AC110: Principles of Accounting

Course Content

Accounting has been defined as 'the language of business', and this course provides an introduction to its basic concepts, methods and practices. Knowledge of the underlying concepts of accounting, in addition to its procedures, is an essential element in the education of future managers and other professionals.

Topics covered include:

• The uses of accounting information
• The nature and function of accounting conventions
• The preparation of the financial statements of business entities
• The accounting treatment of assets and liabilities
• International harmonisation: failure or success?
• The regulation of accounting
• Cash flow statements
• Accounting for groups
• Financial statement analysis

Course Outcomes

• Upon completion of the course, students will be able to better understand:
•  The fundamental concepts of accounting, and the various accounting conventions that apply these concepts
•  The uses to which accounting information may be put
•  Different types of accounting entity
•  The generation of the data recorded in accounting systems
•  The recording of basic transactions within the double-entry system
•  The periodic measurement of profit by businesses
•  The preparation of annual financial statements (statement of financial position, income statement, statement of cash flows) for simple businesses
•  The various elements of financial statements: assets, liabilities and capital
•  The regulation of financial statements
•  Measures of profitability and liquidity, including cash flow statements
•  The analysis and interpretation of financial accounting information
•  Some of the problems with historical cost accounting in times of changing prices and how they might be overcome
•  Basic issues relating to the accounting statements of groups of companies.

The LSE’s Department of Accounting has a leading international reputation for teaching and research. On this three week intensive programme, you will engage with and learn from lecturers from the LSE’s accounting faculty. AC110 course lecturer, Mr Ahmed Abdalla, teaches on a number of our undergraduate and graduate Accounting modules, including Elements of Accounting and Finance, and Elements of Accounting, Financial Institutions and Financial Management.  

Texts:

P. Atrill & E. McLaney, Financial Accounting for Decision Makers, (8^th Edition), Pearson (2015)

*A more detailed reading list will be supplied prior to the start of the programme

**Course content, faculty and dates may be subject to change without prior notice