FE1016 Financial Accounting 1 Semester A 2012/13 Module Leader Mostafa Hussien Room BS Module Tutors: M Hussien, A Owusu

Module Team & Contact Details O Module Leader: Mostafa Hussien  My Office room: BS.3.35   Student Hours: Wed 1-3 pm, Thursday 1-2 pm O Module Team:  Mostafa  Albert

Weetman, P. (2011) Financial accounting - an introduction (5th Edition), Harlow: Financial Times Prentice Hall Core Text Book Selected Chapters from

Formal Assessment O The formal assessment consists of 2 components. These two components are as follows: O First Main Component- Individual Coursework (30%): Each student will be required to write a report concerning Financial Analysis. O Second Main Component- Examination (70%): A two-hour Final Examination which would take place at the end of the programme.

Informal Assessment O This consists of 2 in-course tests taking place during weeks 5 and 10: O Week 5 In-course Test: This will take place during workshop and would last for 50 minutes. It will consist of 10 multiple choice statements covering lectures 1-4. O Week 10 In-course Test: This will take place during workshop and would last for 50 minutes. It will consist of 10 multiple choice statements covering lectures 5-9. NO PRESSURE

Indicative Content: O Introduction to Accounting O Users and Uses of Accounting Information O Assets, Liabilities and Ownership Interest The Balance Sheet O Principles and Measurement of Financial Performance The Income Statement O Analysis and Interpretation of Company Financial Statements O The Double-Entry System and Final Accounts O Treatment of Non-Current Assets O Accounting for Inventories and Receivables O Treatment of Long-Term Finance O Accounting requirements of the Companies Act O Nature and context of auditing O Revision

FE1016 Lecture 1 Financial Accounting 1 Reading: Weetman, P (2011) Chapter 1

Topic 1 Introduction to Accounting O Reading:  Chapter 1 Weetman P (2011). O Main Points to be covered:  Background and Introduction  Identify the nature and purpose of accounting  Identify the main users of financial information and discuss their needs  Understand the difference between management and financial accounting  Identify the role and responsibilities of the accountants

Types of Business Entities  Sole traders where one person owns a business  Partnerships where two or more people form a business  Companies (legal entities separate from their members)

Companies Limited by Shares  Public limited companies PLCs minimum authorised share capital £ 50,000 shares are offered for sale to the general public most, but not all, are listed  Private companies Ltd not allowed to offer their shares for sale to the general public

Role of Organisations in Society  To maximise profit  To maximise share price  To provide employment  To avoid environmental damage

What is Accounting  Provide a definition  Look at what accountants do  Differences between financial accounting and management accounting

Introduction to Accounting O Accounting is concerned with providing both information that will help decision-makers to make good decisions. financial & non-financial

Users of Accounting Information  Users of accounting information can be divided in two categories: parties within the organisation, mainly ; and parties such as , creditors and regulatory agencies, outside the organisation. Internal External managers shareholders

Branches of Accounting  It is possible to distinguish between two branches of accounting, that reflect the internal & external users of accounting information accounting is concerned with the provision of information to people within the organisation to help them make better decisions accounting is concerned with the provision of information to external parties outside the organisation. Management Financial

Financial Accounting In this module we are concerned with financial accounting The product of financial accounting is financial statements (to be covered next week)

Q1: What is the purpose of producing accounting information? Q2: Explain why you believe all organisations need an accounting system ? Q3: Discuss how financial accounting differs from management accounting? Q4: Discuss what you consider might be appropriate measures of success for a hospital. Q5: Explain what you consider to be the role and responsibilities of an accountant? Seminar 1:

Reading:  Weetman Chapter 1 Main points to be covered:  Users needs and interests in financial accounting  Need for financial statements  General Purpose and specific purpose of financial statement  Different Financial Statements

BS.3.35 Wednesday 1-3 pm Thursday 1-2 pm