This module aims to provide students with a basic knowledge of elements of the Framework and concepts underlying the preparation of financial statements. It is intended that candidates will apply their understanding in preparing a statement of Comprehensive Income and Statement of Financial position for business entities in various business scenarios
Introduction to Accounting
The purpose and role of accounting information. Users of financial information. Limitations of financial information.
Concepts and Policies
The elements of financial statements.Qualitative characteristics of financial information.The accruals concept and the going concern concept.
Book-keeping and the Recording of Transactions and Adjustments
Record of first entry of the transaction/event [Books of prime entry, data input] and the subsequent classification, analysis and summarisation of such records on a periodic basis.Double-entry method of recording summarised totals from records of first entry to the nominal ledger.The Nominal Ledger including closing off of T accounts listed therein and the extraction of Trial Balance.Journal entries for correction of errors in Trial Balance including the elimination of any suspense account.Journal entries to effect accruals, prepayments, and other transactions relating to the accounting period and not yet adjusted for in the Trial BalanceAccounting treatment of Non Current Tangible assets including their acquisition, depreciation and disposal.Depreciation; Straight-Line and Reducing Balance methods, and associated Double-entry implementation of the determined amounts.Accounting treatment of current assets and liabilities.Inventory/Stock - valuations and disclosures.Receivables/Debtors – writing off bad debts and calculation of provisions for doubtful debts and determination of increases/decreases in same.Control Accounts including Payables, Receivables ledger, and Bank Reconciliations. Accounting for VAT and PAYE.
The Financial Statements of a Sole Trader
The Financial Statements of a Sole Trader Outline of principle structure of financial statements.Statement of Comprehensive Income: Content and format as per IAS 1.Statement of Financial Position: : Content and format as per IAS 1.Significance of constituents parts within each statement and relationship between Statement of Comprehensive Income and the Statement of Financial Position.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Other Assessment(s) | 30 |
| Formal Examination | 70 |