Module: Financial Accounting for Decision Making

Module Specifications.

Current Academic Year 2024 - 2025

All Module information is indicative, and this portal is an interim interface pending the full upgrade of Coursebuilder and subsequent integration to the new DCU Student Information System (DCU Key).

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Date posted: September 2024

Module Title	Financial Accounting for Decision Making
Module Code	AC116 (ITS) / ACC1001 (Banner)
Faculty	DCU Business School	School	DCU Business School
Module Co-ordinator	Michael Metzger
Module Teachers	Barbara Flood, Caroline McGroary, John Nolan, Margaret O'Keeffe, Patrick Mulcahy, Vincent Tawiah
NFQ level	6	Credit Rating	5
Pre-requisite	Not Available
Co-requisite	Not Available
Compatibles	Not Available
Incompatibles	Not Available

Repeat examination

Description

The aim of the module is to develop students' understanding of the role of financial accounting for decision making in organisations. More specifically, it will develop students' competence to analyse, understand, critically evaluate and use Financial Statements for decision making purposes.

Learning Outcomes

1. Define and outline the conceptual framework of accounting, including the objectives, characteristics, users, development of accounting rules and limitations of financial accounting information.
2. Describe how business transactions are reflected in the books of a business entity and show the impact of transactions on the Income Statement and Statement of Financial Position.
3. Prepare and analyse Statement of Cash Flows
4. Analyse and critically evaluate financial statements using accounting ratios and other data, and prepare a report based on the needs of the recipient
5. Explain the role of the financial accountant, management accountant, internal and external auditors.

*Type*	*Hours*	*Description*
Workload	Full-time hours per semester
Lecture	22	In class lecture
Seminars	4	Class seminars
Independent Study	99	No Description
Total Workload: 125

All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml

Indicative Content and Learning Activities

Introduction to Accounting
Accounting definition; Introduction to Financial Statements- What are they, what are their purpose, who prepares them; Users of accounts; Types of business organisations; Qualitative characteristics of accounting information; Financial vs Management accounting; Types of business organisation; Qualitative characteristics of accounting information; Financial v Management accounting; Accounting Conventions.

Introduction to Financial Statements
Building understanding of Statement of Financial Position and Income Statement (Profit or Loss AC), the elements within each and the interaction between the two Statements; Dual Aspect Convention and Accounting Equation; Practical examples of showing the dual aspect of business transaction and the impact on the SOFP.

Statement of Profit or Loss and the impact of the accruals concept
P&L; Revenue recognition; Cost of sales; Accruals and prepayments; Bad debts and doubtful debts.

Accounting for Non Current Assets
Capital v Revenue question; Depreciation; Revaluation; Disposal; Presentation

Inventories
Different types; Inventory Valuations; Demonstrate an ability to explain, quantify and apply inventory management techniques (including EOQ and perpetual inventory).

Preparation of financial accounts for sole trader
Understanding and applications

Preparation of financial statements for limited companies
Understanding and application

Understand and describe the constituent elements of working capital.
Explain and advise on receivables and payables management techniques including preparing computations as needed; Explain receivable techniques such as factoring and invoice discounting; Calculate the cash cycle for a business and explain its significance; Explain the methods by which each element can be managed by an entity to optimise its working capital; Introduction to cash flow, format, and importance; Preparing a cash flow statement.

Ratio Analysis
Types of ratios (profitability, efficiency liquidity, working capital management and investment); Uses of ratios; Limitations of ratios.

Understand the role of the financial accountant, management accountant and internal and external auditor.
The role of the accounting in society; Corporate Governance; Difference between accounting and auditing; Difference between internal and external auditing.

Assessment Breakdown
Continuous Assessment	20%	Examination Weight	80%

Type	Description	% of total	Assessment Date
Course Work Breakdown
Participation	engagement with Tenjen software	20%	n/a

Reassessment Requirement Type
Resit arrangements are explained by the following categories: Resit category 1: A resit is available for both* components of the module. Resit category 2: No resit is available for a 100% continuous assessment module. Resit category 3: No resit is available for the continuous assessment component where there is a continuous assessment and examination element.
* ‘Both’ is used in the context of the module having a Continuous Assessment/Examination split; where the module is 100% continuous assessment, there will also be a resit of the assessment
This module is category 1

Indicative Reading List

McLaney, E & Atrill, P: 2018, Accounting and Finance an Introduction, 9th, 1-7, Pearson, Harlow, 9781292204482
R. Dyson: 2010, Accounting for Non-Accounting Students, 8th, Prentice Hall,
Leiwy, D. Perks, R.: 2013, Accounting Understanding and Practice, 4th, 1-6, McGraw Hill, Maidenhead, 1397800771391

Other Resources

64809, On-line, Tenjen, 2016, On Line Practice tool,