Dublin Institute of Technology
Pre-Requisite Co-Requisite ECTS Module NQAI Module Title
Modules Modules Credits Code level Financial Accounting
Module author: Eddie Fleming
This module introduces students to accounting in respect of recording financial
transactions, reporting these transactions in financial statements and the analysis and
To provide students with a knowledge and understanding of financial accounting
processes and the capacity to interpret financial statements
On completion of this module, the learner will be able to:
1. Record financial transactions and prepare financial statements
2. Understand and apply the regulatory framework governing the production and
presentation of financial information
3. Identify the various stakeholders interests in financial information
4. Interpret financial performance from financial statements
Learning and Teaching Methods:
Lectures, group work, e-learning,
Purpose of financial accounting. The users of financial statements; their uses of the
information. The characteristics of useful financial information. Recording of
transactions in a double entry system. Mechanics of preparing a set of accounts,
including year end adjustments. The significance of: fundamental accounting concepts,
accounting bases and accounting policies. Concept of realised profit. The distribution of
The terminology used in published financial statements: balance sheets, profit & loss accounts,
cash flow statements. The major features of the Directors' Report and the Chairman's Statement,
and the significance of the information contained within them.
Prepare relevant financial statistics and ratios to assess the performance and position of an organisation.
Prepare a cash flow statement. Distinguish between cash flow and profit. Use financial statistics and ratios
on the published financial statements, assess the performance and position of an organisation.
The Regulatory Framework
The regulatory framework within which financial statements are prepared and used, including: the legal
framework; the role of the Financial Reporting Council and constituent bodies; the Stock Exchange; and
the accounting profession. The effects of the regulatory framework on the interpretation of financial
Valuation of Assets and Income Measurement.
The valuation rules and procedures for fixed assets and current assets commonly used in the preparation of
historical cost accounts. Examples of the effects of different valuation rules and procedures, and the
implications of the valuation rules commonly used in historical cost accounts. Alternative valuation
conventions and in particular discuss their ability to deal with the problems caused by changing prices. The
effects of different accounting conventions on the measurement of income.
The basic principles of the system of corporate taxation at a level sufficient to interpret published financial
statements of companies
Groups of Companies
The preparation of accounts for groups of companies; the differences between group accounts and the
financial statements for a single company. Simplified group accounts from the financial statements of a
parent company and subsidiary.
Continuous assessment 30% assesses the student’s developing understanding of the
Final Examination 70% 2 hour exam paper demonstrates the student’s
understanding of theoretical aspects of module, which predominate the module.
Dyson, J.R. Accounting for Non-Accounting Students
Pitman Publishing, 5th Edition, 2001 (update)
Financial Press including Financial Times, Business & Finance
Web references, journals and other:
Accounting and Business
Further Details: This module is delivered on a semesterised basis of two hour lecturers
per week over a 15 week period