Financial Planning and Reporting 201: Module Guide and Study Notes

Introduction to Financial Planning and Reporting

Overview of the Module

This module provides a comprehensive introduction to financial planning and reporting, focusing on the fundamental principles, frameworks, and processes of accounting. It is designed to equip students with the skills necessary to understand and apply financial concepts in a business environment.

• Purpose: To develop an understanding of financial planning and reporting for practical application in the workplace.

• Content: Theory, frameworks, models, and exercises related to financial accounting and reporting.

• Recommended Reading: Includes textbooks such as "Accounting: An Introduction" (McLaney & Atrill), "Principles of Managerial Finance" (Gitman), and "Fundamentals of Corporate Finance" (Ross et al.).

Module Structure and Chapter Alignment

Specific Programme Outcomes

The module is structured to achieve the following outcomes, each aligned with specific chapters:

Outcome	Chapter Alignment
Understand the accounting process and describe the financial planning process.	Chapters 1 and 2
Understand and apply the various forms of ownership and their financial reporting.	Chapters 3, 4, and 5
Understand and apply the regulatory process relating to business financial planning and reporting.	Chapters 3, 4, and 5
Analyse and interpret financial statements.	Chapter 6
Contribute to determining short and long-term financial needs of a business.	Chapters 7 and 8

Learning Outcomes

• Describe the nature and purpose of accounting.

• Explain the business cycle and use the entity concept to keep records.

• Discuss the need for reporting standards.

• Identify the users of financial statements and their informational needs.

• List the qualitative characteristics of financial statements.

• Explain the accrual principle.

• Identify, define, and classify the elements of financial statements.

• Discuss the criteria used for showing elements in the financial statements.

• List the components of a set of financial statements.

• Use the accounting equation to present information on the financial position.

The Nature and Purpose of Accounting

Definition and Scope

Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful for decision-making. Only activities with a monetary value are recorded, and specialized procedures are used to ensure accuracy and reliability.

• Key Point: Accounting converts raw data into financial reports for stakeholders.

• Example: Recording a business transaction such as a sale or purchase in the accounting system.

Brief History of Accounting

Accounting has ancient origins, with evidence of record-keeping dating back over 3,000 years. Early forms included hieroglyphic writing on clay tablets for tax accounting.

• Key Point: The evolution of accounting reflects the growing complexity of business and the need for reliable financial information.

Assessment Criteria

Programme Outcome	Assessment Criteria
Understand the accounting process and describe the financial planning process.	Apply various accounting techniques in order to report on financial performance and position.
Understand and apply the various forms of ownership and their financial reporting.	Differentiate between the various types of ownership and their implications for financial reporting.
Analyse and interpret financial statements.	Evaluate an organisation's financial performance and recommend methods of improvement.
Contribute to determining short and long-term financial needs of a business.	Relate the financial management function to the short and long term financial objectives of the organisation.

Additional info:

• This module guide serves as a syllabus and reference for Financial Accounting topics, including measuring and reporting financial position and performance, accounting for different business entities, cash flow analysis, financial statement interpretation, cost behavior, budgeting, capital investment decisions, financing, and working capital management.

• Students are encouraged to use both prescribed and recommended textbooks for deeper understanding and exam preparation.