The module introduces students to the contents and preparation of Profit and Loss Accounts, Balance Sheets and Cash-flow Statements and other financial information provided in companies accounting reports. The emphasis is on using accounting information as a manager, with little emphasis on the mechanics of book-keeping. Some exercises in preparation of accounting statements are included in order to give students the necessary familiarity with the statements. The module continues by looking at the concepts underlying accounting information and the role of law and accounting standards in this. The module concludes by looking at the analysis and interpretation of financial statements, including the use of financial ratios. It also provides students with practice in performing these analyses.
Learning Outcomes
By the end of the module the student should be able to:
Understand the contents of reported financial statements; Prepare simple financial statements from source material; Calculate and understand the purpose of appropriate financial ratios; Discuss the bases of preparation of financial statements and their strengths and limitations in providing information on companies; Review financial statements in order to express opinions on the performance of the companies concerned.