Introduction to Financial Reporting
Lecture Programme 2024/2025
Note: Links only work if the material has been published.
Week 1
INTRODUCTIONS
Introduction to the course: syllabus, delivery, study methods, assessment, etc.
Introduction to independent learning.
FINANCIAL TRANSACTIONS
A look at how financial transactions change the financial position of the entity. Also an introduction to the three primary financial statements and how they interact.
Supplementary study material
Business structures in the UK
An introduction to the accounting in the UK
Week 2
Recording transations – double entry and the accounting system
Financial reporting and decision making
The Accounting Equation
The Elements of Accounting
Week 3 – Liquidity
Interpretation of financial statements: Liquidity
The cash flow statement and traditional liquidity ratios.
INDEPENDENT STUDY MATERIALS
An introduction to published financial statements
The Corporate Report
Week 4 – Profitability
Interpretation of financial statements: Profitability
Overall efficiency as a function of profitability on revenue and assets utilisation.
Week 5 – Working capital
The management of working capital. Inventory control, credit control and treasury management. Risks of over- and under-investment in operating working capital components
Week 6 – Financial structure
Financial Structure. Sources of finance, long term and short term. Gearing and financial leverage including income gearing/interest cover. Financial risk and gearing.
Week 7 – Investor ratios
Investor ratios and online finance sites
Week 8 – Consolidated financial statements
Group accounts
Introduction. Holding companies and subsidiaries. The importance of control. Types of control and group structures. Associates and Joint ventures. Acquisition accounting. Goodwill – it’s calculation and reporting including impairment and the treatment of negative goodwill.
The preparation of consolidated income statements
Week 9 – Consolidated financial statements 2
Group accounts continued
The preparation of consolidated statements of financial position.
The Statement of Changes in Equity
Week 10 – Equity accounting & Fair value
Equity accounting: associates and joint ventures
Week 11 – Segmental reporting
Review and exam guidance