Module Directory

This module provides students with a more in-depth knowledge of accounting by focusing on more advanced topics in financial reporting. It starts with enhancing students’ understanding of accounting, situating accounting within social contexts to enable them to appreciate accounting as both technical and social practices. Hence, the module will offer students a critical understanding of key accounting standards, accounting measurements, and disclosure practices in the current and dynamic financial reporting environment.

The module will explore issues of international accounting standards setting process, various factors that influence the process and their implications for financial reporting in meeting the needs of users. It introduces fair value, its valuation measurements and disclosures, including its strengths and weaknesses in contrast with historical cost accounting. It will then discuss accounting for foreign currency translation, and compare and contrast the different methods used to account for it. In addition, the module will explore issues related to creative accounting (income manipulation techniques by firms), specifically exploring income smoothing as a form of earnings management and off-balance sheet accounting. The role that these tools have played in encouraging opportunistic behaviours that led to the bankruptcy of global companies and to global financial crisis will be discussed.

In the final five weeks, the module will explore accounting for leases and how accounting standards have evolved to address some loopholes that enable the opportunistic use of leases by firms. Revenue recognition will also be covered with major emphasis on measuring revenue from contracts. In addition, Provisions, Contingent Liabilities, and Contingent Assets (IAS 37) will be explored both discursively and numerically. This will be followed by examining the important issue of pension schemes and post-employment benefits accounting in corporate reporting, and how companies report the provision of pensions for employees, with particular reference to IAS19. Lastly, the module will cover Financial Instruments by examining their recognition, measurement, and disclosure in the financial statements with particular reference to IAS39/IFRS9.

The aims of this module are:

• To enable students to engage with contemporary financial reporting issues around measurement, valuation and disclosures, both from critical perspectives and practice-orientation.


• To enable students to be able to understand and reflect on the conceptual underpinnings of accounting standards and the ensuing financial statements.


• To stimulate critical thinking in financial accounting practice in meeting users’ needs.

By the end of this module, students will be expected to be able to:

1. Critically evaluate the accounting standard setting process and evaluate the impact of political, social, and ethical influences on corporate financial statements and accounting standards and regulations;


2. Measure fair value, goodwill, and financial instruments and how they are presented in the financial statements, as well as demonstrate a critical understanding of these measurements.


3. Prepare, present, and analyse a wide range of economic matters in the financial statements such as pensions, leases, foreign currency translation, revenue recognition and provisions and be able to critically reflect on the complexities associated with these accounting topics.


4. Assess the tensions between accounting measurements and their objectivity/subjectivity as well as the implications for credible financial statements;


5. Assess the strengths and weaknesses of corporate financial reporting practices involving creative accounting.

Transferable Skills:

On completion of this module, students who have engaged in an in-depth way with the module should have attained key transferable skills that include being able to:

• Evaluate relevant evidence and solve problems


• Analyse financial data with confidence


• Develop and apply high-level financial analytical skills in the working environment for clients and employers


• Understand the need to communicate and explain complex financial statements to non-accounting colleagues and write reports in a clear and concise manner


• Be aware of, and understand, contemporary accounting debates and developments in an international and practical context


• Analyse academic literature


• Develop clear arguments in essays


• Apply and adapt academic skills to a professional working environment


• Appreciate the importance of ‘softer’ skills in the working environment such as developing a professional attitude and commitment, exhibiting sound communication, awareness of completing tasks to strict deadlines, thinking critically about complex issues, and recognise different perspectives


• Use core IT programs and understand plagiarism and referencing

Syllabus information:

1. Accounting and Standard Setting


2. Fair Value Accounting


3. Foreign Currency Translation


4. Creative Accounting: Manipulation, Income Smoothing


5. Creative Accounting: Off Balance Sheet Accounting


6. Accounting for Leases


7. Revenue Recognition


8. Provisions, Contingent Liabilities, & Contingent Assets


9. Pension Reporting


10. Financial Instruments

This module will be delivered via:

• One 2-hour Lecture per week
• One 1-hour Seminar fortnightly

Students are expected to undertake the reading before classes and be prepared to engage in discussion