Learning Outcomes:
On completion of this module, students should be able to:
1. Describe the role of financial accounting in providing information to a variety of user groups.
2. Define assets, liabilities and equity.
3. Explain the accounting equation and describe the statement of financial position (balance sheet).
4. Explain the accruals principle and describe the statement of profit or loss and other comprehensive income.
5. Record basic transactions using the double-entry accounting system.
6. Calculate depreciation and describe the treatment of non-current assets in the accounting system. Record additions and disposals of non-current assets and the depreciation charge.
7. Describe the treatment of impaired receivables, accruals and prepayments in the accounting system. Record accruals, prepayments, impairments and changes in the allowance for expected credit losses.
8.Explain the sources of finance available to a limited company and their accounting treatment. Record issues of share capital, issues and repayments of loans and dividend payments. Record corporation tax liabilities and payments, and transactions involving VAT and PAYE.
9. Prepare a trial balance, and present the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity for a small company under International Financial Reporting Standards (IFRS) regulation.
10. Analyse financial statements by calculating basic accounting ratios and interpret the ratios in the context of a particular business. Evaluate the profitability, liquidity and gearing of a company.
11. Prepare and interpret a statement of cash flows.
12. Identify and discuss accounting aspects of current business news and events.