This Course Guide has been taken from the most recent presentation of the course. It would be useful for reference purposes but please note that there may be updates for the following presentation.
ACT B863
Financial Reporting Environment
Welcome to ACT B863 Financial Reporting Environment!
ACT B863 Financial Reporting Environment is a one-semester, five-credit postgraduate course. It is designed for students to study financial accounting from a perspective of reporting and analysis. The course focuses on accounting for a group of companies and on analysing financial statements and related information.
The advised prerequisite for this course is ACT B861 Accounting for Corporations. ACT B863 extends the knowledge and skills that you acquired in ACT B861 to accounting and reporting for more complicated economic entities, and further explains the techniques used in analysing a company's financial statements. The content of the course material is self-contained with activities and self-tests integrated into the text to enhance your concepts and skills acquired in relevant sections.
Purpose of this Course Guide
This Course Guide tells you briefly what the course is about and how you can work your way through the material. For information on assignments, please refer to the Assignment File. For information on due dates and cut-offs for work to be submitted, please refer to the Presentation Schedule.
After this introduction, which gives a general overview of the course's aims and learning outcomes, there is:
Course aims
ACT B863 aims to provide you with the knowledge and skills in preparing financial statements for a group of companies and related specific reporting and disclosure requirements. It also equips you with the techniques of financial analysis.
Course learning outcomes
By completing ACT B863, you should attain a fairly mature understanding of the financial accounting issues that are of most importance in Hong Kong and globally. We expect that you will be able to pursue financial accounting issues independently.
Specifically, we intend that you should be able to:
Course organization
The following chart gives a general overview of the course structure.
| Unit | Title | Study time (weeks) | Assessment activity (end of unit) |
| 1 | Business combinations and consolidated statements of financial position | 4 | |
| 2 | Consolidated statement of profit or loss, investments in associates and joint arrangements | 3 | Assignment 1 |
| 3 | Foreign currency translation and consolidated statement of cash flows | 3 | |
| 4 | Specific reporting and disclosure requirements | 3 | Assignment 2 |
| 5 | Financial statement analysis | 3 | |
| Total | 16 | ||
In addition to this Course Guide, please ensure that you have the following important course components:
Study units
There are five units in ACT B863. Each unit consists of three to four weeks' worth of part-time study. We expect you to spend about ten hours per week on your studies. Please remember that you have to plan your own study schedule. This is essential for you to complete your assignments on time and pass the examination.
The study units summarize key issues, explain theories and practices, and comment on related readings. Each unit contains activities and self- tests to help you to apply and check your understanding of the units. Please take the time to complete the activities and self-tests, and to check your answers against the feedback provided at the end of the units.
Reference book
You are recommended to buy the following book:
Ng, P P H and Ng, E J (2023) Hong Kong GAAP: A Master Guide to Hong Kong Financial Reporting Standards (Student Edition), 17th edn, Hong Kong: Wolters Kluwer (HK) (formerly CCH).
Supplementary readings
Excerpts from the annual reports of Hong Kong listed companies and from the Hong Kong Financial Reporting Standards (HKFRSs) will be integrated into the relevant sections/units of the course materials. You are encouraged to look up these annual reports and HKFRSs following the website links provided below and in individual units.
Assignment File
Assignment details for this course are contained in your Assignment File. The nature of these assignments is described in the 'Assignments' section below. You are required to complete your assignments and send them to your tutor in accordance with the timetable provided in the Presentation Schedule explained below.
Presentation Schedule
The Presentation Schedule is available on the University's online learning platform — the Online Learning Environment (OLE). It is a detailed schedule which provides information on the time you should spend on each study unit, the period you should plan for revision, and the due dates for the assignments. Please note that you must submit all your assignments in time for them to reach your tutor by the dates shown. You should refer to the Presentation Schedule continuously and ensure that you keep pace with the activities indicated.
Online Learning Environment (OLE)
You are encouraged to make use of HKMU's Online Learning Environment (OLE) to communicate with your tutor and with other students. You can also find course materials and the latest course information on the OLE. For details about the OLE and how to access it, please refer to the Online Learning Environment User Guide.
Some of the most widely asked questions posed by students relate to how to go about writing an essay type question, or how to tackle case studies. The following is written to help you approach these types of questions.
Case studies
Case studies are simplified representations of organizational situations. In many cases, you are required to analyse the situations and work out what seems to be happening, and why. You may be asked to explain the situation or to evaluate actions that have already been taken or you may be asked to consider possible future actions and compare the likely effectiveness of these. In doing so, you will be expected to use theories and techniques that you have been taught in your course, thus gaining practice in linking concepts to situations.
The situations you encounter may be complex, with many interrelated factors, and different views as to what is happening and should happen. Some important factors may be unknown, perhaps unknowable until it is very late. You cannot hope to solve the case with ready-made answers.
In tackling cases, you should prepare yourself in:
The following is a short set of guidelines to cope with case problems:
If you follow the above guidelines, you should be in a good position to plan your answer.
Essay questions
Essay questions are as important as case studies. Again, it should be pointed out that your level of understanding of the subject under assessment can be demonstrated in a concisely-written essay and that you should seize the opportunity to attain a good grade accordingly.
As with case studies, there is no definitive formula, no 'magic', but merely a set of suggested guidelines that should serve to point you in the right direction.
In our view, the following points are important:
You will be assessed on your ability to grasp the key concepts and theories of the course. You will then be tested on the application of these concepts and theories to practical problems.
The course carries two formal activities in student assessment:
Assignments serve as the continuous assessment component within the study period and contribute 40% of the total course mark. The other 60% is evaluated through a final examination.
You are required to pass both the continuous assessment component and the final examination to obtain a pass in this course.
Assignments
The course requires you to complete two assignments.
The assignments are contained in the Assignment File.
You should submit each completed assignment to your tutor on or before the due date. Please refer to the section on 'How to submit your assignments' in the Assignment File before you submit your first assignment.
Assignments serve three purposes:
After being marked by your assigned tutor, assignments are returned to you so that you can clarify any misunderstandings. It is good practice to keep a copy of each assignment so that you can refer to any queries with your tutor.
How to submit assignments
You must use word processing software (such as Microsoft Word) to prepare the assignments, and submit them via the Online Learning Environment (OLE). All assignments must be uploaded to the OLE by the due date.
Failure to upload an assignment in the required format to the OLE may result in the score of the assignment being adjusted to zero.
Assignment submission extension policy
The assignment policy of the University as stated in the Student Handbook should be observed. You are required to submit assignments for this course in accordance with the dates communicated by your Course Coordinator. You may apply for a submission extension on the grounds of illness, accident, disability, bereavement or other compassionate circumstances
Applications for extensions must be submitted online via the OLE. Please note the following:
After an assignment is submitted via the OLE, it is your responsibility to check that the assignment has been successfully submitted. Extension applications due to any problem with uploading will not be accepted. The University cannot accept any responsibility for assignments that are not received by your tutor due to any problem with submission via the OLE. As a precaution, you are advised to keep a copy of each assignment you submit.
According to the University's policy, no extension of the due date will be allowed for the final assignment. This policy will be strictly enforced. Any late submission of the final assignment will result in the score of the assignment being adjusted to zero.
Examination
The final closed-book written examination is of three hours' duration and is worth 60% of the total course grade. The examination covers material from all units. You should use the time between finishing the last unit and the examination to review all five units in the course. In particular, we suggest you review your self-tests, assignments and your tutor's comments on the assignments before sitting for the examination.
A specimen examination paper will be provided before the examination for practice purposes. The format of the specimen examination will be similar to that of the final examination.
The following table summarizes the assessment requirements for this course. In order to pass this course, you must pass both the continuous assessment component and the final examination.
| Assessment type | Marks |
| Assignments | |
| Assignment 1 | 20% |
| Assignment 2 | 20% |
| Examination | |
| Final examination | 60% |
| TOTAL | 100% |
Tutors
It is your tutor's job to keep an eye on your progress and assist you if you encounter problems during the course. Your tutor also marks your assignments and provides feedback to you. You can contact your tutor by email or by telephone.
Please contact your tutor if:
Tutors are required to start learning support sessions on time. If a tutor fails to turn up 30 minutes after the scheduled starting time, you may assume that the session is cancelled and you should report the case to the Course Coordinator so that a make-up session can be arranged.
Live online tutorials
Five two-hour live online tutorials and one six-hour day school (in person) will be organized to help you in your learning in ACT B863. Tutorials are not compulsory but you are strongly encouraged to attend. Tutorials will provide considerable assistance in your study of this course. Moreover, you will have the chance to meet with other distance learners who are studying at HKMU.
Day school (in person)*
A six-hour day school (in person) will also be arranged during a weekend. During the day school, you will have the chance to discuss case studies and problems with your tutor and your classmates. The case studies and problems will cover a range of examples taken from public and private sector organizations. There should also be plenty of opportunity to gain extra tutorial help on more difficult topics during the day school.
* Note:Starting from the October 2008 intake of the PDPA/MPA programme, applicants to HKICPA's QP are expected to have completed at least five out of eight day schools of the compulsory courses (ACT B861, FIN B862, ACT B863, ACT B864, ACT B865, ACT B866, BIS B867 and LAW B868).
Online support
ACT B863 will use the Online Learning Environment (OLE), an online course delivery system developed by HKMU. The OLE includes a course discussion board that allows you to interact with other students and your tutor. You are strongly encouraged to make use of the discussion board to share experiences, resources and perspectives during the course and to post your ideas and questions.
If you wish to defer your studies of this course until a later date, you should apply for deferment of studies. For the regulations governing deferment of studies, please refer to your Student Handbook. If you have applied for deferment of studies, you should continue with your studies of this course and submit the required assignments until formal approval is given by the University.
ACT B863 Financial Reporting Environment is a five-credit postgraduate accounting course that examines financial accounting from the perspective of reporting. It focuses on the global financial reporting environment and examines consolidated financial statements in detail.
There is a reference book for ACT B863, which you are recommended to purchase. You are also expected to refer to a number of key international and Hong Kong accounting standards and regulations.
You will complete two assignments, and a final examination. The examination will cover materials from all units in the course.
You will receive feedback and support from your tutors. The course will be supported by five two-hour tutorials and one six-hour day school. You are encouraged to attend these and to use the OLE to seek help and share your ideas and experiences.
Good luck!
A note about the developer of this course
Dr Lynne Chow has taught at Hong Kong Metropolitan University, The Hong Kong Polytechnic University and Lingnan University as an Associate Professor. She was also a technical advisor of Association of Chartered Certified Accountants (ACCA). Dr Chow has been substantially involved in the development of various undergraduate as well as postgraduate programmes in accounting. She has published several books, including Advanced Financial Accounting in Hong Kong, Accounting and Finance in China, and International Transfer Pricing in China. She has published in the Journal of Accounting and Economics, Journal of Business Finance and Accounting, Journal of International Financial Management & Accounting, Accounting and Business Research, Managerial Auditing Journal.
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