Introduction to Financial Accounting
This is an introductory financial accounting module that is aimed at students who intend to major in accounting in their undergraduate studies. The first part of the module outlines the framework of accounting – its nature, purposes, and the contexts/environment in which it is practised. The module then covers the basics of accounting (i.e. concepts, conventions, principles and the accounting equation) and the recording/summarising mechanism that underlie financial accounting. In addition, the recognition and measurement principles relating non-current assets, inventories, other assets and liabilities, and equity are also taught. Finally, the module covers the preparation of financial statements from the trial balance for various types of entities including sole traders, partnerships, limited companies, and non-for-profit entities.
Internationalisation is embedded in the content of this module through the use of the International Financial Reporting Standards (IFRSs). Moreover, the principles of introductory financial accounting are common across most countries.
All of the resources for the module are available on the ELE (Exeter Learning Environment).
The module content meets the standards of the professional accountancy bodies (e.g. ICAEW, ACCA and CIMA) and the module is accredited by them.
Material taught in this module is highly relevant to accounting- and business-related jobs. The module also offers an opportunity for students to develop their numeracy and logical thinking skills.
Research in teaching
The module is informed by the module convenor’s research interest in financial reporting.
Full module specification
|Module title:||Introduction to Financial Accounting|
Cannot be taken with BEA1006 Accounting 1
|Duration of module:||
Duration (weeks) - term 1: |
This module aims to provide students with a broad understanding of introductory financial accounting, a thorough grounding in double-entry bookkeeping, and the preparation of financial statements for different types of entities. It serves to provide students who intend to major in accounting in their undergraduate studies a solid foundation in financial accounting and reporting.
(Note: this module cannot be taken with BEA1006 Accounting 1)
ILO: Module-specific skills
- 1. describe the nature, uses and purposes of financial accounting, and outline both the conceptual and regulatory frameworks that govern the preparation and reporting of financial information
- 2. explain the accounting equation and its link with financial statements, and illustrate the impact of economic transactions on the accounting equation
- 3. describe the key concepts and conventions that underlie financial accounting
- 4. describe and apply the transactions recording process from source documents to financial statements via the books of prime entry, ledgers and trial balance
- 5. explain the nature and purposes of control accounts and apply appropriate correcting techniques for errors and omissions
- 6. explain the role of information technology in accounting and the issues surrounding its use
- 7. explain and apply the recognition and measurement principles relating to: non-current liabilities and equity, non-current assets (including depreciation), inventories (and cost of sales) and other current assets and liabilities (including receivables and bad debts, prepayments and accruals, etc.)
- 8. explain the characteristics of a sole trader vis-à-vis a company; and prepare financial statements for both forms of entities
- 9. explain the characteristics of a partnership, prepare financial information for a partnership including the admission of a partner and the dissolution of a partnership
- 10. prepare financial statements for non-for-profit entities
ILO: Discipline-specific skills
- 11. apply accounting principles, concepts and conventions in practical situations
- 12. aggregate accounting data for companies, non-for-profit entities and other business forms into meaningful statements
ILO: Personal and key skills
- 13. demonstrate basic problem solving skills
- 14. demonstrate an ability to undertake independent study and to manage time
- 15. demonstrate basic written and numerical skills
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Contact Hours||10||Timetabled help classes (optional)|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Weekly tutorials for discussion||3 hrs preparation by student / 1 hr in class discussion||1-15||Discussion in tutorial and suggested solutions on ELE|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Coursework test||20||1 hour||1-14||Discussion in lecture / tutorial and suggested solutions on ELE|
|Written examination||80||2 hours||1-15||Suggested solution on ELE|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Coursework test and 2 hour written examination||2 hour written examination||1-15||August Examination Period|
Students who fail the module overall will be reassessed by way of a two-hour written examination in the summer of the respective academic year.
- The framework of accounting
- The accounting equation, concepts and conventions
- The transactions recording process, trial balance and basic financial statements
- Control accounts, errors and omissions and computerised accounting
- Non-current assets and depreciation
- Inventories and cost of sales
- Other current assets and liabilities
- Non-current liabilities and equity
- Preparation of financial statements for sole traders and limited companies
- Preparation of financial statements for partnerships and non-for-profit organisations
Indicative learning resources - Basic reading
Thomas, A. and Ward, A. M. (2015) Introduction to Financial Accounting, 8th edition, London: McGraw Hill Education. (Note: an older edition can be used)
Module has an active ELE page?
Indicative learning resources - Web based and electronic resources
Web based and electronic resources:
Last revision date