FE1016
Financial Accounting 1
Semester A
2012/13
Module Leader
Mostafa Hussien
www.uel.ac.uk/business
Room BS.3.35
Email: m.hussien@uel.ac.uk
Module Tutors:
M Hussien, A Owusu
Module Team & Contact Details
O Module Leader: Mostafa Hussien
 My Office room: BS.3.35
 E-mail: m.hussien@uel.ac.uk
 Student Hours: Wed 1-3 pm, Thursday 1-2 pm
O Module Team:
 Mostafa
 Albert
Core Text Book
Selected Chapters from
Weetman, P. (2011) Financial accounting - an
introduction (5th Edition), Harlow: Financial
Times Prentice Hall
Formal Assessment
O The formal assessment consists of 2
components. These two components are
as follows:
O First Main Component- Individual
Coursework (30%): Each student will be
required to write a report concerning
Financial Analysis.
O Second Main Component- Examination
(70%): A two-hour Final Examination
which would take place at the end of
the programme.
Informal Assessment
O This consists of 2 in-course tests taking
place during weeks 5 and 10:
O Week 5 In-course Test: This will take
place during workshop and would last
for 50 minutes. It will consist of 10
multiple choice statements covering
lectures 1-4.
O Week 10 In-course Test: This will take
place during workshop and would last
for 50 minutes. It will consist of 10
multiple choice statements covering
lectures 5-9.
NO PRESSURE
Indicative Content:
O Introduction to Accounting
O Users and Uses of Accounting Information
O Assets, Liabilities and Ownership Interest The Balance Sheet
O Principles and Measurement of Financial Performance The
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Income Statement
Analysis and Interpretation of Company Financial Statements
The Double-Entry System and Final Accounts
Treatment of Non-Current Assets
Accounting for Inventories and Receivables
Treatment of Long-Term Finance
Accounting requirements of the Companies Act
Nature and context of auditing
Revision
Revision
FE1016
Lecture 1
Financial Accounting 1
Reading:
Weetman, P (2011) Chapter 1
Topic 1
Introduction to Accounting
O Reading:
 Chapter 1 Weetman P (2011).
O Main Points to be covered:
 Background and Introduction
 Identify the nature and purpose of accounting
 Identify the main users of financial information and
discuss their needs
 Understand the difference between management
and financial accounting
 Identify the role and responsibilities of the
accountants
Types of Business Entities
 Sole traders where one person owns a
business
 Partnerships where two or more
people form a business
 Companies (legal entities separate
from their members)
Companies Limited by Shares
 Public limited companies PLCs
 minimum authorised share capital £
50,000
 shares are offered for sale to the general
public
 most, but not all, are listed
 Private companies Ltd
 not allowed to offer their shares for sale
to the general public
Role of Organisations in Society
 To maximise profit
 To maximise share price
 To provide employment
 To avoid environmental damage
What is Accounting
 Provide a definition
 Look at what accountants do
 Differences between financial
accounting and management
accounting
Introduction to Accounting
O Accounting is concerned with providing
& non-financial information
both financial
---------------------that will help decision-makers to make
good decisions.
Users of Accounting Information
 Users of accounting information can be
divided in two categories:
1. ---------Internal parties within the organisation,
managers ; and
mainly ------------
shareholders ,
2. External
---------- parties such as ------------------creditors and regulatory agencies, outside
the organisation.
Branches of Accounting
 It is possible to distinguish between two branches of
accounting, that reflect the internal & external users
of accounting information.
1. Management
------------accounting is concerned with the
provision of information to people within the
organisation to help them make better decisions.
2. ------------accounting is concerned with the
Financial
provision of information to external parties outside
the organisation.
Financial Accounting
 In this module we are concerned with
financial accounting
 The product of financial accounting is
financial statements (to be covered next
week)
Seminar 1:
Q1: What is the purpose of producing accounting information?
Q2: Explain why you believe all organisations need an accounting
system ?
Q3: Discuss how financial accounting differs from management
accounting?
Q4: Discuss what you consider might be appropriate measures of
success for a hospital.
Q5: Explain what you consider to be the role and responsibilities
of an accountant?
Reading:
 Weetman Chapter 1
Main points to be covered:
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Users needs and interests in financial accounting
Need for financial statements
General Purpose and specific purpose of financial statement
Different Financial Statements
m.hussien@uel.ac.uk
BS.3.35
Wednesday 1-3 pm
Thursday 1-2 pm