SHE Level 2
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M2N406712
Module Leader Alison Lehane
School Glasgow School for Business and Society
Subject Finance and Accounting
  • A (September start)

Pre-Requisite Knowledge


Summary of Content

Rationale The module builds on the techniques and procedures of financial accounting covered at level 1. Summary of content The emphasis in this module is on the understanding and application of the international requirements for financial reporting including knowledge of underlying principles and concepts. The theoretical framework is applied in the preparation and evaluation of information in individual and group financial reports, using international accounting standards.


The regulatory framework - Legislation and the legal framework - Accounting standards and generally accepted principles - Stock Exchange and other requirements Published accounts - Legal requirements relating to preparation of published accounts for limited companies - Meaning of true and fair - Accounting policies - Operating and Financial Review - Preparation of balance sheet, statement of changes in equity and income statement for limited companies Cash flow statements - Preparation and analysis Accounting standards - Development of international standards - Conceptual framework - Standards for non-current tangible and intangible assets, current assets, provisions and contingencies, PBSE and OBSF Group accounts - Reporting requirements - Underlying principles of full consolidation - Subsidiary undertakings - Preparation of group accounts, including accounting for goodwill, pre and post acquisition reserves, intercompany transactions and unrealised profit. Financial statement analysis - Objectives - Inter and intra company analysis - Internal and external ratios - Profitability, efficiency, liquidity and gearing ratios. - Limitations and weaknesses of ratio analysis

Learning Outcomes

On successful completion of the module, students should be able to:- Apply the international financial reporting standards and prepare financial statement information for individual companies and for groups.- Analyse, interpret and evaluate financial statement information- Access, analyse and present material from academic journals dealing with financial reporting issues.

Teaching / Learning Strategy

Teaching/Learning Strategy The material covered in both lectures and seminars includes a computational element and an analytical and discursive element. Topics will be introduced in lectures; the work for seminars is designed to provide opportunities for applying and developing practical skills and a forum for discussion of international financial reporting issues. For seminars students will be required to work both independently and in groups. Seminar work will include at least one presentation from students. Blackboard VLE is used to support class activities. Feedback Strategy The following strategies will be adopted: A: Facilitating the development of self-assessment Students will be provided with detailed feedback on coursework in the seminars and will be encouraged to reflect on their performance. B: Encouraging dialogue. Seminars are designed to facilitate students entering into dialogue with the tutor. All tutors have an open door policy and students are encouraged to discuss any problems with the tutor on a one-to-one basis. C: Clarifying good performance. Students will be provided with information about marking criteria and performance level definitions prior to the class test. A practice test will be made available on Blackboard a week prior to the class test. D: Providing opportunities to close the gap between current and desired performance Feedback on performance in the coursework will be provided and students encouraged to talk to their tutor to discuss problem areas and identity solutions. E: Delivering high quality information about learning. Feedback on performance in the class test will be provided to each student within three weeks of the test. Feedback on seminar work will be continual. F: Encouraging positive motivational beliefs and self-esteem. All feedback will emphasise the positive points. G: Providing information to teachers that can be used to help shape the teaching. Students will be asked to identify where they are having difficulties during the student staff meetings and during meetings with their adademic advisers. The design of seminars allows continual dialogue.

Indicative Reading

Recommended text: Elliott B and Elliott J (2005) Financial Accounting and Reporting 9th Ed, FT Prentice Hall Additional texts Alexander D, Britton A and Jorissen A (2003) International Financial Reporting and Analysis Thompson Learning Lewis R and Pendrill D (2000) Advanced Financial Accounting 6th ed FT Prentice Hall In addition, students will be required to access appropriate websites, eg and to read appropriate articles from a variety of professional and refereed journals.

Transferrable Skills

Personal development skills and enterprise or business skills On successful completion of the module, students should be able to: " develop information retrieval skills to access academic journal articles and to present information in seminar presentations. " develop the ability to work independently and to work and communicate within a group.

Module Structure

Activity Total Hours
Assessment (FT) 3.00
Lectures (FT) 24.00
Seminars (FT) 12.00
Independent Learning (FT) 161.00

Assessment Methods

Component Duration Weighting Threshold Description
Exam (School) 0.00 30.00 35% MCQ/Short questions class exam
Exam (Exams Office) 2.00 70.00 35% Unseen