Module: Financial Accounting for Decision Making

Latest Module Specifications

Current Academic Year 2025 - 2026

Module Title	Financial Accounting for Decision Making
Module Code	ACC1001 (ITS: AC116)
Faculty	DCU Business School	School	DCU Business School
NFQ level	8	Credit Rating	5

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

Section Breakdown
CRN	20027	Part of Term	Semester 2
Coursework	0%	Examination Weight	0%
Grade Scale	40PASS	Pass Both Elements	Y
Resit Category	RC1	Best Mark	N
Module Co-ordinator	Brid Murphy	Module Teacher	John Nolan

Type	Description	% of total	Assessment Date
Assessment Breakdown
Participation	engagement with Tenjen software	20%	n/a
Formal Examination	End-of-Semester Final Examination	80%	End-of-Semester

Reassessment Requirement Type
Resit arrangements are explained by the following categories; RC1: A resit is available for both^* components of the module. RC2: No resit is available for a 100% coursework module. RC3: No resit is available for the coursework component where there is a coursework and summative examination element. ^* ‘Both’ is used in the context of the module having a coursework/summative examination split; where the module is 100% coursework, there will also be a resit of the assessment

Pre-requisite	None
Co-requisite	None
Compatibles	None
Incompatibles	None

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.

Indicative Reading List

Books:

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

Articles:
None

Other Resources

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