THE UNIVERSITY OF THE WEST INDIES

ST. AUGUSTINE, TRINIDAD AND TOBAGO, WEST INDIES

1 GENERAL INFORMATION SUMMARY

Course Title: ACCT 1002

Course Code INTRODUCTION TO FINANCIAL ACCOUNTING


Core
Course Type (Tick as
Elective
appropriate)
Co-curricular

Level Year 1

Semesters offered: 1,2&3

Credits 3
Pre/Co-requisites NONE

Teaching Methods  Lectures

(list only):  Tutorials


Per week:
Estimated Study 
Lectures –3 hrs.
Hours 
Independent Study – 3 hrs.

Total No. of
Assessments

Name of Lecturer: Ms. Gail Hosein

Office Phone: 662-2002 ext. 83592
Lecturer Information E-mail Address: [email protected]
Communication policy – e-mail

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COURSE VENUES – St. Augustine Campus

LECTURER DAY TIME VENUE

Gail Hosein Tuesday 5.00pm-8.00pm TLC LT A2

Students please note: All communication must be sent via your official UWI email address.
You must state the course code and your student ID in all correspondence.

2 COURSE OVERVIEW

2.1 Course Description

This course is an introductory one in financial accounting designed for students of accounting and
management. It aims to provide a practical and a theoretical understanding of the principles and concepts
encountered in the preparation of financial statements. This course is designed to be compliant with the
requirements of the International Financial Reporting Standards (IFRS) framework.

2.2 Rationale

The course introduces students to the principles, concepts and rules of financial accounting.

2.3 Aims/Goals

The aim of this introductory course is to provide students with an ability to prepare and understand
basic financial statements.

2.4 Learning Outcomes/Objectives

By the end of this course, students should be able to:

 Understand and apply the key assumptions and principles of accounting in the recording of standard
accounting transactions
 Prepare basic financial statements
 Understand and interpret basic financial statements for both a merchandiser and a corporation

Lesson One – Introduction to Financial Accounting

In this lesson you will learn how the accounting system in an organization works to provide meaningful
financial information

After studying this lesson, you should be able to:

1. Explain what accounting is.
2. Identify the users and uses of accounting.
3. Understand why ethics is a fundamental business concept.
4. Explain accounting standards and the measurement principles.
5. Explain the monetary unit assumption and the economic entity assumption.
6. State the accounting equation, and define its components.
7. Analyse the effects of business transactions on the accounting equation.
8. Identify the five financial statements

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Lesson Two – Recording Accounting Information
This lesson introduces you to the rules and procedures used by the accountant to record and track
accounting transactions.

After studying this lesson, you should be able to:

1. Explain what an account is and how it helps in the recording process.
2. Define debits and credits and explain their use in recording business transactions.
3. Identify the basic steps in the recording process.
4. Explain what a journal is and how it helps in the recording process.
5. Explain what a ledger is and how it helps in the recording process.
6. Explain what posting is and how it helps in the recording process.
7. Prepare a trial balance and explain its purposes.

Lesson Three – Basic Adjusting Entries

The impact of timing differences on accounting transaction processing is explained in this lesson.

After studying this lesson, you should be able to:

1. Explain the time period assumption.
2. Explain the accrual basis of accounting.
3. Explain the reasons for adjusting entries.
4. Identify the major types of adjusting entries.
5. Prepare adjusting entries for deferrals.
6. Prepare adjusting entries for accruals.
7. Describe the nature and purpose of an adjusted trial balance
8. Identify & explain the Qualities of Useful Information, the Assumptions in Financial Reporting &
the Measurement Principles

Lesson Four – Post-Closing and the Accounting Cycle

In order to manage the complexity of preparing financial statements and keep track of all transactions a
worksheet will be introduced to simplify the process. The final steps of the accounting cycle will be
explained so that you can close one financial year and prepare the financial statements.

After studying this lesson, you should be able to:

1. Prepare a worksheet.
2. Explain the process of closing the books.
3. Describe the content and purpose of a post-closing trial balance.
4. State the required steps in the accounting cycle.
5. Explain the approaches to preparing correcting entries.
6. Identify the sections of a classified statement of financial position.

Lesson Five – Fraud, Internal Control and Cash

In this lesson the essential features of an internal control system and how it prevents fraud are explained.
Focus is placed on the preparation of the bank reconciliation – a key internal control over cash.

After studying this lesson, you should be able to:

1. Define fraud and internal control.
2. Identify the principles of internal control activities and limitations.
3. Explain the applications of internal control principles to cash receipts.
4. Explain the applications of internal control principles to cash disbursements.
5. Describe the operation of a petty cash fund.
6. Indicate the control features of a bank account.
7. Prepare the bank reconciliation.
8. Explain the reporting of cash.

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Lesson Six – Accounting for a Merchandising Company
In this lesson, you will learn the basics about reporting merchandising transactions. In addition, you will
learn how to prepare and analyse a commonly used form of the income statement.

After studying this lesson, you should be able to:

1. Identify the differences between service and merchandising companies.
2. Compare a Perpetual versus a Periodic Inventory System
3. Explain the recording of purchases and sales under a perpetual inventory system.
4. Identify the elements of an Income Statement and Comprehensive Income
5. Explain the recording of purchases and sales under a periodic inventory system.

Lesson Seven – Inventories

In this lesson you will be exposed to the cost-flow assumptions that are permissible to cost inventory on
hand in the Statement of Financial Position and cost of goods sold on the Income Statement.

After studying this lesson, you should be able to:

1. How to classify and determine inventory quantities
2. Explain the accounting for inventories and apply the inventory cost flow methods.
3. Explain the financial effects of the inventory cost flow assumptions.
4. Explain the lower-of-cost-or-net realizable value basis of accounting for inventories.
5. Indicate the effects of inventory errors on the financial statements.
6. Know how inventory is to be shown in the financial statements and to be analysed
7. Apply the cost flow methods to the perpetual inventory records
8. Estimate inventories

Lesson Eight – Accounting for Receivables

In this lesson you will learn what journal entries companies make when they sell items on credit, when
they collect cash from those sales, and when they write off accounts they cannot collect.

After studying this lesson, you should be able to:

1. Identify the different types of receivables.
2. Explain how companies recognize accounts receivable.
3. Distinguish between the methods and bases companies use to value accounts receivable.
4. Describe the entries to record the disposition of accounts receivable.
5. Explain how companies recognize notes receivable.
6. Know how receivables are to be shown in the statement of financial position and how they are
analysed

Lesson Eight continued – Accounting for Current Liabilities

In this lesson you will learn how to account for all major classifications of current liabilities.

After studying this chapter, you should be able to:

1. Explain a current liability, and identify the major types of current liabilities.
2. Describe the accounting for notes payable.
3. Explain the accounting for other current liabilities.
4. Know how current liabilities are to be shown in the statement of financial position and how they
are analysed

Lesson Nine – Plant Assets, Natural Resources and Intangible Assets

In this lesson the application of the historical cost principle of accounting to property, plant, and
equipment, as well as to natural resources and intangible assets is taught. Such long lived assets provide
benefits over more than one financial year and the methods that companies may use to allocate an asset’s
cost over its useful life is explained. In addition the accounting for replacement costs is also discussed.

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After studying this lesson, you should be able to:
1. Determine the cost of plant assets.
2. Explain the concept of depreciation and how to compute it.
3. Distinguish between revenue and capital expenditures, and explain the entries for each.
4. Explain how to account for the disposal of a plant asset.
5. Compute periodic depletion of extractable natural resources.
6. Explain the basic issues related to accounting for intangible assets.
7. Indicate how plant assets, natural resources, and intangible assets are reported and the analysis of
same

Lesson Ten – Corporations

In this lesson you will explain the essential features of a corporation and the accounting for a
corporation’s share capital transactions.

After studying this lesson, you should be able to:

1. Identify the major characteristics of a corporation.
2. Record the issuance of ordinary shares.
3. Explain the accounting for treasury shares.
4. Differentiate preference shares from ordinary shares.
5. Prepare the entries for cash dividends and share dividends.
6. Identify the items reported in a retained earnings statement.
7. Prepare and analyse a comprehensive equity section.

Lesson Eleven – Statement of Cash Flows

After studying this lesson, you should be able to:

1. Indicate the usefulness of the statement of cash flows.
2. Distinguish among operating, investing, and financing activities.
3. Prepare a statement of cash flows using the indirect and direct methods for operating cash flows.
4. Analyse the statement of cash flows.

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2.5 Learning Outcomes Guide

Cognitive Psychomotor Affective

Upon successful completion of ACCT
Domain Domain Domain
1002, students will be able to:
(examples) (examples) (examples)
Explain the science of financial accounting
1. and Knowledge
appreciate the function’s role in a business
organization

2. Understand the basic rules of debit and Comprehension

credit and the normal balances of the key
elements of financial accounting. Explain
the stages of the accounting cycle.

3. Consistently apply the accounting Application

assumptions and principles to account for
all accounting transactions.

4. Prepare the four basic financial statements Analysis

in good form, using knowledge of the rules
of accounting for all elements of financial
accounting.

5. Study and present the impact of business Critical Thinking Articulation

transactions on the accounting equation and
on the financial statements.

6. Use rules and principles to account for Problem Solving

varied business transactions.

Embrace the role of the financial accountant

7. as the Valuing
custodian of a company’s assets and the
need for ethical and corporate responsible
behaviour at all times.

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 2.6 Course-to-Programme Learning Outcomes Checklist

Programme Level Learning Outcomes LOs applicable to

Course ACCT 1002
At the end of the programme students will be able to: (Indicate by a tick (√))
Knowledge Level
1. Demonstrate an appropriate mastery of the knowledge, skills and tools of YES
financial accounting principles.

Apply relevant financial accounting principles and standards to specific

2. business YES
activities and workplace situations.

Skill/Competence Level
1. Use clear and concise communication to convey relevant financial and non- YES
financial information to the target audience so that decision makers can
formulate informed decisions and take action.

2. Demonstrate an appropriate mastery of the knowledge, skills and tools of YES

Financial accounting principles.

3. Use analytical and research tools to provide some understanding of evolving

accounting standards and practices and to maintain professional skills in a
complex and changing business environment.

Professional Competence/Attitude/Personal Characteristics/Affect

1. Develop the ability to recognize and respond appropriately to professional, YES
ethical and regulatory issues in accounting.

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 3 COURSE ASSESSMENT

This course will be assessed by both a mid-semester exam and a final exam. The mid-semester
exam will account for 40% of your total course mark, while the final exam will add 60%. In
order to attain a passing grade a candidate will be required to score a minimum of 50% which
will be measured as a collective total of the mid-semester exam and the final exam.

Coursework: (40% of course mark):

The mid-semester exam will consist of ten (10) multiple choice questions each worth one (1) mark
and two (2) structured questions each worth ten (10) marks. The duration of the exam will be two
(2) hours.

Final Examination (60% of course mark):

All topics and lessons will be examined in the final exam. The final exam will consist of six (6)
structured questions each worth ten (10) marks. The duration of the exam will be two (2) hours.

LINKAGE OF ASSESSMENT METHODS TO LEARNING OUTCOMES

Weighting Assessment
Assessment % Description
Method LO LO LO LO LO LO LO
1 2 3 4 5 6 7
Knowledge,
Comprehension, Problem
Solving & Critical
Mid-semester Y Y Y Y Y Y Y Thinking
Examination 40 %

Knowledge,
Comprehension, Problem
Solving & Critical
Y Y Y Y Y Y Y Thinking
Final Examination 60%

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 4 TEACHING METHODS

Method Description
(Examples)

There will be one - three-hour session each week consisting of approximately

Lecture and Tutorials two hours of lectures and one hour of tutorials.
You are expected to read the assigned material prior to each class session.
While attendance is not compulsory; students are responsible for all
announcements made in class. This course can be quite difficult if you
do not keep up with the readings and assigned problems; however, if
you put in the required effort you will do well. Please ask questions if
you do not understand something in class.

Please note that this course material cannot be digested two or three weeks before examination.
Success in this course can ONLY be achieved by keeping abreast with material and practising as many
problems as possible throughout the semester.

5 COURSE CALENDAR

Chapter
Lesson Topics Readings/Resources Class Problems

E1-6; P1-1
Introduction to Financial
1. 1
Accounting

Recording Accounting P2-1; P2-2

2. 2
Information

E3-22; P3-3
3. Basic Adjusting Entries 3

Post-Closing and the Accounting

4. 4 E4-2; E4-3; E4-4
Cycle

Fraud, Internal Control and

Cash
5. 7 E7-8; P7-6

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 Accounting for a Merchandising
6. 5; Appendix 5B P5-2; P5-8
Company

P6-6; P6-9
7. Inventories 6; Appendices 6A &6B

P8-5; ACR8; P10-1

Accounting for Receivables and
8. 8 & 10
Current Liabilities

Plant Assets, Natural Resources P9-1; P9-2; P9-3

9. 9
and Intangible Assets

10. Corporation Accounts 12 P12.1; P12.3

11. Statement of Cash Flows 14 P14.5; P14.6; P14.11

12. REVIEW

READINGS/RESOURCES – ONLINE AND PRINT

6.1 Required/Essential

Financial Accounting IFRS Edition – Weygandt, Kimmel, Kieso (4TH Edition) – ISBN: 978-1-119-
50430-6

The text is available as an ebook which is considerably cheaper than a regular book.

Students can purchase the ebook at UWI’s Bookshop and use the following information when
making the purchase;

TITLE: FINANCIAL ACCOUNTING IFRS EDITION (4TH ED)

ISBN: 978-1-119-50430-6
AUTHOR: WEYGANDT

7 POLICIES

ADDITIONAL INFORMATION
UNIVERSITY ACADEMIC INTEGRITY POLICY/EXAMINATION REGULATIONS
 Please consult Section V (especially sub section B which deals with cheating) of the University of
the West Indies, Examination Regulations for First Degrees, Diplomas and Certificates for details
of this policy.
 General Examination Regulations 19 – Absent from lectures

CODE OF CONDUCT DURING CLASS

The following guidelines facilitate the creation and maintenance of an effective learning environment.
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 All students are expected to adhere to the guidelines throughout the semester.
 Switch off all cellular phones and beepers before the start of each class session
 Be civil at all times. We can disagree without being disagreeable
 Read all assigned materials and attempt all assigned problems before the start of each class
 Participate in class discussions. Questions on the subject matter are welcome at any time
 Deadlines are firm! Plan to meet them

GRADING SYSTEM
Quality Mark%
Grade Quality Points Mark% Grade
Points
A+ 4.3 90-100 C+ 2.3 55-59

A 4.0 80-89 C 2.0 50-54

A- 3.7 75-79 F1 1.7 45-49

B+ 3.3 70-74 F2 1.3 40-44

B 3.0 65-69 F3 0.0 0-39

B- 2.7 60-64

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