LO1: Understand the theoretical and conceptual underpinning and frameworks for financial accounting
Module Handbook for [Accounting for Business] Academic year 2024/25
Level of study: 5
Number of credits: 20 credits
Course the module belongs to: BA (Hons) Business Studies
Faculty: Business Semester/Trimester of delivery: 3 Start date of the module: March 2025
Location of study: London School of Commerce
Study hours for the module: 200 hours Divide into:
- Number of contact hours and pattern of delivery: 2 hour lecture and two-hour fortnight each week for 12 weeks.
- Number of hours when students are expected to study independently or amongst peers, with no direct academic contact: 108 hours
Module leader name:
Module leader contact details:
Other teaching staff with contact details:
How to access tutorials and other module support All materials are available on the Student Portal
Who is the module for? This module is a core module for second year students on the BA (Hons) Business Studies programme
Module aims: The module aims to develop a comprehensive understanding of fundamental concepts and techniques in financial and management accounting, including the ethical issues at stake in providing a `true and fair view` in public reporting so as to support and maintain good business practice and sustainable financial markets. It also provides students with the opportunity to use and apply financial and accounting concepts, constructs and frameworks in support of business problem appraisal and decision making.
Brief module description/summary: This module covers the nature and role of accounting and the processes used to record and present accounting information. Students will learn to prepare company financial statements, including statements of financial position, profit or loss, and other comprehensive income and cash flows for single entities. The module will enable students to evaluate, analyse and discuss financial performance. This module provides participants with a solid grounding in all aspects of management accounting, including the importance of cost behaviour and different cost accounting techniques such as marginal and absorption costing. Students will develop skills in analysis and interpretation of numbers for decision-making purposes.
Module learning outcomes: Upon successful completion of the module the students will be able to:
LO1: Understand the theoretical and conceptual underpinning and frameworks for financial accounting
LO2: Understand and consider the issues in revenue recognition, expense recognition, accruals, prepayments, depreciation, inventory valuation, recognition of liabilities in the construction of core financial statements for sole traders and limited companies
LO3: Understand and apply full costing methods and recognise the associated challenges managers face in costing
LO4: Plan through cash budgeting, contribution costing and beak-even analysis as well as understand the strategic nature, purpose and issues for managers
Overview of learning and teaching activities on the module: A variety of teaching approaches is used, including lectures, seminars, case analysis, teamwork and extensive use of electronic resources for guided research.
Assessments: taken from approved module descriptor for columns 1, 2 and 5
|
Summative assessment Type |
% weighting |
Deadline for submission of work and where assignment should be submitted |
Date for return of mark/grade and feedback and where they will be returned |
Minimum pass mark for assessment task(s) |
|
1. Written assignment |
50% |
May 15th 2025 |
June 5th 2025 |
40% |
|
2. Closed book examination |
50% |
1st week of June 2025 |
Last week of June 2025 |
40% |
It`s important that you meet your assessment deadline to help manage your workload and ensure your timely progression to your next level of study. However, we understand that in exceptional cases you may be unable to submit your work on time or do well in your exams due to unexpected events which are short-term in nature and beyond your control. Find out more about what to do in situations such as these here.
A coursework extension or a chance to re-take your exam is not an automatic right; and to ensure fairness and transparency, exceptional circumstances requests will only be approved if they meet the criteria, are submitted on time and - where relevant - include appropriate professional evidence.
Indicative schedule of delivery
|
Session |
Indicative Content |
|
1 |
The environment of accounting |
|
2 |
The accountant`s role in the organisation |
|
3 |
Assignment review |
|
4 |
Accounting concepts and policies including the `true and fair view` |
|
5 |
The ethical requirements to support sustainable financial markets with good information |
|
6 |
Financial statements. Interpretation and evaluation of accounts |
|
7 |
Ratios, comparisons and trends |
|
8 |
An introduction to financial management |
|
9 |
Investment appraisal and return on investment |
|
10 |
An introduction to cost and management accounting, including marginal and absorption costing |
|
11 |
Budgeting and budgetary control, including the behavioural implications of budgeting |
|
12 |
Revision |
Referencing system: Harvard system of referencing.
Learning Materials/Resources: a variety of resource are available on the Student Portal.
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Essential Resources:
Atrill & McLaney (2018) Accounting and Finance for Non-specialists 11th Ed., Pearson
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Recommended Resources:
Atrill, P. and McLaney, E., (2019). Financial accounting for decision makers. 9th ed. Harlow: Pearson
Drury, C., (2017), Management and Cost Accounting, 10th Ed., Cengage Learning EMEA Thomas, A. and Ward, A. M. (2019) Introduction to Financial Accounting, 9th edition, London: McGraw Hill Education.
Wood, F & Sangster, A (2018), Business accounting I, Pearson Wood, F & Sangster, A (2018), Business accounting II, Pearson
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Other:
http://journals.sagepub.com/home/jaf http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1475-679X https://www.journalofaccountancy.com https://www.journals.elsevier.com/the-international-journal-of-accounting
Reassessment information:
Some students may be required to take reassessment for the module, following a decision from a Board of Examiners. Do check the Your Guide to Assessment and Award Processes and seek advice from your Personal Academic Tutor if this is the case for you. Support from the module team will be available in preparation for the reassessments.
Should you be required to take reassessment, the nature of the reassessment will be:
|
Original assessment This should be identical to the assessment table column 1 |
Reassessment type Usually, the same type of assessment and brief, but exam questions may vary |
Deadline for submission of reassessment, and where it should be submitted If no exact date is known, provide a week e.g. w/c 12 July 2022 |
|
Written assignment |
Written assignment |
TBC |
|
Closed book examination |
Closed book examination |
TBC |
This handbook should be read in conjunction with other sources:
- Student Course Handbook: for course academic information applying to all modules
- Current Student Webpages: for generic student experience information
Assessment brief:
ATTEMPT ALL TASKS
Task 1
The trial balance below is for RD plc as at 31/03/ 2024
|
|
£ |
£ |
|
£1 Ordinary share capital |
|
720,000 |
|
10% Debentures |
|
260,000 |
|
8% Long term bank loan |
|
120,000 |
|
Retained profits |
|
189,000 |
|
Land and buildings at cost |
800,000 |
|
|
Equipment at cost |
180,000 |
|
|
Equipment – accumulated depreciation |
|
40,000 |
|
Vehicles at cost |
320,000 |
|
|
Vehicles – accumulated depreciation |
|
30,000 |
|
Debenture interest |
15,000 |
|
|
Interest on long term bank loan |
7,000 |
|
|
Payables |
|
55,000 |
|
Receivables |
80,000 |
|
|
Rates and insurance |
49,000 |
|
|
Distribution expenses |
40,000 |
|
|
Salaries |
155,000 |
|
|
Utilities |
88,000 |
|
|
Audit fee |
38,000 |
|
|
Bad debt |
14,000 |
|
|
Directors’ remuneration |
66,000 |
|
|
Selling expenses |
34,000 |
|
|
Interim ordinary dividend |
40,000 |
|
|
Cash |
24,000 |
|
|
Bank overdraft |
|
5,000 |
|
Sales |
|
1,800,000 |
|
Opening inventory |
322,000 |
|
|
Purchases |
947,000 |
|
|
Totals |
3,219,000 |
3,219,000 |
Notes as at 31/03/ 2024:
- Inventory was valued at £300,000
- Insurance prepaid £7,000
- Accruals:
- Salaries - £9,000
- Rates - £5,000
- Selling expenses - £8,000
- Depreciation of equipment by 25% on straight line
- Depreciation of vehicles by 20% on reducing balance
- The directors are to provide £48,000 for taxation
- The directors propose a final ordinary dividend of 12p per share
(a) Prepare an income statement for the year-ended 31st March, 2024.
(b) Prepare a statement of financial position as at 31st March, 2024.
Task 2
Scenario
RD plc is a company based in the UK. It has its products available on the high street as well as selling online.
You work for the company as a trainee accountant and have been asked to examine the following information relating to two mutually exclusive capital budgeting decisions.
RD plc is considering production and sale of a new type of printer. This will allow them to expand production over the next 6 years and support the drive to sell more of their successful range of products for domestic use.
There are two investment options, D1 and D2, for printer and information about the initial investment and four different capital investment appraisal measures are given in the table below. The cost of capital is estimated at 8%.
|
Options |
Initial investment |
Accounting rate of return |
Payback period |
Net present value @ 8% |
Internal rate of return |
|
D1 |
£1,400,000 |
15 % |
2.9 years |
£160,100 |
11.7 % |
|
D2 |
£1,900,000 |
18 % |
3.2 years |
£184,000 |
10.8 % |
The board of directors of RD plc is about to attend a meeting to consider which option to choose. The IRR measure was added after the original board papers were released. When asked to estimate the IRR before calculating it, the company’s Finance Director confidently stated that it would be “well over 8% for both options.”
(a) Critically discuss the usefulness and limitations of the FOUR capital investment appraisal measures in the table above
(b) Make a recommendation, with justification, as to which option should be chosen.
(c) Explain why the finance director was so confident that IRR would be well more than 8% for both options.
Length Required
2000 words +/- 10%. Any deviation from this will be penalised.
Formatting and Layout
Please note the following when completing your written assignment:
- Writing: Written in English in an appropriate business/academic style
- Focus: Focus only on the tasks set in the assignment.
- Document format: Essay
- Ensure a clear title, course, and name or ID number is on a cover sheet and a reference using Harvard referencing throughout is also provided.
- Research: Research should use reliable and relevant sources of information e.g. academic books and journals that have been peer reviewed. The research should be extensive.
The use of a range of information sources is expected – academic books, peer reviewed journal articles, professional articles, press releases and newspaper articles, reliable statistics, company annual reports and other company information. All referencing should be in Harvard style.
MARKING CRITERIA AND STUDENT FEEDBACK – ASSIGNMENT 1
This section details the assessment criteria. The extent to which these are demonstrated by you determines your mark. The marks available for each criterion are shown. Lecturers use a similar format to comment on the achievement of the task(s), including those areas in which you have performed well and areas that would benefit from development/improvement.
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Common Assessment Criteria Applied |
Marks available |
Marks awarded |
|
1. Introduction Extent of research and/or own reading, selection of credible sources, application of appropriate referencing conventions. |
5 |
|
|
The objectives of the assignment identified and clarified. |
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2. Task 1 (a) – Income statement |
20 |
|
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3. Task 1 (b) - SOFP |
20 |
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Extent of knowledge and understanding of concepts and underlying principles associated |
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with the discipline. |
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With respect to the assignment topic, students must have a sound knowledge and understanding of accounting concepts in the preparation of financial statements. |
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4. Task 2 (a) – Critical analysis of the 4 methods |
20 |
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5. Task 2 (b) – Recommendation |
10 |
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6. Task 2 (c) – Analysis of IRR % |
10 |
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Analysis, evaluation and synthesis; logic, argument and judgement; analytical reflection; |
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organisation of ideas and evidence |
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The ability to discuss real life situations reflecting on your own experiences through appropriate theories, models, techniques and frameworks. Credit will be given for the use of both quantitative and qualitative elements within the response to the question provided the approach adopted is reasonable and is justified. |
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7. Conclusion |
5 |
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Conclusion and recommendations - Ensure your conclusions and recommendations are justified and supported by facts. They should follow logically the evidence contained in the main body of the assignment. Reaching a conclusion based on your analysis is important. Don’t be afraid to have an opinion. |
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8. Referencing and structure |
10 |
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Attributes in professional practice: individual and collaborative working; deployment of appropriate media; presentation and organisation. |
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Overall presentation - This should be coherent, logically organised, and clearly expressed. They should be accurate in terms of spelling, grammar and punctuation. Appendices should contain material relevant to supporting the assignment. Referencing
Ensure that your references are coming from quality sources such as articles; textbooks and other peer-reviewed journals |
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Assignment Mark (Assessment marks are subject to ratification at the Exam Board. These comments and marks are to give feedback on module work and are for guidance only until they are confirmed. ) |
Late Submission Penalties (tick if appropriate) |
% |
