Financial Accounting (Level 8)

This part of the module considers the objectives of financial accounting, discusses the stakeholders in financial accounting information, examines the vocabulary of financial accounting, and reviews the fundamental aspects of the conceptual and regulatory frameworks within which financial accounting operates.

This part of the module introduces the double entry bookkeeping principles including the maintenance of accounting records and sources of accounting information including ledger accounts, books of prime entry and journals.

This part of the module discusses and applies the fundamental accounting standard requirements, relating to property, plant and equipment, intangible assets, investment property, government grants, borrowing costs, provisions, contingent liabilities, inventories, biological assets and current taxation.

This part of the module applies the requirements of relevant accounting standards for the purpose of preparation and presentation of basic financial statements for each of sole traders, partnerships and limited liability companies. Preparation of basic financial statements may incorporate a statement of profit or loss and other comprehensive income, statement of financial position, statement of changes in equity and statement of cash flows.

This part of the module also includes consideration of how financial statements can fit into an organisation’s broader integrated reporting framework.

This part of the module applies a variety of techniques including financial ratios to analyse and interpret prepared financial statements for the purpose of drawing conclusions and reporting findings in a professional manner to interested third parties. It includes an understanding of the limitations of the techniques applied.