Semester: 2
Core/Elective: Core
Number of Credits: 3
Pre-requisite Module(s): Nil
Co-requisite Module(s): Nil
Department Responsible: Accounting
1. Module Summary
This module enables students to explore the basic principles
and concepts of financial accounting. Through illustration, discussion,
case study and problem-solving tasks, students will develop knowledge
of various financial reporting systems and methods for the preparation
and interpretation of financial statements.
2. Aim of Module
To provide students with an understanding of the basic principles
and concepts of financial accounting and to develop their abilities
in recording, preparing and analyzing financial statements.
3. Module Objectives
To enable students to:
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describe the nature and objectives of financial
accounting;
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understand the recording, classification and
summarization of transactions;
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appreciate the accounting process and prepare
financial statements for sole trader and partnership;
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prepare some specialised forms of accounts;
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analyse financial statements using ratios; and
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present and discuss issues related to financial
accounting confidently in class.
4. Module Content
1) The nature and objectives of financial accounting
1.1 Nature and functions of financial accounting
1.2 Users of financial statements and their needs
1.3 Basic accounting concepts and principles
1.4 Professional ethics
2) Recording, classification and summarisation of accounting
data
2.1 Accounting equation and double entry system
2.2 Books of original entries
2.3 Division of accounts and ledgers
2.4 Balancing off accounts and preparation of trial balance
2.5 Preparation of final accounts
3) Adjustments before preparation of final accounts
3.1 Depreciation of fixed assets
3.2 Provision for doubtful debts
3.3 Accruals and prepayments
3.4 Inventory valuation
3.5 Errors and correction of errors
3.6 Control accounts
4) Bank reconciliation statement
5) Specialised forms of accounts
| 5.1 | | Single entry and incomplete record |
| 5.2 | | Receipts and payments accounts and income and expenditure accounts |
6) Partnership accounts
6.1 Introduction
6.2 Admission and retirement
7) Accounting ratios and the interpretation of financial statements
| 7.1 | | Ratios relating to profitability |
| 7.2 | | Ratios relating to liquidity |
| 7.3 | | Ratios relating to assets management and financial management |
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