| Short Title: | Financial Accounting 3 |
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| Full Title: | Financial Accounting 3 |
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| 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. |
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| Learning Outcomes: |
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| On successful completion of this module the learner will be able to | - State and discuss selected accounting issues and standards.
- 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.
- Prepare the Income statement and Balance Sheet of a partnership including its dissolution or its conversion to a limited liability company.
- Execute the necessary double entries in relation to issues identified in preparing financial statements for a single entity limited liability company or a partnership.
- Prepare the accounts to reflect the purchase or sale of assets under Hire Purchase contracts including the execution of double entry.
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Module Content & Assessment| Content |
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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
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| Assessment Breakdown | % |
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| Course Work | 30% | | End of Semester Formal Examination | 70% |
| | Outcome addressed | % of total | Assessment Date |
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| Formal End-of-Semester Examination | 1,2,3,4,5 | 70% | Semester End |
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| Coursework Breakdown |
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| Type | Description | Outcome addressed | % of total | Assessment Date |
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| Continuous Assessment | The continuous assessment will be in the form of class test/s covering one or more learning outcomes. | 1 | 30 | n/a |
IT Tallaght reserves the right to alter the nature and timings of assessment Module Workload & Resources| This course has no full time workload. |
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| Resources |
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| Required Book Resources |
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- Foulkes Lynch, ACCA Paper 1.1 Preparing financial statements, Study text (Dec 06 June 07)
| | Recommended Book Resources |
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- 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 |
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- 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
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