This course introduces students to financial accounting by covering accounting concepts and their applications. Course contents include double entry bookkeeping, transaction analysis, accounting cycle, preparation of financial statements including income statement, balance sheet and cash flow statement, analysis of specific accounts such as cash, accounts receivable, inventories, property, plant and equipment, liabilities and shareholders' equity, and the applications of the International Financial Reporting Standards (IFRS) to financial reporting. It focuses on conceptualizing and critically assessing important accounting terminologies, rules, and standards. Students are expected to acquire the balanced accounting techniques and theoretical knowledge through this course. Real business practices will be introduced by guest lecturers from Big 4 accounting firms.

CILO-1: Describe the objectives of financial reporting, and the preparations of financial statements. CILO-2: Identify the steps in the accounting cycle, prepare adjusting entries and report the financial results. CILO-3: Prepare transactions for the merchandising activities and the perpetual inventory system. CILO-4: Prepare bank reconciliations, journal entries for financial assets, property, plant, equipment and liabilities. CILO-5: Illustrate the differences between issuance of ordinary shares, preference shares, and treasury shares transactions; and cash versus stock dividends transactions and examine the effect of this difference on real business reporting. CILO-6: Distinguish major cash flows relating to operating, investing and financing activities and classify the economic inferences of each cash flow component. CILO-7: Explain, compare and perform different accounting treatments related to particular assets, liabilities and equity accounts. CILO-8: Interprete the International Financial Reporting Standards (IFRS) and related international practices. CILO-9: Discuss the accounting knowledge to examine the real business problems in an international context.