Financial Accounting Overview: Business Cycle, Financial Statements and Frameworks

Lesson 1 Financial accounting: an overview and first thoughts

1.    This topic includes:
2.    the business cycle
3.    profit versus cash
4.    the three core financial statements: the Cash Flow Statement, Income Statement and the Statement of Financial Position
5.    the accounting equation
6.    financial frameworks.

Lesson 1  Financial accounting: an overview and first thoughts

•    1.2 Introduction to Topic 1Page
•    1.3 Activity: The icebreaker – getting to know your FAF colleagues
•    1.4 Activity: Self-diagnostic quiz – what’s your base accounting knowledge
•    1.5 Reading: What is accounting? A backdrop
•    1.6 Lecture 1: Setting the scene: some considerations for organisations

Lesson 2: The business cycle

•    1.7 Lecture 2: The business cycle
•    1.8 Lecture 3: The flow of finance from another angle

Lesson 3: Cash versus profit measurements

•    1.9 Lecture 4: Cash versus profit measurements – some illustrations
•    1.10 Reading: An overview of the major financial statements
•    1.11 Check your understanding: Cash versus profit

Lesson 4: Introduction to cash and profit statements

•    1.12 Lecture 5: An overview of the Cash Flow Statement
•    1.13 Check your understanding: Cash Flow Statement construction
•    1.14 Lecture 6: Walkthrough of Cash Flow Statement construction
•    1.15 Lecture 7: An overview of the Income Statement
•    1.16 Check your understanding: Income Statement construction
•    1.17 Lecture 8: Walkthrough of Income Statement construction
•    1.18 Reading: The Income Statement

Lesson 5: Introduction to the Statement of Financial Position (SoFP)

•    1.19 Lecture 9: An overview of the Statement of Financial Position (SoFP)
•    1.20 Check your understanding: Statement of Financial Position construction
•    1.21 Lecture 10: Walkthrough of Statement of Financial Position construction
•    1.22 Reading: The Statement of Financial Position

Topic 2: Financial frameworks I

•    This topic includes:
•    accounting equation reinforcement
•    the main accounting conventions: going concern, consistency, the Matching Principle, realisation, prudence, accruals (and prepayments), money measurement, materiality

•    revenue transactions or operational items and capital items.

Lesson 1: Accounting conventions

•    2.2 Lecture 1: Overview of the core accounting conventions
•    2.3 Reading: The role of accounting conventions

Lesson 2: The accounting equation in action

•    2.6 Lecture 2: The accounting equation
•    2.7 Check your understanding: Textbook end-of-chapter exercise – Joe CondayAssignment
•    2.8 Lecture 3: Walkthrough solution – Joe Conday

Lesson 3: Time for a more systematic approach – first ideas

•    2.9 Lecture 4: Thinking about a more systematic approach
•    2.10 Lecture 5: Day one for FAF Ltd
•    2.11 Model answer: Day one for FAF Ltd
•    Restricted Not available unless: The activity 2.10 Lecture 5: Day one for FAF Ltd is marked complete
•    2.12 Lecture 6: Day two to day 30 for FAF Ltd
•    2.13 Model answer: Day two to day 30 for FAF Ltd
•    Restricted Not available unless: The activity 2.12 Lecture 6: Day two to day 30 for FAF Ltd is marked complete
•    2.14 Lecture 7: Using a duality-inspired worksheet for FAF Ltd
•    2.15 Model answer: Using a duality-inspired worksheet for FAF Ltd
•    2.16 Reading: Luca Pacioli’s double entry and the birth of financial management

Lesson 4: A systematic approach in practice

•    This lesson is all about practice and consolidation. You will work your way through five self-assessment activities (SAAs), three of which will require you to construct the financial statements for three consecutive financial periods for an organisation and two SAAs based upon the textbook’s end-of-chapter exercises.

Lesson 5: Reflecting on practice

•    2.26 Discussion: Your thoughts on financial statements
•    2.27 Discussion: The manager’s perspective on financial statements