Department of Civil and Environmental Engineering
Module descriptor 2011-12
CI9-B2-Principles of Accounting
Course leader:
Other contributors:
Module status:
Pre- or co-requisites:
Term:
Contact hours:
ECTS units:
Dr Libon FUNG (Birkbeck)
None
Core for H2B3, H2U7, H2U2, H2A4, H2B5, H2A8, H2B1
CI9-B1, CI9-B3, CI9-B4
Autumn Term
30
4-6 (depending on core MSc programme)
Aims
This course aims to provide the principles and practice of financial and management accounting. It intends to
enable students to:



understand information contained in the published financial statements of companies and other
organizations;
prepare accounting statements; and
develop knowledge and understanding of the application of different management accounting
techniques.
Subject Specific Objectives
By the end of the course, students will be able to:
 state the uses and users of accounting information;
 explain and apply accounting concepts, principles and conventions;
 record basic accounting transactions and prepare annual financial statements;
 analyse, interpret and communicate the information contained in basic financial statements, and explain
the limitations of such statements;
 explain the role of management accounting within an organisation and the needs for management
information;
 understand the principles of costing and apply them in straightforward scenarios;
 understand the basic principles of performance management; and
 understand the basic principles of budgeting and apply them
Intellectual

to integrate subject matter studied on related modules and to demonstrate the multi-disciplinary
aspect of practical financial and management problems
Practical

to be more proficient in researching materials on the internet and Library database.
Personal and Social

through group work and class discussion, students will learn to appreciate public speaking,
presentation, and interpersonal skills.
The syllabus includes: introduction to financial accounting; accounting concepts; double-entry bookkeeping;
preparation of balance sheets and profit and loss accounts; principal sources of finance for companies;
accounting ratios; limitations of conventional financial statements; costing for planning; decision making and
control; accounting for materials; labour and overheads; absorption costing; marginal costing and break even
Revised: 27 September 2011
Department of Civil and Environmental Engineering
Module descriptor 2011-12
analysis; budgetary control; standard costing and variance analysis; cash budgeting and management of
working capital; and investment appraisal, including payback period, return on investment and discounted cash
flow.
Students are required to prepare answers to numerical exercises, which are reviewed in weekly
seminars/workshops, and to prepare material for discussion topics.
Textbook
‘Accounting: An Introduction’ by Peter Atrill and Eddie McLaney [Prentice-Hall, 5th edition, 2010].
Structure
Pre-lecture study time; 2-hour lecture and 1-hour tutorial/support class
Course Outline
Date
15 Oct
22 Oct
29 Oct
5 Nov
12 Nov
19 Nov
26 Nov
3 Dec
10 Dec
17 Dec
Lecture
L1: Introduction to Accounting and Recording of
Financial Data
L2: Preparation for the Financial Statements I
L3: Preparation for the Financial Statements II
L4: Interpretation of Financial Statements I
L5: Interpretation of Financial Statements II
L6: Fundamental of Management Accounting and
Cost Accounting
L7: Making Decisions I – Breakeven Analysis
L8: Making Decisions II – Capital Investment
Appraisals
L9: Planning for the Future
L10: Budgets for Control
Reading
Chapters 1, 4 & 5 and
Appendix A
Chapters 2 & 3
Chapter 6
Chapter 7
Chapter 7 & 11
Chapter 8, 9 & 10
Assessment
B2 – Principles of Accounting
Examination:
Rubric:
Weighting
Coursework:
Weighting
Half of one two-hour paper undertaken in January
Section A: Answer one question from two
Section B: Answer one question from two
70%
Normally group based
30%
Revised: 27 September 2011
Chapter 8, 9 & 10
Chapter 14
Chapter 12
Chapter 13