INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

COURSE OUTLINE

Kulliyyah Economics & Management Sciences

Department Accounting

Programme Bachelor of Accounting (BACC)

Name of Course / Mode Financial Accounting Fundamentals

Course Code ACC 1001

Mdm. Putri Nor Suad binti Megat Mohd Nor
Office : A 322
Phone : 03-61964674
Email : norsuad@iium.edu.my
Dr. Julia Mohd Said
Office : A 337
Phone : 03-61964652
Email : julia@iium.edu.my
Dr. Salwa Hana Yussof
Office : A 310
Phone : 03-61964650
Email : salwahana@iium.edu.my
Dr. Maslina Ahmad
Name (s) of Academic Office : A 336
staff / Instructor(s) Phone : 03-61964662
Email : maslina@iium.edu.my
Dr. Hawa Ahmad @ Abdul Mutalib
Office : A 305
Phone : 03-61964643
Email : hawahmad@iium.edu.my
Dr. Zamzulaila Zakaria
Office : A 342
Phone : 03-61964686
Email : zlaila@iium.edu.my
Norsyahida Mokhtar
Office : A 306
Phone : 03-61964651
Email : syahida_m@iium.edu.my

1
Rationale for the
This course is a foundation course for one of the key areas in
inclusion of the course /
accounting.
module in the programme
Semester and Year
Semester I, II & III
Offered
Status Core
Level 1

Proposed Start Date Semester I 2013/14

Batch of Student to be
Semester I, II & III
Affected

Face to Face Total Guided and Independent

Lectures Assessment Learning
Total Student Learning
Total Guided 42
Time (SLT)
39hrs 3hrs Total Independent Learning 78
Total SLT 120

Credit Value / Hours 3

Pre-requisites (if any) Nil

Co-requisites (if any) Nil

The objectives of this course are to:
1. Introduce the conceptual framework, introducing assets,
liabilities, equity, income and expenses. The components of
financial statements; statement of financial position, profit or
loss and other comprehensive income, statement of cash flow,
and changes of equity statement (how they relate to each other).
Course Objectives 2. Introduce presentation of financial statements and explain why
the items are presented as such. Introduce financial statement
analysis and relate its importance to investor.
3. Introduce simple items like cash, inventories, receivables,
payables, provisions and contingent liabilities.
4. Integrate the importance of ethical reporting and the Islamic
perspective.

2
 Upon completion of this course, students should be able to:
1. Understand and apply accounting concepts in the preparation of
financial statements.
2. Identify assets, liabilities, equity, income and expenses.
3. Apply the double entry rule in recording of business
transactions.
4. Prepare bank reconciliation statement.
Learning Outcomes
5. Prepare statement of profit or loss and other comprehensive
income, statement of changes in equity, and statement of
financial position of companies.
6. Carry out basic financial statement analysis and interpret the
financial ratios.
7. Discuss the importance of ethical reporting in the accounting
profession, as well as the Islamic perspective.

The students are required to form groups, and short assignments are
Transferable Skills: assigned throughout the semester to develop communication skills
and team-work skills, as well as critical thinking ability.

Teaching-Learning and
Lectures, problem solving, tutorial
assessment strategy
This is an introductory course to financial accounting, which
introduces students to the environment of accounting and its
profession. The course covers the nature of accounting and the
Course Synopsis accounting concepts that are relevant to the preparation and
presentation of financial statements. This course also exposes the
students the skills of analyzing and interpreting the financial
statements.
Mode of Delivery Lecture, discussion and in-class group work.

LO Method %
1,2,3,5 In-class group work (3) 20
1,2,3,5 Quiz (1) 10
1,2,3,4,5 Mid-term examination 20
1,2,3,5,6,7 Final examination 50
Assessment Methods & Total 100
Assessment Marks

3
 Mapping of Course/ Module to the Programme Learning Outcomes
Programme Outcomes
Learning Outcomes of the Course O O O O O O O O O
1 2 3 4 5 6 7 8 9

Understand and apply accounting concepts in the

√
preparation of financial statements.
Identify assets, liabilities, equity, income and expenses.
√
Apply the double entry rule in recording of business
√
transactions.
Prepare bank reconciliation statement.
√ √
Prepare statement of profit or loss and other
comprehensive income, statement of changes in equity, √ √
and statement of financial position of companies.
Carry out basic financial statement analysis and
√ √ √ √
interpret the financial ratios.
Discuss the importance of ethical reporting in the
accounting profession, as well as the Islamic √ √ √
perspective.

Content outline of the course

Learning Learning Task/
Weeks Topics
Level Hours Reading
1 Accounting as a Communication Process

Defining accounting, role of accounting in
2/2-6/2 business

Fundamentals of Accounting Chap.1
*3/2 (Tue)
Measuring Business Activities: Transaction 1-2 6 MFRS101
Thaipusam Analysis, Accounting Equation MFRS107

Communicating through Financial Statements
(including statement of cash flows)

2 The Accounting Information System

Measuring Business Activities: Transaction
9/2-13/2 Analysis Chap.2

Recording Process-Debit and Credit MFRS101
1-3 14

Journal and General Ledger

Closing of Accounts and Preparing Trial Balance

Preparing The Financial Statements

16- 17/2/2015 Group work 1 Chapter 1 & 2

4
 3&4 The Financial Reporting Process

Accrual-Basis Accounting-Revenue & Matching
16/2-27/2 Concept

Accrual and Prepayment Adjustments Chap.3&4
*19/2-20/2
Closing of Accounts and Preparing Adjusted Trial MFRS101
(Thur-Fri) Balance 1-3 15 MFRS118
CNY
Correction of Errors, use of Suspense account

Preparation of Statement of Comprehensive
Income, Statement of Changes in Equity,
Statement of Financial Position

2-3/3/2015 Quiz Chapter 3 & 4

5 Accounting for merchandising operation

Purchases and Sales (Perpetual and periodic)
2/3-6/3
Credit Sales and Net Sales 1-3 6 Chap 5

Financial Statement Format MFRS118

9-10/3/2015 Group work 2 Chapter 5

6 Inventory and Cost of Goods Sold

Inventory Cost Methods: Specific Identification, Chap. 6
9/3-13/3 FIFO, LIFO, AVCO in Perpetual and Periodic MFRS102
Systems 1-3 10

LCM and NRV

Recording Inventory Transactions

7 Cash and Internal Controls

Internal Control Chap.7
1-3 6
16/3-20/3
Bank Reconciliation

23/3 – 29/3 MID SEMESTER BREAK

8 Receivables

Valuation of Accounts Receivables Chap.8
1-3 10
30/3-3/4
Other Types of Receivables MFRS 139

9 & 10 Non-Current Assets

Acquisition and Improvements
Chap 9
6/4-17/4
Cost Allocation: Depreciation 1-3 15
MFRS116

Disposal of non-current assets

10/4/2015 Mid-Term Exam Chapter 6, 7 & 8

11 Liabilities

Current Liabilities Chap 10 &

Non-Current Liabilities 1-3 10 11
20/4-24/4

5
 12&13 Stockholders’ Equity

Company Business Form
27/4-8/5
Common Stock-Authorized, Issued and
Outstanding 1-3 12 Chap. 12
*1/5 (Fri)
Preferred Stock
Labour Day
Treasury Stock
*3/5 (Mon)
Cash & Stock Dividend & Stock Splits
Wesak
11-12/5/2015 Group work 3 Chapter 10, 11 & 12
14 Financial Statements Analysis

Various types of analysis
Chap.14
11/5-15/5
Liquidity, solvency, profitability and market 1-3 6
prospect ratios

REVISION AND FINAL EXAM 10 Chap.1 – 14

Main reference supporting the course
Required

Wild, J.J., Shaw, K., Chiappetta,B., Kwok, W. (2014). Financial Accounting, Information for Decisions(2nd ed),
International Edition, New York: McGraw-Hill
Additional references supporting the course

Recommended
nd
1. Kemp, R. & Waybright, J. (2013). Financial Accounting, International Edition (2 ed). New
Jersey: Pearson Prentice Hall
2. Reeve,J.M., Warren, C.S., Duchac, J.E., Wang, W. (2011). Principles of Financial Accounting,
Singapore: Cengage Learning
3. Harrison, W.T., & Horngren, C.T. (2011). Financial Accounting, International Financial Reporting
Standards, International Edition, (8thed.): Pearson Prentice Hall.
4. Reimers, J.L.(2011). Financial Accounting, A Business Process Approach, International Edition, (3rd
edition) New Jersey: McGraw-Hill
5. Weygandt, J.J., Kimmel, P.D., & Kieso, D. E. (2008). Financial Accounting, A Focus on
Fundamentals, (6th ed). New Jersey: John Wiley & Sons.
6. Malaysian Financial Reporting Standard (MFRS).

Prepared by: Checked by: Approved by:

Dr. Salwa Hana Yussof Dr. Noraini Mohd Ariffin Prof. Dr. Maliah Sulaiman
Course Coordinator Head of Accounting Dept. Dean
Kulliyyah of Economics & Kulliyyah of Economics & Kulliyyah of Economics &
Management Sciences Management Sciences Management Science

6
At the end of the programme, students should be able to:

1. Identify, classify, record, summarize and report economic

events which affect organizations. Define and explain basic
concepts in financial and managerial accounting as well as
Knowledge
taxation, finance and audit, whilst incorporating the Islamic
perspective where relevant.

2. Prepare financial statements in accordance with nationally and

internationally accepted financial reporting standards for
organizations and groups of organizations. Perform simple and
complex audits, apply essential finance concept, prepare tax Practical Skills
returns and advise on tax matters in compliance with regulation
and standards.

3. Provide services to the community based on learned

knowledge, and cooperate with different stakeholders for the Social skills and
benefit of the society (ummah). Responsibilities

4. Behave in accordance with professional ethics and Islamic Value, Attitudes

values. and
Professionalism
5. Communicate effectively with various stakeholders, whether
Communication
verbally or in written form.
6. Process and evaluate financial data and non-financial
information, as well as suggest solutions to accounting issues Problem Solving
taking into consideration professional ethics and Islamic and Scientific
values. Skills

7. Use, evaluate and manage information technologies and

Information
systems for the efficient attainment of organizational
Management and
objectives; and demonstrate an ability to learn continuously and
Lifelong Learning
develop professionally in tandem with the changes in the
Skills
business world.
8. Analyze financial and non-financial information to make
Managerial and
optimal managerial decisions, which are ethical, at the
Entrepreneurial
operational, tactical and strategic levels.
Skills
9. Work collaboratively in a management team as well as Leadership and
demonstrate leadership qualities. Team Skills