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Introduction to Accounting
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Amanda Roe: ACA Chartered
Accountant
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Module schedule
Lecture and tutorial schedule
Lectures
Wednesday
11:00
12:00
Dargen
Amanda
Friday
12:00
13:00
Dargen
Amanda
Tutorials
Monday
14:00
15:00
RM_231
Ruben
Monday
15:00
16:00
RM_231
Ruben
Tuesday
09:00
10:00
begin
B132TutorialsRuben
Tuesday
10:00
11:00
B132
Wednesday
17:00
18:00
B101/2
Diana
Thursday
13:00
14:00
2041A
Diana
Friday
09:00
10:00
RM_328
Diana
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next week
Ruben
Contact hours
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Course Content
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Learning Outcomes
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Assessment
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Breakdown of Assessments
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Breakdown of Assessments
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Breakdown of Assessments
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To pass this module….
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Required core textbook
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Why is this accounting
important to you?
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TOPIC 1: INTRODUCTION TO
ACCOUNTING
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Learning outcomes
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What is Accounting?
Past events are
summarized into
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Past events are summarized:
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What is Accounting?
Past events are
summarized into
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Numerical information
which is then
presented into
What is Accounting?
Past events are summarized
into
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Numerical information which
is then presented into
Managers and other
Interested parties for decisionmaking and control purposes
Main users of financial information relating
to a business
Owners
Investment
analysts
Competitors
Employees
and their
representatives
Managers
Business
Lenders
Suppliers
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Government
Customers
Community
representatives
Alternative sources of information
Meetings with managers of the business
Public announcements made by the business
Newspaper and magazine articles
Websites, including the website of the business
Radio and TV reports
Information-gathering agencies
Industry reports
Economy-wide reports
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The qualities that influence the
usefulness of accounting information
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1. Relevance
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Materiality**
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2. Faithful representation
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3. Comparability
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4. Verifiability
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5. Timeliness
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6. Understandability
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The accounting information system
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Financial and management accounting compared
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Three forms of business ownership
Sole proprietorship
Partnership
Limited company
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Simple
format
Just start
trading
No legal
formalitie
s
Single
owner
Sole
trader
Unlimite
d liability
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Solely
responsib
le for
success
Simple
operation
s
Two or more
owners
Just start
trading
No legal
formalities
Written
agreement
preferable
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Pooling of
skills
Partnerships
Unlimited
joint and
several
liability
All partners
share
managemen
t of business
Sharing of
profit or
losses
Limited liability companies features:
Separate legal identity
Share capital
Limited liability for shareholders
General meetings take decisions
Directors run companies
Annual report and accounts published
Annual audit obligation
Formation documents
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Limited Companies: Separate Legal
Identity
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Limited Companies: Share Capital
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Limited Companies: Limited
Liability
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Limited Companies: The AGM
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Limited Companies: Directors
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Limited Companies: Annual Accounts
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Limited Companies: Auditors
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Limited Companies: Formation
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Private Limited Companies
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Public liability companies features:
Sell shares to the public
Many shareholders
Shares traded on recognized stock exchanges
Plc designation
Governed by Companies Act 2006
Corporate governance codes apply
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Public Limited Companies
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