COURSE OUTLINE

GIFT BUSINESS SCHOOL

Financial Accounting Fundamentals MSc AF S13, M.com S13, MBF S13 /

ACC-502 Financial Acounting MBA BF F12, S13, MBA 3Y F12, S13, MBA
2Y F12- Financial Accounting Fundamentals ACC-513
Principles of Financial Accounting-I (Merge with B.Des)- Principles of
Financial Accounting I ACC-204

Spring Semester, 2013

Faculty:

GIFT Business School

Credit hours:

Course level:

Graduation/Undergrade

Campus/Location/Instruction
Mode:

GIFT University/On Campus/In Person

Course Instructor:

Suleman Kamwani

Consultation hours:
Pre-requisite:

Nill

Timing
This document was last updated:

BRIEF COURSE DESCRIPTION

10 March 2013

The aim is to provide the students with detailed knowledge of the principles and concepts of
accounting and their application to accounting systems, and develop their ability to prepare
financial statements.
COURSE OBJECTIVES

By the end of the course, students will be able to:

Understand the regulatory framework of accounting.

Understanding of basic double entry system of book keeping.

Understand the concepts and preparation of books of prime entry.

Accounting for non-current asset.

Preparation of basic financial statements for sole proprietors.

Preparation of bank reconciliation.

Rectification of errors.

LEARNING OUTCOMES

At the end of this course, students would be expected to understand the accounting system and
financial statements of sole proprietors.
Expected cognitive outcomes include the development and demonstration of a high level of skills
in:

Written communication

Problem solving

Preparation of basic accounts, trial balance and financial statements.

information literacy

Ability to rectify errors.

CONTENTS

SESSIONS

TOPICS
The Accounting Scene and Frame work of
Financial Statements:
(Introduction to financial accounting,
Accounting concepts and terms)
The Accounting System:
(Accounting Cycle. Journals, Ledgers and trial
balance)

READINGS

CH # 1,2,4

CH # 6,11,17

Accounting for Non-current Assets:

2

(Depreciation, methods and calculation)

CH # 26

Preparation of Financial Statements with

Adjustments:
(Preparation of financial statements of sole

proprietorship for trading and manufacturing

concerns with adjustments)
Adjustments include:
Accrued expenses
Prepaid expenses
Unearned revenue
Accrued revenue
Provision for bad debts
Depreciation

CH # 7-9,25,28

Organizing the Bookkeeping System:

3

(Cash, bank, purchase day book and sales day

books)

CH # 13-15

MID TERM
1
Controlling the Bookkeeping System:
(Control Accounts and subsidiary ledgers)

CH # 30-33

(Bank Reconciliation Statement)

(Errors, Rectification of Errors and Suspense
Accounts)

The Regulatory Framework of Accounting

2

(Accounting
Policies)

Conventions

and

Accounting

The Financial Statements of Limited

Companies
(Overview of companies income statement,
statement of equity and balance sheet)

CH # 10

CH # 45

The Interpretation of Financial

Statements:
2

CH # 47
(Ratio analysis of financial statements)

Final Project Presentation

Please note: This is a proposed schedule only and may be varied at the discretion of the
Course Convenor to give a greater or lesser degree of emphasis to particular topics.

TEXTS AND SUPPORTING MATERIALS

Prescribed Text:

FRANK WOOD & ALAN SANGSTER (11TH EDITION)

Reference Texts:
THE CIMA OFFICIAL LEARNING SYSTEM (Fundamentals of Financial Accounting)
Published Financial Statements of Listed Companies in Pakistan
Recommended Journals
Management Accountant, a journal of ICMAP. See, www.icmap.com.pk
Pakistan Accountant, a journal of ICAP. See, www.icap.org.pk
Association of Chartered Certified Accountants ACCA. www.accaglobal.co.uk
ASSESSMENT
Item

Assessment Task

Length

Weighting

Due Day and Time

1.

Quizzes (4)

15 to 30 mins.

10%

Various Weeks in Class

2.

Assignments-4

10%

During Course Coverage

Project

15%

4.

Mid term examination

2 hour

25%

Mid of the semester

5.

Final Examination

3 hours

40%

During Formal Examination Period

Information about Assessment:

All components of the above assessment are compulsory, and must be completed in order to
obtain a pass grade. Students are expected to perform satisfactorily in each item. Students must
complete each component of the assessment to the satisfaction of the Course Convenor, and
achieve an overall mark of at least 40% in order to pass the course.
Grading system will be as follow:
Percentage

Grade

91% and above

86% to 90%
81% to 85%
76% to 80%
71% to 75%
66% to 70%
61% to 65%

A+
A
AB+
B
BC+

56% to 60%
51% to 55%
47% to 50%
45% to 45%
Below than 45%

C
CD+
D
F