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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This module assumes no prior knowledge of accounting or taxation and aims to build students' ability to prepare accounting and taxation computations, understand their implications and report on them. The teaching methodology comprises lectures and directed problem sessions where students focus on preparing simple financial statements for sole traders, single companies and groups and then progress to analysing and evaluating this information. They also will be taught to understand the principles of personal and corporate taxation and develop an appreciation of the impact of taxation on business and investment decisions. Upon completion of the module, the students will have developed the necessary analytical and problem solving skills in accounting and tax, which are part of the skill set needed for a career in either the actuarial profession or in banking. | |||||||||||||||||||||||||||||||||||||
| Learning Outcomes | |||||||||||||||||||||||||||||||||||||
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1. Prepare simple financial statements for sole traders. 2. Prepare statement of comprehensive income, statement of financial position, statement of changes in equity and statement of cash flows, for companies under revised IAS1. 3. Describe and explain the regulatory environment for company accounting and be able to read the information (including the narrative sections) in the Annual Report of a plc with informed understanding. 4. Apply International Standards (e.g., IAS 1, 2,7, 16, 36 and 18) to a variety of specialised business transactions in a single company context. 5. Describe how cash flow differs from profits and prepare statements of cash flow under IAS7 for companies. 6. Perform financial analysis of companies using ratios and cash flow information and prepare a report interpreting the calculations. 7. Explain the concept of a group and perform simple calculations of consolidation. 8. Describe the basic principles of income tax, capital gains tax and corporation tax (for a single company) and perform simple calculations. | |||||||||||||||||||||||||||||||||||||
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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Introduction. 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. 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.. 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.. 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. Introduction to Regulatory Framework for Company Final Accounts for publication. Primary statements of companies compared to those of sole traders; origin of joint stock company; private and public limited companies; discussion of Format of published accounts for a public limited company (plc) under revised IAS1; regulatory framework, annual report, true and fair view, small and medium companies, international and national accounting standard setting by professional bodies, role of stock exchange regulation, role of company legislation, role of directors, role of auditors. Developments in Corporate Governance. . Review of international standards on inventory, property, plant and equipment and revenue recognition.. 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.. 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.. 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.. 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.. 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. Taxation. General principles, objectives of tax, classification of tax, administration, payment dates, residence & domicile, double taxation. Corporation Tax. Computation of taxable profits, capital allowances, losses, distributions, dividend withholding tax. Income Tax. Sources of income, employment v self employment, investment income, DWT, DIRT, pension products, basic personal reliefs. Capital Gains Tax. Basis of charge, indexation, major reliefs, disposal of shares and other investment products. | |||||||||||||||||||||||||||||||||||||
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