UGANDA MARTYRS UNIVERSITY-

FACULTY OF BUSINESS ADMINISTRATION & MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION AND MANAGEMENT - YEAR 2 SEM 2

COURSE NAME:            INTERMEDIATE ACCOUNTING 11

COURSE CODE:            BBAM223

COURSE LEVEL:              YEAR TWO, SEMESTER TWO

CREDIT UNIT:                   3 CU

Course description

The course builds on the knowledge acquired in Intermediate Accounting 1 and looks at company accounts, bills of exchange, analysis & interpretation of financial statements & other specialized accounts such as Container accounts among others.  It is designed to develop the power of analysis in using accounting data with emphasis on the application of accounting theory in problem solving

Objectives of the Course

· To enable students to prepare and interpret the final accounts of companies

· To enable students, understand the basic methods of recording and processing information through accounting systems for organizations.

· To enable students, understand and apply accounting principles, concepts and standards in the preparation of various specialized accounts.

LEARNING OUTCOMES

On completion of this course the students should be able to:

· Prepare & interpret the final accounts of companies

· Apply accounting principles, concepts and standards in the preparation of various specialized accounts.

· Understand the basic methods of recording and processing information through accounting systems for organizations

Mode of delivery

· Class lectures / Tutorials

· Group discussions

· Library search and use of internet

· Individual presentations

Course Evaluation / Assessment

· Coursework’s    50%

· Final Exam        50%

Total            100%

Pass mark                    50%

Detailed Course Outline

1. Conversion of Partnership into a Ltd company (Week 1)

Accounting treatment in the books of the partnership and in the books of the company

2. Company Accounts (Week 2, 3,4& 5)

· Meaning of a company

· Formation of a company Introduction to company Accounts

· Characteristics of a company

· Adv. & Disadvantages. of companies

· Types of companies

· Formation of companies

· Preparation of financial statements for companies. i.e. SOFP,SCI, SCE

· Shares and share capital of companies

· Classes of capital

· Accounting for issue of shares

· Bonus shares and right issues

· Issues of shares and debentures

· Forfeiture of shares

· Re – issue of shares

· Final Accounts for companies

3. Statement of cash flows (Week 6 & 7)

· Prepare a cash flow statement for a single entity using the direct method in accordance with IAS 7

· Prepare a cash flow statement for a single entity using the indirect method in accordance with IAS 7

· Compare the usefulness of cash flow information with that of an income statement

· Interpret a cash flow statement to assess the performance and financial position of an entity

4. Container Accounts (Week 8 & 9)

• Returnable and non-Returnable container accounts

• Accounts required for non-returnable Containers’

• Containers Suspense Account

• Illustrative examples on container accounts

5. Analysis & Interpretation of financial statements (Week 10,11 &12)

· Users of financial statements.

· Silent features of financial Statement analysis.

· Specific areas of concern in financial statement analysis.

· Balance sheet, income statement ratios

· Operating or management ratios

· Income statement Vs. Balance sheet ratios.

· Horizontal analysis

· Concepts of financial balance and overtrading

· Producing written reports on financial statements analysis.

· Criticisms of ratio analysis and possible remedies. 

6. Bills of Exchange (Week 13 & 14)

· Meaning of a bill of exchange

· Parties to a bill

· Entries in the Books of Account for Bills payable & bills receivable

References

· Frank Wood and Alan Sangster (2002), Business Accounting 1, 9^th ed, Prentice Hall, UK

· Frank Wood and Alan Sangster(2002), Business Accounting2 , 9^th ed, Prentice Hall, UK.

· Godfrey Byekwaso and Paul Masereka, (2002) Intermediate Accounting. Pitman publishing

· A&R Jennings, Financial Accounting 2^nd edition, The Guernsey Press Co. Great Britain.

· Meigs and Maigs, Bettner and Whittington (1998) financial Accounting, 9^th Edn, Irwin Mc Graw – Hill USA.

· Joseph Ben Omunuk (2000),Fundamental Accounting for Business 1^st ed, Prentice Hall

· Millichamp A.H. (1999) Foundation financial accounting, ELBS