Study-Unit Description

Study-Unit Description


CODE ACC2113

 
TITLE Accounting Theory and Practice 2

 
UM LEVEL 02 - Years 2, 3 in Modular Undergraduate Course

 
MQF LEVEL 5

 
ECTS CREDITS 4

 
DEPARTMENT Accountancy

 
DESCRIPTION This study-unit presents aspects of the accounting environment that provide the background of financial accounting development. It introduces the students to the preparation and analysis of financial statements, and to the particularities of financial reporting requirements of specialised industries.

The topics covered are the following:
- Published Accounting Information, including GAPSE requirements
- The requirements of a selection of IFRSs
- Introduction to Financial Reporting of Specialised Industries
- The Interpretation of Published Accounting Information
- The preparation of Statements of Cash Flows and interpretation

Study-unit Aims:

The aim of this study-unit is to build on the knowledge acquired in the pre-requisite Accounting Theory and Practice 1 and acquaint students with further areas to be covered in greater detail in the later parts of the University accounting course.

This will be achieved by introducing various aspects of accounting policy formulation and regulation. The issues discussed in the unit will be analysed in case study settings.

Learning Outcomes:

1. Knowledge & Understanding:

By the end of the study-unit the student will be able to:
- Describe the GAPSE requirements and its applicability.
- Explain the environment in which financial accounting operates for specialised industries.
- Describe the importance of statements of cash flows.

2. Skills:

By the end of the study-unit the student will be able to:
- Prepare financial reports, including statements of cash flows, of an entity from given case study data.
- Analyse the accounting information published annually by local business entities, including cash flow data.
- Assess the financial performance of the reporting entity.

Main Text/s and any supplementary readings:

Main Texts:

- International Financial Reporting – A Practical Guide (latest edition) Alan Melville, Pearson.
- Financial Accounting and Reporting (latest edition) - B. Elliott and J. Elliott, Pearson.

Supplementary Texts:

- Financial Accounting and Reporting (latest edition) - Collins and McKeith, McGraw Hill.
- Financial Accounting Theory (latest edition) - Deegan and Umerman, McGraw Hill.
- International Financial Reporting Standards (IFRSs) (latest edition), International Accounting Standards Board, London.
- Maltese Legislation dealing directly with Financial Reporting and regulation of accounting profession.
- The General Accounting Principles for Smaller Entities (GAPSE).

Selected readings provided by the lecturer(s)

 
ADDITIONAL NOTES Pre-requisite Study-unit: ACC2112

 
STUDY-UNIT TYPE Lecture and Tutorial

 
METHOD OF ASSESSMENT
Assessment Component/s Sept. Asst Session Weighting
Assignment Yes 10%
Examination (2 Hours) Yes 90%

 
LECTURER/S

 

 
The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints.
Units not attracting a sufficient number of registrations may be withdrawn without notice.
It should be noted that all the information in the description above applies to study-units available during the academic year 2023/4. It may be subject to change in subsequent years.

https://www.um.edu.mt/course/studyunit