AC316 2019/20 Course Plan
Dr Ruth Mattimoe
Aimed at CT2 subject in Finance and Financial Reporting
https://www.actuaries.org.uk/studying/plan-my-study-route/fellowshipassociateship/coretechnical-subjects/ct2-finance-and-financial-reporting
ACM: BSc in Actuarial Mathematics DC126
CAFM: Common Entry into Mathematical Sciences DC127
Week no.
1.
Lecture Topic
Introduction to the Course –
Accounting as an information
Reading
Lecture and
Practice
Questions
Atrill and Mc Laney
Chpt 1
See examples in
lecture notes
Atrill and Mc Laney
Chpt 2
Joe Bloggs;
Example 2 on
Business
Transactions;
system; accounting definition;
users of accounting information;
Qualitative characteristics of
accounts. The 3 primary
financial statements. Examples
of simple business transactions
and their impact on the 3
financial statements.
2.
The effect of trading
transactions on the balance
sheet equation; Assets, Claims
and Liabilities on the Balance
Sheet
3.
Financial Vs. Management
accounting; Accounting
Conventions (Rules); Profit Vs.
Cash Flow; Effect of trading
transactions on balance sheet
Atrill and Mc Laney
Chpt 2
Jerry and Company
example;
Brie Manufacturing;
Simonson
Engineering;
1|Page
4.
Accruals and Prepayments;
Income Statement; Revenue
recognition; Cost of sales
Effect of trading transactions on
income statement;
5
As above
Atrill and McLaney,
Chpt 3
Images Ltd Example;
J. Hughes; R
Jones; Peter
Jones;
Better Price Stores; H
and S Retailers
example in Atrill and
Mc Laney Chpt
Atrill and McLaney,
Chpt 3
Practice
Questions:
Question 1; Lisa
Dolittle; Mack
Ltd;
6.
Depreciation; IAS 16;
Atrill and McLaney,
Chpt 3
Andrew Wu
Engineering Ltd;
Sally Dalton
Packaging Ltd;
BMW example
in lecture notes;
Straight line and
Reducing
Balance
method;
Revaluation of
Asset Example;
Disposal of
Asset example;
Rock Ltd (T);
Practice
questions:
Motor VehicleExample 1 (T);
Example 2 (T)
and Joe Keane;
(T)
7.
VAT; Inventory Valuation
Atrill and Mc Laney
methods and methods of pricing Chpt 2
issues from inventory; IAS 2;
VAT example in
lecture notes;
Widgets
Example in
lecture notes;
Fifo, Lifo,
Weighted
Average
2|Page
example in
lecture notes;
Final example
on Inventory;
7.
Bad Debts and Trade
Receivables problems;
Atrill and Mc Laney
Chpt 3
Desai Enterprises;
Clayton
Conglomerates;
8.
Accounts of Sole Traderspractice example in first
hour;
Accounts of Limited Companies;
types of shares; bonus and
rights issues; formats of limited
company accounts; dividends
9.
Accounts of Limited Companies
As above
Atrill and Mc Laney,
Chpt 4
Debt Ltd
Example in
lecture notes;
Practice
Question: B
Norris Sole
Trader (T)
Example on Rights
Issues- Dev Ltd- Ex.
4.1
Atrill and Mc Laney,
Chpt 4
Sage Ltd; Fruit
Ltd;
Ex 4.4
Practice
Questions:
Da Silva plc example;
Atrill and McLaney
Chpt. 5
Juno and Daisy
Ltd
Malik plc- Ex. 5.2;
Miro plc- Ex. 5.3
10.
Cash Flow Statements; IAS 7;
indirect method of computing
cash from operations; problems
with IAS7
Atrill and Mc Laney,
Chpt 6
Tesco plc- Real World
6.3;
Angus plc- Activity
6.6; Ex 6.2-Dido plc;
Pluto plc; Ex. 6.3Torbryan plc;
11.
Ratio Analysis- profitability,
efficiency, liquidity, gearing and
investment ratios; limitations of
ratios; overtrading; Role and
content of an annual report-
Atrill and Mc Laney,
Chpt 7
Exercises in
lecture notes 13; Practice
questionsButtercup;
Honey; Princess;
Park Plaza
Example 1 and 2
in lecture notes;
Apple
Industries; Cong
3|Page
Marks and Spencers; role of
directors and auditors; need for
a conceptual framework;
Creative Accounting and
Solutions to this issue
Narrative
knowledge only
of Annual
Report
Atrill and Mc Laney,
Chpt 5 Fig 5.1
Atrill and McLaney
Chpt 5- Activity 5.14;
Real World 5.5; Real
World 5.9.; Real
World 5.10;
12.
Introduction to Group Accounts;
concept of goodwill on
consolidation;
Atrill and Mc Laney,
Chpt 4- Major
Example 4.6
Problem sheet
on Group
accounts with
definitions
Format of Exam paper
It consists of 3 questions
Q1 -COMPULSORY: Always calculative, and normally on Limited Companies Account: 35 marks
Q2- COMPULSORY: Always calculative, and normally on Cash Flow or Ratios: 35 marks
Q3- Narrative in 5 parts- Answer any 3 out of 5 parts ( Parts (A to D)- each for 10 marks: 30 marks
Tutorial Questions
These will be assigned weekly from Week 4. They will be uploaded onto Loop and a document
listing all of the questions will be there.
4|Page
5|Page
6|Page
7|Page