Introductory description

This is an elective module available for WBS and non-WBS students.

To build upon Financial Reporting 1;
To develop the ability to prepare, critically evaluate and interpret detailed information to be included in published financial statements.
To develop students’ understanding of the theories of accounting, the regulatory environment for financial reporting, and the structure of group financial statements.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

Published financial statements and the application and evaluation of global financial reporting regulation
Topics from:

• Measurement in financial reporting
• Intangible assets
• Impairment
• Recognition of revenue
• Earnings per share
• Provisions and contingent liabilities and assets

The definition of the reporting entity and preparation of group financial statements.
The concept of control, group structures, consolidation after the date of acquisition, shares, reserves, fair value, equity accounting, levels of aggregation.
Special purpose entities, joint arrangements and off balance-sheet finance.
Current developments in financial reporting.

Learning outcomes

By the end of the module, students should be able to:

• Demonstrate detailed knowledge of published financial statements formats, disclosure and the regulations and underpinning concepts used in preparing key financial statement entries.
• Understand how to evaluate published earnings measures.
• Understand the definition of the reporting entity, the concept of control, levels of aggregation of accounting information and off-balance sheet activities.
• Demonstrate knowledge of the concepts and conventions in the preparation of group financial statements.
• Demonstrate awareness of current developments in financial reporting theory and practices.
• Assess the nature of accounting information and be able to describe the relationships between different types of financial statements and accounting numbers.
• Understand the theoretical basis of accounting and the effect this has upon accounting practices.
• Critically evaluate and interpret accounting numbers and the use of accounting policies.
• Develop and demonstrate analytical, and problem solving skills

Indicative reading list

Required text:
Maynard, (2017 2nd edition), Financial Accounting, Reporting & Analysis, OUP
Other useful texts
Alexander, D., Jorissen, A., Hoogendoorn, M., van Mourik, C. and Kirwan, C. (2020), International Financial Reporting and
Analysis, 8th edition, Cengage Learning
Elliott, B. and Elliott, J. (2022), Financial Accounting and Reporting, 20th edition, FT Prentice Hall
Other relevant resources:
Students are also encouraged to refer to relevant journal articles. Some of the useful journals are: Economia (UK); British
Accounting Review (UK); Accounting, Organizations and Society (UK); Accounting and Business Research (UK); Journal of
Business Finance and Accounting (UK); Journal of Accountancy (US); The Accounting Review (US); Journal of Accounting
Research (US).
Web-based resources:
An electronic version of International GAAP published by Ernst & Young LLP available from library online resources
Regulatory organisations and other useful accounting websites:
http://www.ifrs.org The International Financial Reporting Standards Foundation and the International Accounting Standards
Boards
http://www.frc.org.uk The Financial Reporting Council
http://www.fasb.org/ The US Financial Accounting Standards Boards
http://www.icaew.com The Institute of Chartered Accountants in England and Wales
http://www.accaglobal.com/ Association of Chartered Certified Accountants
http://www.cimaglobal.com/ Chartered Institute of Management of Accountants
http://www.icas.org.uk/ Institute of Chartered Accountants of Scotland
http://www.accountingweb.co.uk Accounting news site
http://www.iasplus.com Useful summaries of international financial reporting standards

Subject specific skills

Technical skills related to the preparation and interpretation of published group financial statements.
Critically evaluate financial reporting regulations.

Transferable skills

Develop and demonstrate written communication skills.
Develop and demonstrate team work and oral communication.