Registry
Module Specifications
Current Academic Year 2012 - 2013
Please note that this information is subject to change.
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| Description | |||||||||||||||||||||||||||||||||||||||||
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The purpose off this module is to introduce students to the conceptual framework of Financial Accounting from a user perspective as well as to introduce them to the role and function of management accounting within an organizational context. It will provide students with the ability to prepare, analyse, understand, interpret, critically evaluate and use Financial Statements. This module provides students with the techniques of Management Accounting (the reporting system for internal managers) for planning, control and performance appraisal and to relate the subject to the Management and Marketing modules. It is intended to develop students' critical awareness and appreciation of the significance and limitations of Financial and Management Accounting and to promote an inquisitive and critical approach to accounting practice. The module is delivered through a combination of lectures, tutorials and assignments. | |||||||||||||||||||||||||||||||||||||||||
| Learning Outcomes | |||||||||||||||||||||||||||||||||||||||||
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1. Define the conceptual framework of accounting, including the objectives, characteristics, users and limitations of financial accounting information. 2. Describe how business transactions are recorded in the books of a business entity. 3. Prepare basic financial statements of a business entity to include the Income Statement, Balance Sheet and Cash Flow Statement. 4. Apply financial accounting ratios to analyse and interpret financial statements and prepare a report based on the needs of a recipient. 5. Identify the nature of various costs and their implications for the business entity 6. Compute basic product costs using traditional absorbtion costing approaches 7. Prepare a Cost Volume Profit analysis, including breakeven analysis and describ ethe usefulness and limitations of the model 8. Describe the budgeting process and prepare basic budgets. | |||||||||||||||||||||||||||||||||||||||||
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 |
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| Indicative Content and Learning Activities | |||||||||||||||||||||||||||||||||||||||||
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Conceptual Framework of Accounting. Nature, purpose and role of accounting; users of accounting information; financial and management accounting and their inter-relationship; environmental context; introduction to the institutional and regulatory framework of accounting; the audit function; limitations of accounting information; issues in financial reporting. Relationship of management accounting with other disciplines and business functions; factors influencing the design of management accounting systems; organisational role of the management accountant; management accounting and information technology.. Introduction to Financial Accounting -The Accounting Model. The accounting equation; nature of assets, liabilities, owners equity; the balance sheet; principles, concepts and connections underlying financial statements; recording transactions ; revenues and expenses; true and fair view; role of judgement in accounting measurement; preparation and presentation of financial statements for sole traders and companies.. Introduction to Company Accounting. Nature and type of companies; share and loan capital; share premium account; dividends; the form and content of the financial statements of companies; the annual report of public companies.. Analysis and Interpretation of Financial Statements. Nature, purposes and context of financial statement analysis; techniques of analysis and in particular, ratio analysis; value and limitations of ratio analysis; interpretation and communication of results; other sources of comparative information.. Introduction to Management Accounting. Nature, purposes and origins of management and cost accounting; critique; relationship with other business disciplines.. Cost Concepts , Cost Classification and Cost Management. Nature of cost; cost objects; cost centres; nature and purposes of cost accumulation; different costs for different purposes; problems in cost accumulation; cost allocation; direct and indirect costs; production and non-production costs; product and period costs; cost behaviour; cost drivers; variable and fixed costs; total and average cost.. Cost Accumulation for Product Costing and Pricing. Nature and purposes of product costing; choice of product costing system; overview of product costing problems; impact of alternative product costing methods; introduction to activity based costing. Pricing notions; role of costs in pricing decisions.. Routine Decision-making. Cost Volume-Profit (CVP) Analysis: The accountants CVP model; breakeven point; margin of safety; contribution margin; critical evaluation of assumptions underlying the model; comparison with economists model; usefulness and limitations of the model. Practical illustrations.. Budgetary Planning and Control. Nature of budgets and the budgetary process; forecasting; types of budget; budget period; preparation of subsidiary and master budgets; cash budgets; role of budgets and the budgetary process in control; responsibility accounting; effectiveness and efficiency; flexible budgets; behavioural considerations, benefits and limitations of budgets.. | |||||||||||||||||||||||||||||||||||||||||
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| EUEBS | Early University Entrant Bus. Studies | ||||||||||||||||||||||||||||||||||||||||
| Timetable this semester: Timetable for AC103 | |||||||||||||||||||||||||||||||||||||||||
| Date of Last Revision | 17-MAY-10 | ||||||||||||||||||||||||||||||||||||||||
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