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Revised: 16/04/2010

INTI UNIVERSITY COLLEGE

COURSE STRUCTURE

COURSE: ACC222 FOUNDATIONS OF FINANCIAL ACCOUNTING (3 cr)

CO-REQUISITE(S):
ACC223 Foundation of Management Accounting

COURSE DESCRIPTION:
The module provides an introduction to financial accounting for the intending specialist. No prior knowledge is
assumed. The collection and reporting of accounting information to both internal managers and external
stakeholders is introduced. The uses and interpretation of publicly available accounting information is
introduced. It will form a solid base for the more conceptual and critical modules that students will follow in
their second and final years.

LEARNING OBJECTIVE:
The aim of this module is to enable students to:
1. gain an introduction to financial accounting, suitable for those who intend to specialise in accounting

LEARNING OUTCOMES:
Successful students will be able to:
1. prepare and interpret financial accounting information
2. record accounting transactions using double entry
3. produce the necessary double entry to record accounting adjustments
4. prepare sole trader, partnership and simple company accounts

COURSE FORMAT:
Lecture: 3 hrs per week, Tutorial: 1 hr per week
[For short semester, Lecture: 6 hrs per week, Tutorial: 2 hrs per week]

STUDENT EVALUATION:
Coursework: 30% [Test 1 (15%) and Test 2 (15%)]
Final Examination: 70%

FINAL EXAMINATION FORMAT:


Duration: 2 hours
Students are required to answer all SIX questions (computation and essay).

GRADING SCALE:
A1 (77–100), A2 (73–76), A3 (70–72), B1 (67–69), B2 (63–66), B3 (60–62), C1 (57–59), C2 (53–56), C3 (50–
52), D1 (47–49), D2 (43–46), D3 (40–42), F (0-39)
Referral Pass (40-100)
Referral Fail (0-39)
Note:
A student is deemed to have passed the module if the student obtained 40% or better in the overall, irrespective
of the score in the individual component.

BASIC TEXT(S):
1. Thomas, A. An Introduction to Financial Accounting. 4th ed., , McGraw-Hill, 2002.

REFERENCES:
1. Dyson, JR. Accounting for Non-accounting Students. 6th ed., FT Prentice Hall, 2004.
2. Westman, P. Financial and Management Accounting. 3rd ed., FT Prentice Hall.
3. Atrill, P & McLaney, E. Accounting and Finance for Non-specialists. 3rd ed., FT Prentice, 2001.
4. Wood, F. & Sangster, A. Business Accounting. 9th ed., FT Prentice Hall.
5. Bendrey, M, Hussey, R & West, C. Accounting and Finance in Business, DP Publication.

BATUH: ACC222 FOUNDATIONS OF FINANCIAL ACCOUNTING Page 1 of 2


Revised: 16/04/2010

CLASS SYLLABUS:
Lecture(s) Topics
1-2 The nature and objectives of financial accounting.
The objectives of company accounts. The users of annual reports and their information needs.
3-4 The accounting equation and its components.
The balance sheet as an accounting equation. The accounting equation and profit reporting.
5-6 Basic documentation and the general ledger.
The principles of double entry bookkeeping.
7-8 The balancing of accounts and the trial balance.
The balancing of accounts. The purpose and preparation of a trial balance. Prepare the simple
final accounts of a sole trader from the trial balance.
9-10 Fixed Assets and Depreciation.
Capital and revenue expenditure. Definition of depreciation. Methods of depreciation Double
entry records for depreciation and the disposal of fixed assets.
11-12 Bad debts and provision for bad debts.
Introduction to bad debts. Provision for doubtful debts. Bad debts recovered.
13-14 Adjustments for accruals and prepayments
Adjustments for accrued/prepaid expenses and accrued/unearned revenue
15-16 The preparation of final accounts for sole trader
Preparation of final accounts of a sole trader after incorporating period end adjustments.
17-18 The preparation of final accounts for partnership
Describe the main characteristics of partnerships. Prepare partnership final accounts including
a profit and loss appropriation account and current accounts.
19.20 Preparation of final accounts of limited companies for internal use
Main characteristics of limited companies. Outline the nature and types of share and loan
capital issued by limited companies. Show the entries relating to the treatment of preliminary
expenses, debenture interest, corporation tax, dividends and transfer to reserves. Prepare the
final accounts for internal use.
21-22 Accounts interpretation and ratio analysis
Purpose and limitation of ratio analysis. Define each of the most commonly used accounting
ratios to analyse accounting information.
23-24 Bank reconciliation
Purpose and nature of bank reconciliation. Identify and correct errors in cash book. Prepare a
bank reconciliation statement.
25-26 Incomplete records
Describe the different forms of incomplete records. Prepare final accounts from incomplete
records.
27-28 Introduction to the regulatory framework
Describe the current institutional framework relating to the setting and enforcement of
standards. Explain the accounting concepts, principles and convention.

Final Examination

BATUH: ACC222 FOUNDATIONS OF FINANCIAL ACCOUNTING Page 2 of 2