BAEcon Economics and Philosophy / Course details

Year of entry: 2024

Course unit details:
Financial Reporting and Accountability

Course unit fact file
Unit code BMAN21020A
Credit rating 20
Unit level Level 2
Teaching period(s) Full year
Available as a free choice unit? No

Overview

The course comprises two main sections. The first section is organised around three main themes: (i) the nature of the basic issues underlying financial reporting choices, accounting principles and concepts of income and value; (ii) major theoretical approaches to the analysis of the production and use of financial statements; and (iii) the framework established to ensure the quality of financial reporting, through the legal and professional structure of regulation and financial statement auditing.

The second part of the course, which is completed in the second semester, looks at accounting methods on a number of specific issues/controversies where financial reporting standards influence how organisations report externally in practice. This section begins by looking at attempts in the UK and elsewhere to develop a general ’conceptual framework’ to guide financial reporting practice. A number of specific areas of reporting will then be referred to, for example: reporting of earnings, valuation of tangible assets, accounting for research activity, group accounting, intangibles and provisions.

The course is concerned with the principles on which organisations report to external interest groups and what evidence from actual reporting practice reveals about the motivations associated with financial accounting. It is expected that students will become competent with intermediate level accounting methods in a number of areas of practice, but there is also emphasis on the conceptual issues linked to accounting methods - what theory would suggest regarding practice, how accepted accounting conventions are applied and what actual company behaviour illustrates about the nature of financial reporting. Some technical aspects of financial reporting will be highlighted in classes during both semesters.
 

Pre/co-requisites

Unit title Unit code Requirement type Description
Financial Reporting BMAN10501 Pre-Requisite Compulsory
BMAN10621A Pre-Requisite Compulsory
Fundamentals of Financial Reporting BMAN10621M Pre-Requisite Compulsory
Fundamentals of Financial Reporting B BMAN10621B Pre-Requisite Compulsory
BMAN 21020 has pre-requisites of: BMAN10501 or BMAN10621(A), BMAN10621(B) or BMAN10621(M). Available to Mgt, IM, IMABS & IBFE. Core for BSc Accounting. Also available to BAEcon & Maths w Financial Maths.

Pre-requisite course units have to be passed by 40% or above at the first attempt unless a higher percentage is indicated within this course outline. If the pre-requisite unit is defined as a compulsory course unit within your programme of study (Maths with Finance, IBFE, Accounting, BA Econ pathways for example) then progression onto the dependent unit is permitted as long as you have gained the appropriate amount of credit to progress on to the following year of your registered undergraduate programme.
Pre-requisites
BMAN10501 Financial Reporting with an examination pass mark of 40% or above or
BMAN10621(A), (B) or (M) Fundamentals of Financial Reporting with an examination pass mark of 40% or above

This course builds upon the learning from the above pre-requisite courses. Students must have a good knowledge and understanding of:

•    The structure of financial statements, particularly the Statement of Financial Position and Income
Statements
•    The 4 main transaction types (Assets, Liabilities, Income & Expenditure)
•    The working of dual effect transactions on the accounting equation, i.e. debits and credits.

Co-requisites: None
Dependent course units: BMAN30030 Contemporary Issues in Financial Reporting & Regulations, BMAN30131 Accountability and Auditing, BMAN30211 Corporate Governance in Context.

Aims

BMAN21020 aims to develop students' knowledge and understanding, both theoretical and practical, of: 
- the framework of regulations which influence financial reporting practice;
- theoretical approaches which have been offered as guides to financial reporting; 
- group accounting; and 
- accounting techniques and methods adopted in practice.

Learning outcomes

It is expected that on successful completion of this course students should be able to:

- Explain and apply basic theoretical ideas about financial reporting, including its role in a framework of governance and accountability and the measurement of income and value;
- Describe the principal elements in the regulatory structure applying to financial statements and how this structure has developed over time;
- Explain the role of auditing in relation to financial statements;
- Describe and evaluate the components of conceptual frameworks for accounting;
- Analyse the way in which theory, practice and rules (primarily accounting standards) apply to specific reporting issues which have been subjects of controversy and regulation in recent years;
- Explain and apply the main principles and methods recommended in a number of accounting standards.

In addition, through studying this course students should develop their skills in:
- The preparation, use and interpretation of financial accounting statements including those for group companies;
- Evaluation and presentation of quantitative and qualitative information;
- The use of academic literature and critical analysis;
- Problem solving, numeracy and data manipulation;
- Communication of structured information.

Teaching and learning methods

Teaching and learning methods
44 one-hour lectures with in-lecture activities (2 per week) over the duration of the course (22 lectures per semester).

Total study hours: 200 hours split between lectures, problem-based sessions, self-study and preparation for classes, coursework and examinations.

Informal Contact Methods
•    Office Hours - booked through SOHOL
•    Email tutors directly
•    Drop in Surgeries (extra help sessions for students on material they may be struggling with)
•    BlackBoard discussion board
•    Online Virtual Drop-in Surgeries

Employability skills

Problem solving
The course provides a number of pre-lecture activities to free up lecture time for more student-centred active learning, developing students' metacognitive and employability skills (self-explanation, communication, problem solving and analytical skills) through peer instruction. Pre-lecture and Workshop activities provide opportunities for student to use advanced excel techniques (with a lecture dedicated to illustrations of its use).
Other
In tandem with the technical aspects of financial reporting in this course is the role of accountability: using real-life examples, students apply reporting theories to critically evaluate motivations associated with financial reporting. Corporate Social Responsibility (CSR) is embedded throughout this course as it is now a key component of most operational management functions. Students also consider the role of ethics in financial reporting and theoretical underpinnings of accounting techniques to help them appreciate real world issues/controversies.

Assessment methods

Semester 1: 2 and a half hour examination (45%) at the end of semester one

Semester 2: 2 and a half hour examination (45%) at the end of semester two.

Active Learning assessment: In both semesters: participation in peer instruction lecture activities, via polling system (Point Solutions) (10%) 

Semester 1 exchange students admitted via the Alliance Manchester Business School International Office on course code BMAN20641 will undertake a separate exam consisting of a technical accounting question and a written essay.

Feedback methods

The following methods will be used to give feedback:
•    Informal advice and discussions during lectures.
•    Online exercises and quizzes delivered through the Blackboard course space.
•    Responses to student emails and questions from a member of staff including feedback provided to the cohort via an online discussion forum on Blackboard.
•    Generic feedback posted on Blackboard regarding overall examination performance.

Recommended reading

Core Text Book:

H. Morgan (2018), Financial Reporting and Accountability, 5th Edition, McGraw Hill. (customised)

This Core Text is available as an e-book free to students registered on this course, as part of the University’s "Books Right here Right Now" scheme.
WARNING: Do not buy earlier editions of the above text book as they are now technically out of date.

Supplementary Reading:

B. Elliott and J. Elliott (2017), Financial Reporting and Accounting, (18th edition), Prentice Hall. 
Alexander, D. Britton, and Jorissen, A (2014), International Financial Reporting and Analysis, 6th ed. Thomson Learning.
C. Deegan and J. Unerman (2014), Financial Accounting Theory; 2nd European Edition, McGraw-Hill Companies Inc.
Kim, K.A., Nofsinger, J.R. and Mohr, D.J (2010) Corporate Governance, 3rd Ed. Prentice Hall.
Collins and McKeith (2013) Financial Accounting and Reporting, McGraw Hill.

Study hours

Scheduled activity hours
Lectures 44
Independent study hours
Independent study 156

Teaching staff

Staff member Role
Huw Morgan Unit coordinator

Additional notes

Length of course: 23 weeks

Course Coordinator: Huw Morgan

Other Teaching Staff: Wendy Wild, Reimi Sivalingam  

Pre-requisite course units have to be passed by 40% or above at the first attempt unless a higher percentage is indicated within this course outline. If the pre-requisite unit is defined as a compulsory course unit within your programme of study (Maths with Finance, IBFE, Accounting, BA Econ pathways for example) then progression onto the dependent unit is permitted as long as you have gained the appropriate amount of credit to progress on to the following year of your registered undergraduate programme.

Pre-requisites:
BMAN10501 Financial Reporting with an examination pass mark of 40% or above or
BMAN10621(A), (B) or (M) Fundamentals of Financial Reporting with an examination pass mark of 40% or above
This course builds upon the learning from the above pre-requisite courses. Students must have a good knowledge and understanding of:
•    The structure of financial statements, particularly the Statement of Financial Position and Income Statements
•    The 4 main transaction types (Assets, Liabilities, Income & Expenditure)
•    The working of dual effect transactions on the accounting equation, i.e. debits and credits.
Co-requisites: None

Dependent course units: BMAN30030 Contemporary Issues in Financial Reporting & Regulations, BMAN30131 Accountability and Auditing, BMAN30211 Corporate Governance in Context.
Programme Restrictions: There are no programme restrictions for this course providing the pre-requisites listed are met.

BMAN21020 is available to study abroad and exchange students admitted through the University of Manchester International Programmes Office who will be studying for a full academic year.

For Academic Year 2024/25

Updated: May 2024

Approved by: March UG Committee

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