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Week 1 - Introduction To Module - Accounting Concept - Lecture

This document outlines the learning objectives and content for the first week of the FIN1149 module, which introduces accounting concepts such as the need for accounting information, users of accounting information, and the differences between financial and management accounting. The week will cover the role of accounting in business, sources of business finance, and ethics for accountants. Students are expected to complete assigned readings, questions, and a tutorial to understand these foundational accounting topics.

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hoang anh
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18 views

Week 1 - Introduction To Module - Accounting Concept - Lecture

This document outlines the learning objectives and content for the first week of the FIN1149 module, which introduces accounting concepts such as the need for accounting information, users of accounting information, and the differences between financial and management accounting. The week will cover the role of accounting in business, sources of business finance, and ethics for accountants. Students are expected to complete assigned readings, questions, and a tutorial to understand these foundational accounting topics.

Uploaded by

hoang anh
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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FIN1149 – Finance for Non-Finance Managers

Dr. Sterling Rauseo, Module Leader


Week 1 – Lecture

Introduction to the Module details & The


Role of Accounting in Business
Gowthrope Chapter 1

Some powerpoint materials acknowledgement – Business and Finance 5th edition © Catherine Gowthrope, 2021
Learning Outcomes
 After this session you will be able to:
 Understand the Moodle site, handbook, two assessment details, and tutorial
format
 Understand the differences between the sole trader, partnership and company
forms of business organization.
 Know about some sources of business finance available.
 Know in outline about some important features of the business environment.
 Understand why accounting information is produced.
 Be able to identify the principal groups in society who need and use accounting
information.
 Know about the functions that accountants perform in the production of
accounting information.
 Understand the importance of ethics for the professional accountant.
Introduction to the module
Course Moodle site
• Sessions’ slides: basic information
• Useful materials and reading to complete: main sources of learning

Module Handbook
• Session plan, required reading, assessment details etc.

2 Assessment consisting of 2 reports –


Report 1 – 30% of Final Grade - 500 words, deadline Friday 24/02/2023,
Report 2- 70% of Final Grade - 1,500 words, deadline Friday 06/04/2023
You can start reading it now- available on Moodle under the section Handbook, Assessment details & Rubric
Reviewing each week’s lecture before attending is important
• If you skip lectures you miss your opportunity to learn

Engagement and active learning


• Passive learning = no learning
Assessment structure: Summative
Types:
Report 1 – 30% of Final Grade - 500 words, deadline Friday 24/02/2023
Report 2- 70% of Final Grade - 1,500 words, deadline Friday 06/04/2023

Task:
• Report 1 – Written report based on a short scenario based on topics covered in the first
5 weeks of the Term.
• Report 2- 3 Short answer problems based on scenarios covering the topics in the
module covered from Week 1-9 mainly to produce financial statements and then to
interpret the information in the statement
How:
• Individually and independently; Using relevant financial statements and concepts with
some additional research is required
Format:
• MS Word via Moodle link
Assessment structure: Formative
Weekly Practice & Questions-

• Students will be provided with weekly questions which are both multiple
choice and short problems to test their understanding of the concepts, and
workings of the financial statements. This will be provided as part of the
lecture presentation to be done independently.
Answers to the questions will be revealed on Moodle the following week
for students to test the accuracy of their answers. These can be
discussed
in tutorials

• Weekly 1 hr Tutorials - Topics from lecture to be recapped. Also, students


will be provided with a practice problem in MS Excel to complete in the
tutorial session with the answers discussed in the tutorials.
Introduction – Finance & Accounting
McMahon and Davies (1994) define financial management as the
function concerned with raising the funds needed to finance the
enterprise's assets and activities, the allocation of these scarce funds
between competing uses, and ensuring that the funds are used
effectively and efficiently in achieving the enterprise's goals.

Weygandt (2017) accounting is an information system that identifies,


records, and communicates the economic conditions of the organization
to interested users.
Weygandt, J.J., Kieso, D.E., Kimmel, P.D., Trenholm, B., Warren, V. and Novak, L., 2019. Accounting Principles, Volume 2. John
Wiley & Sons.

McMahon, R.G and Davies, L.G., 1994. Financial reporting and analysis practices in small enterprises: their association with
growth rate and financial performance, Journal of Small Business Management, 32(1), p. 9-1
Why do we need to know about Finance and
Accounting
Organisations of all type need this in order to survive and
provide financial information their various stakeholders.

Forms of Business Organization


• Sole trader businesses
• Partnerships
• Limited companies – shareholder – owner of shares
in a company and essentially a owner of a company
Finance for Business

• Existing resources
• Retained profit
• Borrowing money
• Leasing and hire purchase
• Grant finance
• Financing companies: share issues ( phát hành cổ phiếu )
• Financing companies: venture capital ( vốn mạo hiểm )
The Need for Accounting Information

Control
As a company grows in size, its management needs ever larger
quantities of internally generated accounting information in
order to keep control of the business’s activities, and to make
good quality decisions. ( kiểm toán , trình bày cho ban quản trị
cổ đông )
+ đặc biệt khi làm trong cty cổ phần phải có báo cáo rõ rang
+ đối với cty tư nhân
The Need for Accounting Information - 1

Sole trader
• Annual information – Profit and Loss statement and
Balance sheet (+ đối với cty tư nhân phải báo cáo kết quả
hoạt động kinh doanh và bảng cân đối kế toán )

• Quarterly information – Management Accounts ( kế toán


quản trị )
• Accounting information within the business – income and
expenses ( thu nhập và chi phí )
The Need for Accounting Information - 2

Partnership ( cty hợp doanh )


• Annual and quarterly information required as for
sole trader
• Also, possibly, audit
• Accounting information within the business.
The Need for Accounting Information - 3

Limited company ( cty trách nhiệm hữu hạn )


• Provision of financial information outside the
business
• Note: separation of ownership and management
(see next slide) (
• + đặc điểm : khi phá sản thì có thể lấy những sở hữu
của cá nhân để giữ
Fundamentals of Taxation

• Income taxes (personal taxation) ( thuế thu


nhập cá nhân )
• Corporation tax (thuế doanh nghiệp )
• Capital gains tax
• Value added tax – thuế gia tang
Separation of Ownership and Management
Users of Accounting Information

• Shareholders
• Potential shareholders
• Investment analysts
• Lenders and potential lenders
• Employees and trade unions
• Suppliers
• Special interest groups
• Government
Users of Accounting Information (continued)

• Financial journalists
• Academics and students
• Customers
• The general public
Characteristics of Useful Financial
Information

Information should have the following key


characteristics:
• Relevance
• Faithful representation
Enhancing Characteristics of Financial Information

• Comparability
• Verifiability
• Timeliness
• Understandability
Financial Accounting and Management
Accounting

• Financial accounting/financial reporting: the


processes and practices involved in providing
external users with the information they need.
• Management accounting: the accounting carried
out by a business for its own needs.
The Production of Financial and Management
Accounting Reports
Accounting Ethics
Key ethical principles:
• Integrity
• Objectivity
• Professional Competence and Due Care
• Confidentiality
• Professional Behaviour
Learning Outcomes – at the end
After this session you should be able to:

 Understand the Moodle site, handbook, two assessment details, and tutorial format
 Understand the differences between the sole trader, partnership and company forms of
business organization.
 Know about some sources of business finance available.
 Know in outline about some important features of the business environment.
 Understand why accounting information is produced.
 Be able to identify the principal groups in society who need and use accounting
information.
 Know about the functions that accountants perform in the production of accounting
information.
 Understand the importance of ethics for the professional accountant.
Additional Resources

- On Moodle look at video under Week 1 which introduces Microsoft


Excel concept of accounting and the video at the top of Moodle page
which introduces accounting
- On Moodle answer the questions in the file Week 1- Accounting
Concepts-Questions to test your understanding of the concepts

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