Financial accounting focuses on the fundamental principles of recording, classifying, and summarizing financial transactions to prepare basic financial statements. It emphasizes the mastery of the accounting cycle, double-entry bookkeeping and the preparation of the trial balance, extended trial balance, statement of financial position and statement of profit or loss.
The Financial Accounting (FA) course at the Foundation Level of ICAN provides students with fundamental knowledge of accounting principles, processes, and financial statement preparation. It is designed to build a strong base in recording, summarizing, and presenting financial information for decision-making. The course emphasizes practical understanding, accuracy, and the application of basic accounting concepts in real-world scenarios.
Meaning, nature, and scope of accounting
Objectives and users of accounting information
Basic accounting concepts and conventions
Accounting cycle overview
Learning Outcome:
Students will understand the purpose of accounting and its role in business.
Accounting equation (Assets = Liabilities + Equity)
Rules of debit and credit
Double entry system and its application
Classification of accounts
Learning Outcome:
Ability to record financial transactions using the double entry system.
Journal entries and subsidiary books
Ledger posting and balancing
Preparation of trial balance
Identification and correction of errors (basic)
Learning Outcome:
Students will accurately record and classify financial transactions.
Causes of differences between cash book and bank statement
Preparation of Bank Reconciliation Statement
Rectification of errors
Learning Outcome:
Ability to reconcile bank balances and identify discrepancies.
Meaning and need for depreciation
Methods of depreciation (Straight-line, Diminishing balance)
Basic provisions and reserves
Accounting treatment
Learning Outcome:
Students will calculate and record depreciation and basic provisions.
Trading account, Profit & Loss account
Statement of Financial Position (Balance Sheet)
Adjustments: accruals, prepayments, bad debts, closing stock
Basic financial statement presentation
Learning Outcome:
Ability to prepare final accounts for sole proprietorships.
Bills of exchange (basic concepts)
Consignment and joint venture (introductory level)
Basic inventory valuation methods
Learning Outcome:
Students will understand and account for special business transactions.
Basic ratio analysis (profitability, liquidity)
Simple interpretation of financial statements
Importance of financial analysis
Learning Outcome:
Students will gain introductory skills in analyzing financial performance.
Importance of honesty and transparency in accounting
Basic ethical principles for accountants
Avoidance of manipulation and fraud
Learning Outcome:
Students will develop ethical awareness in financial reporting.
Journal to final accounts problems
Adjustment-based questions
Real-life business examples
Basic problem-solving exercises
Learning Outcome:
Enhance practical accounting skills and accuracy through application.
By the end of this course, students will be able to:
Record financial transactions using the double entry system
Prepare trial balance and final accounts
Handle basic accounting adjustments and reconciliations
Understand financial statements and basic analysis
Apply ethical principles in accounting practices
Introduction to Financial Accounting
Accounting Principles & Double Entry System
Recording of Transactions
Bank Reconciliation Statement
Depreciation and Provisions
Preparation of Final Accounts
Special Transactions (Basic)
Financial Statement Analysis (Introductory)
Ethics in Accounting
Practical Application & Case Studies