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A basic prior knowledge of accounting is assumed: students learn how accounts are constructed and analysed, then examine the impact of various issues on the reported numbers. These include the reporting of tangible and intangible assets; continued and discontinued operations, historic costs vs fair value accounting and business combinations.

The module takes a global perspective and refers largely to the regulatory regime of the International Accounting Standards Board (IASB).

Topics covered

• Introduction to Financial Reporting
• Introduction to Financial Statements and Other Financial Reporting Topics
• The Balance Sheet and the Shareholder Equity
• Income Statements and Reported Income (Earnings) Quality
• Property Plant and Equipment
• Intangible Assets and Fair Value Accounting
• Liquidity of Short-Term Assets Related Debt-Paying Ability
• Financial Ratio Analysis
• The Financial Statements of Special Industries: Banks, Utilities, Oil & Gas, Transportation, Insurance and Real Estate Companies
• Group Accounts and Business Combinations

Learning outcomes

If you complete the module successfully, you should be able to:

• comprehend the theory and practices of corporate financial reporting.
• use financial reporting theory and practices to analyse the performance of a company.
• design appropriate business policies and strategies to meet stakeholder and shareholder needs in the light of the recent changes in financial reporting.
• identify and evaluate financial statements.
• explain the reasoning behind the rules underpinning corporate financial reporting and the history of their development.
• describe how the rules of corporate financial reporting effect the application of standards.
• identify assumptions, evaluate statements in terms of evidence, to detect false logic or reasoning, to identify implicit values, and to define terms adequately and to generalise appropriately.
• create, evaluate and access a range of different outcomes and the ability to justify the chosen outcome.
• demonstrate numeracy and active quantitative problem solving and decision making skills (including data analysis, interpretation and extrapolation).
• have the ability to interpret information based on scientific analysis.
• apply research skills into financial reporting issues.
• demonstrate effective communication skills.
• demonstrate time management skills (including effective self-management in terms of time, planning and behaviour, motivation, self-starting, individual initiative and enterprise).
• gain digital and information literacy skills.

Assessment

This module is assessed by:

Coursework (50% weighting):

• There is one item of coursework for this module which contributes to the final assessment mark for this module.
• Coursework: a written essay of a maximum of 2,000 or 2,500 words (deadline – weeks 9-12) The coursework is designed to check student progress, extend and reinforce concepts covered and also test individual performance.

Examination (50% weighting):

• The final piece of assessment will be an unseen written examination of 2 hours’ duration.

Essential reading

The following is provided as part of the module materials after you register:

• Charles H. Gibson, Financial Statement Analysis, International Edition, Cengage, 2012
• John Dunn, Financial Reporting and Analysis, Wiley, 2010