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AFM010-01

Financial accounting frameworks

Module information>

Academic Direction
UCL
Also part of
MSc Accounting and Financial Management
Modes of Study
Online

Financial accounting frameworks provides an introduction to core accounting principles and their applications, both internal and external, to a business organisation. 

Study as an individual module

This module aims to provide a good grounding in and an appreciation of the financial accounting essentials that any analyst, manager or business owner should possess. It also provides a base for further studies in the accounting and financial management arena.

A key aim is to show and understand how the financial transactions and activities of a business in a particular financial period are constructed, and how they depict the financial story of that period through the subsequent construction and publication of core financial statements: the Statement of Financial Position, the Income Statement, and the Cash Flow Statement.

Topics covered: 

Main topics of the module include: 

  • Financial frameworks for financial statements 
  • Conceptual underpinnings of financial reporting 
  • Issues in revenue recognition and expense determination
  • Issues in valuation of assets and liabilities 
  • Construction of income and cash flow statements, and balance sheets 
  • Accounting for limited companies 
  • The Accounting Equation and double-entry bookkeeping 
  • The trial balance and adjustments 
  • Financial analysis through ratios 

Learning outcomes:

On successful completion of this module, you will be expected to be able to:  

  • Understand why it is important for commercial businesses, and in particular limited companies, to account for the financial value of transactions, events and activities. 
  • Understand the conceptual framework underpinning financial accounting systems. 
  • Identify and explore a range of selected issues and challenges within financial reporting. 
  • Be able to record the financial value of transactions, events and activities in financial accounting systems. 
  • Be able to construct key financial statements and recognise their strengths and weaknesses. 
  • Calculate and interpret financial ratios for a range of users of financial information. 

Assessment:  

There are two assessment components: 

  • Online open book test: 2 hours; weighted at 25%  
  • Coursework: up to 3,000 words; weighted at 75% 

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