Principles of Financial Reporting
(Michaelmas Term, weeks 4-10)
The aim of this module is to consolidate students’ understanding of the manner in which accountants in practice, working in a variety of environments in various countries, have attempted to utilise aspects of accounting theory to resolve major reporting issues, and of the manner in which academics have conceptualised and explained accounting choices.
1. The Regulatory Environment of Financial Reporting
The demand for financial reporting: providers of capital, taxation, law, reporting standards. The users of financial statements and their information needs. Accounting rules: accounting standards, GAAP and company law.
2. International harmonisation of accounting standards
The demand for a set of international accounting standards. The International Accounting Standards Board (IASB) and the development of international accounting standards (IAS). The costs and benefits of IAS.
3. Contemporary Issues in Financial Accounting
Analysis of specific topics chosen from those of current interest, particularly those relating to issues of recognition and measurement. Examples of topics that may be covered include:
- Fair value accounting
- Revenue recognition
- Current and long term assets
- Treatment of liabilities
- Leasing and other forms of off-balance sheet financing
Coursework 25% of module mark and examination 75% of module mark.
Two one and half hour classes twice a week for seven weeks.
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.