Financial Reporting and Analysis The London Institute of Banking & Finance is a registered charity, incorporated by Royal Charter.
The London Institute of Banking and Finance MODULE SPECIFICATION 1. Title Financial Reporting and Analysis 2. Start date 2016 3. Level of module Level 6 FHEQ 4. Number of credits 30 Credits ECTS Value 15 5. Status Compulsory 6. Recommended prior modules N / A 7. Programmes of study to which module contributes BSc (Hons) in Finance and Accounting for Financial Services 8. Campus / Partner N / A 9. Syllabus overview This module will look at the following aspects of financial reporting and analysis: the conceptual framework for financial reporting; the financial reporting framework in practice, including the structure and content of the primary financial statements; the development and application of accounting (financial reporting) standards (focusing on international standards but having reference to their UK equivalents); accounting for assets, liabilities and equity; financial reporting for groups of companies; and the interpretation of financial statements, and other relevant data, by stakeholders in making decisions relating to entities with which they have economic relationships, with particular reference to ratio and cash flow analysis. Page 2 of 7
10. Intended subject specific learning outcomes and, as appropriate, their relationship to programme learning outcomes On completion of this module, students will be able to: a) evaluate conventional understandings of the role(s) and purpose(s) of financial statements in meeting the information needs of stakeholder groups; b) assess the main issues involved in the on-going development of regulatory frameworks relating to financial reporting; c) demonstrate an understanding of the rationale for, and content of, a number of international financial reporting standards; d) prepare primary financial statements in a format appropriate for limited liability companies, recognising the impact of accounting policy choices; and e) undertake detailed analysis of corporate performance based on financial statements, including the use of traditional and cash flow based accounting ratios. These intended module learning outcomes contribute to the following programme learning outcomes: BSc (Hons) in Finance and Accounting for Financial Services: A2, A3, A4 and A6. 11. Intended generic learning outcomes and, as appropriate, their relationship to programme learning outcomes On completion of this module, students will be able to demonstrate achievement of the following generic learning outcomes: 1. Critical thinking skills. 2. Ability to learn through reflection on practice and experience. 3. Ability to work with complex material. 4. Ability to analyse problems and identify appropriate solutions. 5. Ability to work and study independently and utilise resources effectively. 6. Communication and report writing skills. These intended generic learning outcomes contribute to the following programme learning outcomes: BSc (Hons) in Finance and Accounting for Financial Services: B D. Page 3 of 7
12. Learning and teaching A. Learning hours For a module of study worth 30 credits, the total expected study hours are 300 (ie ten hours per credit). The contact hours will depend upon the student s mode of study. B. Tuition support Distance learning Distance learning allows students to study independently within a clear framework, but at a pace that suits their personal circumstances and study needs. Over their course of study (24 weeks), students will be provided with comprehensive learning materials, study guides and will be assigned to a subject specialist academic tutor to support their studies. Distance learners will have regular contact with their Academic Tutor and further practical support is available from The London Institute of Banking and Finance Student Services. Flexible learning Flexible learning allows distance learners to opt for three face-to-face workshops of approximately six hours each, evenly spread at appointed dates in each session (24 weeks). Dispersed campuses Dispersed campus students will have regular face-to-face sessions over each session of study. The timing will depend upon local timetabling arrangements (eg via evening classes). Full-time students Full-time students will study on a semester basis supported by their module lecturer. The weekly timetable will be advised at the start of the programme. C. Learning materials and learning outcomes The learning and teaching strategy is designed to ensure that the students achieve the learning outcomes by the end of the module. The learning and teaching methods include formal lecture and tutorial (full-time), online learning support from an appointed lecturer (distance / flexible learning), private study of text and other supporting materials, a formal assignment, informal exercises, (both individual and group-based), and pooling of experience and knowledge through class / forum and individual discussion. The assessment strategy is designed to achieve a balance between testing the student's skills of knowledge recall and understanding and those of research and application. D. Reading Students will be provided with a core text, as detailed below but will also be expected to read and research the recommended reading on the course website. Lecturers may also recommend additional reading throughout the module. Essential reading Melville, A. (2015) International financial reporting, a practical guide, 5th edn. Harlow: Pearson (full time students). Elliot, B. and Elliot, J. (2015) Financial accounting and reporting. 17th edn. Harlow: Pearson Education (part time students). Page 4 of 7
Further reading ACCA (2014) Financial reporting (International & UK): Study text. BPP Learning Media. Black, G. (2003) Students guide to accounting and reporting standards 2003-2004. 9th edn. Financial Times / Prentice Hall. Fraser, L. and Ormiston, A. (2012) Understanding financial statements. 10 th edn. Pearson Education. Hirst, D. and McAnally, M. (2012) Cases in financial reporting. 7th edn. Cambridge Business Publishers. Journals Journal of Accounting Research. European Accounting Review. Websites International Financial Reporting Standards www.ifrs.org Financial Accounting Standards Board www.fasb.org Financial Reporting Council www.frc.org.uk Financial Times - market data http://markets.ft.com/research/markets/company-content Each student will have access to the Virtual Learning Environment (VLE) and to KnowledgeBank learning resources (an electronic library service). A list of further readings relating to the syllabus and summative assignment can be found on the VLE. It should be noted that due to the rapidly changing environment that encapsulates the financial services sector, the reading list above is indicative only. It is subject to review and update at the discretion of the module team. An up-to-date reading list is made available to students at the start of the module. 13. Assessment Component Duration / length Weighting Component 1 Summative assignment Component 2 Examination 4,000 words including quotations and in-text citations 3 hours (plus 15 minutes preparation time) 30% 70% Achievement of the learning outcomes for the module is assessed in two ways: Component 1: Summative assignment This component will contribute 30% of the overall assessment and will be based upon the submission of a 4,000-word written assignment (including quotations and in-text citations) at the end of the course but prior to the examination. The focus of the assignment will be on exploring the relationships between issues and topics within the module syllabus. The pass mark for this component is 40%. Component 2: Examination This component will contribute 70% of the overall assessment. A variety of question styles and approaches may be included in the examination. Questions might require responses that involve both discursive and quantitative elements. Students will typically be required to explore and Page 5 of 7
compare specific aspects of an issue or to apply their technical abilities and understanding to, for example, solve a problem or provide a recommendation. The question paper will be structured as follows: Five questions, each of which must be answered. The questions will carry 15, 20 or 25 marks. The pass mark for this component is 40%. Time allowed: 3 hours (plus 15 minutes preparation time). You may use a scientific calculator but it must not be programmable, nor have a wirelesscommunications capability, nor be capable of storing textual information. It must also not require a mains electricity supply. Calculators with any further functions are not allowed in the examination room. At regular intervals during the course of study, students will be expected to submit short formative assignments. These assignments will take the form of developmental learning activities towards the assessed assignment and unseen examination components and will be integrated within the study plan. They will provide students both with opportunities to reinforce their learning as they progress through the course of study and the opportunity to prepare for both the summative assignment and unseen examination. Whilst these formative assignments will not contribute to the overall assessment, students are strongly advised to take the opportunity to complete them, as feedback will be provided from their lecturer on their progress through the course of study. Students should be aware of the regulations governing the award of credit and the arrangements for compensation, condonement and the capping of marks. Students should also be aware of the regulations relating to the resitting of assessment components and / or the retaking of modules. This information is contained within The London Institute of Banking and Finance s General and Academic Regulations for Students sections 7, 8 and 9. Module Grading A student s module performance grade is determined by their overall weighted average percentage score in accordance with the following: 3 rd 40% - 49% 2.2 50% - 59% 2.1 60% - 69% 1 st 70% - 100% 14. Syllabus 1. Financial reporting the conceptual framework Qualitative characteristics of useful financial information. Recognition and measurement. The legal versus the commercial view of accounting. Alternatives to the historical cost accounting approach. The 'true and fair' concept 2. Financial reporting a regulatory framework The standard setting process. Comparison of UK and international standards. Page 6 of 7
3. Preparation of the income statement and balance sheet for limited companies Accounting standards covered in this syllabus section include: Companies Acts; IAS 1, 8, 10, 12, and 20; IFRS 5. Key components of these statements and the interrelationships between them preparation from trial balance. Disclosure requirements. Accounting policies. Taxation. 4. Balance sheet measurement and disclosure Accounting standards covered in this syllabus section include: Companies Acts; IAS 2, 11, 16, 17, 32, 36, 37, 38, 39, and 40; IFRS 7. Tangible and intangible non-current assets. Current assets, including inventories, receivables and construction contracts. Liabilities, provisions and contingencies. Share capital and off-balance sheet finance. Financial instruments. Leases. Provision and impairment of assets. 5. Business combinations Accounting standards covered in this syllabus section include: IAS 27 and 28 ; IFRS 3 and 11. The concept and principles of a group. Consolidated accounts underlying concepts, including 'fair value'. Preparation of consolidated accounts. Accounting for associate companies. Impact of changes in forex rates. 6. Interpretation of financial statements Accounting standards covered in this syllabus section include: IAS 7 and 33; IFRS 8. Limitations of financial statements. Use of accounting ratios to assess various aspects of financial performance. Calculation and significance of the price earnings ratio. Segmental reporting. Preparation and analysis of the cash flow statement. Page 7 of 7