Air University School of Management AUSOM

Sample Course outline

Course Outline
Course Title : Financial Accounting 1
Class : BBA-1 Lab (Not Required)
Credit Hrs : 3
Prerequisites For this Course: Nil
This Course is Prerequisite For: Financial Accounting I
Instructor: Abdul Rafay Sheikh
E-mail: Address: Faculty of Administrative Sciences Block
Tel: Office Hours: 0830 to 1630 Hrs.
Text Book: ACCA FA 1, Intro. To Accounting (CA)
Reference Book(s): ACCA F3

Course Objectives

The objective of the course is to learn to read, understand, and analyze financial statements. The
course is intended for students with no previous exposure to financial accounting. The course adopts
a decision-maker perspective of accounting by emphasizing the relation between accounting data
and the underlying economic events that generated them. The course focuses initially on how to
record economic events in the accounting records (i.e., bookkeeping and accrual accounting) and
how to prepare and interpret the primary financial statements that summarize a firm's economic
transactions (i.e., the balance sheet, and the income statement).

Lecture Plan:

Session Topics Activity

1 CHAPTER 1
Accounting and the Business Environment
 Define accounting vocabulary
 Identify the different types of business
organizations
 Define the users of financial information
 Describe the accounting profession and the
organizations that govern it

2 Financial Statement

1
Session Topics Activity
 Format of Statement of Financial Position (as per
IAS 1)
 Format of Statement of Profit and Loss (IAS 1)
 Define elements of financial position (Asset,
Liability and Capital)
 Define elements of Profit and Loss (Income,
Expense, Profit and Loss)
 Define Transaction and its types.

3 CHAPTER 1
Accounting concepts
 Disccuss accounting concepts and principles
 Explain Prudence, materiality, accrual basis,
substance over form, separate legal entity.

4 CHAPTER 2
Recording Business Transactions
 Discuss Dual nature of Transaction (Double entry
system)
 Define debits, credits and use double-entry
accounting

5 CHAPTER 2
Recording Business Transactions
 List the steps of the transaction recording process
 Explain T-accounts, journals, and ledgers as they
relate to recording transactions and describe
common accounts
 Journalize and post sample transactions to the
ledger

6 CHAPTER 2
Recording Business Transactions
 Prepare the trial balance from the T-accounts

7 Completing Accounting/Transaction cycle

 Prepare financial statements
 Use financial statements to evaluate business
performance

8 Completing Accounting/Transaction cycle

 Prepare financial statements from Trail balance.
 Use financial statements to evaluate business

2
Session Topics Activity
performance

9 Accounting Equation.
 Discuss accounting/Balance sheet Equation
 Prepare Financial Position using accounting
equation
Accounting Equation.
10  Discuss accounting/Balance sheet Equation
 Prepare Financial Position using accounting
equation
 Practice Question

Recording Business Transactions.

11  Discuss DAY BOOKS and its types (SDP, SRDP,
PDB,PRDB, CRB,CPB and journal
 Posting transaction in day books

Recording Business Transactions.

12  Posting transaction in day books
 Preparation of T-Accounts using Day book

Recording Business Transactions.

13  Posting transaction in day books
 Preparation of T-Accounts using Day book
 Preparation of trial balance and Financial
Statements.

14 Control accounts
 Receivable ledger control accounts and Pay ledger
Control accounts
 Discuss the difference between RL and PL with
RLCA and PLCA

15 Control accounts
 RL and RLCA reconciliation

16 Control accounts
 PL and PLCA reconciliation

17
3
Session Topics Activity
Property, plant and equipment (IAS 16)
 Discuss the scope of IAS 16 (Tangible assets)
 Recognition criteria

18 Property, plant and equipment (IAS 16)

 Measurement of Cost of PP&E

Property, plant and equipment (IAS 16)

19  Depreciation methods (Straight line Method,
Reducing Balance Method, Output Method and
Sum of the digit method)

Property, plant and equipment (IAS 16)

20  Preparation of Ledgers Cost, Acc. Depreciation
and Depreciation
 Prepare Extracts of Financial Statements.

21 Inventory (IAS 2)
 Discuss the Scope of IAS 2
 Recognition criteria of IAS 2
 Measurement Criteria (cost & NRV)
Inventory (IAS 2)
22  Measurement criteria (FIFO and Average)
 Perpetual and Periodic System

23 Accruals & Prepayment

 Understand the matching concept that applies to
prepayments and accruals. (accrued
income/expense and prepaid income/expense)

Accruals & Prepayment

24  Post journal entries and ledger entries for
prepayments and accruals
 Post adjusting entries to recognize revenues or
expenses

25 Accruals & Prepayment

 Adjusting entries in trial balance
 Preparation of financial statement

4
Session Topics Activity
26 Bank Reconciliation
 Understand the need for a bank reconciliation
 Identify the main reasons for differences between
the cash book and bank statements.

Bank Reconciliation
27  Prepare a bank reconciliation statement in the
circumstance of simple and well explained
transactions.
 Correct cash book errors and post journal entries
after identifying the same in bank reconciliation.

28

29

30

5
 Grading and General Course Policies:

The grading will be done as per the policy of the university, however, the final grade for the
course will be determined based on the total points accumulated in the below areas with following
weightage:

Final Examination (50 %)

Mid Term (25 %)
Quiz/CP/Team Project (25 %)

Students will be assigned a team project related to the important issues of the subject. Moreover,
the students will visit at least one big organization and will write a report on their visit.

Note:-
1. Students must bring text book and Scientific Calculator in the Class.
2. Cell phones off during class time and office hour visits.
3. Active class participation will be rewarded by the grades.
4. Request for change in the deadlines of various class activities and the term
projects/presentations will not be entertained.
5. Based on the nature of subject, subsequent topics build on previously learned
material, it is necessary that students must keep up with the material.
6. Students should ensure that lectures are understood properly.
7. Each course will include the following:
a. At least 6 quizzes, all carrying equal weight age. The quizzes will be
unannounced and there will not any retake if a student misses a quiz.
b. Assignment: On the discretion of the Faculty Member/Course Requirement.
8. There will be one Project for each group during semester.