BSc Business Accounting with Industrial/Professional Experience

Year of entry: 2024

Course unit details:
Advanced Financial Reporting

Course unit fact file
Unit code BMAN32190
Credit rating 20
Unit level Level 6
Teaching period(s) Full year
Available as a free choice unit? No

Overview

This course builds on student’s knowledge of Financial Reporting, to enable students to prepare complete single entity and consolidated financial statements, and extracts from those financial statements, covering a wide range of International Financial Reporting Standards (IFRS Standards). Whilst the key focus will be on IFRS, students will become familiar with the differences between IFRS and UK GAAP. Students will also be required to explain accounting and reporting concepts and ethical issues, and the application of IFRS Standards to specified single entity or group scenarios.

On completion of this module, students will be able to:

  • explain the contribution and inherent limitations of financial statements, apply the International Accounting Standards Board’s (IASB) conceptual framework for financial reporting and identify and explain key ethical issues relating to financial reporting;
  • prepare and present financial statements from accounting data for single entities in conformity with IFRS Standards and explain the application of IFRS Standards to specified single entity scenarios;
  • identify the circumstances in which entities are required to present consolidated financial statements, prepare and present them in conformity with IFRS Standards and explain the application of IFRS Standards to specified group scenarios; and
  • describe the principal differences between IFRS Standards and UK GAAP and prepare simple extracts from financial statements in accordance with UK GAAP, for both single entity and consolidated financial statements.

The core content will be updated annually to reflect any changes to Financial Reporting legislation.

Pre/co-requisites

Unit title Unit code Requirement type Description
Financial Reporting and Accountability BMAN21020A Pre-Requisite Compulsory
Core and only available for BSc Business Accounting with IPE.

Aims

This course aims to further develop students’ understanding of advanced aspects of financial reporting, to enable students to prepare complete single entity and consolidated financial statements, and extracts from those financial statements, covering a wide range of International Financial Reporting Standards (IFRS Standards).

Syllabus

The key areas of the syllabus are:

  1. Accounting and reporting concepts

Students will be able to explain the contribution and inherent limitations of financial statements and apply the International Accounting Standards Board’s conceptual framework for financial reporting. Students should be able to explain the qualitative characteristics of financial information and the constraints on such information; and identify the effects of transactions in accordance with the IASB Conceptual Framework. They should be able to explain the different bases of measurement of elements of financial statements, discuss the concepts of ‘fair presentation’ and ‘true and fair view’ and the circumstances in which these concepts may override legislation or accounting standards. Students should be able to explain the differences between financial statements produced using the accrual basis and those produced using the bases of cash accounting and break-up.  

  1. Ethics

Student should be able to identify and explain the ethical and professional issues for a professional accountant undertaking work in financial accounting and reporting and identify appropriate action.

  1. Standard-setting process.

Students will be able to explain the standard-setting process used by UK and international bodies and the authority of UK and international standards, using appropriate examples as illustration.

  1. Single entity financial statements

Students will be able to prepare and present financial statements from accounting data for single entities in conformity with IFRS Standards requirements and explain the application of IFRS Standards to specified single entity scenarios. This includes the ability to:

  • identify the laws, regulations, accounting standards and other requirements applicable to the statutory financial statements of an entity;
  • calculate from financial and other data the amounts to be included in an entity’s financial statements according to the international financial reporting framework;
  • prepare and present the financial statements, or extracts, of an entity in accordance with its accounting policies and appropriate international financial reporting standards;
  • explain the application of IFRS Standards to specified single entity scenarios;
  • describe the principal differences between IFRS Standards and UK GAAP (FRS 102 and Companies Act 2006) and prepare simple extracts from single entity financial statements in accordance with UK GAAP; and
  • define and calculate from information provided the distributable profits of an entity.
  1. Consolidated financial statements

Student should be able to explain and demonstrate the concepts and principles surrounding the consolidation of financial statements, including the ability to:

  • identify and describe the circumstances in which an entity is required to prepare and present consolidated financial statements;
  • identify the laws and regulations, and accounting standards and other requirements applicable to the legal entity and consolidated financial statements of an entity;
  • identify from financial and other data any subsidiary, associate or joint venture of an entity according to the international financial reporting framework;
  • calculate from financial and other data the amounts to be included in an entity’s consolidated financial statements in respect of its new, continuing and discontinued interests in subsidiaries, associates and joint ventures (excluding partial disposals of subsidiaries and disposals of associates or joint ventures) according to IFRS;
  • prepare and present the consolidated financial statements, or extracts, of an entity in accordance with its accounting policies and appropriate international financial rep

Teaching and learning methods

The course will be taught over a two semesters (a full semester 1 and shorter more intense semester 2). The course will adopt a blended learning approach. Students will have 200 hours of activity hours based on a mix of delivery styles to accommodate the timing of the placement period for students on the BSc (Hons) Business Accounting programme. The learning and teaching will include:

  • Classroom based face-to-face lectures and workshops (synchronous)
  • Online asynchronous videos covering specific standalone topics
  • E-learning materials in the form of videos, short form quizzes, longer online question and answers, and discussion forums
  • In preparation for the assessment, students will be given mock exam questions and guidance on the approach to be taken in answering the questions as well as exam technique
  • Directed independent study.

The lectures will focus on the core topics of the course and the more complex, integrated topics. Running alongside this will be a series of asynchronous videos covering the more theoretical aspects of the topic. These asynchronous videos are aimed at teaching the student the topic and enhancing the learning they have gained in their private study. Topics covered in the asynchronous videos will also be covered in the workshop to give the students the opportunity to have areas of misunderstanding or misinterpretation clarified.

Knowledge and understanding

Students will gain a deeper understanding on the regulatory, professional, and ethical issues relevant to financial reporting under IFRS and UK GAAP, in both single entity and consolidated financial statements.

Intellectual skills

Students will apply their technical knowledge to case scenarios in which they will identify and use relevant information to develop solutions and apply judgement in relation to the case, leading to credible conclusions. Students will demonstrate ethical reasoning in accounting scenarios.

Practical skills

Students will apply technical knowledge and skills to support reasoning and conclusions. They will use a range of information sources to inform analysis and give advice, prepare reports or notes required in a clear and concise way in accordance with the instructions given. Students will be able to explain the contribution and inherent limitations of financial statements, apply the International Accounting Standards Board’s (IASB’s) conceptual framework for financial reporting and identify and explain key ethical issues. Students will prepare and present financial statements from accounting data for single entities in conformity with IFRS Standards requirements and explain the application of IFRS Standards to specified single entity scenarios. They will also be able to identify the circumstances in which entities are required to present consolidated financial statements, prepare and present them from single entity financial statements in conformity with IFRS Standards requirements and explain the application of IFRS Standards to specified group scenarios.

Transferable skills and personal qualities

The course supports the student’s development as lateral thinkers. They will be required to analyse courses of actions in terms of the requirements of the scenario, accounting standards, legislation and ethics. The course’s delivery schedule and assessment methods aim to promote the student’s ability to manage time, apply judgement, solve problems and communicate in both technical and non-technical language.

Employability skills

Analytical skills
This includes assimilating, identifying and prioritising key information from various sources; selecting appropriate courses of action using an ethical framework; explaining the inherent limitations of financial statements; applying judgement to recognise bias and varying quality in data and evidence; using judgement to assess the appropriate accounting treatment for transactions; and preparing and presenting financial statements, or extracts, in conformity with IFRS.
Problem solving
The mode of delivery allows students to develop self-study and time management skills. Much of the workshop time will be devoted to understanding the critical aspects of financial reporting and establishing the skills required by employers; these include communication, digital literacy, applying judgement and problem-solving skills. The ability to identify and explain ethical issues and apply professional scepticism are key requirements of the accounting profession; and these skills are also promoted in the course.
Written communication
The methods of assessment engaged in this course will also enhance students¿ employability skills by setting exam questions that are based around a typical financial reporting scenario, requiring students to display their judgement, analytical, technical and communication skills.
Other
The course will build on the knowledge and employability skills developed in BMAN21020 and student who are successful on the course will gain an ICAEW exemption.

Assessment methods

Summative assessment - 100% of the assessment will be a 2.5-hour unseen examination. The length of the final examination aligns with the ICAEW professional exemption requirements.

Formative assessment - for each area of the syllabus the students will be required to complete a series of online quizzes and mock examinations, as part of their independent study, prior to the summative assessment.

Feedback methods

Following the assessment generic feedback posted on Blackboard regarding overall test performance.

Formative feedback will be given by:

  • Informal advice and discussion during a lecture and workshop.
  • Online exercises and graded quizzes delivered through the Blackboard course space.

Responses to student emails and questions from a member of staff including feedback provided to a group via an online discussion forum.

Recommended reading

Financial accounting and reporting by Barry Elliott & Jamie Elliott

Financial accounting and reporting by Bill Collins and John McKeith

Wiley Interpretation and application of IFRS standards

ICAEW Learning Resources for Financial Accounting and Reporting

Study hours

Scheduled activity hours
Assessment written exam 2.5
Lectures 20
Tutorials 20
Independent study hours
Independent study 160

Teaching staff

Staff member Role
Huw Morgan Unit coordinator

Additional notes

Information

Pre-requisites: BMAN21020

Co-requisites: None

Dependent courses: None

Programme Restrictions: Compulsory for and available only to students on the BSc Business Accounting programme.

For Academic Year 2022/23

Updated: March 2022

Approved by: March UG Committee

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