Raya University

College of Business and Economics

Department of Accounting and Finance
Module M8. Financial Accounting and Reporting
Number/Title
Objective of the Upon the successful completion of this module, students should be able to:
module  understand financial accounting concepts and IFRS as they apply for
external financial reporting purpose
 understand the nature of financial statements and the inherent limitations
in their preparation and use
 explain the application of international financial reporting standards in the
recognition, measurement, and reporting of assets, liabilities,
shareholders’ equity, and lease operation
 Prepare statement of cash flows based on complex business transactions
 Analyze and correct the effects of accounting changes and errors

Total ETCTS and ETCTS: 12

Credit Hours of Credit Hours: 8
the module
Courses of the Module
Course Number Course Name Cr. Hr CP/ETCTS
AcFn 2081 Financial Accounting I 4 6
AcFn 2082 Financial Accounting II 4 6
Course Information
Course Number AcFn 2081
Course Title Financial Accounting I
Degree Program BA Degree in Accounting and Finance
Module Financial accounting and reporting
Module
Coordinator
Lecturer Fantaye A.
ETCTS Credits 6
Contact Hours 4
(per week)
Course Objectives The course is designed to give students a thorough understanding of the
& Competences to framework, concepts and techniques of accounting that the students will need to
be Acquired proceed with upper level courses in financial accounting.
Upon the successful completion of this course, the students will be expected to:
 have an understanding of financial accounting concepts and IFRS as they
apply to the topics covered in this course;
 Demonstrate an awareness of the substance of and the standard-setting
process for international accounting standards;
 Perform the accounting functions of analyzing, recording and reporting as
accomplished by the accounting cycle and the preparation of the primary
financial statements
  Be able to explain and discuss the fundamentals of financial reporting
 Understand the nature of financial statements and the inherent limitations in
their preparation and use
 Develop professional judgment in analyzing accounting issues and
recommending accounting policies;
 Develop skill in applying accounting standards to situations and problems;
 Demonstrate the recognition, measurement, and reporting of cash,
receivables, and inventories
Course Description This course presupposes the students’ equipped with knowledge for basic level of
Accounting principles. In this course, emphasis is made on accounting theory of
financial statements, recognition criteria, measurement, also reporting
requirements of the elements of financial statements are covered. Treatment of
income, expense and the current assets, with respect to the above, form the central
objective of this course.
WEEKS Course Contents Reading
1. Development of Accounting Principles and
Professional Practice
1.1. The environment of Accounting
1.2. Conceptual framework (FASB Vs IFRS)
1.3. Objectives of financial reporting
1.4. Qualitative characteristics of accounting
information
1.5. Elements of financial statements of business
enterprise
1.6. Generally accepted accounting principles.
1.7. Cash flow and income measurement
2. Summary of the Accounting process
2.1. Identifying and journalizing transactions and other
events
2.2. Posting transactions and other events
2.3. Trial Balance Preparation
2.4. Adjusting entries
2.5. Preparation of financial statements
2.6. Closing entries
2.7. Post-closing trial balance preparation
2.8. Reversing entries
3. Income Statement and Related Information
3.1. Usefulness and Limitation of the income statement
3.2. Elements and formats of the income statement
3.3. Retained earnings statement
3.4. Comprehensive income
3.5. Revenue recognition principle
3.6. Revenue recognition before and after delivery
4. Balance Sheet and Statement of Cash Flows
 4.1. Usefulness and Limitation of Statement of Balance
Sheet
4.2.Classification in the Statement of Balance Sheet
4.3.Formats of Statement of Balance Sheet
4.4.Purpose of statement of cash flows
4.5.Content and formats of statement of cash flows
4.6.Overview of the preparation of statement of cash
flows
4.7. Usefulness of statement of cash flows
4.8. Financial Statements and Additional Information
5. Cash and receivables
5.1. Nature of cash and Cash control?
5.2. Reporting cash
5.3. Summary of cash-related items
5.4. Recognition and Valuation of accounts receivables
5.5. Recognition and Valuation of notes receivables
5.6. Special Issues Related to receivables
6. Inventories
6.1. Nature and classification of inventories
6.2. Physical goods and costs included in inventory
6.3. Cost flow assumptions
6.4. LIFO, LIFO reserve, LIFO liquidation and Birr-
Value LIFO
6.5. Basis for selection of inventory methods
6.6. LCM and other special valuation methods
6.7. Inventory estimation methods

Teaching & The teaching and learning methodology include lecturing, discussions, problem
Learning solving, and analysis. Take-home assignment will be given at the end of each
Methods/strategy chapter for submission within a week. Solution to the assignments will be given
once assignments are collected. Cases with local relevance will also be given for
each chapter for group of students to present in a class room. The full and active
participation of students is highly encouraged.

Assessment/Evalu The evaluation scheme will be as follows:

ation Test Test Individual Group Final Total
1 2 Assignment Assignment
15% 15% 10% 10% 50% 100%
Work load in hours Tota ECT
Hours Required
l Hrs S
Self-
Lecture Assessme Tutori Studie Assignm Advisi
s Lab nts als s ent ng
64  - 22 12 64  - -  162 6
Roles of the He/she will come to the class regularly on time and deliver the lecture in a well-
Instructor organized manner. Besides, at the end of each class he/she gives reading
assignment for the next class. He/she will make sure that proper assessments are
given. He/she is also responsible to give feedback for each assessment.
Roles of the students The success of this course depends on the students’ individual and collective
contribution to the class discussions. Students are expected to participate
voluntarily, or will be called upon, to contribute to set exercises and problems.
Students are also expected to read the assigned readings and prepare the cases
before each class so that they could contribute effectively to class discussions.
Students must attempt assignments by their own. Proficiency in this course comes
from individual knowledge and understanding. Copying the works of others is
considered as serious offence and leads to disciplinary actions.
Text and reference Text Book:
books Kieso, D., Weygandt, J., & Warfield, T. (2013). Intermediate
Accounting, 15th Edition: J. Wiley & Sons, Inc.
Reference Books:
1. Annand, D., & Dauderis, H. (2014). Introduction to Financial
Accounting, Second Edition: Valley Educational Services Ltd.
2. Arnold, G. & Kyle, S. (2018). Intermediate financial accounting,
Athabasca University.
3. Hermanson, H., Edwards, J., and Maher, W. (2011). Accounting
Principles: A Business Perspective, Financial Accounting:
Irwin/Mcgraw-Hill.
4. Lunt, H. (2006). Fundamentals of Financial Accounting, first edition:
Elsevier Ltd.
5. Warren, C., Reeve J., & Duchac, J. (2014). Financial and Managerial
Accounting, 12th edition: Cengage Learning.
6. Weygandt, J., Kimmel, P., & Kieso, D. (2014). Financial accounting, 9th
edition: Wiley & Sons, Inc.