UNIVERSITY OF TECHNOLOGY, JAMAICA
SYLLABUS OUTLINE
COLLEGE: Business and Management
SCHOOL: Business Administration
COURSE OF STUDY: Bachelor of Business Administration
Bachelor of Science in Entrepreneurship
Bachelor of Science in Actuarial Studies
LEVEL: Two
MODULE TITLE: Introduction to Financial Accounting
MODULE CODE: ACC2001
DURATION (Hours): 45 Hours
CREDIT VALUE: Three
PREREQUISITE: Fundamentals of Accounting (ACC0001)/ (new level 1 SOBA
module)
1.0 MODULE DESCRIPTION
This module covers the preparation and interpretation of financial statements of
incorporated as well as unincorporated businesses.
2.0 GENERAL OBJECTIVES
At the end of this module, students should:
1. Construct final accounts from incomplete records.
2. Understand manufacturing accounts.
3. Present partnership accounts
4. Demonstrate an understanding of company accounts in accordance with relevant
accounting standards.
5. Understand basic consolidated financial statement.
6. Demonstrate an understanding of cash flow statements in accordance with relevant
accounting standards.
7. Interpret information presented in financial statements.
3.0 MODULE CONTENT AND CONTEXT
Unit 1 – Control Accounts & Incomplete records (6 hours)
Specific Objectives
Students should be able to:
1. Explain the purposes of control accounts
2. Explain how control accounts relate to the double entry system
Introduction to Financial Accounting Syllabus (ACC2001) - 2023
3. Prepare control accounts for accounts receivable and accounts payable from
available data
4. apply control accounts principles to other types of general ledger accounts
5. use control accounts to derive unknown amounts
6. Explain the purpose of Statement of Affairs
7. Construct a statement of affairs to deduce opening capital.
8. Use control accounts concepts to calculate missing figures.
9. Use margin and mark up to calculate sales and purchases.
10. Calculate the value of damaged and stolen goods.
11. Prepare the final accounts for incomplete records.
MODULE CONTENT
Purposes of control accounts
Identification and correction of errors in control accounts
Sales ledger and purchases ledger control accounts
General ledger control accounts
Statement of Affairs
Mark up and Margin
Preparation of final account
Unit 2 – Financial Statements for a Manufacturing Entity (6 hours)
Specific Objectives
Students should be able to:
1. Identify the components of a manufacturing account.
2. Calculate prime cost, factory overheads, net work-in- progress and production cost.
3. Relate the realization and cost concept to unrealized profit/(loss).
4. Determine Manufacturing profit/(loss).
5. Justify the treatment of provision for unrealized profit in the financial statements.
6. Prepare the final accounts for manufacturing entities.
MODULE CONTENT
Components of a manufacturing account.
Realization concept, cost concept and unrealized profit
Provision for unrealised profit
Preparation of final accounts
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Unit 3 – Partnership Accounting (3 hours)
Specific Objectives
Students should be able to:
1. Define partnership as a business organisation.
2. Describe types of partners
3. Describe the content of a typical partnership agreement.
4. Outline the content of the appropriation account and the current account.
5. Construct the final accounts of a partnership.
MODULE CONTENT
Definition
Types of partners
Partnership Act
Partnership Deed
Statement of profit and loss
Appropriation account
Current account
Statement of financial position
Unit 4– Company Accounts (6 hours)
Specific Objectives
Students should be able to:
1. Compare the characteristics of companies with other forms of business organizations.
2. Assess the sources of financing for a company.
3. Describe dividend policies.
4. Calculate revenue, cost of sales, gross profit, profit from operations, profit before
taxation, profit for the year, from given information.
5. Identify items requiring separate disclosure on the face of the statement of profit or
loss.
6. Prepare a statement of profit or loss in accordance with IAS1.
7. Prepare statement of changes in equity in accordance with IAS1
8. Prepare statement of financial position in accordance with IAS1.
9. Explain the purpose notes to the financial statements.
MODULE CONTENT
Characteristics of a company.
Sources of financing.
Dividend policies.
Non-cash dividends
Classification of expenses by function
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Calculation of items for statement of profit and loss
Statement of profit and loss
Statement of changes in equity
Statement of financial position
Disclosure notes
Unit 5 – Basic Consolidated Financial Statement (3 hours)
Specific Objectives
Students should be able to:
1. Describe the parent and subsidiary relationship in the context of group accounting.
2. Identify subsidiaries within a group structure.
3. Define an associate and significant influence.
4. Identify situations where significant influence exists.
5. Describe the key features of a parent-associate relationship.
6. Identify an associate within a group structure.
7. Describe purchase method of consolidating financial statements.
8. Explain the treatment of goodwill in consolidated financial statement.
MODULE CONTENT
Parent
Subsidiary
Control
Consolidated (group) financial statements.
Non-controlling interest
Trade (simple) investment
Associate
Purchase method of consolidation
Goodwill on acquisition (positive/negative)
Unit 6 – Cash Flow Statements (6 hours)
Specific Objectives
Students should be able to:
1. Differentiate between profit and cash flow.
2. Explain the benefits and drawbacks to users of a statement of cashflows.
3. Calculate cash flow from operating activities using the direct and indirect methods.
4. Prepare cash flow statements in accordance with IAS7.
5. Evaluate information presented in cash flow statements.
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MODULE CONTENT
Profit vs cash flow
Components of cash flow
Operating Activities (indirect method)
Cash flow statements
Interpretation of cash flow statements
Unit7 –Analysis of Financial Statements (6hours)
Specific Objectives
Students should be able to:
1. Explain the use of financial ratios.
2. Discuss the limitations of using ratios.
3. Calculate the financial ratios.
4. Explain the relationship between ratios.
5. Draw valid conclusions from information present in the financial statements.
6. Present analysis of financial statements to appropriate users
MODULE CONTENT
Use of ratios
Limitations
Liquidity ratios
Profitability ratios
Efficiency ratios
Solvency ratios
Investment ratios
Evaluate financial ratios.
Relationship between ratios
Report on ratio analysis
Unit 8 - Payroll Accounting (3 hours)
Specific Objectives
Students should be able to:
1. Describe methods of calculating gross pay
2. Evaluate methods of calculating gross pay
3. Describe features and purpose of various statutory deductions.
4. Determine taxable pay.
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5. Compute statutory deductions.
6. Compute voluntary deductions.
7. Calculate the net pay of employees.
8. Journalize payroll related items.
MODULE CONTENT
Gross pay
o Basic
o Time rate/Piece rate
o Overtime
o Commission
o Incentives and bonus
o Allowances
National insurance (NIS)
National Housing trust (NHT)
Education Tax
Income tax (PAYE)
Voluntary deductions
Net pay
Journal entries
4.0 LEARNING AND TEACHING APPROACHES
Content Teaching/Learning Strategies
Control Accounts & Incomplete records Lecture, case studies, diagnostic test,
individual/group- problem solving
Manufacturing accounts Lecture, Think-Pair-Share individual/group-
problem solving
Partnerships Lecture with discussion, case studies, peer
tutoring, individual/group- problem solving
Company accounts Lectures, discussion individual/group-
problem solving,
Basic consolidated financial statements Lecture, discussion, Think-Pair-Share
individual/group- problem solving
Cash flow statements Lectures, Think-Pair-Share, discussion
Interpretation of financial statements Lecture, discussions, individual/group-
problem solving, case studies,
Payroll Accounting Lecture, discussion individual/group-
problem solving,
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5.0 ASSESSMENT PROCEDURES
The course will be assessed as follows:
Assessment Title Areas Covered Weight
1 Test 1 Units 1 - 2 15%
2 Test 2 Units 3 - 4 20%
3 Project/Case Units 4 - 8 15%
Analysis
4 Final Examination –All Units 50%
6.0 BREAKDOWN OF HOURS
Lectures 12
Independent learning 3
Tutorials 24
Assessments 6
45
7.0 TEXTBOOKS AND REFERENCES
Required Text
Wood, F., & Sangster, A. (2018). Business Accounting 1. Pearson
Recommended Text
ACCA Financial Accounting (FA) Study Text. (2022). Berkshire, UK: Kaplan Publishing UK.
ACCA Approved Workbook: Financial Accounting (FA). (2023). London, UK: BPP Publishing.
Garrick, C. (2012). The Fundamentals of Accounting: A Concise course for beginners.
8.0 Names of syllabus writers/developers
Rohan Chambers and Courtney Garrick (2003)
1st Revision: Clavery Allen (2008)
2nd Revision: Michelle Thompson, Collette Folkes, Georgia Silvera –Finnikin, James
McNish (2012)
3rd Revision: Collette Folkes (July 2015)
4th Revision: Clavery Allen, Courtney Garrick, Max-Joy Noble, Danielle Sawyers (2023)
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*Objectives from the cognitive domain and the module context were mirrored from
ACCA F3 – Financial Accounting
9.0 Approval
Programme Director (PD): Signature _________________
College Curriculum Committee: Signature __________________
10.0 ACCEPTANCE BY OFFICE OF CURRICULUM DEVELOPMENT &
EVALUATION (OCDE)
Officer________________________________ Date: ____________________
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