Financial Reporting for Complex Entities

(Lent Term)

Module tutors

Paul Taylor and Dr Justin Chircop

Objectives

The module aims to address financial accounting issues that arise for complex business entities from both conceptual and technical angles within the context of International Accounting Standards, US and UK GAAP. It also assesses the impact of accounting theory in understanding and suggesting solutions to major reporting issues and examines the importance of relevant academic research to the area.

Texts

There is no core text for this module.  Readings will be drawn from a range of sources, mainly from preliminary contemporary research and professional journals and institutional pronouncements. The following texts (available in the library) provide general preliminary guidance on the topic areas:

There is no core text for this module.  Readings will be drawn from a range of sources, mainly from preliminary contemporary research and professional journals and institutional pronouncements. The following texts (available in the library) provide general preliminary guidance on the topic areas:

Revsine, L., Collins, D. W., Johnson, W. B. and Mittelstaedt, F., Financial Reporting and Analysis, Prentice Hall, (5th Edition) 2011.

Picker, R., Leo, K, Loftus, J., Wise, V., Clark, K., Alfredson, K., Applying International Accounting Standards, 3rd Edition Wiley 2013.

Ernst & Young, International GAAP 2014, Wiley 2014

Taylor, P.A., Consolidated Financial Reporting, (chapters to be provided).

Choi S., Chircop J., Salzedo C., Taylor, P. A. (compilers of custom text), Financial Accounting and Reporting: 2013, McGraw-Hill (this text is mainly used in AcF 503, and is only used to a small extent in AcF 603)

Topics

  • Introduction: The nature and environment of complex entities.
  • Reporting Financial Performance: calculating earnings per share, defining income and comprehensive income, using reported income for analysis purposes.
  • Owner’s Equity: accounting for share-based payments, reporting changes in owner’s equity.
  • Assets and Liabilities: for example, intangible assets (including research and development), accounting for financial instruments and hedging.
  • Accounting for groups: Business combinations, goodwill, non-controlling interests, different types of strategic relationships (associates and joint ventures), foreign currency translation.

Assessment

Coursework 25% of module mark and examination 75% of module mark.

Contact hours

Minimum of 22.5 hours in total.

For those interested in studying to become a Chartered Financial Analyst, it is worth noting that this module contributes to:

  • Financial Statement Analysis at CFA levels I and II