Financial Accounting and Reporting

This module is currently under review and minor changes will be updated on the web as soon as possible

Module Title	Financial Accounting and Reporting
Module Code	25-5011-00S
Semester of Delivery	See Module Information Table
Mandatory/Elective/Option	See Module Information Table
Level	5
Credit Points	20

Assessment Mode Weighting	Coursework	30%
	Examination	70%

Pre-requisites	Financial Accounting
Co-requisites	None

Class Contact Hours
Average Weekly	2.5

Directed Learning
Average Weekly	10

Module Leader	Chris Jones
	Sheffield Business School
Module Banding	A
Approval Status	Validated

Rationale

The preparation of financial statements is an important part of the work of the professional and commercial accounting community. Whilst the lay person might believe accounting to be an objective process, it is actually the subject of professional judgement in terms of what and how information should be reported. This unit seeks to develop an understanding of the way that basic accounting concepts and conventions are used to justify the choices that are made in presenting information, how those choices are limited by legislation and professional regulation, and how financial accounts are prepared in accordance therewith.

The European Commission has announced that from 2005, at the latest, all financial statements of EU listed companies will have to comply with International Accounting Standards. This means that there will be a high level of consistency across Europe in the preparation of financial statements and that national systems (such as U.K. G.A.A.P.) will be phased out by 2005.

Summary of Aims

To provide a critical understanding of the basic accounting concepts and conventions, their interaction and their relationship to accounting policies selected by companies.
To develop an understanding of alternative ways of presenting financial information and the ways in which legislation and accounting standards regulate the choices made in the presentation of financial information.
To develop students' ability to prepare final accounts in accordance with generally accepted accounting practice.
To develop student's ability to understand the content of financial reports.
To develop students' group-working and communication skills.
To develop students' skills in using appropriate software packages.

Anticipated Learning Outcomes

On completion of the module, the student should be able to:

critically evaluate basic accounting concepts and conventions and their relationship with reported income and asset/liability identification and measurement;
identify and apply best accounting practice, in the context of the current legal and professional requirements, to particular accounting situations;
prepare final accounts of public limited companies in accordance with generally accepted accounting practice including those of simple groups;
Interpret the content of financial reports as regards the position and performance of quoted companies;
communicate technical and conceptual material verbally, visually and in writing (both individually and as part of a group);
use appropriate software packages to help solve accounting problems.

Assessment and Feedback Strategy

Students will be provided with feedback on their progress in achieving the desired learning outcomes via workshop activities, comments on short essays and feedback on coursework and presentations. There will be assessed coursework requiring the use of computer software. Verbal, visual and group-working skills will be developed as explained below and will be assessed in class time. Learning outcomes relating to the preparation, application and critical analysis of conceptual issues will be assessed by final examination as will written presentational skills.

Learning Outcome	Assessment Criterion (where assessed)	Level descriptors
Learning Outcome	Assessment Criterion (where assessed)	fail	PASS	2.2	2.1	First
Outcome 1	Knowledge assessed in coursework and examination; critical evaluation in terminal examination	inadequate knowledge of concepts and conventions and their impact	some knowledge of concepts and conventions but application not strong	adequate knowledge and reasonable grasp of the significance of concepts, conventions, income, values etc.	good appreciation of the significance of concepts and conventions and their significance for reported income, values etc.	excellent, critical appreciation of the significance of concepts and conventions and their significance for reported income, values etc.
Outcome 2	Knowledge assessed in coursework and examination; critical evaluation in terminal examination	little appreciation of current accounting practice or its application	some appreciation of current accounting practice and its application but not complete	adequate knowledge of accounting standards, legislation and their application to particular situations	good knowledge of accounting standards, legislation and their application to particular situations	excellent critical understanding of accounting standards, legislation and their application to particular situations
Outcome 3	terminal examination	little evidence of ability to handle financial data and prepare financial statements. Little appreciation of legislation and accounting standards. Too many errors	some ability to handle financial data and prepare financial statements. Some appreciation of legislation and accounting standards. Likely to be a fair number of errors	adequate ability to handle financial data and prepare financial statements. A reasonable appreciation of legislation and accounting standards. A small number of errors	good ability to handle financial data and prepare financial statements. Good knowledge and application of legislation and accounting standards. Few errors	excellent ability to handle financial data and prepare financial statements. Excellent knowledge and application of legislation and accounting standards. Hardly any errors
Outcome 4	written communication in coursework and terminal examination, verbal and visual communication	lack of clarity and organisation, failure to communicate	clarity and organisation weak, only a partial communication	clarity and organisation fair, communication reasonable	clarity and organisation good, communicates message well	clarity and organisation excellent as is communication
Outcome 5	part of written coursework and/or presentations	poorly modelled attempt that fails to address problems	adequate use of software but solutions are flawed conceptually and unclear in their presentation	adequate use of software but solutions are either slightly flawed conceptually or unclear in their presentation	good use of software, solutions are conceptually sound and well presented	creative use of software providing a high, professional standard of output

Teaching and Learning Strategy and Methods

Topics are introduced in lectures and developed in student work sessions and staff led workshops. It has been recognised that students need considerable practice in the area of preparation of financial statements. To this end, conceptual material concerning accounting choice, policies standards, legislation etc. is linked to numerical examples that illustrate the impact of these things on the numbers reported in financial statements. Students are also asked to discuss issues and write short essays in class which, themselves, provide a further basis for discussion. Working together is very creative and builds confidence and enthusiasm. To this end, there will be group based presentations and debates that require research and interpretation of the topics selected.

Indicative Content

Accounting Concepts & Conventions, including substance over form
Regulatory Framework including the role and basic concepts of audit
Statement of Principles
Disclosure of Accounting Policies
Treatment of Tangible Assets - stock, fixed assets, valuations, leased assets and depreciation
Treatment of Intangible Fixed Assets - research & development, goodwill (and associated issues relating to group structures), brands
Treatment of Liabilities - provisions, contingencies, & post-balance sheet events
Revenue Recognition and Reporting Financial Performance - statement of recognised gains and losses, continuing and discontinued operations, exceptional and extraordinary items, alternative approaches to revenue recognition
Cash Flow Statements (excluding groups)
Preparation of balance sheets for simple groups
Relevant Accounting Standards both UK and IAS in the above areas
Interpretation of financial statements through the calculation of accounting ratios, including cases where the choice of accounting policies impacts on the ratios calculated.

Indicative Reading List

Recommended text

Financial Reporting by Alexander and Britton 6th edition (International Thomson Publishing 2001 ISBN 1-86152-672).
(However, the texts in this area change frequently and other intermediate texts might be used.)

All students have access to UK and International accounting standards etc. online.

Sheffield Business School, Howard Street, City Campus, Sheffield Hallam University, Sheffield, S1 1WB
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