CI9-B2-Principles of Accounting

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:
Contact hours:
ECTS units:
Dr Libon FUNG (Birkbeck)
Core for H2B3, H2U7, H2U2, H2A4, H2B5, H2A8, H2B1
CI9-B1, CI9-B3, CI9-B4
Autumn Term
4-6 (depending on core MSc programme)
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
prepare accounting statements; and
develop knowledge and understanding of the application of different management accounting
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
 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
to integrate subject matter studied on related modules and to demonstrate the multi-disciplinary
aspect of practical financial and management problems
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
Students are required to prepare answers to numerical exercises, which are reviewed in weekly
seminars/workshops, and to prepare material for discussion topics.
‘Accounting: An Introduction’ by Peter Atrill and Eddie McLaney [Prentice-Hall, 5th edition, 2010].
Pre-lecture study time; 2-hour lecture and 1-hour tutorial/support class
Course Outline
15 Oct
22 Oct
29 Oct
5 Nov
12 Nov
19 Nov
26 Nov
3 Dec
10 Dec
17 Dec
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
L9: Planning for the Future
L10: Budgets for Control
Chapters 1, 4 & 5 and
Appendix A
Chapters 2 & 3
Chapter 6
Chapter 7
Chapter 7 & 11
Chapter 8, 9 & 10
B2 – Principles of Accounting
Half of one two-hour paper undertaken in January
Section A: Answer one question from two
Section B: Answer one question from two
Normally group based
Revised: 27 September 2011
Chapter 8, 9 & 10
Chapter 14
Chapter 12
Chapter 13