Short Title:Financial Accounting 3
Full Title:Financial Accounting 3
Module Code:FACC H2003
NFQ Level:6
ECTS Credits:5
Description:It is intended to extend the knowledge and competence acquired in Financial Accounts 2 in the preparation of accounts and financial statements of partnerships and single entity limited companies.
Learning Outcomes:
On successful completion of this module the learner will be able to
  1. State and discuss selected accounting issues and standards.
  2. To able to prepare and present single company financial statements that involve identification of issues with respect to IAS 1, IAS 2 and IAS 8 as well other basic adjustments.
  3. Prepare the Income statement and Balance Sheet of a partnership including its dissolution or its conversion to a limited liability company.
  4. Execute the necessary double entries in relation to issues identified in preparing financial statements for a single entity limited liability company or a partnership.
  5. Prepare the accounts to reflect the purchase or sale of assets under Hire Purchase contracts including the execution of double entry.

Module Content & Assessment

Content (The percentage workload breakdown is inidcative and subject to change)
  • Partnership (35%)
    - Income statement and Balance Sheet - Change in profit sharing ratios. - Introduction and elimination of Goodwill. - Introduction and retirement of partners. - Dissolution of Partnership including Garner V Murray rule. - Conversion to a Limited Liability company.
  • Limited Liability Companies (40%)
    - Introduction to limited company financial statements,-components and formats,- including local and international accounting issues. - Preparation of Financial Statements of single entity limited companies including basic adjustments and issues arising from IAS 2 and IAS 8. - Introduction to IAS 2 Inventories including valuation and NRV test. Introduction to IAS 8 including distinction between estimates and accounting policies and identification of prior year adjustments in the context of the preparation of single entity company financial statements.
  • Hire Purchase Contracts (25%)
    - Introduction to Hire Purchase contracts. - Computation of interest under both the sum of digits and actuarial method. - Basic computations including execution of double entry. - Production of balance sheet extracts in relation to asset and Liability. - Purchaser and Vendor perspectives
Assessment Breakdown%
Course Work30%
End of Semester Formal Examination70%
 Outcome addressed% of totalAssessment Date
Formal End-of-Semester Examination1,2,3,4,570%Semester End
Coursework Breakdown
TypeDescriptionOutcome addressed% of totalAssessment Date
Continuous AssessmentThe continuous assessment will be in the form of class test/s covering one or more learning outcomes.130n/a

IT Tallaght reserves the right to alter the nature and timings of assessment


Module Workload & Resources

This course has no full time workload.
Required Book Resources
  • Foulkes Lynch, ACCA Paper 1.1 Preparing financial statements, Study text (Dec 06 June 07)
Recommended Book Resources
  • Frank Woods, Business Accounting 1, Financial Times
  • Frank Woods, Business Accounting 2, Financial Times
  • IASB 2006, International Financial Reporting standards 2006
  • Clark P, Financial Accounting – An Irish text, Gill and McMillian
  • Elliott B and Elliott E, Financial Accounting & Reporting, Prentice Hall
  • Alexander D and Britton A, Financial Reporting, Thompson Learning
Recommended Article/Paper Resources
  • Accountancy UK n/a, Journal ICAEW
  • Accountancy Ireland Journal ICAI n/a, Journal ICAI
  • Accountancy Age n/a
  • Accountancy Plus Journal ICPAI n/a
  • Business and Finance Journal n/a
  • Financial Times Newspaper n/a
  • Sunday Business Post Newspaper n/a