Registry

Module Specifications

Current Academic Year 2009 - 2010
This information is provisional and subject to change.

Module Title	Accounting Fundamentals
Module Code	AC106
School	DCUBS
Online Module Resources
Level	1	Credit Rating	5
Pre-requisite	None
Co-requisite	None

Module Aims

To introduce students to the basic principles of accounting.
To develop the ability to understand, analyse and critically evaluate financial statements.
To familiarise students with basic techniques used in the preparation of information for planning, control and decision making.
To develop the ability to use and critically interpret management accounting information.

Learning Outcomes

On completion of the module students should:

Have an understanding of the qualitiative characteristics of financial information, financial statement elements including recognition and measurement principles.
Be able to prepare an Income Statement and Balance Sheet from Trial Balance.
Be able to identify, prepare, analyse, critically evaluate and use accounting information for decision making, planning and control purposes;
Have a basic knowledge and understanding of cost classification, cost measurement and the relationship between costs, volume and profits;
Be able to critically evaluate accounting information and appreciate its value and shortcomings.

Indicative Time Allowances
	Hours
Lectures	24
Tutorials	9
Laboratories	0
Seminars	0
Independent Learning Time	42

Total	75
Placements
Assignments

NOTE

Assume that a 5 credit module load represents approximately 75 hours' work, which includes all teaching, in-course assignments, laboratory work or other specialised training and an estimated private learning time associated with the module.

Indicative Syllabus

Introduction to Accounting:

Nature, purpose and role of accounting; users of accounting information. The accounting equation; nature of assets, liabilities, owners equity; the balance sheet; principles, concepts and conventions underlying financial statements; nature of profit; difference between profit and cash; true and fair view; role of judgement in accounting measurement;

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.

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; relationship with financial accounting and with other disciplines and business functions; organisational role of the management accountant.

Cost Concepts and Cost Classification: Nature of cost;

Nature and purposes of cost accumulation; different costs for different purposes; problems in cost accumulation; cost allocation; direct and indirect costs; cost behaviour; cost drivers; variable and fixed costs; total and average cost.

Cost Volume-Profit (CVP) Analysis:

The accountant''''s CVP model; breakeven point; margin of safety; contribution margin; critical evaluation of assumptions underlying the model; comparison with economist''''s model; usefulness and limitations of the model.

Budgets:

Nature of budgets and the budgetary process; types of budget; budget period; preparation of subsidiary and master budgets; cash budgets; role of budgets and the budgetary process in control; flexible budgets; behavioural considerations, benefits and limitations of budgets.