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FE1016Financial Accounting
1Semester A
2012/13
Module LeaderMostafa HussienRoom BS.3.35
Email: [email protected] Tutors:
M Hussien, A Owusu
Module Team & Contact Details
OModule Leader: Mostafa Hussien My Office room: BS.3.35 E-mail: [email protected] Student Hours: Wed 1-3 pm, Thursday 1-2 pm
OModule Team: MostafaAlbert
Weetman, P. (2011) Financial accounting - an introduction (5th Edition), Harlow: Financial Times Prentice Hall
Core Text BookSelected Chapters from
Formal AssessmentO The formal assessment consists
of 2 components. These two components are as follows:
O First Main Component- Individual Coursework (30%): Each student will be required to write a report concerning Financial Analysis.
O Second Main Component- Examination (70%): A two-hour Final Examination which would take place at the end of the programme.
Informal AssessmentO This consists of 2 in-course tests
taking place during weeks 5 and 10:O Week 5 In-course Test: This will
take place during workshop and would last for 50 minutes. It will consist of 10 multiple choice statements covering lectures 1-4.
O Week 10 In-course Test: This will take place during workshop and would last for 50 minutes. It will consist of 10 multiple choice statements covering lectures 5-9. NO
PRESSURE
Indicative Content:O Introduction to AccountingO Users and Uses of Accounting InformationO Assets, Liabilities and Ownership Interest The Balance
SheetO Principles and Measurement of Financial Performance
The Income StatementO Analysis and Interpretation of Company Financial
StatementsO The Double-Entry System and Final AccountsO Treatment of Non-Current AssetsO Accounting for Inventories and ReceivablesO Treatment of Long-Term FinanceO Accounting requirements of the Companies ActO Nature and context of auditingO RevisionO Revision
FE1016 Lecture 1
Financial Accounting 1
Reading: Weetman, P (2011) Chapter 1
Topic 1 Introduction to Accounting
OReading: Chapter 1 Weetman P (2011).
OMain Points to be covered: Background and Introduction Identify the nature and purpose of
accounting Identify the main users of financial
information and discuss their needs Understand the difference between
management and financial accounting Identify the role and responsibilities of the
accountants
Types of Business Entities
Sole traders where one person owns a business
Partnerships where two or more people form a business
Companies (legal entities separate from their members)
Companies Limited by Shares
Public limited companies PLCs minimum authorised share capital £
50,000 shares are offered for sale to the general
public most, but not all, are listed
Private companies Ltd not allowed to offer their shares for sale to
the general public
Role of Organisations in Society To maximise profit
To maximise share price
To provide employment
To avoid environmental damage
What is Accounting
Provide a definition
Look at what accountants do
Differences between financial accounting and management accounting
Introduction to Accounting
OAccounting is concerned with providing both ---------------------- information that will help decision-makers to make good decisions.
financial & non-financial
Users of Accounting Information
Users of accounting information can be divided in two categories:
1. ---------- parties within the organisation, mainly ------------ ; and
2. ---------- parties such as ------------------- , creditors and regulatory agencies, outside the organisation.
Internal
External
managers
shareholders
Branches of Accounting It is possible to distinguish between two
branches of accounting, that reflect the internal & external users of accounting information.
1. ------------- accounting is concerned with the provision of information to people within the organisation to help them make better decisions.
2. ------------- accounting is concerned with the provision of information to external parties outside the organisation.
Management
Financial
Financial Accounting
In this module we are concerned with financial accounting
The product of financial accounting is financial statements (to be covered next week)
Q1: What is the purpose of producing accounting information? Q2: Explain why you believe all organisations need an accounting
system ?Q3: Discuss how financial accounting differs from management
accounting?Q4: Discuss what you consider might be appropriate measures of
success for a hospital.Q5: Explain what you consider to be the role and responsibilities
of an accountant?
Seminar 1:
Lecture 2: Users and uses of accounting
Reading: Weetman Chapter 1
Main points to be covered:
Users needs and interests in financial accounting
Need for financial statements General Purpose and specific purpose of
financial statement Different Financial Statements
