Section outline

    • 1.1 Course Description 

       This course introduces to the learner the basics of financial accounting and reporting, particularly the processes through which accountants are able to communicate to the users of accounting information. Students are introduced to the double entry rule in accounting and the accruals system. The course introduces to students the accounting period, matching, and the going concern issues and how these trigger accounting measurements and recognition criteria. Therefore, the course introduces to students the generally accepted accounting practice. 

       1.2 Course objectives 

       At the completion of the course, the students will be able to;

      1. Explain the Accounting process and evaluate an enterprise’s financial position and its operating, investing and financing activities. 

       2. Explain the reporting framework of accounting in Uganda 

       3. Demonstrate application of double entry accounting system

       4. Prepare books of accounts and make necessary adjustments to the financial statements 

       5. Demonstrate knowledge on how to control account reconciliation, bank reconciliation & correction of errors 

       1.3 Learning out comes:

      On completion of the course, the learner should be able to:

      • Explain the role of accounting and describe the reporting framework of accounting in Uganda. 
      •  Understand that the purpose of the balance sheet in measuring Financial Position
      • Observe the types of information provided by the three-principal financial statements and how firms might use this information in managing and evaluating a business. Reinforce skills in transforming income statement data to cash flow data and vice versa.
      • Introduce tools for analyzing a firm's overall profitability (rate of return on assets) and examine how profit margin and asset turnover ratios provide information about the economics and strategy of a business. 
      • Reinforce the relations between the three principal financial statements by preparing pro forma financial statements from a given set of assumptions. 6. Assess the sensitivity of the financial statements to variations in pro forma assumptions

    • 1. Definition of accounting, types of accounting, role of accounting.

      2. The regulatory system for accounting in Uganda 

       ✓ The need for regulation of accounting 

       ✓ Forms of regulation e.g. the Companies Act, the Financial Institutions Act, and the Capital Markets Authority 

       ✓ Accounting standards – their purpose, the standard-setting process, the role of the Institute of Certified Public Accountants and the International Accounting Standards Board.

      3.0 The framework for the preparation of financial statements 

       ✓ The main financial statements and their purpose 

       ✓ Users of accounting information and their information needs 

       ✓ Accounting concepts – going concern, accruals, consistency, materiality, substance over form & prudence 

       ✓ Qualitative characteristics of financial statements – relevance, reliability, comparability & understandability 

       ✓ Elements of financial statements – definitions of assets, liabilities, equity, revenue and expenses; Measurement of the elements – historical cost, replacement cost, net realizable value & economic value