Financial Statements: Theory, Practice and Critique

Module code: MN7241

Module co-ordinator: Dr Silvia Pazzi

Module Outline

You will study reporting; balance sheets; profit and loss; cash-flow statements management; financial forecasting and budgeting.

Upon completion of the module, students will be able to:

  • Explain the nature and purpose of financial accounting and reporting
  • Describe business activities and how they are recorded in financial statements
  • Discuss the financial reporting environment in UK and in the international context
  • Explain and analyse the accounting measurement and reporting practices underlying financial statement items (equity, liabilities, assets and income)
  • Evaluate accounting quality and identify earnings management practices
  • Explain value relevance of accounting
  • Compute and interpret relevant financial ratios for equity and credit analysis
  • Use accounting information for developing a prospective analysis and valuation 


  • 20 one-hour lectures
  • Two one-hour seminars


  • Exam, two hours (100%)