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Financial reporting AC2091

This course is concerned with the theory and practice of financial or external accounting.

This involves a sound understanding of the concepts and choices that underlie how financial information is measured and disclosed in the financial statements.

Prerequisite / Exemptions

Prerequisite: A course that you must have ordinarily attempted all elements of before you are permitted to register for another particular course.

If taken as part of a BSc degree, the following course must be attempted before this course may be taken:

  • AC1025 Principles of accounting

Topics covered

  • Rationale for financial reporting and its regulation
  • Conceptual framework
  • Preparation of financial statements (Comprehensive income, changes in equity and financial position)
  • Ethics for accountants
  • Share capital
  • Provisions, liabilities, including contingent liabilities
  • Accounting for changing prices: Fair value and other accounting systems of price adjustments
  • Employee benefits
  • Income and deferred taxation
  • Property, Plant and Equipment (includes investment properties)
  • Leasing
  • Intangible assets
  • Construction contracts
  • Financial instruments (excluding hedge accounting)
  • Consolidated Accounts: At date of acquisition
  • Consolidated Accounts: After date of acquisition
  • Consolidated Accounts: Income statement, changes in equity and cash flows
  • Consolidated Accounts: Associates and other joint arrangements
  • Foreign currency translation and consolidation of foreign subsidiaries
  • Analysis and interpretation of financial reports

Learning outcomes

If you complete the course successfully, you should be able to:

  • explain and apply a number of theoretical approaches to financial accounting
  • record and analyse data
  • prepare financial statements under alternative accounting conventions
  • describe a number of regulatory issues relating to financial accounting
  • critically evaluate theories and practices of, and other matters relating to, financial accounting.


Unseen written exam (3 hrs 15, including reading time).

Essential reading

  • Alexander, D., A. Britton and A. Jorissen. International Financial Reporting and Analysis. London: Thomson Learning, 2014.¬†sixth edition [ISBN 9781408088449]

Course information sheets

Download the course information sheets from the LSE website.