Course Details

1. Apply financial accounting principles in a corporate setting. Emphasis will be on developing the student’s analytical and critical abilities
2. Prepare group accounts involving consolidation adjustments and interpret the financial position of the group.
3. Prepare statements of cash flows in accordance with international accounting standards and be in a position to interpret the results.
4. Interpret the financial performance and financial position of limited companies using ratio analysis.
5. Examine advanced aspects of partnership accounting

Advanced aspects of group accounts: Prepare group statements of financial position (balance sheets). Examine consolidated adjustments such as inter group profits, fair value adjustments and inter company balances amongst others. Solving exercises on consolidated adjustments.

Theory of business combinations: Examine the theory and practice of business combinations.

Ratio analysis: Examine the rationale behind ratio analysis. Identify the formulas concerning the main profitability ratios, liquidity ratios, efficiency ratios and investment ratios and their interpretation. Interpret the financial performance and position of the firm from financial statements.

Statements of cash flow: Examine formats in line with international accounting practice. Preparing statements of cash flows for limited company for publication. Interpretation of the results.

Acquisitions of unincorporated businesses: Examine the double entry bookkeeping when an unincorporated business (such as a partnership) is acquired by a limited company. Analyse the double entry bookkeeping from the company viewpoint concerning the acquisition. Interpretation of the results.

Disposals of partnership businesses:  Analyse the reasons behind partnership dissolutions. Examine the double entry bookkeeping when a partnership is disposed of to a limited company. Analyse the double entry bookkeeping from the company viewpoint concerning its acquisition.

• F Wood and A Sangster, Business Accounting 2, 11th Edition, Financial Times Prentice Hall, 2008.

• Pauline Weetman, Financial & Management Accounting: An introduction, 4th Edition, FT Prentice Hall, 2006.
• BPP, AIA Professional Level 2 - Paper 13: Financial Accounting 3, 2nd Edition, BPP Learning Materials, 2008

The taught part of course is delivered to the students by means of lectures, conducted with the help of computer presentations. Lecture notes and presentations are available through the web for students to use in combination with the textbooks. Lectures are supplemented with class exercises carried out in class and via homework.