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Introduction to Financial Accounting

Module title	Introduction to Financial Accounting
Module code	BEA1008
Academic year	2024/5
Credits	15
Module staff	Dr Peta Myers (Convenor)

Duration: Term	1	2	3
Duration: Weeks	11

Number students taking module (anticipated)	350

Module description

This is an introductory financial accounting module that is aimed at students who intend to major in accounting in their undergraduate studies, or who have a keen interest in gaining a technical understanding of elementary financial accounting. The first part of the module outlines the framework of accounting – its nature, purpose, and the context/environment in which it is practised. The module then covers the basics of accounting (i.e. concepts, conventions, principles and the accounting equation) and the recording/summarising mechanisms that underlie financial accounting. In addition, the recognition and measurement principles are also taught. Finally, the module covers the preparation of financial statements from the trial balance for various types of entities including sole traders, partnerships, limited companies, and non-for-profit entities. The module uses the International Financial Reporting Standards as reference.  

Module aims - intentions of the module

Intended Learning Outcomes (ILOs)

ILO: Module-specific skills

On successfully completing the module you will be able to...

• 1. describe the nature, uses and purposes of financial accounting, and outline both the conceptual and regulatory frameworks that govern the preparation and reporting of financial information;
• 2. explain the accounting equation and its link to financial statements, and illustrate the impact of economic transactions on the accounting equation;
• 3. describe the key concepts and conventions that underpin financial accounting;
• 4. describe and apply the process of recording transactions from source documents to financial statements via the books of prime entry, ledgers and trial balance;
• 5. describe and apply the process for year-end adjustments
• 6. explain and apply the recognition and measurement principles relating to: non-current assets (including depreciation and VAT), inventories (and cost of sales) and other current assets and liabilities (including receivables and bad debts, prepayments and accruals, etc.) and non-current liabilities and equity in accordance with IFRSs;
• 7. explain the differences in characteristics between a sole trader and a company and prepare financial statements for both forms of entities in accordance with IFRSs;
• 8. Prepare financial statements for a sole proprietor;
• 9. Use financial analysis to compare the information contained in various financial statements, understand the benefits and drawbacks of financial analysis.

ILO: Discipline-specific skills

On successfully completing the module you will be able to...

• 10. apply accounting principles, concepts and conventions in practical situations;
• 11. prepare financial statements containing relevant accounting data for companies and other business forms.

ILO: Personal and key skills

On successfully completing the module you will be able to...

• 12. demonstrate basic problem-solving skills;
• 13. demonstrate an ability to undertake independent study and to manage time;
• 14. demonstrate basic written and numerical skills.

Syllabus plan

• The framework of accounting  

• The accounting equation, concepts and conventions  

• The transactions recording process, trial balance and basic financial statements  

• Adjustments 

• Non-current assets recognition and measurement as well as depreciation  

• Inventories and cost of sales  

• Other current assets and liabilities  

• Non-current liabilities and equity  

• Preparation of financial statements for sole traders and limited companies  

• Financial analysis 

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching Activities	Guided independent study	Placement / study abroad
42	108	0

Details of learning activities and teaching methods

Category	Hours of study time	Description
Scheduled Learning and Teaching activities	22	Lectures
Scheduled Learning and Teaching activities	10	Workshops
Scheduled Learning and Teaching activities	10	Timetabled help classes (optional)
Guided independent study	108	Reading and preparation for workshops and assessments

Formative assessment

Form of assessment	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
Weekly workshops for discussion	3 hrs preparation by student / 1 hr in class discussion	1-14	Discussion in workshops and suggested solutions on ELE

Summative assessment (% of credit)

Coursework	Written exams	Practical exams
0	100	0

Details of summative assessment

Form of assessment	% of credit	Size of the assessment (eg length / duration)	ILOs assessed	Feedback method
1 x in-term test (week 5)	20	1 hour	1-4,10	Debriefing in lecture and suggested solutions on ELE
1 x in-term test (week 10)	20	1 hour	1-8,10	Debriefing in lecture and suggested solutions on ELE
Written examination	60	1.5 hours	1-14	Suggested solution on ELE
	0

Details of re-assessment (where required by referral or deferral)

Original form of assessment	Form of re-assessment	ILOs re-assessed	Timescale for re-assessment
In-term test, week 5 (20%)	In-term Test (1 hour, 20%)	1-4, 10	August/September Reassessment Period
In-term test, week 10 (20%)	In-term Test (1 hour, 20%)	1-8,10	August/September Reassessment Period
Written Examination (60%)	Written Examination (1.5 hours, 60%)	1-14	August/September Reassessment Period

Re-assessment notes

Should a reassessment be required for either of the tests or examination for this module, it will be by means of one hour tests accounting for 20% each or a one-hour examination accounting for 60% module marks, as relevant.

Indicative learning resources - Basic reading

Prescribed Textbook: As advised on the module ELE page. 

Indicative learning resources - Web based and electronic resources

Web based and electronic resources:

ELE – http://vle.exeter.ac.uk/course/view.php?id=128

 

ELE – College to provide hyperlink to appropriate pages

Key words search

Financial Accounting; Bookkeeping

Credit value	15
Module ECTS	7.5
Module pre-requisites	None
Module co-requisites	Cannot be taken concurrently with BEA1013 Introduction to Accounting
NQF level (module)	4
Available as distance learning?	No
Origin date	01/09/2011
Last revision date	15/03/2023