Name of University: Arba Minch University

Name of College/Faculty: Business and Economics

Name of Department: Accounting and Finance
Module Information
Module Number/Title M3. Basics of Accounting and Reporting
Module Code ACFN-M2011
Objective of the module and Upon the successful completion of this module, students should be able to:
Competences to be acquired  Understand basic features of International Financial Reporting
Standards and the structure of Accounting and Auditing Board of
Ethiopia
 summarize and apply basic financial accounting terms, concepts, and
principles;
 apply accounting terminology, concepts, and principles in analyzing,
recording, and reporting basic business transactions;
 Take a series of transactions through the accounting cycle
 Utilize and identify the implication of the various methods of
valuation in respect to common balance sheet (statement of financial
position) items
 Analyze, record and report transactions for businesses organized as
partnerships, private limited companies, and companies.
Total ETCTS and Credit Hours ETCTS: 12
of the module Credit Hours: 6
Courses of the Module
Course code Course Name Cr. Hr CP/ETCTS
Fundamentals of Accounting I 3 5
Fundamentals of Accounting II 3 5
Course code
Course Title Fundamentals of Accounting I
Degree Program BA degree in Accounting and Finance
Module Basics of Accounting and Reporting
Module
Coordinator
Lecturer Elias T. (MSc)
ETCTS Credits 6
Contact Hours 4
(per week)

1
 The course has the general objective of introducing students to the basics of accounting
and reporting of financial activities of business organizations.
Course Upon the successful completion of this course, the students will be expected to:
Objectives  Understand the role of Accounting in business and develop an awareness of the
accounting profession
 Understand the purpose of the financial accounting function and standard financial
accounting practices
 Summarize and apply basic financial accounting terms, concepts, and principles.
 Define and apply accounting terminology, concepts, and principles in analyzing,
recording, and reporting basic business transactions
 Take a series of transactions through the accounting cycle
 Analyze, record, and report transactions for service and merchandising businesses.
 Prepare financial statements
 Analyze accounting system design and control
 Apply accounting cash and receivables.
Course This course is designed to provide introductory knowledge of accounting principles,
Description concepts, and practices. The course deals with the processes involved in financial
statements preparation for service-giving businesses and merchandising businesses. As it
requires additional knowledge of costing, the relatively advanced process of financial
statement preparation for manufacturing businesses is deferred to a higher course in Cost
and Management Accounting. Topics covered includes the features of accounting
information, users of accounting information, nature of financial statements, the double
entry system, financial statements preparation process including journals, ledgers, trial
balance, adjustments, worksheets, accruals, adjusting and closing entries, reversing
entries, and the accounting system. This course provides a foundation for more advanced
work in the fields of Accounting and business. All topics are studied in accordance with
the provisions of International Financial Reporting Standards (IFRS)
WEEKS Course Contents Reading

2WEEKS 1. Introduction to Accounting and Business Kieso,

{1ST&2ND } 1.1. Nature of Business and Accounting IFRS 3rd
1.1.1 Role of Accounting in Business edition
1.1.2 The profession of accounting and opportunities for
Accountants
1.2. Overview of International Financial reporting Standards
(IFRS)
1.3. The Accounting Equation and elements of the equation
1.4. Business Transactions and Financial Statements

3 WEEKS 2. Accounting Cycle for Service giving business Kieso,

{3RD, 4TH & 5TH} 2.1. Using Accounts to Record Transactions IFRS 3rd
2.1.1. Nature of an Account edition
2.1.2. Classification of accounts and chart of Accounts
2.2. Double-Entry Accounting System and the rule of Debit and
Credit
2.3. Normal balance of accounts
2.4. Analyzing and Recording transactions
2.5. Preparing Trial Balance: its usefulness and limitations
2.6. Adjusting process in accrual accounting
2.7. Financial Statements and closing procedures
2.8. Post closing trial balance and reversing entries

2
 3. Accounting for a Merchandising Business Kieso,
3 Weeks 3.1. Nature of Merchandising Business IFRS
{7TH, 8TH, & 9TH} 3.2. Accounting for Purchases 3rd
3.3. Accounting for Sales edition
3.4. Merchandise Inventory Systems: Perpetual and Periodic
3.5. Preparation of Financial Statements
3.6. Merchandise Inventory Adjustments
3.7. Adjustments for Deferrals and Accruals

1 Week 4. Accounting Systems Kieso,

{10TH } 4.1. Manual and Computerized Accounting Systems and Enterprise IFRS
Resource Planning 3rd
4.2. Subsidiary Ledgers and Controlling Accounts edition
4.3. Special Journals and Vouchers

3 Weeks 5. Cash and Cash Equivalents Kieso,

{11TH,12TH ,& 13TH } 5.1. Internal Control: Objectives and Elements IFRS
5.2. Cash Controls over Receipts and Payments 3rd
5.3. Bank Accounts edition
5.3.1. Bank Statement
5.3.2. Using the Bank Statement as a Control over Cash
5.4. Bank Reconciliation
5.5. Accounting for Special-Purpose Cash Funds
5.6. Reporting Cash and Cash Equivalents on the Statement of
Financial Position

6. Receivables Kieso,
4 Weeks 6.1. Classification of Receivables IFRS
{14TH ,15TH& 16TH } 6.2. Accounting for Uncollectible Receivables 3rd
6.3. Direct Write-Off Method for Uncollectible Accounts edition
6.4. Allowance Method for Uncollectible Accounts
6.4.1. Write-Offs to the Allowance Account
6.4.2. Estimating Uncollectable
6.5. Accounting for Notes Receivable
6.6. Reporting Receivables on the Statement of Financial Position

Teaching & The teaching and learning methodology include lecturing, discussions, problem solving,
Learning and analysis. Take-home assignment will be given at the end of each chapter for
Methods/strategy 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/ The evaluation scheme will be as follows:

Evaluation Component Weight Coverage
Test 1 15% Chapter 1 & 2
Test 2 15% Chapter 3
Assignment 1 5% Chapter 1 &2
Assignment 2 5% Chapter 3 & 4
Quiz 1 5%
Quiz 2 5%

3
 Final Exam 50% All chapters
Work load in
hours
Hours Required
Asses Adv Total ECT
sment Tutor Self- Assig isin Hrs S
Lectures Lab s ials Studies nment g
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 assessment is given. He/she is also
responsible to give feedback for each assessment.
Roles of the The success of this course depends on the students’ individual and collective
students 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 Textbook
Reference Books Kieso, D. E., Weygandt, J. J., & Warfield, T. W. (2016). Financial Accounting, IFRS 3 rd
Edition, New York: John Willey & Sons.
Reference Books
Warren, C.S., Reeve, J.M., and Duchac, J.E., (2018), Accounting, 27th edition, Cengage
Learning/Any recent edition/
Wild, J.J., and Shaw, K.W., (2018), Fundamental Accounting Principles, 24th Edition,
McGraw-Hill Education
Weygandt, J.J., Kimmel, P.D., and Kieso, D.E., (2018), Accounting Principles, 13th
Edition, John Wiley & Sons, Inc.
Wild, J.J., Shaw, K.W., and Chiappetta, B. (2014), Fundamental Accounting Principles,
22nd Edition, McGraw-Hill Education
Smith, Keith & Stephens, Accounting Principles, 3rd edition and above, McGraw Hill
bookCompany.1989 and beyond.

Hermanson, Edwards and Salmonson, Accounting Principles, 4th ed., Richard D. Irwin,
Inc.1989.

Larson, Kermit D., Fundamental Accounting Principles, 12th edition and above,Richard
Irwin Inc., 1990 and beyond.

Meigs Walter B., Accounting, The Basis for Business Decisions, 6th Ed and
above,McGraw-Hill