Financial Statements

Learning outcome 1: Outline the purpose of accounting
Learning outcome 2: Explain the distinction between financial and management accounting
Learning outcome 3: Explain the nature and purpose of financial statements
Learning outcome 4: Identify the financial information shown in the :
Statement of Financial Position (Balance Sheet)
Income Statement
Statement of cash flows
Learning outcome 5: Appreciate the limitations of the financial statements

Assessment
Your Finance assessment will include:

Financial accounting:
Ability to read financial statements (terminology, structure)
Ability to analyse and interpret company financial results (ratios)
Management accounting:
Calculation of investment appraisal measures and appraisal of a given investment scenario, including recognition of any limitations.
Critical appraisal of budget processes, including flexed budgets and use of budgeting models applied to a given case study scenario
Use of Breakeven Analysis to assess required output levels of production to break even or hit a target profit

Activity 1
Quick benchmarking of your current finance and accounting knowledge
Using Kahoot, log onto kahoot.it and please answer with regard to your current finance knowledge and experience: What is your current level of finance knowledge?

None (I know nothing at all about Finance and accounting).
OK (I know what a balance sheet is, or what a budget is)
Good (I have studied some simple bits of finance before, perhaps in a business course)
Very good (I currently have finance qualification, have worked in finance role)

Activity 2:
Kahoot recap quiz
Working in pairs, log onto Kahoot web and enter the password which your tutor is about to show you.
Only one person in each pair needs to log on. Discuss your answers together and see if your team can win!

Activity 3 & 4

To familiarise you further with the Statement of financial position (Balance Sheet)
How and where to find and classify different elements
How balance sheets can look very different for different companies, but the basic structure remains the same.

You are presented with three statements of financial position.
Review the content and try to identify which one belongs to a company in the following industry, and Why ?