Understanding company accounts and reports
- Module Code:
- Year of study:
- Year 1
- Taught in:
- Term 2
This module provides detailed analysis of company financial accounts and reports. It starts by introducing students to the different elements of financial accounts and in each case provides critical analysis of:
- the purpose of the various accounts and reports;
- the main concepts and measures contained in the accounts;
- the underlying methodology used to construct the accounts; and
- the various uses and users of accounts and reports.
At the end of this module students should be able to interpret and critically assess company accounts and reports and be able to form a view of the financial and economic position of a company. Students should also have gained an understanding of how financial accounts and reports may be used internally by managers and externally by investors, tax authorities and others.
Objectives and learning outcomes of the module
At the end of this module students should be able to:
- Show an awareness of the internal and external uses and users of company accounts and reports;
- Demonstrate detailed knowledge of the different elements of financial accounts and reports and their underlying concepts;
- Construct financial accounts from company data;
- Interpret and critically appraise company accounts;
- Assess company performance using standard measures of profitability, liquidity, leverage, etc;
- Use company accounts and reports to form a critical view of the strengths and weaknesses of a company;
- Demonstrate an appreciation of how company accounts may be used by external investors, tax authorities and other external users;
- Show an appreciation of how company accounts can be used to inform managerial decisions and strategy.
Method of assessment
This module is assessed by 30% written coursework and 70% by one two hour examination