Registry

Module Specifications

Archived Version 2012 - 2013

Module Title	Accounting 1
Module Code	AC316
School	DCUBS
Online Module Resources
NFQ level	8	Credit Rating	7.5
Pre-requisite	None
Co-requisite	None
Compatibles	None
Incompatibles	None

Description

This module aims to build students' ability to prepare and interpret accounting information with the degree of understanding that they need for a professional actuarial career. The teaching methodology is based on lectures and interactive problem sessions, which train students to 1. Prepare simple financial statements for sole traders. 2. Prepare statements of comprehensive income, statements of financial position, statements of changes in equity and statement of cash flows, for companies. 3. Analyse, understand, and interpret financial statements using ratio analysis. 4. Describe and explain the regulatory environment for company accounting.

Learning Outcomes

1. Discuss the current regulatory environment for corporate reporting including new developments.
2. Appraise and interpret the content of the Annual Report.
3. Prepare statements of comprehensive income, balance sheet and statements of changes in equity for single companies under IAS1.
4. Describe how cash flow differs from profits and prepare statements of cash flow under IAS7 for companies.
5. Apply IFRS and IAS (e.g., IAS1, 2,7, 16, 36 and 18) to a variety of specialised business transactions.
6. Perform financial analysis of companies using ratios and cash flow information.
7. Explain the concept of a group and perform simple calculations of consolidation.

*Type*	*Hours*	*Description*
Workload	Full-time hours per semester
Lecture	36	3 hours of lectures/ problem sessions per week for 12 weeks
Independent Study	28	Preparation for lecturer-led problem sessions - doing questions from course booklet
Independent Study	25	Preparation for lecture before and after lecture
Directed learning	36	Direct preparation for and completion of end of semester examination
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
Definition of accounting, output of accounting - Primary Statements, Users of accounts, Financial Accounting v Management Accounting, qualitative features of financial accounting information. [Actuarial subject CT2 - (ix) - 1]

Accounting Concepts and Conventions
Entity, going concern, prudence, accruals/matching, consistency, money measurement, historic cost, stable monetary unit, realisation, materiality, objectivity. Developments on the conceptual framework issue. [Actuarial subject CT2 (ix) - 2]

Recording Business Transactions
Accounting equation and the balance sheet, accounting equation and the profit and loss account, double entry system for assets, liabilities and capital, profit and reserves. The Trial Balance. [Actuarial subject CT2 (ix) - 3 and 4]

Preparation of accounts for sole traders
Simple adjustments such as accruals and prepayments, depreciation, bad debts; capital and revenue expenditure, revaluation of non-current assets. [Cross referenced to Actuarial syllabus subject CT2-(ix)- 4]

Statement of Financial Position for Companies
Characteristics of assets, capital, double entry rules, categories of assets and valuation including revaluation of non-current assets, categories of liabilities, types of share capital & types of reserves, preparation of statement of financial position for publication. Statement of Changes in Equity. Shortcomings of historical cost accounting. Interpretation of financial statements of a plc using annual reports and recognition of limitations of this interpretation. Creative accounting. [Cross refererenced to Actuarial syllabus subject CT2-(iii)- 2-3 and (ix) 1-4, 9- 10 and (x)-7 -9]

Comprehensive Income Statements for Companies
Recognition of revenue and expenses, accruals and prepayments, capital and revenue expenditure, depreciation, format of Comprehensive Income statement; flow of information, double entry rules, preparation of Comprehensive Income statement and of accounts for publication for plc companies. [Actuarial subject CT2- (ix)-3-4, 9]

Statement of Cash Flows
Concept of cash flow, distinction between profits and cash flow, preparation of statement of cash flows under IAS 7. Interpretation of statement of cash flows, using written analysis [Actuarial subject CT2- (ix)-4]

Interpretation of Accounts
Role of ratio analysis, computation of profitability, liquidity, efficiency, gearing, and investment ratios and interpretation of same by preparation of written analytical reports for plc companies. Link between Cash flow and Ratios and Working Capital Management. Limitations of ratio analysis in the interpretation of company accounts. Creative accounting. [Actuarial subject CT2 (x)- 1-9]

Group Accounts
Concept of group and preparation of a simple group balance sheet (Consolidated Balance Sheet). Concept of subsidiary and associate companies. Goodwill on consolidation. Review of Annual Report of Insurance Company. [Actuarial subject CT2-(ix)- 5-8]

Assessment Breakdown
Continuous Assessment	20%	Examination Weight	80%

Type	Description	% of total	Assessment Date
Course Work Breakdown

Reassessment Requirement
Resit arrangements are explained by the following categories; 1 = A resit is available for all components of the module 2 = No resit is available for 100% continuous assessment module 3 = No resit is available for the continuous assessment component
Unavailable

Indicative Reading List

Mike Jones: 2006, Financial Accounting, 2nd, Wiley,
www.iasplus.com: 0, Relevant international standards, www.iasplus.com,
Michael Brett: 2008, How to read the Financial Pages, Century Ltd, London,

Other Resources

None

Programme or List of Programmes

ACM	BSc Actuarial Mathematics
CAFM	Common Entry into Mathematical Sciences
FM	BSc in Financial & Actuarial Mathematics

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