Xiaolei
BEAM045 –Tutorial 1: T1 & T2- Financial Accounting & Reporting
Please refer to Module & Assessment Handbooks for guidance and expectations on self-study and tutorial questions. Note: these are suggested solutions, presented in bullet point/note format. This is deliberate so that students are not misled into thinking that it is possible to do well in the final exam by memorising solutions. Please use the knowledge points to write a full coherent answer that conforms to the UoE grading on: http://admin.exeter.ac.uk/academic/tls/tqa/Part%208/8T%20Generic%20Assessment%20Criteria.pdf
Discussion questions Topic 1: Introduction to Accounting 1. How do different decision makers use accounting information and for what purpose? Using Accounting Information: P24: “accounting information should be designed to serve the information needs of all types of interested parties”. This is not exhaustive: Users What / Why Purpose Investors/shareholders Comparable info as per acctng standards Reliable info as audited In which companies to buy/sell/hold shares the past and potential risk/returns of their investments Dividend payment potential of organisation Banks/Lenders Liquidity of company (T3-T5) Security available in company Cashflows Creditors As above for Banks/lenders Determine credit facilities. Whether to sell to business Management Plan, manage & control business ↑ value of org’n (represented by Share Price if plc) Review remuneration, pensions and opportunities Wage bargaining Check pay correct taxes Regulations/governance Manage economy Make fiscal/tax policies Determine loan size/terms Ability to repay loans & interest
Employees
Review company profile/changes
Trade Unions Government
As for employees Reliable information in relevant format across sectors/co’s
Lecture notes introduction: Topic 1. D Also: Customers, General Public. Guidance: Appreciating and understanding users and their needs is fundamental to accounting and decision-making, and should form
Please refer to Module & Assessment Handbooks for guidance and expectations on self-study and tutorial questions. Note: these are suggested solutions, presented in bullet point/note format. This is deliberate so that students are not misled into thinking that it is possible to do well in the final exam by memorising solutions. Please use the knowledge points to write a full coherent answer that conforms to the UoE grading on: http://admin.exeter.ac.uk/academic/tls/tqa/Part%208/8T%20Generic%20Assessment%20Criteria.pdf
Discussion questions Topic 1: Introduction to Accounting 1. How do different decision makers use accounting information and for what purpose? Using Accounting Information: P24: “accounting information should be designed to serve the information needs of all types of interested parties”. This is not exhaustive: Users What / Why Purpose Investors/shareholders Comparable info as per acctng standards Reliable info as audited In which companies to buy/sell/hold shares the past and potential risk/returns of their investments Dividend payment potential of organisation Banks/Lenders Liquidity of company (T3-T5) Security available in company Cashflows Creditors As above for Banks/lenders Determine credit facilities. Whether to sell to business Management Plan, manage & control business ↑ value of org’n (represented by Share Price if plc) Review remuneration, pensions and opportunities Wage bargaining Check pay correct taxes Regulations/governance Manage economy Make fiscal/tax policies Determine loan size/terms Ability to repay loans & interest
Employees
Review company profile/changes
Trade Unions Government
As for employees Reliable information in relevant format across sectors/co’s
Lecture notes introduction: Topic 1. D Also: Customers, General Public. Guidance: Appreciating and understanding users and their needs is fundamental to accounting and decision-making, and should form