| CODE | ACC5985 | ||||||||||||
| TITLE | Financial Reporting for Small Entities | ||||||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | ||||||||||||
| MQF LEVEL | 7 | ||||||||||||
| ECTS CREDITS | 5 | ||||||||||||
| DEPARTMENT | Accountancy | ||||||||||||
| DESCRIPTION | This study-unit fills a gap in the programme by focusing on small entities, which play an important role in the European economy. It provides a relevant and stimulating syllabus for students intending to seek a career in accountancy, work in a family business or set up their own practice or business. The importance of smaller entities in Europe will be looked at together with the problems that smaller-sized entities face when trying to access finance. Issues related to business planning for smaller-sized entities will be discussed and the importance of the role of the accountant in smaller entities will be evaluated. The study-unit will also look at international differences and harmonization aspects in the area of smaller entities which will also cover the big GAAP/little GAAP debate. Aspects of the audit exemption, abbreviated and abridged accounts will also be looked at. Countries' positions on the IFRS for SMEs and the factors leading to its adoption or adaptation, will be discussed. Study-unit Aims: The main aims of this study-unit are to introduce students to the importance of smaller entities in the European economy and the contextual issues relating to differential financial reporting. It also provides opportunities to demonstrate skills such as critical thinking, solving complex problems and making decisions, using information and knowledge effectively, numeracy and communication skills in this specialised area. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - Describe the importance of SMEs in the European economy. - Explain the finance gap faced by smaller entities. - Evaluate the role of the accountant in small business clients. - Discuss the reasons for international differences in accounting and moves towards harmonisation in Europe. - Formulate the arguments for and against differential reporting for small entities. - Discuss the costs and benefits of audit exemption for small entities. - Examine the costs and benefits of abbreviated and abridged accounts for small and micro-entities. - Discuss adoption/adaption of the IFRS for SMEs in Europe. 2. Skills: By the end of the study-unit the student will be able to: - Prepare a business plan for the a small sized-firm. - Discuss the importance of SMEs in the European economy. - Describe the finance gap and the reasons why small and large firms are financed differently. - Demonstrate the usefulness of the role of the accountant as advisor to the smaller-sized entities. - Analyse the reasons for international accounting differences. - Justify the moves towards harmonization in Europe. - Synthesize the rationales underlying the differential reporting argument for the smaller sized entities. - Differentiate between the arguments in favour and against the audit exemption for the smaller sized entities. - Question the utility of abbreviated and abridged accounts for small and micro-entities. - Differentiate between the factors for and against country adoption/adaption of the IFRS for SMEs. Main Text/s and any supplementary readings: - Alexander, D. and Nobes, C. (latest edition) Financial Accounting – An International Introduction, Harlow: Pearson Education. - Collis, J., Holt, A. and Hussey, R. (latest edition) Business Accounting, Basingstoke: Palgrave Macmillan. - Haller, A. and Walton, P. (2003) ‘Country Differences and Harmonization’, in International Accounting, Walton, P., Haller, A. and Raffournier, B. (Eds.), (2nd edition), London: International Thomson Business Press. - Jarvis, R. (latest edition) ‘Finance and the Small Firm’, in Carter, S. and Jones Evans, D. (Eds.) Enterprise and Small Business: Principles, Practice and Policy, Harlow: Pearson Education. - Watson, J. (2010) SME Performance: Separating Myth from Reality, Cheltenham: Edward Elgar Publishing. |
||||||||||||
| ADDITIONAL NOTES | Pre-requisite Qualifications: Bachelor of Commerce with Accountancy Stream | ||||||||||||
| STUDY-UNIT TYPE | Lecture and Tutorial | ||||||||||||
| METHOD OF ASSESSMENT |
|
||||||||||||
| LECTURER/S | Jonathan Dingli Monique Micallef |
||||||||||||
|
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 2024/5. It may be subject to change in subsequent years. |
|||||||||||||