Introductory description

This is an elective module available for WBS and non-WBS students. To find detailed availability and to apply for this module, log in to my.wbs.ac.uk using your normal IT login details and apply via the my.wbs module application system. Once you’ve secured a place on my.wbs you should apply via your home department’s usual process, which usually takes place via eVision. Note that you do not require the module leader’s permission to study a WBS module, so please do not contact them to request it.

This module builds on previous studies of financial accounting to further develop understanding students' ability to prepare financial statements and apply the requirements of International Financial Reporting Standards. Students will be introduced to the conceptual framework for financial reporting and develop skills in critical evaluation of the
regulatory environment.

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.

The underpinning conceptual framework

• The objectives of financial reporting and the qualitative characteristics of financial information
• The IASB’s Conceptual Framework
• The elements of financial reporting and their recognition and presentation
• Measurement in financial reporting

The regulatory framework of financial reporting

• Statutory legislation – UK Companies Acts
• True and fair
• The IASB and international financial reporting standards (IASs and IFRSs)

The information needs of a wider stakeholder group

• An introduction to corporate governance and audit
• Ethics in financial reporting

Published financial statements and accounting regulation

• The format of published accounts, accounting policies and disclosure
• Reporting performance – discontinued operations, estimates and judgement, accounting for events after the reporting date
• Accounting for assets - property, plant and equipment, investment property, inventories, held for sale assets, leased assets
• Assessing performance – measures used by investors including discontinued operations, operating segment analysis

Learning outcomes

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

• Discuss and critically evaluate the international regulatory framework of financial reporting, including the conceptual framework.
• Demonstrate an understanding of the information needs of all stakeholders including issues relating to corporate governance and ethics in relation to financial reporting.
• Prepare an entity statement of financial position and statement of profit or loss and other comprehensive income, or extracts of the financial statements, in accordance with IFRS requirements.
• Apply accounting concepts and IFRS requirements in specific scenarios and explain or evaluate the accounting treatment applied.
• Assess the nature of accounting information and describe the relationships between different types of financial statements and accounting numbers.
• Understand the global regulatory framework for accounting and the effect this has upon accounting practices.
• Critically evaluate the use of accounting policies.
• Demonstrate analytical and problem solving skills

Indicative reading list

Core text:
International Financial Reporting and Analysis – 9th Edition by Petra Inwinkl, Giovanna Michelon, Martin Hoogendoorn, Ann Jorissen, Collette Kirwan, Carien van Mourik, David Alexander.

Please note free access to the online, adaptive version, of this core text may be made available at the start of the module.

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
Maynard (2017, 2nd edition), Financial Accounting, Reporting and Analysis, OUP.

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 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.comUseful summaries of international financial reporting standards

Subject specific skills

Demonstrate technical skills related to the preparation of published financial statements.
Critically evaluate accounting regulations
Identify and discuss ethical dilemmas in financial reporting.

Transferable skills

Demonstrate written communication skills.
Demonstrate team work and oral communication skills.