The aim of the Financial Reporting and Finance module is to provide an understanding of financial instruments and financial institutions and to provide the ability to interpret published financial statements of non-financial and financial companies with respect to performance, liquidity and efficiency. An understanding of the concepts of taxation and managerial decision making are also introduced and developed.

(LO1) Students will be able to describe the different forms a business may operate in

(LO2) Students will be able to describe the principal forms of raising finance for a business

(LO3) Students will be able to demonstrate an understanding of key accounting concepts, group accounting and analysis of financial statements

(LO4) Students will be able to describe the basic principles of personal and corporate taxation

(LO5) Students will be able to demonstrate an understanding of decision making tools in used in management accounting.

(S1) Problem solving skills

(S2) Numeracy

(S3) Commercial awareness

(S4) Organisational skills

(S5) Communication skills

Teaching Method: Lecture
Scheduled Directed Student Hours: 24
Attendance Recorded: No

Teaching Method: Seminar
Scheduled Directed Student Hours: 6
Attendance Recorded: Yes

Self-Directed Learning Hours: 120

There are the following non-modular requirements:
ACFI101 or ACFI113 (or XJTLU equivalent modules)

Skills/Other Attributes Mapping

Skills / attributes: Problem solving skills
How this is developed: Students will learn how to solve various types of numerical and non-numerical questions in a structured manner during lectures. They will get an opportunity to practice these types of questions during the seminars.
Mode of assessment (if applicable): Examinations

Skills / attributes: Numerate
How this is developed: To prepare for the assessments, students need to be able to create statement of financial position and income statement, to calculate and interpret different ratios using financial statement information, to apply different methods related to evaluating the risk and uncertainty of corporate investment decisions, and to calculate personal income taxes and capital gains.
Mode of assessment (if applicable): Examinations

Skills / attributes: Commercially aware
How this is developed: During the lectures and seminars, students will engage in real-world examples related to corporate financial statements, different forms of corporate financing, and personal and corporate taxation.
Mode of assessment (if applicable)

Skills / attributes: Organised and able to work under pressure
How this is developed: The students will organise their self-directed learning time in a way that would help them to prepare for the seminars as well as for the assessments. Both assessments are timed so students will have to work under pressure.
Mode of assessment (if applicable)

Skills / attributes: Ccommunication skills
How this is developed: Students will have opportunities to ask questions during the lectures, seminars, office hours, and via email. In addition, students will practice solving numerical and non-numerical questions in a concise and logical manner during lectures and seminars and showcase these written communication skills during the exam.
Mode of assessment (if applicable): Examinations

INTRODUCTION
Revision of finance principles and terminology;
Business entities: legal forms of companies (public and private) and partnerships.

FINANCIAL INSTRUMENTS AND FINANCIAL INSTITUTIONS  
Methods of raising finance (including: leasing, HP, credit sale, loans, trade credit, factoring, bills of exchange, commercial paper, overdrafts); 
Financial instruments;
Methods of issuing securities; 
Financial institutions.

FINANCIAL REPORTING AND ANALYSIS  
Fundamental accounting concepts; 
Financial statement preparation under International Financial Reporting Standards:
Statement of financial position;
Statement of comprehensive income;
Statement of cash flows;
Notes; 
Group accounting; 
Accounting issues:
Goodwill;
Depreciation;
Components of equity; 
Interpretation and analysis of published financial statements:
Key measures and concepts used in interpretation including - EBIT (Earnings Before Interest and Tax), EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), EPS (Earnings Per Share), gearing, price-earnings ratio, dividend yield, interest cover, asset cover;
Other ratios relating to profitability, liquidity and efficiency;
Limitations of accounting information
Structure and content of the financial statements of financial institutions – banks and insurance companies.

MANAGEMENT ACCOUNTING 
Decision making; 
Decision trees.

TAXATION
Principles and systems of taxation;
Income tax;
Corporation tax;
Tax on capital gains;
Double taxation relief.