Financial Accounting

Supplementary Exam -
Revision




EXAM 2 hours (120 minutes)
Closed-book Examination (worth 70%)
Section A 30%: 15 multiple choice questions at 2 marks each
(ONE correct answer, no negative marking)
Cover all syllabus
Section B 30%: Two Compulsory question (15 marks each)

Section C 40%: answer any ONE out of THREE questions
Allocate your time according to marks
awarded.
Make sure you attempt all parts NO marks
awarded if nothing on the page!
Answer the question set not the one you WISH
had been set! and help the examiner understand
how you have approached it.

EXAM 2 hours (120 minutes)
Essential Materials for Revision
Lectures
Recommended readings
Key reading: Elliott, B., and Elliott, J. (2013).
Financial Accounting and Reporting, 16
th
Ed.,
Financial Times/Prentice Hall.
Tutorial exercises
GENERAL FRAMEWORK OF
THE MODULE
FINANCIAL ACCOUNTING (Weeks 1-24)
SEMESTER 1
Introduction to the module
Conceptual framework and
regulatory environment
Preparation of financial statements
Interpretation and analysis of
financial reports
Creative accounting
Accounting for equity
Revision
Week 12 & 24
SEMESTER 2
Accounting for inventories and
contract work-in-progress
Accounting for investment and groups
Fair value accounting and provisions
Accounting for tangible non-current
assets
Accounting for intangible non-current
assets
Accounting for depreciation,
amortisation and asset impairment
WHICH AREAS?
Cash flow statements and their
interpretation
What and why for the reconciling
items?
How do you get from operating profit
to operational cash flow?

WHICH AREAS?
Why do we need a cash flow statement
The relevance of cash flow statement to its
users or various stakeholders.

Identify & understand the key issues in
analysing accounts
Be able to compute the principal accounting
ratios and understanding of the limitation of
these ratios
Appreciate the benefits & shortcomings of
analysing financial statements in decision
making
WHICH AREAS?
WHICH AREAS?
Accounting for investment in other companies -
group accounting
The process of consolidation aggregation,
elimination, calculation of special items.
Goodwill, non-controlling (minority) interests,
group reserves, fair values.
Uses/benefits of consolidation
WHICH AREAS?
Deferred development expenditure under
IAS38.
The rules for dealing with them in the income
statement and balance sheet
The criteria for recognition of development
costs as an asset
Amortisation of deferred development
expenditure
Amortisation period difficulties in
establishing it
Dont bet on one or two topics!!!