Aim
To develop knowledge and understanding of the
application of techniques to prepare year end
financial statements from a trial balance and
the interpretation of financial statements for
a range of organisations.
Objectives
At the completion of this module candidates
should be able to:
- Describe
the role and function of external financial
reports.
- Identify
the users of external financial reports
- Explain
the accounting concepts and conventions
present in generally accepted accounting
principles
- Draft
limited company and either selected local
authority, NHS and central government year
end financial statements
- Compare
and contrast the form and content of financial
statements for differing organisational
types
- Use
appropriate ratios to analyse financial
statements for performance, position and
adaptability
Content
- Financial
statements: uses of and users, balance sheet,
profit and loss account/income statement,
cash flow statement function, form and method
of preparation for limited companies and
public bodies.
- General
legal framework of limited companies, private
sector and public sector bodies; relevant
legal and constitutional frameworks for
public sector; funding and financial structures
for public sector; forms of capital and
capital structures.
- Generally
accepted accounting principles and concepts;
application of accounting standards and
legislation to the preparation and presentation
of financial statements.
- Main
requirements technical pronouncements.
- Key
features, including the capital structure,
of financial statements of a wider range
of organisations; standard classification/chart
of accounts; general principles of consolidation;
resource accounting.
- Interpretation
of accounting information for different
types or organisation to assess performance,
liquidity and vulnerability; use of accounting
ratios, trend analysis, performance indicators.
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