FAC1602 Elementary Financial Accounting and Reporting Semesters 1 & 2 Department of Financial Accounting 2025/2026

FAC1602 Elementary Financial Accounting and Reporting Semesters 1 & 2 Department of Financial Accounting 2025/2026 duction and overview of the module FAC1602/501/3/2021 1. Word of welcome Dear Student We are pleased to welcome you to this module and hope that you will find the content both interesting and rewarding. We shall do our best to assist you to master this module and we recommend that you start studying immediately after enrolment. Accounting is a subject that requires continued exercise by working through many examples and you will be required to work continually throughout the semester. First-year accounting at UNISA consists of the following modules, namely FAC1502 and FAC1601 or FAC1602. If you aim to become a chartered accountant (CA) or plan to include second- and third-year Financial Accounting modules in your degree, the FAC1601 module is compulsory. The same applies to other qualifications where second- and third-year Financial Accounting is required. Completing FAC1502 and FAC1601 successfully, will allow you to enrol for the second-year modules FAC2601 and FAC2602. If your focus is certain diplomas and other Bachelor of Commerce degrees where you only need first-year Financial Accounting, we recommend that you enrol for the FAC1602 module. However, ensure that FAC2601 and FAC2602 are not included in your degree's curriculum as only the FAC1601 allows access to further studies in Financial Accounting. 2. Overview of FAC1602 and assumed knowledge from FAC1502 FAC1602 concerns itself with the issues of accounting reporting for different entities and builds on the learning outcomes of FAC1502. You will remember that in FAC1502 the following topics were covered: FAC1502 taught the basic bookkeeping functions and introduced you to the concepts, principles and procedures of accounting. It is important to realise that FAC1502 forms the foundation for all other financial accounting modules. The knowledge that you gained in FAC1502 forms the building block of this module and cannot be repeated. If you need to refresh your memory on these concepts, please refer to your FAC1502 guide and other supplementary learning material for that module. Although the aim is not to provide an exhaustive list of concepts dealt with in FAC1502, we provide you with a summary of the most important ones to enable you to refer with ease: iv Value-added tax (VAT) – section 5.10 in the FAC1502 guide and section 5.4 in the textbook. Remember that the input and output VAT accounts are closed off to a VAT control account which can be either a debtor (if VAT input is greater than VAT output for the period) or a creditor (when VAT output is greater than VAT input for the period). In this module, we refer to the VAT debtor account as VAT receivable and the VAT creditor account as VAT payable. The recording of depreciation - section 6.3 and section 11.5 – 7 in the FAC1502 guide and section 11.7 in the textbook. Familiarise yourself with the reason for depreciation, the journal entries to provide for depreciation and the different methods that can be used