|Short Title:||Financial Accounting 5|
|Full Title:||Financial Accounting 5|
|Field of Study:||Accounting and taxation|
|Module Delivered in
|Module Author:||MARTIN NOLAN|
|Module Description:||This module aims to build on the knowledge of accounting concepts, terminology, principles acquired in previous Financial Accounting modules. In particular, students will build up their knowledge of the requirements of International Financial Reporting Standards and the application of the standards to the preparation of limited company financial statements.|
|On successful completion of this module the learner will be able to:
||Prepare and present financial statements for limited companies in accordance with international financial reporting standards (IFRS).
||Apply the recognition, measurement and disclosure requirements of selected accounting standards to the preparation of financial statements under IFRS.
||Select and apply appropriate accounting procedures and disclosures to accounting for non-current assets in accordance with ÌFRS.
||Explain the concept of substance over form and apply it to practical situations.
||Explain the rationale for and accounting treatment of operating and finance leases in accordance with IFRS.
|No Co-requisite modules listed|
Module Content & Assessment
|Content (The percentage workload breakdown is inidcative and subject to change)
Preparation and presentation of Financial Statements (IAS 1) (20%)Introduction to terminologies and Financial Statements presentation requirements under IAS 1.
Role of Notes to Financial Statements
Statement of Changes in Equity
Statement of Recognised Income and Expense
Example PLC Annual Report
Accounting policies note - changes in acc policies, accounting estimates; changes in accounting policies, errors (IAS 8)
Other presentation and disclosure standards – IFRS 5, IAS 10, IAS 12, IFRS 1 (25%)Non-current assets held for sale and discontinued operations - IFRS 5
Definitions; Treatment of N/C assets held for sale; presentation and disclosure of discontinued operations in income statement and notes.
Events after the balance sheet date – IAS 10
Definitions; Adjusting events; Non-adjusting events; Dividends.
IAS 12 Income taxes (current tax only)
Presentation of income tax in the financial statements. Under/ over provision in prior period. Revision of Accounting for VAT.
IFRS 1 - First time adoption of IFRS
Introduction to issue; overview of timeline, reconciliations and disclosure requirements.
IAS 37 Provisions, Contingent Liabilities and Contingent Assets
Introduction to issue and definitions; legal and constructive obligations; provisions – recognition and measurement; contingent liabilities; contingent assets; onerous contracts; restructuring; intermediate level examples of the above
Revenue recognition and substance over form (10%)Revenue recognition (IAS 18)
Meaning of revenue; sale of goods; provision of services; interest royalties and dividends; problems with IAS 18; balance sheet approach to revenue recognition – IASB Framework, FRS 5 application Note G.
Substance over form
Concept and introduction; Determining substance; Quasi-subsidiaries; consignment stock; sale and re-purchase; Sale and lease back; factoring. Reference to FRS 5 (UK)
Leases (IAS 17) (15%)Explain the difference between a finance lease and an operating lease.
Account for operating leases in financial statements
Account for finance leases in the financial statements of lessees.
Account for finance leases in the financial statements of lessors.
Outline the principles of IAS 17 and its main disclosure requirements
Non-current assets (30%)Property, plant and equipment (IAS16)
Recognition and measurement; subsequent expenditure; revision of useful lives; depreciation and residual values; revaluation model – recognition, measurement, depreciation, reserve transfer of realized amount; component depreciation; PPE note; re-instatement of environment.
Borrowing costs (IAS 23)
Arguments for and against capitalization; requirements of IAS 23- benchmark and allowed alternative. Disclosures.
Investment property (IAS 40)
Definition; initial and subsequent measurement - cost and fair value methods. Difference between fair value and revaluation; asset transfers to/from investment property.
Accounting for government grants and disclosure of government assistance IAS 20
Definitions; general principles – netting, deferred income methods; requirement of IAS 20; government assistance; disclosures.
Intangible assets (IAS 38)
Definitions; general principles – internally and externally generated; brands; recognition; research and development; subsequent measurement – cost or revaluation; amortization; impairment losses.
Impairment of assets (IAS36)
Scope; identification of possible impairments; measurement of recoverable amount; recognition and measurement of impairment losses; cash generating units; allocation of impairment losses
|End of Module Formal Examination||70.00%|
||% of total
||The continuous assessment will be in the form of an in-class time constrained closed book test covering one or more of the learning outcomes.
|End of Module Formal Examination|
||% of total
||End-of-Semester Final Examination
IT Tallaght reserves the right to alter the nature and timings of assessment
|This module has no Full Time workload.|
|This module has no Part Time workload.|
|Required Book Resources|
- ACCA Paper 2.5, Financial Reporting (International), Foulkes Lynch Study Text
|Recommended Book Resources|
- IASB 2007, International Financial Reporting Standards
- Pierce, Aileen and Brennan, Niamh, 2003, Principles and Practice of Group Accounts a European Perspective,, Thompson
- Lewis, R., and Pendrill, D.,, Advanced Financial Accounting, Pitman
- Elliott B. and Elliott E, International Financial Accounting & Reporting, (Prentice Hall)
- Alexander, D., and Britton, A., International Financial Reporting & Analysis, Thomson Learning
|This module does not have any article/paper resources|
- http://www.icai.ie: ICAI
- http://www.icai.ie/Members/ifrs.cfm: ICAI: IFRS
- http://www.icaew.co.uk/: ICAEW
- http://www.accaglobal.com/: ACCA
- http://www.cimaglobal.com/: CIMA
- http://www.cpaireland.ie/: ICPAI
- http://www.frc.org.uk/asb/: ASB
- http://www.iasb.org/: IASB
- http://www.iasplus.com/index.htm: IASPLUS