, * broader perspectives on corporate accountability, including demands for and the nature of non-financial reporting, and * current debates and issues in financial accounting that are likely to shape its future development, and equip students with the ability to apply their understanding in creative problem solving and appraising relevant current issues in academic and practical contexts. Learning Outcomes: By the end of this unit, the student should be able to: * based on provided information and exercising judgement in the application of appropriate accounting methods, prepare the financial statements and relevant account notes for a group of companies in a form suitable for publication in the annual report consistent with existing regulatory requirements and based on provided information, * conduct an analysis of financial information provided by a company or its group in order to critically appraise financial performance and position, and other business-relevant matters, including the impact on the valuation of equity, * using critical judgement of relevance and extant guidelines, prepare information for the Operating and Financial Review (assuming this statement is required from 2005 as currently anticipated), * discuss issues related to ethics in business and accounting, and issues of corporate accountability, * discuss current debates and issues in financial accounting and reporting. Skills: Intellectual skills * the ability to appropriately apply a framework of rules, regulations and principles to financial information; TFA * the ability to interpret financial information; TFA * the ability to identify issues of controversy in financial accounting and reporting, and discuss them. TFA Professional Practical skills * the ability to prepare financial reporting information in a form suitable for publication in compliance with regulatory requirements; TFA * the ability to analyse financial information and draw business-relevant conclusions; TFA * sensitivity to potential accounting issues deriving from future developments in business practice and transactions. FA Transferable/Key skills * the ability to manipulate financial data to achieve a specified objective in accordance with rules, regulations and principles. TFA * awareness of ethical and accountability issues for corporate entities. FA Personal/Interpersonal * the ability to communicate relatively complex financial information in a form understandable to users of such information. FA Content: * Treatment of investments, requirements for consolidation and treatment of associates and joint ventures. * Preparation of consolidated financial statements, including the statement of total recognised gains and losses, and reconciliations of movements in shareholders funds and of operating profit to operating cash flow. * Accounting standards and related interpretative statements (principally IFRS's) extant at the time of running in relation to the following: current and deferred taxation, revenue recognition, profit recognition in long-term contracts, employee benefits, foreign exchange, related parties, financial instruments, intangible assets and impairment analysis. * Financial ratio analysis. * Required and advisable contents of the OFR and its preparation. * Sources of and implications of international variation in GAAP. * Business ethics and particular considerations for accountants and auditors. * The accountability of companies and forms of non-financial reporting, particularly social and environmental reporting. * Current debates and issues in financial accounting relevant at the time of running, e.g. prospects of international harmonisation of GAAP. |