This is a course in the fundamentals of accounting. It presumes no prior knowledge of accounting from second level, however there is material that students who have studied the subject before will find challenging. The student is introduced to the key concepts underlying accounting and recording business transactions. It also encompasses the preparation of financial statements for different business entities. It sets the foundation for further study in the area.
The nature, scope and role of financial accounting
• The regulatory framework for accounting and framework for preparation and presentation of financial statements. • Users of financial accounts and their information needs. • Fundamental accounting concepts. • The accounting profession and the role of the accountant. • The ethics and independence of the accounting profession.
Double entry book-keeping and accounting systems
• The accounting system, books of prime entry and ledgers (sales, purchases and nominal). • The accounting equation. • Accounting for assets, liabilities and capital. • Accounting for revenue and expense items. • Preparation of simple accounts. • Books of prime entry. • Nominal ledger. • Value added tax. • Payroll including PAYE and PRSI. • Computerised accounting systems.
Maintaining adequate controls
• Trial balance • Correction of errors. • Control account reconciliation. • Bank reconciliations.
Accounting concepts and the need for adjustments
• Classification of expenditure between capital and revenue. • Tangible fixed assets (non-current assets). • Depreciation - various methods. • Provisions, accruals and prepayments.
Preparation of financial statements
• Preparation of financial statements for sole traders. • Preparation and presentation of financial statements for limited companies.
International Accounting Standards
• Revenue recognition • Property plant and equipment • Elementary treatment of goodwill • Inventory (excluding construction contracts) • Post balance sheet events.
The course will be delivered through a combination of lectures and tutorials. The learning and teaching methods employed will include, discussion, problem-solving exercises, self-directed learning and computer-based learning.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 50 |
| Other Assessment(s) | 50 |