To build on the understanding and competence acquired in previous financial accounting/reporting modules in relation to the preparation of single entity limited company financial statements by introducing the preparation of the Statement of Cash Flows, additional accounting issues arising from selected standards, and financial statement analysis .
Regulatory and Conceptual Frameworks
Objectives of financial reporting and purpose of financial reports; Users of financial reports and their needs; Role of the financial accountant and related ethical issues; regulatory framework re use of IFRS and local standards in Ireland; IASB, SAC, IFRIC. Elements of financial statements – assets, liabilities, income, expenses and equity.IASB Framework – accounting concepts and qualitative characteristics. Accruals accounting v cash accounting; Accounting valuation bases. Advantages and disadvantages of historical cost accounting;Use of accounting standards - advantages & disadvantages
Share Issues & the Financial Statements
Share Issues, Application, allotment, first and final calls.Double entry requirements.Bonus issues and rights issues - concepts, accounting entries and presentation in the financial statements (SOCE).
Single Entity Statement of Cash Flows IAS 7
Appreciation of the difference between Profit flows and Cash flows. Preparation and presentation of statement of cash flows in accordance with IAS 7 format including analysis of cash and cash equivalents. Indirect method only.
Property, plant and equipment IAS 16
Double entries required for acquisition/capitalisation, disposal and depreciation issues in relation to noncurrent assets – property, plant and equipment. Capital and revenue expenditure items and accounting treatments. Elements of cost of PPE asset. Basic revaluations – impact on PPE, SOCE and equity reserves, and the Statement of Comprehensive Income. Depreciation and disposal of revalued assets. Change in useful life and depreciation method. Journal entries and ‘T’ account entries for all the above.The preparation of the disclosure note on non-current assets PPE in accordance with IAS 16.
Single Entity financial statements of limited companies
The preparation and presentation of financial statements of single entities incorporating situations covered by selected accountung standards as well as routine accounting adjustments.
Financial analysis and reporting writing
Analysis of contents and movements in Financial Statements including Statement of Cash Flows - writing of professional reports on the financial analysis of a single limited company(s).- Analysis from different stakeholder perspectives, e.g. investor, lender etc.- Using ratios as analysis tool; ratio calculation – liquidity, profitability, gearing, efficiency, investment ratios - Horizontal analysis, vertical analysis- Analysis of cash flow statement; - Limitations of financial statements and ratio analysis- Window dressing; overtrading- Structure and presentation of a financial analysis report
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Other Assessment(s) | 30 |
| Formal Examination | 70 |