20 credits at level HE7
This module is aimed at providing a critical understanding of the underlying assumptions and limitations of accounting information and the way in which this is reported together with an appreciation of measurement and reporting problems in financial accounting. Methods available for interpreting accounting information will be explored and applied to ‘live’ data.
The module will provide students with the knowledge and skills necessary to interpret and critically analyse the content of financial reports and evaluate and debate the usefulness of the information to interested parties.
The demand for financial reporting – users and their needs
IASB - Conceptual Framework
What is reported – Assets, Liabilities - how are they valued?
Defining Income, accrual/cash flow
Current developments – international convergence
Analysis of financial information.
Aspects of corporate governance
The delivery will be a mixture of lectures/seminars. It will be supported by the use of Moodle and other forms of technology-enhanced learning.
The outcomes will be assessed by an assignment and a group presentation.
The learner will be expected to achieve high standards of presentation and communication, including standards of written and spoken English, and to demonstrate effective use of information sources.
CW- Report (based on case study/ annual reports)
Presentation (Interpretation/analysis of specified company)
when you have successfully completed this module you will:
to demonstrate that you have achieved the learning outcome you will:
|1.||Critically analyse the content of annual reports produced by companies.||Critically assess the content of these reports.|
|2.||Evaluate issues relevant to the provision of information that is/should be provided with regard to different types of companies and the users of the information provided.||Critically assess the requirements of different users and information required in respect of different types of company|
|3.||Critically analyse and debate recent developments with regard to globalisation/harmonisation||Critically assess current developments in the context of the move towards harmonisation of financial reporting|
|4.||To be able to critically analyse information provided in annual reports and make an assessment of company performance||Make an analysis of information provided and use this to make a critical evaluation in relation to company performance.|
Your achievement of the learning outcomes for this module will be tested as follows:
|Description||Individual report based on analysis of specified company. 2,500 - 3,000 words to be handed in by week 10||Group presentation based on analysis of specified company. Students will need to analyse the financial results of an organisation in the context of compliance with or deviation from current international reporting standards. They will be required to present their findings to the remainder of the cohort. 20 minutes + 10 minutes question time. Groups of three. 1,500 - 2,000 word equivalent.|
Before taking this module you must have successfully completed the following:
No restrictions apply.
Essential Reading - All current editions:
Alexander, Britton and Jorrissen, “International Financial Reporting and Analysis”, latest edition, Thomson: London
Attrill, P & McLaney, E, “Financial Accounting for Decision Makers” Prentice Hall: Harlow
Elliott,B and Elliott,J, “Financial Accounting and Reporting”, latest edition, Prentice Hall: Harlow
Elliott,B and Elliott, J, “Financial Accounting Reporting and Analysis” International Edition, 2e. Prentice Hall: Harlow
Gowthorpe, C and Blake, J, “Ethical Issues in Accounting”. Routledge: London
Holmes, Sugden and Gee, “Interpreting Company Reports and Accounts”, latest edition, Prentice Hall: Harlow
Kimmell, P, Weygandt, J & Kieso, D. “Finanical Accounting” 5e, Wiley: New Jersey
Lee, T, "Financial Reporting and Corporate Governance", Wiley: New Jersey
Melville, A. “International Financial Reporting – a Practical Guide”. Prentice Hall: Harlow
Students are advised to refer to all professional accounting journals, and as many academic accounting journals as possible.
British Accounting Review
Contemporary Acounting Research
The Accounting Review
Journal of Accounting Education
American Accounting Association
Barth, M.E., Cram, D.P., & Nelson, K.K. (2001). Accruals and the Prediction of Future Cash Flows. The Accounting Review, 76(1), 27-58.
Chang, X., Dasgupta, S., & Hilary, G. (2009). The Effect of Auditor Quality on Financing Decisions. American Accounting Association, 84(4), 1085-1117.
Dennis, I. (2008). A Conceptual Enquiry into the Concept of a “Principles-Based” Accounting Standard. British Accounting Review, 40, 260-271.
Duff, A., Ferguson, J., & Gilmore, K. (2007). Issues Concerning the Employment and Employability of disabled people in UK Accounting Firms: An Analysis of the Views of Human Resource Managers as Employment Gatekeepers. British Accounting Review, 39, 15-38.
Forker, J., & Green, S., (2000). Corporate Governance & Accounting Models of the Reporting Entity. British Accounting Review 32(4), 375-396.
Godwin, N.H., K.G., &Sawyer, R.S. (2000). Case Financial Accounting Choice and Earnings Management. Journal of Accounting Education, 18, 369-376.
Marquardt, C.A., & Weidman, C.I. (2004). How are earnings managed? An Examination of Specific Accruals. Contemporary Accounting Research, 21(2), 461-91
Peasnell,K., Pope, P., & Young,S. (2000). Accrual Management to meet Earnings Targets: UK Evidence Pre and Post Cadbury. British Accounting Review, 32, 415-445.
Penman, S. H., Zhang, X.-J. (2002). Accounting Conservatism the Quality of Earnings And Stock Returns. The Accounting Review, 77(2), 237-264.
Rappaport, A. (2005). The Economics of Short-Term Performance Obsession. Financial Analysts Journal, 61 (3).
Sarens, G., De Beelde, I., & Everaert, P. (2009). Internal Audit: A Comfort Provider to the Audit Committee. British Accounting Review, 41, 90-106.
Shana, M., (2009). The Effects of Expected and Actual Accounting Choices on Judgments and Decisions. American Accounting Association, 84(5), 1465-1493.
Striukova, L., Unerman, J., & Guthrie, J. (2008). Corporate Reporting of Intellectual Capital: Evidence from UK Companies. British Accounting Review, 40, 297-313.
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