The aim of this module is to extend the knowledge and competence acquired in year 1 financial accounting modules in the preparation of financial statements of partnerships, and of single entity limited companies through the introduction of financial reporting standards.
Partnership
Income Statement and Balance Sheet Change in profit sharing ratios. Introduction and elimination of Goodwill.- Admission and retirement of partners.- Dissolution of Partnership, including Garner V Murray rule.
Accounting Standards
Introduction to selected accounting standards - role and use and application.
Limited Liability Companies
Introduction to limited company financial statements, components and formats, including local and international accounting issues.Preparation of Financial Statements of single entity limited companies (Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Financial Position) including basic adjustments, accruals and prepayments,impact of VAT, taxation charge and provision, depreciation methods and calculations, and issues arising from selected accounting standards.Introduction to limited company – legal issues. Limited Liability Company v partnership v sole trader – advantages and disadvantages.Introduction to Annual reports, Accounting policy notes and notes to the financial statements.Presentation of Loan notes and related finance costs.
Double Entry, Suspense Accounts
Nature of accounting errors,Nature and use of suspense account,Model for correction of accounting errors,Preparation of journals to reflect the double entries required to correct accounting errors, impact of correcting journals on suspense account. Preparation of control accounts. Techniques used in incomplete records situations necessary for the preparation of financial statements.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Other Assessment(s) | 30 |
| Formal Examination | 70 |