Financial literacy is an important skill in the business world. It helps you to understand how you can support the mission of any organisation and how you can add (or destroy) value. Whether you are an employee, a small business owner or in management of a larger business, understanding the principles of accounting helps you to understand the financial operations of the organisation.
The module incorporates Colour Accounting™, a new way of presenting financial information using colour and diagrams. At the heart of the system is a diagram called the BaSIS Framework™ that is a holistic and graphical view of a balance sheet and income statement. It is highly creative and involves colour, movement, language, visualisation and breathtaking simplicity.
We examine the principles of accounting and financial statements and explore how to understand them.
Full module specification
|Duration of module:||
Duration (weeks) - term 2: |
The aim of this module is to introduce you to the fundamentals of financial accounting with the purpose of enabling you to understand financial statements. You will be introduced to the recording of transactions, the content of financial reports, and the interpretation financial information.
The focus of the module is from the perspective of a user of financial information.
ILO: Module-specific skills
- 1. explain and apply the accounting concepts which underpin the IASB (International Accounting Standards Board) accounting framework
- 2. analyse and process a broad range of typical business transactions
- 3. prepare a set of basic financial statements
- 4. explain and process elementary transactions for non-current assets and depreciation
- 5. explain and process elementary transactions for inventory, receivables and cash.
- 6. prepare a simple statement of cash flows.
- 7. analyse and interpret financial statements.
ILO: Discipline-specific skills
- 8. use accounting concepts and conventions to apply accounting principles in practical situations
ILO: Personal and key skills
- 14. demonstrate basic written communication skills
- 15. demonstrate basic problem solving 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|
|Scheduled learning and teaching activities||20||Lectures|
|Scheduled learning and teaching activities||1||Revision lecture|
|Scheduled learning and teaching activities||10||Tutorials|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Weekly tutorials||3-4 hours preparations by student/ 1 hour in-class discussion||1-10||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|
|In-class exercises||20||10 minutes every week for 10 weeks||1-10||Tutorial discussion|
|MCQ||20||45 minutes||1-3 & 8-10||Indicative answers posted on line. Tutorial discussion|
|End of module examination||60||2 hours||1-10||Indicative answers posted on line.|
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|
|Examination and, in class exercises and MCQ||100% examination||1-10||August|
- Introduction to accounting
- Fundamental accounting concepts
- Analysis and recording of transactions: financial position
- Analysis and recording of transactions: financial performance
- Basics of bookkeeping
- Non-current assets
- Current assets
- Statement of cash flows
- Analysis and interpretation of financial statements
- Using published financial statements
Indicative learning resources - Basic reading
Scott, P. (2019) Introduction to Financial Accounting, 3rd Edition, Oxford University Press
Frampton, P and Robilliard, M. Accounting Comes Alive: Introducing Colour Accounting, Colour Accounting International (an interactive e-book).
Other recommended texts
Carey, M., Knowles, C. and Towers-Clark, J. (2014). Accounting: A smart approach, 3rd edition, Oxford
Kolitz,DL. (2017) Financial Accounting: A concepts-based introduction,1st edition, Routledge
Module has an active ELE page?
Indicative learning resources - Web based and electronic resources
Indicative learning resources - Other resources
Other resources: as provided and recommended during classes and via ELE
Last revision date