University of Bristol - EFIM20007: Financial Accounting

This unit aims to equip participants with a good understanding of the principles and techniques of Financial Reporting, Income Concepts (Valuation) and Auditing, providing a useful and interesting foundation for future studies.

Your learning on this unit:

Financial Reporting:

1. Explain, apply and evaluate the principles underpinning international financial reporting, including those described in the evolving International Accounting Standards Board's Conceptual Framework for Financial Reporting; and

2. For a selection of topics, explain and apply the requirements of international financial reporting standards (IASs and IFRSs) currently in force; explain and apply the requirements arising from proposed alternatives and/or improvements to those standards; evaluate current requirements and proposals for change.

The topics are those which are prominent in the world of financial reporting at the time the unit operates and are likely to include: Leases; Provisions, Contingent Liabilities and Contingent Assets; Property, Plant and Equipment (including the impact of government grants and borrowing costs); Intangible assets; Impairment of assets; Group accounts.

Income Concepts:

3. Recall the central definition of income according to J.R.Hicks;

4. Derive and use appropriate formulae for the calculation of income and windfall gains under the concepts of income as interest, income as capital maintenance, income as consumption maintenance and income as consumption maintenance in real terms;

5. Recall and explain alternative capital maintenance concepts; and

6. Explain, apply, compare, contrast and evaluate alternative valuation bases, including entry and exit valuation bases and Current Purchasing Power accounting.

Auditing:

7. Explain the nature, purpose and output of an audit;

8. Recall who is eligible to audit and the rules on the appointment, removal and resignation of auditors;

9. Select and explain appropriate audit opinions for given scenarios; and

10. Devise and communicate appropriate audit tests (tests of control and substantive procedures) using a risk-based approach, and the concepts relating to obtaining and evaluating audit evidence, such as analytical review, audit risk, management assertions, sufficiency and appropriateness of audit evidence, and sampling.