11 Module Syllabi
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11 Module Syllabi
The following are the module syllabi for the Institute of Incorporated Public Accountant professional accounting programme.
Accounting Framework – Module 1
PREREQUISITES
There is no prerequisite for this module.
LEVEL OF KNOWLEDGE
This syllabus is designed to provide learners with fundamental accounting knowledge in order to progress towards a professional qualification.
The specific knowledge levels are assessed through the syllabus at three intellectual levels:
Level 1 – Knowledge and comprehension Level 2 – Application and analysis Level 3 – Synthesis and evaluation
(reference Taxonomy by Bloom 1913/1999).
MODULE OBJECTIVES
1. To provide learners with an understanding of basic accounting principles and procedures. 2. To provide learners with the ability to apply these principles in the preparation of financial statements.
MODULE LEARNING OUTCOMES
Having successfully completed this module learners are expected to be able to:
1. Discuss the theoretical aspect of the regulatory framework of accounting in a modern environment. 2. Demonstrate an ability to identify, classify and record transactions in relation to a business entity. 3. Apply specific International Accounting Standards to the preparation of financial statements. 4. Construct a set of accounts from a Trial Balance for unincorporated entities including any necessary adjustments in relation to any notes provided to the Trial Balance. Learning Content Methods of learning Assessment Outcomes 1. Section 1 Reading and exercises regarding the 100% by evolution of accounting. examination 2. Sections 2 - 4 Reading and exercises in relation to 100% by specific IASs, recording transactions and examination the preparation of accounts. 3. Sections 2 - 4 Readings and exercises for changes in 100% by asset valuations and the preparation of examination sole trader accounts. 4. Section 4 Readings and exercises and the 100% by explanation and expression of accounts examination for non incorporated entities. MODULE LEARNING OUTCOMES MAP
Study through attendance at relevant lectures and/or reading of relevant texts and other literature accompanied by the execution of practical exercises to access one’s level of preparation for the examination.
SYLLABUS CONTENT AND WEIGHTING
1. Accounting theory Study Weighting: 10%
Knowledge Level 1 2 3 1. The Regulatory framework of accounting * 1 1. The nature and scope of financial and related records, accounts * 2 and statements 1. The limitations of accounting and the problems of income * 3 measurement 1. Interest of stakeholders in accounts * 4 1. The formation of the IASB and the IASC Foundation * 5 2. Identification, Recording and classification of transactional data Study Weighting: 35% Knowledge Level 1 2 3 2.1 Principles and * Procedures: Summarisatio n of recorded data and the application of the two transaction perspective (involving double entry) in order to group transactions for posting to T accounts in the Nominal Ledger. The extraction of a Trial Balance and the ability to execute a number of post Trial Balance adjustments 2.2 Bank * reconciliation statements 2.3 Preparation of * journals for a sole trader business. 2.4 Adjustments * including bad debts, discounts, correction of errors 2.5 Allocation of * expenditure and income between capital and revenue and the treatment accruals and prepayments. 2.6 Depreciation * The methods of providing for depreciation (straight line, reducing balance and machine hours) Disposal of a non current asset 2.7 Suspense * accounts 2.8 Control * accounts 2.9 Books of * prime entry 2.1 Identification of different organisational structures: sole trader, * 0 partnership and limited companies
3. Financial Statements Study Weighting: 35% Knowledge Level 1 2 3 3.1 Preparation of * financial statements (income statements, statement of financial position and statement of changes in equity for sole traders using IAS 1) 3.2 Stock * valuations – IAS 2 3.3 Property, * plant and equipment – IAS 16
4. The accounts of non incorporated entities Study weighting: 20% Knowledge Level 1 2 3 4.1 Partnership * Accounts: Goodwill Revaluation Dissolution (including Garner v Murray rule) Amalgamatio n Conversion to a limited company 4.2 Preparation of * club accounts 4.3 Preparation of * manufacturin g accounts 4.4 Incomplete * records
REQUIRED READING
Frank Wood and Alan Sangster, Business Accounting 1, Current Edition, Pearson Education
McCallig, J, Introductory Financial Accounting, Current Edition, Donmorris Books
RECOMMENDED READING
McLaney, E and Antrill, P: Accounting: An Introduction, Current Edition, Prentice Hall Europe.
Clare, P and McDermott, E: Financial Accounting, an Introduction, Current Edition, Gill and Macmillan.
Gelinas, Sutton and Oram: Accounting Information Systems, Current Edition, South-western, Division Of Thomson Learning
Alfredson, Leo, Picker, Oacter, Radford; Applying International Accounting Standards, Current Edition, John Wiley & Sons R.H. Parker; Understanding Company Financial Statements, Current Edition, Prentice Hall
WEBSITES www.iasb.com www.iasplus.com www.ifrs.com www.bized.com
JOURNALS
The IIPA Journal Accountancy Age Australian CPA Journal of Institute of Chartered Accountants ACCA Journal 5 Economics - Module 2
6 PREREQUISITES
There are no perquisites for this module.
LEVEL OF KNOWLEDGE
This syllabus is designed to enable learners to understand the main concepts, tools and theories of economics, achieve a good level of economic literacy, understand information on developments in the Irish and International economies and identify ways in which this learning may be applied to aid decision-making in commercial organisations.
The specific knowledge levels are assessed through the syllabus at three intellectual levels:
Level 1 – Knowledge and comprehension Level 2 – Application and analysis Level 3 – Synthesis and evaluation
(reference Taxonomy by Bloom 1913/1999).
MODULE OBJECTIVES
1. To provide learners with an understanding of fundamental microeconomic and macroeconomic concepts. 2. To establish a firm foundation for further studies in areas other than economics where knowledge of economic concepts and principles is desirable. 3. To enable students to apply these concepts to analyse the business environment.
MODULE LEARNING OUTCOMES
Having successfully completed this module learners are expected to be able to:
1. Demonstrate knowledge of the concepts and methods pertaining to both micro and macroeconomics. 2. Analyse specified theoretical and applied economic situations. 3. Apply analysis and statistics to critically evaluate economic arguments. 4. Interpret the current economic position in Ireland and compare and contrast possible proposals to deal with our current challenges. Learning Content Methods of learning Assessment Outcomes 1. Sections 1 - 10 Readings and exercises for all sections 100% by of syllabus. examination 2. Sections 2 - 10 Readings and exercises for all sections 100% by of syllabus. examination 3. Sections 2 - 10 Readings and exercises for both 100% by microeconomics and macroeconomics. examination 4. Sections 6 -10 Readings and exercises for international 100% by trade and Ireland’s economic policy. examination MODULE LEARNING OUTCOMES MAP
Study through attendance at relevant lectures and/or reading of relevant texts and other literature accompanied by the execution of practical exercises to access one’s level of preparation for the examination.
SYLLABUS CONTENT AND WEIGHTING
Syllabus Content:
Knowledge Level 1 2 3 1. The scope and study of economics * 1 1. Rationality * 2 1. Marginal analysis and incentives * 3 1. Economic methodology * 4
2. Microeconomics – The market and prices Study Weighting: 15% Knowledge Level 1 2 3
2.1 Determinants of demand and supply * 2.2 Market equilibrium * 2.3 Elasticity and its application * 2.4 Application of demand and supply to factor markets * 3. Microeconomics – Theory of the firm Study Weighting: 10% Knowledge Level 1 2 3
3.1 Objectives of the firm * 3.2 Long run and short run production * 3.3 Costs of production * 3.4 Supply decisions of firms *
4. Microeconomics – Analysis of competition Study Weighting: 10%
Knowledge Level 1 2 3
4.1 The competitive ideal: Perfect competition * 4.2 Monopoly * 4.3 Imperfect competition: Theories of oligopoly *
5. Microeconomics – Market failure and public policy Study Weighting: 10% Knowledge Level 1 2 3
5.1 Analysis of market failure * 5.2 Producer and consumer surplus * 5.3 Pareto efficiency * 5.4 Policy evaluation and appraisal *
6. Macroeconomics – The National Accounts Study Weighting: 10%
Knowledge Level 1 2 3
6.1 The value-added concept * 6.2 The main aggregates: GNP, GDP * 6.3 Uses and limitations * 6.4 Case study of Ireland * 7. Macroeconomics – Aggregate demand supply Study Weighting: 10%
Knowledge Level 1 2 3
7.1 Economic cycles * 7.2 The Keynesian model * 7.3 Fiscal policy and the multiplier * 7.4 Supply-side approaches *
8. Macroeconomics. Money, inflation and unemployment Study Weighting: 10%
Knowledge Level 1 2 3
8.1 Money supply and demand * 8.2 The role of banks * 8.3 Monetary policy and interest rates * 8.4 Analysis of unemployment *
9. Macroeconomics – International trade and globalisation Study Weighting: 10%
Knowledge Level 1 2 3
9.1 The global trading environment * 9.2 Comparative and competitive advantage * 9.3 The balance of payments * 9.4 Ireland’s trade experience and performance *
10. Macroeconomics – Economic policy in Ireland Study Weighting: 10%
Knowledge Level 1 2 3
10. Industrial policy and competitiveness * 1 10. Public expenditure and taxation policy * 2 10. Competition policy * 3 10. Social partnership and incomes policy * 4
Essential Reading Turley, G. and M. Maloney; Principles of Economics: an Irish Textbook. Current Edition, Dublin: Gill and Macmillan Conway, E; 50 Economics ideas that you really need to know, Current Edition, Quercus Publishing O’Leary, J: Make that grade in economics, Current Edition, Gill and Macmillan
Recommended Reading McConnell, C.R and Brue S.L; Economics, principles, problems and policies, Current Edition, McGraw Hill O’Hagan, J. and Newman C; The Economy of Ireland: Policy issues for a regional economy, Current Edition, Dublin: Gill and Macmillan Kirby, P Celtic tiger in collapse; Explaining the weaknesses of the Irish Model; Current Edition, Palgrave Macmillan
Sloman, J Economics, Current Edition, London: Prentice Hall
Begg, D ;Economics, Current Edition, London: McGraw-Hill
The most useful readings are often found in periodicals on the Irish and international economies. There are numerous such periodicals and learners should familarise themselves with the following:
ESRI Quarterly Economic Commentary www.esri.ie Department of Finance Economic Review www.irlgov.ie/finance Central Bank of Ireland Quarterly Bulletin www.cewntralbank.ie Forfás analysis of the Irish Economy www.forfas.ie Latest statistics on the Irish economy are available from the CSO www.cso.ie The Economist is useful for International material www.economist.co.uk Regular analysis is also available on the websites of the major banks. See for example www.aibeconomics.com, www.treasuryspecialists.com
Other useful websites: www.irisheconomy.ie www.ronanlyons.com
Journals
IIPA Journal The Economic and Social Review The Irish Banking Review Social Studies Paul Krugman’s column for The New York Times http://topics.nytimes.com The Financial Times www.ft.com Will Hutton’s column in The Observer on Sundays www.guardian.co.uk/commentisfree Business Law and Company Law - Module 3
PREREQUISITES
There are no perquisites for this module.
LEVEL OF KNOWLEDGE
This syllabus is designed to enable learners to understand the main vocabulary and legislation to achieve a good level of legal literacy, understand information on developments in the Irish law and identify ways in which this learning may be applied to aid decision-making in commercial organisations.
The specific knowledge levels are assessed through the syllabus at three intellectual levels:
Level 1 – Knowledge and comprehension Level 2 – Application and analysis Level 3 – Synthesis and evaluation
(reference Taxonomy by Bloom 1913/1999).
MODULE OBJECTIVES
1. To provide learners with an understanding of business and company law. 2. To enable learners to anticipate, recognise and avoid potential legal problems. 3. To equip learners with the necessary legal vocabulary and knowledge of Irish law to deal with the regulatory environment. 4. To enable learners to recognize when to seek professional legal advice, and be able to liase effectively with members of the legal profession
MODULE LEARNING OUTCOMES
Having successfully completed this module learners are expected to be able to:
1. Understand the operation of the Irish legal system. 2. Demonstrate knowledge of the enforcement of contractual agreements and remedies for their breach. 3. Discuss the regulation of the employment environment by the legislature and the courts. 4. Explain the law applying to companies to their suppliers, employees and customers. Learning Content Methods of learning Assessment Outcomes 1. Sections 1 - 4 Readings on company and business law. 100% by examination 2. Sections 2 - 4 Readings on contract, employment and 100% by company law. examination 3. Sections 1 - 4 Readings and exercises on Irish law. 100% by examination 4. Sections 2 - 4 Readings and exercises on law. 100% by examination MODULE LEARNING OUTCOMES MAP
Study through attendance at relevant lectures and/or reading of relevant texts and other literature accompanied by the execution of practical exercises to access one’s level of preparation for the examination.
SYLLABUS CONTENT AND WEIGHTING
Syllabus Content:
1. Introduction to Irish Law Study weighting: 15%
Knowledge Level 1 2 3 1. Classification of Law: Civil and criminal law * 1 1. Sources of Irish Law * 2 1. The Constitution 1937, legislation, case law and EU law * 3 1. The Courts structure and legal personnel * 4 1. Alternative methods of dispute resolution * 5
2. Law of Contract Study weighting: 30%
Knowledge Level 1 2 3
2. Formation of a valid contract-offer, acceptance, * 1 consideration, legal intent and formality 2. Contents of a valid contract-express and implied terms, * 2 conditions and warranties 2. Terms implied in Sale of Goods contracts, exclusion clauses * 3 2. Performance and discharge of contract * 4 2. Breach of contract and remedies for breach * 5 2. Contracts of agency * 6
3. Employment Contracts Study weighting: 15%
Knowledge Level 1 2 3
3. Formation of contracts of service and for services * 1 3. Employment Contracts, rights of regular part time employees * 2 3. Express and implied terms under common, collective * 3 bargaining and legislation 3. Safety, Health and Wealth at Work Act 2005 * 4 3. Employment Equality Acts 1998 and 2008 * 5 3. Unfair Dismissal Acts 1977 to 2007 * 6 3. Redundancy Payment Acts 1967 to 2007 * 7
4. Company Law (as governed by the Companies Acts, 1963 to 2009) Study Weighting: 40%
Knowledge Level 1 2 3
4.1 Business formats: sole traders, partnership and companies * 4.2 Corporate personality and piercing the veil of incorporation * 4.3 Types of companies * 4.4 Formation of company, memorandum and articles of * association 4.5 Company records and accounts * 4.6 Share capital and types of shares * 4.7 Shares and dividends * 4.8 Company directors-appointment, removal, restriction and * disqualification 4.9 Director’s rights and duties, statutory duties of directors, * liability for breach of duty 4.1 Fraudulent and reckless trading and fraudulent preferences * 0 4.1 Shareholders meetings and directors meeting * 1 4.1 Minority shareholder protection * 2 4.1 Company secretary and auditor, companies (Auditing and * 3 Accounting) Act 2003, Companies Amendment Act 2009 4.1 Company borrowings, debentures and charges, * 4 examinerships, receiverships and liquidations
Essential Reading
IIPA Manual
Murphy E; Business and Company Law for Irish Learners, Current Edition, Gill and Macmillan
Doolan B; Principles of Irish Law, Current Edition Gill and Macmillan
Recommended Reading
Murphy E; Make that Grade – Irish Company Law Revision, Current Edition, Gill and Macmillan
Keenan A, Essentials of Irish Business Law, Current Edition, Gill and Macmillan
Davenport R, Make that grade – Fundamentals of Irish Law, Current Edition, Gill and Macmillan
Forde M, Commercial Law, Current Edition, Tottel, Haywards Heath
Clarke R; Contract Law, Current Edition, Thomson Round Hall
Companies Acts 1963-2009 Gill and Macmillan, Current Edition or Government Publications http://www.deti.ie/commerce/companylawadmin/legislation.htm
Journals
IIPA journal PREREQUISITE
There is no prerequisite for this module.
LEVEL OF KNOWLEDGE
This syllabus is designed to provide learners with knowledge of income tax, corporation tax, capital gains tax and value added tax. It is designed to teach learners to compute tax calculations and understand the rules relating to each tax head.
The specific knowledge levels are assessed through the syllabus at three intellectual levels:
Level 1 – Knowledge and comprehension Level 2 – Application and analysis Level 3 – Synthesis and evaluation
(reference Taxonomy by Bloom 1913/1999).
MODULE OBJECTIVES
1. To understand the operation and administrative procedures of the Irish Tax system as provided in the legislation and applied by the Office of the Revenue Commissioners. 2. To be able to perform tax computations in income tax, corporation tax, capital gains tax and value added tax.
MODULE LEARNING OUTCOMES
Having successfully completed this module learners are expected to be able to:
1. Prepare a comprehensive income tax computation including all schedules, levies, payments and filing dates. 2. Demonstrate an ability to calculate a company’s tax adjusted profits and their tax liability and outline payment and return filing dates. 3. Apply capital gains tax principles and use this knowledge to calculate a standard computation. 4. Demonstrate the application of VAT principles to businesses. MODULE LEARNING OUTCOMES MAP Learning Content Methods of learning Assessment Outcomes 1. Sections 2 - 3 Readings and exercises 100% by examination 2. Section 4 Readings and exercises 100% by examination 3. Section 5 Readings and exercises for capital 100% by gains tax. examination 4. Section 6 Readings and exercises for value 100% by added tax. examination
Study through attendance at relevant lectures and/or reading of relevant texts and other literature accompanied by the execution of practical exercises to access one’s level of preparation for the examination.
SYLLABUS CONTENT AND WEIGHTING
Syllabus Content
1. Administration of taxation Study Weighting: 10%
Knowledge Level 1 2 3 1. The System of Administration including self-assessment, * 1 the manner in which taxes are collected including Revenue Audit assessments and appeals 1. The Roles and Responsibilities of the Revenue * 2 Commissioners, Appeal Commissioners, The Collector General and The Inspector of taxes 1. The Structure of the legislation and a basic understanding * 3 of Residence and Domicile
2. Income Tax – Self employed Study Weighting: 15% Knowledge Level 1 2 3 2.1 The * definition of the Badges of Trade and the distinction between Income and Capital 2.2 The basis for * charging different types of income tax under Schedule D case (i) to (v) including - commencem ent - cessation and - change of accounting date 2.3 Calculating * the tax adjusted profit for a sole trader. 2.4 Understand * refundable and non refundable tax credits. 2.5 Calculate: * - Char ges inclu ding: - cove nants - intere st relief - Dedu ctible relief s inclu ding: - pensi ons, - busin ess expa nsion sche mes - film relief - maint enanc e paym ents - empl oying a carer - perm anent healt h insur ance 2.6 Computation of the liability to tax for a sole trader * including income levies, PRSI and health levy.
3. Income Tax Study Weighting: 15%
Knowledge Level 1 2 3 3.1 Computation * of taxation under schedules E and F 3.2 The * determinatio n of - benef its- in- kind, - perqu isites - lump sum paym ents - allow able expe nses and - the rules of the PAY E syste m as they apply to empl oyers 3.3 The different * basis of assessment for married and separated couples including their treatment in the year of death 3.4 Understand the tax implication of sub contractors and the * rules that are applicable. 3.5 Computations of capital allowances available to sole * traders and partnerships. 3.6 Calculation of the taxation implications of partnerships. *
4. Corporation Tax Study Weighting: 20%
Knowledge Level 1 2 3 4.1 Basic * Corporation Tax computation s including the treatment of chargeable gains, (excluding losses).
5. Capital Gains Tax Study Weighting: 20%
Knowledge Level 1 2 3 5.1 The * calculation of a liability to Capital Gains Tax including: - index ation - loss relief - princi pal privat e resid ence relief - share trans actio ns - part dispo sals - chatt els - the dispo sal of busin ess assets and - the treat ment of devel opme nt land 5.2 Address the * relevance of: - resid ence - ordin ary resid ence and - domi cile for CGT purpo ses
6. VAT Study weighting: 20% Knowledge Level 1 2 3 6.1 Value Added * Tax principles including: - legisl ation and admi nistra tive rules relati ng to regist ration - the oblig ation to maint ain recor ds - the defini tion of taxab le good s and servi ces - taxab le servi ces and the treat ment of impo rts - expor ts - self- suppl ies - the cash basis of accou nting for VAT - the two- thirds rule - the cockt ail rule and - fourt h sched ule servi ces. Essential Reading:
IIPA Manual
Tom Conlon; Learners Tax Handbook (Current edition, annually updated in September), McKeon Murray
Gaynor, Holly, Kennedy, May, Murphy, Sheridan, Whyte; Irish Taxation Law and Practice, (Current edition) Irish Taxation Institute
Recommended Reading
Martyn, Reck; Taxation Summary (Current edition); Institute of Taxation
McAteer, Reddin, and Deegan: Income Tax (Current edition), Institute of Taxation
Connolly, Bradley and Purcell: Capital Allowances (Current edition), Institute of Taxation
John Bradley: PRSI and Levy Contributions (Current edition), Institute of Taxation
Appleby and O’Hanlon: The Taxation of Capital Gains Tax (Current edition), Institute of Taxation
Brennan, Moore, O’Sullivan and Clarke: Corporation Tax (Current edition), Institute of Taxation
Consolidated Taxes Act 1997 (as subsequently amended), Value Added Tax Acts, and Revenue Statements of Practice and Tax Briefings: www.irishstatutebook.ie
Websites www.revenue.ie www.cro.ie
Journals
The IIPA journal The Irish Tax Review PREREQUISITES
There are no prerequisites for this module.
LEVEL OF KNOWLEDGE
This syllabus is designed to provide learners with an understanding of the role of the management accountant and a knowledge of the techniques employed in management accounting.
The specific knowledge levels are assessed through the syllabus at three intellectual levels:
Level 1 – Knowledge and comprehension Level 2 – Application and analysis Level 3 – Synthesis and evaluation
(reference Taxonomy by Bloom 1913/1999).
MODULE OBJECTIVES
1. To give the learners an appreciation of the techniques employed in management accounting as part of the management information system. 2. To give the learners an understanding of the role of the management accountant within the management team.
MODULE LEARNING OUTCOMES
Having successfully completed this module learners are expected to be able to:
1. Have acquired an understanding of the inter- relationship between management and financial accounting and explain cost terms, methods and their use in management accounting applications. 2. Demonstrate the use of costing techniques. 3. Use cost accounting to provide information for decision making purposes. 4. An ability to compute budgets and control statements in various organizations settings and to understand the implications of these statements. Learning Content Methods of delivery Assessment Outcomes 1. Section 1 Readings regarding management and 100% by financial accounting. examination 2. Sections 2 – Readings and exercises in relation to cost 100% by 4, 6 accounting concepts. examination 3. Sections 2 - 4 Readings and exercises. 100% by examination 4. Section 5 Readings and exercises. 100% by examination MODULE LEARNING OUTCOMES MAP
Study through attendance at relevant lectures and/or reading of relevant texts and other literature accompanied by the execution of practical exercises to access one’s level of preparation for the examination.
SYLLABUS CONTENT AND WEIGHTING
Syllabus Content
1. The Role of the Management Accountant Study weighting 10%
KnowledgeLevel 1 2 3 1. Understanding the difference between management accounting * 1 information and financial accounting information 1. Users of management accounting information * 2 1. Design of cost and management accounting information * 3 systems. Usage of financial and non-financial performance measures 1. The management accountants role in a modern business * 4 organization 1. The management accountant as an information provider, * 5 policy setter, decision maker and financial manager 1. Design of management accounting systems to address internal * 6 and external information requirements 1. Impact of advanced manufacturing techniques on management * 7 accounting 2. Cost Accounting Concepts Study weighting 10%
KnowledgeLevel 1 2 3 2.1 Understandin * g the behavior of variable and fixed costs and their relationship with volume 2.2 Different cost * categories: production, post- production, direct and indirect and the accounting treatment thereof 2.3 Cost units * and cost centers 2.4 Cost * accounting and ledger accounting treatment of materials, labour and overheads 2.5 Control * systems and procedures for purchasing and issuing materials 2.6 Identification * of indirect production costs 2.7 Differentiatio * n of direct and indirect labour costs and accounting treatment thereof 2.8 Different * production methods: job, batch, continuous flow, just in time. Importance of quality in production
3. Absorption Cost Accounting Methods Study weighting 20%
KnowledgeLevel 1 2 3 3.1 Information * requirement from absorption cost accounting methods 3.2 Absorption * costing: apportioning overheads to cost of goods manufactured and work in progress. Job costing, contract costing, batch costing, process costing and service costing 3.3 Special * features of process costing: equivalent units, normal losses, abnormal losses/gains and treatment of waste/scrap 3.4 Valuation of * closing work in progress with particular reference to IAS 2. Accounting treatment of over/under absorption of overheads 3.5 Activity * based costing, identification and establishment of cost activities driver and cost per driver. Application of activity based costing to absorption costing methods 3.6 Usage of * absorption costing for decision- making
4. Variable Cost Accounting Methods Study weighting 20% KnowledgeLevel 1 2 3 4.1 Differences * between variable costing and absorption costing. Variable costing statements v’s absorption costing statements 4.2 Understandin * g the concept of contribution 4.3 Cost volume * profit behavior 4.4 Break-even * analysis: numerical and graphical 4.5 Usage of * margin of safety and contribution/s ales ratio 4.6 Usage of * variable costing for short-term decision- making 4.7 Concept of * relevant costs 4.8 Make or buy * decisions, usage of scarce resources, special order situations and shutdown decisions 5. Budgeting Study weighting 20%
KnowledgeLevel 1 2 3 5.1 The relevance * and importance of budgets to organizations. Translation of strategic objectives to operating budgets 5.2 The budget * setting process. The budget period 5.3 The budget * committee, its composition, functions and role 5.4 Behavioral * aspects of budgeting 5.5 The different * types of budget, master, functional- sales, production, materials, usage and purchases, direct labour and indirect. Cash budgeting 5.6 Inter- * relationship of primary, secondary and master budgets 5.7 Introduction * to alternative types of budgets, incremental, zero based, activity based.
6. Standard Costing Study weighting 20%
KnowledgeLevel 1 2 3 6.1 Introduction * to control theory. Inter- relationship between budgeting and standard costing 6.2 The standard * setting process and establishment of standards for each element of cost 6.3 Flexible * budgeting. Thorough knowledge of basic cost and volume variances 6.4 Direct * materials cost variance split into price and usage variances 6.5 Direct labour * cost variance split into rate and efficiency variances 6.6 Variable * overhead cost variance split into rate and efficiency variances 6.7 Fixed * overhead expenditure and volume variances 6.8 Sales price * and volume profit variance 6.9 Interpretation * of basic cost variances and purposes for usage
ESSENTIAL READING
Lucey, T; Costing, Current Edition, 2008, DP publications
Lucey, T, Hitchen, W.E; Costing, A practice and revision manual, DP publications
Horngren, C.T., Sundem, G, L.and Stratton, W.O. Introduction to Management Accounting Current Edition, Pearson Education
Drury C; Management and Cost Accounting , Current Edition, International Thomson
RECOMMENDED READING
Wheetman, P; Management Accounting, Current Edition, Pearson Education Horngren, Foster and Datar : Cost Accounting: A Managerial Emphasis , Current Edition, Prentice Hall International.
Atkinson, Kaplan, Matsumura, Young; Management Accounting International Edition, Current Edition, Pearson Education
Williamson D; Cost and Management Accounting, Current Edition, Prentice Hall International
WEBSITES www.mamag.com www.maaw.info www.accountingformanagement.com
JOURNALS
Financial management magazine CIMA Management accounting quarterly Management accounting research (www.academicpress.com) Journal of cost analysis and management (www.sceaonline.net) CMA management (www.managementmag.com) Journal of management and governance (www.kluweronline.com) Critical perspectives on accounting (www.academicpress.com) PREREQUISITES There are no perquisites for this module.
LEVEL OF KNOWLEDGE
This syllabus is designed to provide learners with a knowledge of Business Information Systems and to broaden their skill set and values as they progress through their studies.
The specific knowledge levels are assessed through the syllabus at three intellectual levels:
Level 1 – Knowledge and comprehension Level 2 – Application and analysis Level 3 – Synthesis and evaluation
(reference Taxonomy by Bloom 1913/1999).
MODULE OBJECTIVES
1. To provide learners with a basic knowledge of business information systems. 2. To provide learners with an appreciation of the processes involved in the development and management of information systems in business.
MODULE LEARNING OUTCOMES
Having successfully completed this module learners are expected to be able to:
1. Explain the role of Information Technology and Information Systems in businesses and organisations. 2. Describe in detail the process of developing business information systems. 3. Discuss the different business application systems in organisations and demonstrate an awareness of the strategic role of information within an organization. 4. Discuss the importance of technology and its application within organisations.
Learning Content Methods of learning Assessment Outcomes 1. Sections 2 - 3 Readings and exercises 100% by examination 2. Sections 6 - 5 Readings and exercises 100% by examination 3. Section 4 Readings and exercises 100% by examination 4. Sections 1 - 8 Readings and exercises 100% by examination
MODULE LEARNING OUTCOMES MAP Study through attendance at relevant lectures and/or reading of relevant texts and other literature accompanied by the execution of practical exercises to access one’s level of preparation for the examination.
SYLLABUS CONTENT AND WEIGHTING
Syllabus Content:
1. Business Mathematics for computing Study weighting: 10% Knowledge Level 1 2 3 1. Fundamental principle of counting * 1 1. Statistics: i) Calculating interest rates * 2 ii) Standard deviation ii) Frequency distribution iii) Weighted averages iv) Net present value
2. Information Technology Study Weighting: 5% Knowledge Level 1 2 3
2. Basic concepts * 1 2. Hardware * 2 2. Software * 3 2. Networks and communication * 4 2. Business applications * 5
3. Information Systems Study Weighting: 15% Knowledge Level 1 2 3
3.1 Data and information in organizations * 3.2 Decisions and the decision making process * 3.3 Data and information types, and types of users. * Characteristics of good information 3.4 Levels of management * 3.5 Systems theory: What is a system? * 3.6 Systems communication, environment and adaptability * 3.7 Control systems and feedback, planning and control * 3.8 Sub-systems: What are they and what is their function? Sub- * system by function 3.9 Sales, marketing, production and stock control systems * 3.1 Personnel, budgeting, finance and administration * 0 3.1 Ledgers: sales, purchase. General ledger systems. Packages * 1 3.1 Models, modelling, spreadsheets, databases * 2
4. Business Applications Study weighting 15%
Knowledge Level 1 2 3
4. Operational systems: Transaction processing systems, office * 1 automation systems 4. Management information systems: decision types, decision * 2 making theory, functions of decision support systems, decision support systems components 4. Artificial intelligence, expert systems, executive information * 3 systems 4. Data warehouses, data mining * 4 4. Accounting information systems and application area of * 5 accounting information systems 4. Enterprise resource planning applications * 6
5.Information Systems Development Study weighting 15%
Knowledge Level 1 2 3
5. Methods of software acquisition: bespoke development, off * 1 the shelf 5. End-user developed software: factors affecting software * 2 acquisition 5. The waterfall model, the traditional waterfall model and * 3 information systems acquisition 5. Rapid application development * 4 5. Initiating systems development: reasons for initiating * 5 development 5. Critical success factors,and economic feasibility * 6 5. Assessing costs: tangible / intangible * 7 5. Acquisitions choices and methods: ranking, benchmarking, * 8 factors in selecting software and assessing different products
6. Systems Development and Implementation Study weighting 20%
Knowledge Level 1 2 3
6.1 Project management: estimation, effort and elapsed times, * scheduling and planning 6.2 Software project management: monitoring and control * 6.3 Documentation * 6.4 PRINCE: Project organisation, project plans, project control * 6.5 Network analysis: The critical path method, Gantt charts * 6.6 Project evaluation and review technique(PERT): benefits and * limitations 6.7 Systems theory: i) What is a system? * ii) Control in organizational systems iii) Behaviour of systems iv) Soft System methodology: states of SSM v) Coupling 6.8 Systems analysis * 6.9 Identifying requirements: interviewing, questionnaires, * documentation review and observations 6.1 Brainstorming * 0 6.1 Documenting the findings: requirements specification, * 1 information flow diagrams and context diagrams 6.1 Dataflow diagrams and entity relationship diagrams * 2 6.1 Systems design * 3 6.1 Aids of systems design: constraints and elements of design * 4 6.1 Client server model of computing: 2-tier and 3-tier * 5 6.1 Relational database design and normalisation: What is * 6 normalization? 6.1 Design of input and output Files: file access methods, * 7 indexing, and file descriptions 6.1 User interface design, input design, output design and object * 8 Orientated design 6.1 System build: implementation and maintenance * 9 6.2 Testing : v-model, developer testing, end-user tests and * 0 testing environments 6.2 Documentation * 1 6.2 Software change management including changeover * 2 methods, advantages of different methods, organisational change management and post implementation review. 6.2 Evolution of information systems (system review and * 3 revision, managing change, new version release and upgrade)
7.Managing Information Systems Studying Weighting 20%
Knowledge Level 1 2 3
7.1 What is end user computing? Drivers for end-user computing * and information centre 7.2 End-user development: benefits and problems * 7.3 End-user computing as part of IS strategy * 7.4 Intranet and the internet: history, definitions and terms * 7.5 Finding information on the internet. * 7.6 Business applications of the internet * 7.7 E-commerce * 7.8 Business use of intranets * 7.9 Internet strategy * 7.1 Security: control methods, types of controls, legal controls, * 0 techniques, viruses, security risk analysis and contingency planning 7.1 Legal issues: data protection act, software copyright and * 1 software privacy
7.1 The future of systems: business with systems in the future, * 2 trends in managing information systems and future technologies 7.1 Strategic role of information(use of IT for competitive * 3 advantage, formulating and implementing strategic information planning
Essential Reading Bocij, Chaffey, Greasley and Hickie; Business Information Systems: Technology, Development and Management, Current Edition, FT Pitman Publishing
Kelly R, Rainer, Casey, Cegielski G; Introduction to information Systems: Enabling and Transforming Business, Current Edition, North American Publishing
Elliot and Starkings; Business Information Technology Systems, Theory and Practice, Current Edition, Financial Time Prentice Hall
Recommended Reading: Kenneth E Kendall, Julie E Kendall, Systems Analysis and Design, Current Edition, Prentice Hall Curtis G, Cobhann D; Business Information Systems Analysis, Design and Practice, Current Edition, Pearson Stair R, Reynolds G, Chesney T; Principles of BIS, Current Edition, Course Technology G. Morgan , S. O’Neill; Computer Applications, Current Edition, Gill & Macmillan R. White; How Computers Work, Current Edition, Que Thorpe, J; The Information Paradox : Realizing the Business Benefits of Information Technology, Current edition, McGraw-Hill Education
Useful websites www.dataprotection.ie
Journals
IIPA journal Irish Computer PC Live! Computer Scope IT supplement in Irish Times on Fridays Computer supplement in Sunday Business Post PREREQUISITES
There are no perquisites for this module.
LEVEL OF KNOWLEDGE
This syllabus is designed to provide learners with the professional auditing values, of the basic technical knowledge and the analytical and evaluative competences needed to conduct a statutory audit.
The specific knowledge levels are assessed through the syllabus at three intellectual levels:
Level 1 – Knowledge and comprehension Level 2 – Application and analysis Level 3 – Synthesis and evaluation
(reference Taxonomy by Bloom 1913/1999).
MODULE OBJECTIVES
1. To provide an understanding of the legal requirements, objectives and code of ethics for conducting an audit. 2. To appreciate the fundamental concepts of conducting a good audit. 3. To develop the basic skills and methods required to conduct an audit. 4. To provide sound knowledge, understanding and ability to apply International Auditing Standards.
MODULE LEARNING OUTCOMES
Having successfully completed this module learners are expected to be able to:
1. Identify the important types of information that they would collect to establish their knowledge of the business and be able to apply this knowledge in understanding risk assessment and designing appropriate responses for the risks identified. 2. Apply auditing principles to non-complex situations frequently encountered in practice to plan, conduct testing and quality assure an audit. 3. Apply during the course of the audit the requirements of International Accounting Standards in relation to published financial statements. 4. Analyse and evaluate financial data and to prepare the appropriate auditors’ reports required in given circumstances. MODULE LEARNING OUTCOMES MAP Learning Content Methods of learning Assessment Outcomes 1. Sections 1 - 5 Readings and exercises. 100% by examination 2. Sections 1 - 3 Readings and exercises regarding audit planning 100% by and conducting an audit; practical experience examination 3. Sections 1 - 5 Readings and exercises in relation to audits, 100% by practical experience. examination 4. Sections 1 -5 Readings and exercises, practical experience. 100% by examination
Study through attendance at relevant lectures and/or reading of relevant texts and other literature accompanied by the execution of practical exercises to access one’s level of preparation for the examination.
SYLLABUS CONTENT AND WEIGHTING
Syllabus Content:
1. The Audit Environment and Legal Obligations Study Weighting: 15%
Knowledge level 1 2 3 1. The origins of the audit function: * 1 The historical background The original objectives that were set for the auditor The changing environment in which the auditor must operate External versus internal audit Concepts of accountability, stewardship, agency and liability The responsibility of auditors to the wider population of users of accounts 1. The duties and responsibilities of the auditor under Company Law, EU * 2 directives, Case Law and other relevant legislation (the audit environment) 1. ISA 200 Audit Objectives * 3 1. ISA 210 Reporting Functions: to whom and Statutory responsibilities * 4 1. The Audit Engagement (appointment, dismissal and resignation of an * 5 auditor) 1. General understanding of the ethical framework applying to external auditors * 6 1. Audit engagement letters * 7 1. Audit exemption for small enterprises * 8 2. Audit Planning Study Weighting: 20%
Knowledge level 1 2 3 2.1 ISA 300 Planning an audit of financial statements * 2.2 ISA 315 Identifying and accessing the risk of material misstatement though * understanding of the entity and its environment 2.3 ISA 320 Materiality in planning and performing an audit * 2.4 ISA 330 The auditor’s response to assessed risk (design of tests of control * and substantive tests) 2.5 Development of detailed audit programmes including the relevant * worksheet layout, file referencing, techniques and sample selection (ISA 530) 2.6 Preliminary Analytical Reviews *
3. Conducting an Audit and evaluation of audit evidence Study Weighting: 30%
Knowledge level 1 2 3 3.1 ISA 330 Execution of tests of control and substantive testing * 3.2 ISA 500 Audit evidence * 3.3 ISA 520 Analytical procedures * 3.4 ISA 540 Auditing accounting estimates including fair value accounting * estimates and related disclosures 3.5 ISA 260 Communication with those charged with governance * 3.6 ISA 265 Communication deficiencies in internal control to those charged * with governance and management 3.7 Design and execute the appropriate tests of control and substantive tests for * the major financial statement components
4. Audit Completion and other considerations Study Weighting: 15%
Knowledge level 1 2 3 4. ISA 250 Section A Consideration of laws and regulations in an audit of * 1 financial statements 4. ISA 250, ISA 260 Auditor responsibility in relation to the law and regulation * 2 4. ISA 580 Written Representations * 3 The role of management representations and their reliability as a source of audit evidence 4. Overall review of financial statements including final analytical review * 4 procedures 4. Drafting matters for the attention of partners * 5
5. Audit Reporting Study Weighting: 20%
Knowledge level 1 2 3 5. ISA 700 The auditor’s report on financial statements * 1 5. ISA 705 Modifications to opinions in the independent auditor’s report * 2 5. ISA 706 Emphasis of matter paragraphs and other matter paragraphs in the * 3 independent auditor’s report 5. Audit bulletin 2006/1 * 4 5. Reports to management * 5 5. Approval of financial statements by those charged with governance and * 6 dating of audit reports
Essential Reading:
Auditing Practices Board Standards and Guidance 2010, Chartered Accountants Ireland
Cosserat, G: Modern Auditing, Current Edition, Wiley.
Arens, Elder, Beasley; Auditing and Assurance Services, Current Edition, Prentice Hall
Porter, Simon and Hatherly: Principles of External Auditing, Current Edition, John Wiley and Sons
Solicitor Accounts Regulations 2001 to 2006
Recommended Reading:
Woolf: Auditing Today, Current Edition, Prentice Hall.
Knapp; Contemporary Auditing: Real Issues and Cases; South Western Publishing
Useful websites: www.frc.co.uk www.ifac.org/IAASB www.odce.ie
Journals:
The IIPA Journal Accountancy Ireland Accounting Today PREREQUISITE
Candidates must have passed Module 1 Financial Accounting or achieved a recognised equivalent level of knowledge and understanding.
LEVEL OF KNOWLEDGE
This syllabus is designed to provide learners with a greater depth of knowledge and to broad their skill set and values as they progress through their studies.
The specific knowledge levels are assessed through the syllabus at three intellectual levels:
Level 1 – Knowledge and comprehension Level 2 – Application and analysis Level 3 – Synthesis and evaluation
(reference Taxonomy by Bloom 1913/1999).
MODULE OBJECTIVES 1. To provide learners with an understanding of the framework for the preparation and presentation of financial statements. 2. To enable learners to prepare financial statements (including notes to the financial statements) for single entities including statement of cash flow, statement of comprehensive income, statement of changes in equity and statement of financial position. 3. To enable learner analyse financial statements of various entities and prepare reports on same
MODULE LEARNING OUTCOMES
Having successfully completed this module learners are expected to be able to:
1. Evaluate the rationale behind various International Accounting Standards and their application in the preparation of financial statements. 2. Produce cash flow statements for single entities in accordance with IAS 7 3. Prepare financial statements of single company entities in accordance with particular International Standards. 4. Prepare consolidated financial statements for group entities. MODULE LEARNING OUTCOMES MAP
Learning Content Methods of learning Assessment Outcomes 1. Section 1 Readings and exercises in relation 100% by to a selection of IASs. examination 2. Section 3 Readings and exercises in relation 100% by to the preparation of cash flow examination statements. 3. Sections 1 - 4 Exercises regarding accounts 100% by preparation. examination 4. Sections 5 Readings and exercises on 100% by consolidated accounts. examination
Study through attendance at relevant lectures and/or reading of relevant texts and other literature accompanied by the execution of practical exercises to access one’s level of preparation for the examination.
SYLLABUS CONTENT AND WEIGHTING
Syllabus Content: In dealing with the course the following International Accounting Standards are particularly relevant:
Relevant Accounting Standards and Framework
The following standards are currently examinable but are subject to review on an annual basis. Knowledge Level 1 2 3 Framework for the presentation and preparation of * financial statements IAS 1 Presentation of Financial Statements * IAS 2 Inventories * IAS 7 Cash flow statements of single entities * IAS 8 Accounting polices * IAS 10 Post Balance Sheet events * IAS 12 Income Taxes (excluding deferred tax) * IAS 16 Property Plant and Equipments * IAS 20 Government grants * IAS 27 Consolidated and Separate Financial Statements * IAS 28 Investment in Associates * IFRS 3 Business Combinations * IAS 33 Earnings per share * IAS 36 Impairment of assets * IAS 40 Investment Property * 1. The General Regulatory Framework of Accounting Study Weighting 10% Knowledge Level 1 2 3 1. The Objectives and Purpose of the framework for the * 1 preparation and presentation of financial statements 1. The users of financial statements and their records * 2 1. Elements of financial statements including definition, * 3 recognition, measurement and underlying assumptions 1. Qualitative characteristics of accounting information * 4 1. The Accounting Profession and the role of the Accountant * 5 1. The nature, role and significance of IAS/IFRS’s * 6
2. The Financial Statements of a limited company Study Weighting 40% Knowledge Level 1 2 3 2. Presentation of single company accounts in accordance * 1 with IAS 1 and other particular listed standards 2. The Principal components of financial statements including * 2 Income statement, Statement of Financial Position , Statement of changes in equity, notes to financial statements and/or journal entries 2. Earnings per share * 3 2. Distributable Profits * 4 2. Reconstruction of limited companies or entities * 5
3. Cash Flow Statements Study Weighting 20% Knowledge Level 1 2 3 3. Cash flow statements IAS 7 * 1
4. Interpretation of Financial Statements Study Weighting 10% Knowledge Level 1 2 3 4. Analysis including ratio analysis and interpretation of * 1 financial statements of groups, single incorporated entities and unincorporated entities 4. Preparation and Presentation of Professional reports both * 2 for internal and external use on single incorporated entities and unincorporated entities. 4. Preparation of accounting information for management * 3 control and decision making .4 An appreciation of the use and limitations of ratios and * financial statements in evaluating the performance, positions and changes thereto of a particular entity
5. Preparation of Group Accounts Study Weighting 20% Knowledge Level 1 2 3 5. Preparation of Group Financial statements involving a * 1 parent entity and the acquisition or sale of one subsidiary and or associate in accordance with particular listed standards
REQUIRED READING The Framework for the presentation and preparation of financial statements
Copies of the particular accounting standards listed as directly examinable on the module
Ciaran Connolly; International Financial Accounting and Reporting, Current Edition, Gill and Macmillan
Frank Wood and Alan Sangster, Business Accounting 2, Current Edition, Pearson Education
Barry Elliot and James Elliott, Financial Accounting and Reporting, Current Edition, Pearson Education
RECOMMENDED READING McLaney, E and Antrill, P: Accounting: An Introduction, 5th Edition, 2010, Prentice Hall Europe.
Clare, P and McDermott, E: Financial Accounting, an Introduction, current edition, Gill and Macmillan.
Gelinas, Sutton and Oram: Accounting Information Systems, 6th Edition, 2004; South-western, Division Of Thomson Learning
Alfredson, Leo, Picker, Oacter, Radford; Applying International Accounting Standards, 2nd Edition, 2005, John Wiley & Sons
R.H. Parker; Understanding Company Financial Statements, 5th Edition, 2006, Prentice Hall
Berry and Jarvis; Accounting in a Business Context, 4th Edition, 2005, Cengage Learning
WEBSITES www.iasb.com www.iasplus.com
JOURNALS The IIPA Journal Accountancy Age Australian CPA Journal of Institute of Chartered Accountants ACCA Journal
Advanced Taxation - Module 9
PREREQUISITE
Candidates must have passed Module 4 Taxation or achieved a recognised equivalent level of knowledge and understanding.
LEVEL OF KNOWLEDGE
This syllabus is designed to provide learners with a greater depth of knowledge of taxation and to broaden their skill set and values as they progress through their studies.
The specific knowledge levels are assessed through the syllabus at three intellectual levels:
Level 1 – Knowledge and comprehension Level 2 – Application and analysis Level 3 – Synthesis and evaluation
(reference Taxonomy by Bloom 1913/1999).
MODULE OBJECTIVES
1. Provide learners with a deeper knowledge of income tax including losses and termination payments. 2. Give learners an insite into the capital taxes and allow them to look at the various reliefs available. 3. Allow the learners to develop an appreciation of the basic skills of tax planning
MODULE LEARNING OUTCOMES
Having successfully completed this module learners are expected to be able to:
1. Interpret complex issues for individuals such as use of losses and termination payments and calculate losses for groups in as tax efficient a manner as possible . 2. Collect information regarding an individual’s personal wealth in order to provide estate planning. 3. Assess an individual’s liability to capital gains tax and select the appropriate tax reliefs to be used. 4. Solve problems incorporating more than one tax head and have the ability to engage in prudent and efficient tax planning. MODULE LEARNING OUTCOMES MAP Learning Content Methods of learning Assessment Outcomes 1. Sections 1 - 2 Readings and exercises 100% by examination 2. Section 4 Readings and exercises 100% by examination 3. Section 3 Readings and exercises 100% by examination 4. Sections 1 - 6 Readings and exercises 100% by examination
Study through attendance at relevant lectures and/or reading of relevant texts and other literature accompanied by the execution of practical exercises to access one’s level of preparation for the examination.
SYLLABUS CONTENT AND WEIGHTING
Syllabus Content
1. Income Tax Study Weighting: 15%
Knowledge Level 1 2 3 1. Understanding of termination payments and the ability to * 1 calculate basic exemption, increased exemption and standard capital superannuation benefit. 1. Calculation of the high earners restriction and the rules that 2 apply to it. * The computation and use of losses including terminal losses * 1. and losses created by excess capital allowances as it applies 3 to individuals and partnerships 1. Double taxation relief with particular reference to the * 4 UK/IRL double taxation
2. Corporation Tax and Loss Relief Study Weighting: 20%
Knowledge Level 1 2 3 2. Advanced calculations of liabilities to corporation tax * 1 2. Close companies and their disadvantages * 2 2. Groups and consortia relief * 3 2. Transfers of assets between members and organisations * 4 2. Loss relief including terminal loss relief and loss groups * 5 2. Understanding of payments groups * 6
3. CGT Study Weighting: 15% Knowledge Level 1 2 3 3.1 Capital gains * tax reliefs including - exem ptions from capita l gains tax - retire ment reliefs - transf er of a busin ess to a comp any - dispo sal of a site to a child - CGT/ CAT credit 3.2 The CGT * implications of the following: - dispo sal of shares , - rights issues - bonus issues - the treat ment of long and short leases - wasti ng assets and chatte ls and - devel opme nt land transa ctions 3.3 Territoriality * rules
4. CAT Study Weighting: 15% Knowledge Level 1 2 3 4.1 Wills and the Succession Act * * 4.2 Capital Acquisitions Tax including computational and * * terminology (inheritances, gifts) 4.3 Territoriality rules and the implications of residence and * * domicile pre and post 1 December 1999. 4.4 Examination of the main reliefs and exemptions including: * * - agricultural relief - business relief - transfer of a site to a child and - exemptions from CAT - CGT/CAT credit 4.5 Special relationships including: * * - - favourite niece/nephew - surviving spouse of deceased spouse - minor child of deceased child 4.6 Calculation of limited interests. * * 5. Stamp Duty Study Weighting: 5% Knowledge Level 1 2 3 5. Stamp duty reliefs available including transfers between * 1 associated companies. 5. Stamp duty provisions and calculations relating to: * 2 - the different categories of fixed and ad valorem duties - conveyances on sale - exchange - property - assessing and - adjudication.
6. Tax Planning Study Weighting: 30%
Knowledge Level 1 2 3 6. Trade through a company or as an unincorporated entity: * 1 - Trading losses - Timing on incorporation - Cessation rules - Transfer to a limited company and CGT deferral - Retirement relief 6. Extracting profits from a business through * 2 -Salary -Dividends -Termination payments -Loans -Pension schemes
6. Estate Planning * 3 - Succession Act - Agricultural relief - Business Property relief - CGT/CAT credit - CGT and reliefs - CAT and reliefs - Stamp Duty
Essential Reading:
IIPA Manual
Tom Conlon; Learners Tax Handbook (Current Edition, annually updated in September), McKeon Murray
Gaynor, Holly, Kennedy, May, Murphy, Sheridan, Whyte; Irish Taxation Law and Practice, Finance Act, (Current Edition) Irish Taxation Institute
Recommended Reading: John Ward and Dara Burke; Judge Irish Income Tax, Butterworth, Current Edition
Feeney; The Taxation of Companies, Butterworths, Current Edition
Martyn, Reck; Taxation Summary, Current Edition; Institute of Taxation
McAteer, Reddin, and Deegan: Income Tax, Current Edition, Institute of Taxation
Appleby and O’Hanlon: The Taxation of Capital Gains Tax, Current edition, Institute of Taxation
Brennan, Moore, O’Sullivan and Clarke: Corporation Tax, Current edition, Institute of Taxation
Condon and Muddiman: Capital Acquisitions Tax, Taxation, Current edition, Institute of Taxation
O’Connor and Cahill: The Law of Stamp Duties, Current edition, Institute of Taxation
Corrigan and Williams: Trust and Succession Law, Current edition, Institute of Taxation
Taxes Consolidated Act 1997 (as subsequently amended) Value Added Tax Acts, and Capital Acquisitions Tax Act 1976 (as amended) Stamp duties Consolidated Act 1999 (as amended)
Revenue Statements of Practice and Tax Briefings
Websites www.revenue.ie www.cro.ie
Journals
IIPA Journal The Irish Tax Review Strategic Management - Module 10
PREREQUISITES
There are no prerequisites for this module.
LEVEL OF KNOWLEDGE
This syllabus is designed to provide learners with skills and knowledge for strategic management.
The specific knowledge levels are assessed through the syllabus at three intellectual levels:
Level 1 – Knowledge and comprehension Level 2 – Application and analysis Level 3 – Synthesis and evaluation
(reference Taxonomy by Bloom 1913/1999).
MODULE OBJECTIVES
1. To develop an understanding of the principles of strategic management and how to apply those principles in practice. 2. To provide learners with the skills and knowledge necessary to access and evaluate models of strategic analysis. 3. To develop and understanding of the relationship between organisation, strategy and environment.
MODULE LEARNING OUTCOMES
Having successfully completed this module learners are expected to be able to:
1. Have acquired an understanding of strategic analysis and be able to identify strategic choices in the light of that analysis. 2. Be able to critically evaluate the various competitive strategies and the strategy options for competing in global markets. 3. To apply diagnostic and analytical skills required in the corporate strategy process. 4. Be able to apply the components for effective strategic implementation to a given scenario. Learning Content Methods of learning Assessment Outcomes 1. Sections 1 - 4 Reading and exercises 100% by examination 2. Sections 1 - 4 Reading and exercises 100% by examination 3. Sections 1 - 4 Reading and exercises 100% by examination 4. Section 4 Reading and exercises 100% by examination MODULE LEARNING OUTCOMES MAP
Study through attendance at relevant lectures and/or reading of relevant texts and other literature accompanied by the execution of practical exercises to access one’s level of preparation for the examination.
SYLLABUS CONTENT AND WEIGHTING
Syllabus Content:
1. Strategic Management in Practice Study weighting 30%
Knowledge Level 1 2 3 1. Strategic management: 1 1. Introduction to strategy * 2. The strategic process * 3. Planning and emergent strategies * 4. Strategic management in different sectors including * SME’s, MNC’s, service organisations and the not for profit sector 5. The relationship between environment and strategy * 6. Strategic drift * 1. Stakeholders and business ethics: 2 1. The nature and demands of internal and external * stakeholders 2. Assessing stakeholders demands * 3. Stakeholder analysis * 4. Strategic content * 5. Mission statements * 6. The nature of strategic goals and objectives * 7. The nature of ethics in management * 8. The nature of corporate governance * 9. Building an ethical organisation * 10. Ethics and diversity in business * 11. Corporate social responsibility * 12. Corporate governance: combined code * 2. Strategic Assessment Study weighting 25%
Knowledge Level 1 2 3
2. Assessing the environment: 1 1. The nature and components of the environment * 2. The environment-strategy fit * 3. SWOT analysis * 4. PEST analysis * 5. The 5 forces model * 6. Strategic group mapping * 7. National competitive advantage * 8. Industry structure and its implication for strategic choices * 9. Industry life cycle and its implications for strategic choices * 10. Global considerations 2. Assessing internal resources: 2 1. Resource audit * 2. The relationship between resources, capabilities and * competencies 3. The value chain and the creation of value added * 4. The nature of competitive advantage and how its is * created 5. Assessing the sustainability of competitive advantage *
3. Strategic Choice Study weighting 25%
Knowledge Level 1 2 3
3. Corporate, business and functional level strategies: 1 1. The nature of strategic choice, matching internal * competencies to external demands 2. Corporate level strategies * 3. Business level strategies * 4. Functional level strategies * 5. The relationship between corporate, business and * functional level strategies 6. Strategies for growth and development *
3. The Global Environment: 2 1. An introduction to international trade * 2. Developing global strategies * 3. Market entry options * 4. Building international market position * 4. Strategic Implementation and Control Study weighting 20% Knowledge Level 1 2 3
4. Strategic Control Systems: 1 1. Strategic control systems * 2. Reward systems 7 strategy control * 3. Role of information and performance measurement * 4. Strategic Implementation: 2 1. The nature of strategic implementation * 2. The change process * 3. Matching structure, culture and control to strategy * 4. Changing organisational culture *
Essential Reading
IIPA Manual
Thompson A and Strickland AJ and Gamble; Crafting and Executing Strategy, The quest for competitive advantage, Concepts and Cases, Current Edition, McGraw Hill
Wheelan TL and Hunger J D; Strategic Management and Business Policy, Current Edition, Prentice Hall
Johnson G and Scholes K; Exploring Corporate Strategy: Text and Cases, Current Edition, Prentice Hall
Recommended Reading
Gallagher G; Corporate Strategy for Irish Companies, Current Edition, Gill and Macmillian
Haberberg A and Rieple A; The Strategic Management of Organisations, Current Edition,Prentice Hall
Barney J, Patricia Gorman Clifford; What I didn’t learn in Business School. How Strategy works in the real world. Current Edition, Harvard Business Press
Hill C and Jones G; Theory of Strategic Management with cases, Current Edition, South Western Cengage Learning USA
Useful Websites: www.mckinseyquaretrly.com www.hbr.org www.knowledge.wharton.upenn.edu www.knowledge.instead.edu
Journals
IIPA Journal McKinsey Quarterly (www.mckinseyquaretrly.com) Harvard Business Review (www.hbr.org) Academy of Management journals The Strategic Management journal The journal of Business Strategies Advanced Financial Accounting - Module 11
PREREQUISITE
Candidates must have passed Module 8 Financial Reporting or acquired a recognised equivalent of the relevant levels of knowledge, application and evaluation.
LEVEL OF KNOWLEDGE
The syllabus is designed to bring the successful learner to the level of competency of a newly qualified accountant with the ability to continuously re-evaluate their knowledge and skill sets in order to provide an ongoing relevant and reliable financial accounting service to their clients and/or employers.
The specific knowledge levels are assessed through the syllabus at three intellectual levels:
Level 1 – Knowledge and comprehension Level 2 – Application and analysis Level 3 – Synthesis and evaluation
(reference Taxonomy by Bloom 1913/1999).
MODULE OBJECTIVES
1 To enable the successful learner to construct financial statements of different entities to the standard of a qualified accountant. 2 To enable the successful learner to have the comprehension and knowledge of accounting standards, principles and framework at the level of a qualified accountant. 3 To enable the successful learner to analyse financial accounting information and communicate same in the form of reports to interested parties at the level of a qualified accountant.
MODULE LEARNING OUTCOMES
Having successfully completed this module learners are expected to be able to:
1. Identify accounting issues and construct solutions based on a sound grasp of accounting principles and standards. 2. Evaluate financial accounting information and propose and communicate conclusions clearly to interested parties in a suitable format. 3. Construct group accounts. 4. Appraise current and emerging issues. MODULE LEARNING OUTCOMES MAP Learning Content Methods of learning Assessment Outcomes 1. Section 1 - 2 Readings and exercises regarding 100% by the application of specific IASs. examination 2. Sections 1 - 3 Readings and exercises to construct 100% by a set of accounts for a business. examination 3. Section 3 Readings and exercises to illustrate 100% by and understanding of group examination accounts. 4. Section 4 Readings to collect and ascertain 100% by current developments in accounting. examination
Study through attendance at relevant lectures and/or reading of relevant texts and other literature accompanied by the execution of practical exercises to access one’s level of preparation for the examination.
SYLLABUS CONTENT AND WEIGHTING
Syllabus Content:
1. The Regulatory framework of Accounting: Knowledge of the extant regulatory framework and standards both in terms of statute and professional regulation Study Weighting 15%
Knowledge Level 1 2 3 1. A firm understanding of the principles for the preparation * 1 and presentation of financial statements 1. Knowledge of all the extant accounting standards as * 2 published from time to time by the Institute and their application to accounting issues
2. The Accounts of Companies Study Weighting 35% Knowledge Level 1 2 3 2.1 Preparation * of the principle components of financial statements including Income statement, Balance Sheet, Statement of changes in equity and cash flow 2.2 Application * of extant accounting standards and/or statutes to accounting issues arising including the correction of inappropriate accounting treatment and errors 2.3 The drafting * of notes to the financial statements supported where relevant by explanatory working notes including if necessary a schedule of journal entries
3. The Accounts for Groups of Companies Study weighting 35% Knowledge Level 1 2 3 3.1 Preparation * of consolidated Income Statements, Consolidates Balance Sheets and Group Cash Flows 3.2 Accounting * for local and foreign subsidiaries 3.3 Accounting * for Joint Venture and Associate Entities 3.4 Application * of extant accounting and/or statutes to issues arising including the correction of inappropriate accounting treatments and errors 3.5 Drafting of * notes to the financial statements where relevant by explanatory working notes including, if necessary a schedule of journal entries
4. Reports Study Weighting 15% Knowledge Level 1 2 3 4. Discussion of current accounting issues and challenges * 1 facing the profession 4. Discussion of matters of corporate governance and ethics * 2 4. Analysis financial statements and other information using * 3 relevant diagnostic techniques and the preparation of reports on same
REQUIRED READING
Copy of International Accounting Standards Ciaran Connolly; International Financial Accounting and Reporting, Current Edition, Gill and Macmillan
Barry Elliot and James Elliott, Financial Accounting and Reporting, Current Edition, Pearson Education
Learners are expected to read widely and the reference material suggested below must not be regarded as excluding emerging sources which may contribute to the learners knowledge and comprehension of this subject
RECOMMENDED READING R.H. Parker; Understanding Company Financial Statements, Current Edition, Prentice Hall David Alexandar and Anne Britton; International Financial Reporting and Analysis, Current Edition, International Thomson Business Press Richard Lewis and David Pendrill; Advanced Financial Accounting, Current Edition, Financial Times/Pitman Publishing Brennan N, Pierce A; Irish Company Accounts, Current Edition, Oak Tree Press
Dodge, R; Group Financial Statements, Current Edition, International Thomson Business Press
WEBSITES www.iasb.com www.iasplus.com
JOURNALS
The IIPA Journal Accountancy Age Australian CPA Journal of Institute of Chartered Accountants ACCA Journal Audit Practice – Module 12
PREREQUISITES
Candidates must have passed Module 7 Auditing or achieved a recognised equivalent level of knowledge and understanding.
LEVEL OF KNOWLEDGE
This syllabus is designed to provide learners with the knowledge, skill and judgment needed to take overall responsibility for a statutory audit as a member of the Institute.
The specific knowledge levels are assessed through the syllabus at three intellectual levels:
Level 1 – Knowledge and comprehension Level 2 – Application and analysis Level 3 – Synthesis and evaluation
(reference Taxonomy by Bloom 1913/1999).
MODULE OBJECTIVES
1. To ensure the learner has a detailed knowledge of all considerations: legal, ethical and professional relevant to auditing. 2. To provide the learner with the skills necessary to carry out an audit in the current regulatory environment in Ireland. 3. To give the learner a working knowledge of the current issues and developments within the auditing profession.
MODULE LEARNING OUTCOMES
Having successfully completed this module learners are expected to be able to:
1. Apply the knowledge acquired in Module 7 (Auditing).. 2. Assess the impact and risks of electronic financial information systems on the audit process. 3. Evaluate the sufficiency of audit evidence collected and construct the audit conclusions (opinions) using mature professional judgment thereon in complex auditing situations. 4. Fulfill the statutory obligations of a registered auditor including obligations to compose reports to regulators and other third parties. MODULE LEARNING OUTCOMES MAP
Learning Content Methods of learning Assessment Outcomes 1. Sections 1 - 3 Readings, exercises and on-the-job 100% by experience examination 2. Section1 Readings, exercises and on-the-job 100% by experience examination 3. Section 3 Readings, exercises and on-the-job 100% by experience examination 4. Sections 1 -2 Readings, exercises and on-the-job 100% by experience examination
Study through attendance at relevant lectures and/or reading of relevant texts and other literature accompanied by the execution of practical exercises to access one’s level of preparation for the examination.
SYLLABUS CONTENT AND WEIGHTING
Syllabus Content:
1. Audit Practices, Procedures and Standards Study weighting: 35%
Knowledge Level 1 2 3 1. Sound Knowledge of basic concepts and principles as laid out in Module 7 * 1 1. Ability to apply recognised auditing procedures in response to complex audit * 2 risk issues arising from going concern electronic accounting environment sectors subjected to statutory regulation industry sectors requiring specific expert knowledge audit of consolidated financial statements reliance on the work of other auditors 1. Use of computer audit assisted techniques (CAAT) * 3 1. ISA 402 Audit considerations relating to an entity using a service * 4 organisation 1. Statement of scope and authority of APB pronouncements * 5 1. Ethical standards including provisions for small entities * 6 1. ISA 200 – 720 inclusive * 7 1. Auditing standards framework (IFAC, APB, IAASA, IIPA) * 8 1. EU statutory audit directive * 9
2. Professional and legal requirements of Auditors Study weighting: 35%
Knowledge Level 1 2 3 2.1 Appreciation of the legal framework and duties as set out in the Companies * Acts and EU Directives 2.2 Legal Liabilities of Auditors and Relevant case law decisions and their * implications for the auditor 2.3 Corporate Governance requirements of Public Companies and the * responsibilities of auditors in relation thereto 2.4 ISA 240 The auditor’s responsibilities relating to fraud in an audit of financial * statements 2.5 ISA 265 Communicating deficiencies in internal control to those charged with * governance and management
3. Audit Reporting Study Weighting: 30%
Knowledge Level 1 2 3 3.1 Auditors reports on financial statements, content and subject matter addressed * in such reports 3.2 Different forms of modified audit reports * 3.3 ISA 260 Communication with those charged with governance * 3.4 The duty of auditors to report to regulators and other external bodies * 3.5 Reporting on compliance with the solicitors accounts regulation * 3.6 Issues unique to the audit of small and medium sized companies * 3.7 Audit Exemption for small enterprises * 3.8 Audit for not-for-profit organisations to include charities and credit unions * 3.9 Audit reports on financial reports other than financial statements IFAC * International Standard for Assurance Engagements (ISAE) 3000 3.10 Non assurance engagements under ISRS 4400 * 3.11 Reporting accountant duties under the auctioneers and house agents acts * 3.12 Auditors reports on grant claims * Essential Reading:
Auditing Practices Board Standard and Guidance, Current Edition, Chartered Accountants Ireland
Cosserat, G: Modern Auditing, Current Edition, Wiley.
Arens, Elder, Beasley; Auditing and Assurance Services, Current Edition, Prentice Hall
Porter, Simon and Hatherly: Principles of External Auditing, Current Edition, John Wiley and Sons
Recommended Reading:
Woolf: Auditing Today, Current Edition, Prentice Hall.
Knapp; Contemporary Auditing: Real Issues and Cases; South Western Publishing
Auctioneers Act
Useful websites: www.frc.co.uk www.ifac.org/IAASB www.odce.ie
Journals:
The IIPA Journal Accountancy Ireland Accounting Today Advanced Management Accounting - Module 13
PREREQUISITES
Candidates must have passed Module 5 Management Accounting or achieved a recognised equivalent level of knowledge and understanding.
LEVEL OF KNOWLEDGE
This syllabus is designed to provide learners with a greater depth of knowledge in management accounting and to broad their skill set and values as they progress through their studies.
The specific knowledge levels are assessed through the syllabus at three intellectual levels:
Level 1 – Knowledge and comprehension Level 2 – Application and analysis Level 3 – Synthesis and evaluation
(reference Taxonomy by Bloom 1913/1999).
MODULE OBJECTIVES
1. To enable learners to problem solve using advanced management accounting techniques. 2. To enable learners to produce comprehensive reports analysing and recommending solutions for the challenges and opportunities presented in the business environment.
MODULE LEARNING OUTCOMES
Having successfully completed this module learners are expected to be able to:
1. Appraise management accounting information and recommend appropriate action where necessary. 2. Compare and contrast various alternatives for a particular situation using appropriate management accounting techniques. 3. Evaluate different types of performance indicators and their relevance to a particular scenario. 4. Synthesise and evaluation of management accounting information for communications Learning Content Methods of learning Assessment Outcomes 1. Sections 1 - 5 Readings and exercises 100% by examination 2. Section 2 Readings and exercises in relation to 100% by decision making. examination 3. Section 5 Readings and exercises for performance 100% by indicators of a business. examination 4. Sections 2 - 5 Readings and exercises for decision 100% by making and performance evaluation. examination MODULE LEARNING OUTCOMES MAP
Study through attendance at relevant lectures and/or reading of relevant texts and other literature accompanied by the execution of practical exercises to access one’s level of preparation for the examination.
SYLLABUS CONTENT AND WEIGHTING
Syllabus Content:
1. The Role of the Management Accountant Study weighting 10%
KnowledgeLevel 1 2 3
1. Evolution of management accounting in particular advances * 1 made to address relevance to the modern business environment. 1. Profit improvement, cost reduction and cost management * 2 strategies. 1. Strategic management accounting. * 3
2. Decision Making Study weighting 20%
Knowledge Level 1 2 3 2. The concept of relevant costs and their application to decision * 1 making. - opportunity and sunk costs and cost volume profit analysis. 2. Dealing with risk and uncertainty in decision making. * 2 2. Short term decisions relating to pricing, sub-contracting, * 3 special orders and limiting factors. 2. Mixed product decision making. * 4
3. Budgeting and Control Study weighting 20 %
Knowledge Level 1 2 3 3. Comprehensive understanding of the budgeting process * 1 including the motivational aspects and the behavioural aspects of budgets, budgeting and control. 3. Comprehensive analysis of functional and cash budgets, * 2 primary and secondary budgets. 3. Preparation of master budgets, budgeted profit and loss * 3 statement, budgeted balance sheet and cash budget. 3. Comprehensive analysis of flexible budget including risk and * 4 sensitivity analysis. Calculation of all volume variances. 3. Comprehensive understanding of standard costing to include * 5 analysis of all sales and cost variances, mix and yield variances, planning and operating, controllable and uncontrollable variances. 3. Performance reports incorporating variance analysis. * 6 3. Activity based budgeting, zero based budgeting and rolling * 7 budgets.
4. Pricing Study weighting 25%
Knowledge Level 1 2 3 4. Various methods for price-setting, marginal costs, production * 1 costs, full costs, premium, skimming and bundling. 4. The optimal pricing model including establishing demand and * 2 cost functions both linear and curvilinear. 4. Constraints of the optimal pricing model. * 3 4. Profit improvement, cost reduction and cost management * 4 strategies. 4. Motivational aspects of transfer pricing including goal * 5 congurence. 4. Motivational aspects of budgets. * 6 5. Performance Evaluation Study weighting 25% Knowledge Level 1 2 3 5.1 Objectives and the role of performance measures. * 5.2 Return on investment and residual income. * 5.3 Divisional performance measures and an assessment of their * strengths and weaknesses. 5.4 Performance measurement and monitoring. * 5.5 Non-financial measures and other qualitative assessment tools. * 5.6 The balanced scorecard, objectives and the different types of * measures contained within. 5.7 Target costing and throughput accounting. * 5.8 Benchmarking. * 5.9 Strategic management accounting. * 5.1 Management accounting in an advanced * 0 manufacturing/technology environment. 5.1 Environmental costing.. * 1
ESSENTIAL READING Horngren, Foster and Datar : Cost Accounting: A Managerial Emphasis , Current Edition, Prentice Hall International.
Colin Drury ; Management and Cost Accounting , Current Edition, International Thomson
Clarke; Accounting information for managers, Current Edition, Oak Tree Press RECOMMENDED READING Atrill, P, McLaney E; Management accounting for decision makers, Current Edition, Prentice Hall
Wheetman, P; Management Accounting, Current Edition; Pearson Education
Atkinson, Kaplan, Matsumura, Young; Management Accounting International Edition, Current Edition, Pearson Education
Duncan Williamson; Cost and Management Accounting, Current Edition, Prentice Hall International WEBSITES www.mamag.com www.maaw.info www.accountingformanagement.com
JOURNALS Management accounting quarterly Management accounting research (www.academicpress.com) Journal of cost analysis and management (www.sceaonline.net) CMA management (www.managementmag.com) Journal of management and governance (www.kluweronline.com) Critical perspectives on accounting (www.academicpress.com) Financial management magazine CIMA Financial Management - Module 14
PREREQUISITES
Candidates must have passed Module 5 Management Accounting or achieved a recognised equivalent level of knowledge and understanding.
LEVEL OF KNOWLEDGE
This syllabus is designed to provide learners with a greater depth of knowledge in Financial Management and to broaden their skill set and values as they progress through their studies.
The specific knowledge levels are assessed through the syllabus at three intellectual levels:
Level 1 – Knowledge and comprehension Level 2 – Application and analysis Level 3 – Synthesis and evaluation
(reference Taxonomy by Bloom 1913/1999).
MODULE OBJECTIVES
1. To identify and clarify the company’s goals and the corporate governance implications. 2. To evaluate alternative investment strategies using relevant valuation methods. 3. To be able to analyse and evaluate a company’s funding needs and write a report on same. 4. To determine the optimal strategy to meet shareholder expectations and maintain company funding requirements.
MODULE LEARNING OUTCOMES
Having successfully completed this module learners are expected to be able to:
1. Appraise the process of wealth creation and corporate investment. 2. Apply a range of techniques to the valuation for bonds, shares, portfolios and other risky areas. 3. Estimate and measure investment opportunities with a view to formulating optimal solutions. 4. Compare and contrast the different types of funding both long and short term. Learning Content Methods of learning Assessment Outcomes 1. Sections 1,3 Readings and exercises 100% by and 4 examination 2. Sections 2 - 8 Readings and exercises 100% by examination 3. Sections 7 - 9 Readings and exercises 100% by examination 4. Section 4 Readings and exercises 100% by examination MODULE LEARNING OUTCOMES MAP
Study through attendance at relevant lectures and/or reading of relevant texts and other literature accompanied by the execution of practical exercises to access one’s level of preparation for the examination.
SYLLABUS CONTENT AND WEIGHTING
Syllabus Content:
1. Introduction Study Weighting: 5%
Knowledge level 1 2 3 1. The role of the accountant in making the key decisions in the * 1 financial management process 1. The objectives of the firms and shareholder wealth * 2 1. Corporate governance and the agency problem * 3 1. The time value of money * 4
2. Evaluation of the firms and the Investment decision Study Weighting 15%
Knowledge level 1 2 3
2. Financial analysis using ratios and cash flow statements * 1 2. The preparation and use of financial forecasts and cash budgets * 2 2. The capital budgeting process and techniques of payback, * 3 accounting rate of return, net present value and internal rate of return 2. Dealing with mutually exclusive projects * 4 2. Capital rationing and the linear programming approach * 5 2. Use of sensitivity analysis and simulation techniques * 6
3. Working Capital Management Study Weighting 10%
Knowledge level 1 2 3
3. Working capital management and the risk-return trade-off * 1 3. Managing cash levels and marketable securities * 2 3. Inventory control, economic order quantity and just-in-time * 3 procedures 3. Establishing a credit policy and techniques for managing debts * 4 3. Relationship with suppliers and the cost of trade credit * 5 3. Reliance on short-term borrowing and working capital ratios * 6
4. Sources of Finance Study Weighting 20%
Knowledge level 1 2 3
4. Factors determining the source and application of funding * 1 available to the firm 4. The main short term sources-spontaneous and non-spontaneous * 2 types 4. Medium term sources * 3 4. Longer term sources of debt including newer sources of asset * 4 securitisation 4. The role of venture capital and private equity initiatives * 5 4. The implications of a stock market listing and the procedures * 6 involved in getting a quotation 4. The decision to raise further equity via a rights issue, convertible * 7 loan stock and script issues
5. Risk and Uncertainty Study Weighting 10%
Knowledge level 1 2 3
5. The relationship between risk and return * 1 5. Basic concepts of portfolio theory and security analysis * 2 5. Portfolio analysis, diversification and portfolio selection * 3 5. Market efficiency and tests of efficient market hypothesis * 4 5. The capital market line and beta, the CAPM and its assumptions * 5 5. Arbitrage pricing theory * 6
6. Valuation Study Weighting 10%
Knowledge level 1 2 3
6.1 Factors involved in estimating the cost of capital and the * marginal cost of capital 6.2 Calculation of cost of equity, cost of debt, convertibles and * hybrids 6.3 Calculate and use the weighted average cost of capital * 6.4 Identifications of the limitations of WACC * 6.5 Risk and return on investment in debentures/bonds * 6.6 Valuation of redeemable preference shares and bonds * 6.7 The term structure of interest rates * 6.8 Ordinary share capital and calculation of dividend growth * 6.9 The expectations of shareholders, the dividend decision and * share repurchases and signalling issues 6.1 The P/E ratio and constant growth valuation model * 0 6.1 Valuation using net asset value * 1 6.1 Estimating the value of the firm in theory and in practice * 2 7. Debt Markets and the firm Study Weighting 10%
Knowledge level 1 2 3
7. The role of gearing, operating and financial gearing * 1 7. The risk-return trade off and tax efficiency of debt in the capital * 2 structure 7. Modigliani and miller’s theory of optimal gearing * 3 7. The Pecking order for financing * 4 7. Financial distress and the signalling impact of debt * 5
8. Mergers, Acquisitions and Corporate Restructuring Study Weighting 10%
Knowledge level 1 2 3
8. Factors influencing the mergers and acquisitions decision * 1 8. The motives for takeovers and the defence mechanisms available * 2 to targets 8. Methods of payment employed and the implications of takeover * 3 activity for the stakeholder groups 8. Management buy outs and buy ins * 4 8. Business failure and re-organisation * 5 8. Calculation of and use of failure prediction models * 6
9. International finance Study Weighting 10%
Knowledge level 1 2 3
9. Mechanisms for expanding overseas and the risk-return trade-off * 1 9. Foreign exchange risk management techniques * 2 9. Calculation and use of purchasing power parity (PPP), interest * 3 rate parity (IRP) and the international fisher theory 9. Transaction and translation exposure * 4 9. Derivatives, options and forward rate agreements * 5
ESSENTIAL READING
Power, T, Walsh S, O’Meara, P; Financial Management, Current Edition, Gill and Macmillan
Brealey, Myers and Marcus, McGraw; Fundamentals of Corporate Finance, Current Edition, Hill
Glen Arnold; Corporate Financial Management, Current Edition, Financial Times/Prentice Hall.
RECOMMENDED READING
Pike, Neale; Corporate Finance and Investment, Current Edition, Prentice Hall Europe
Shapiro; Multinational Financial Management, Current Edition, Wiley
A Practitioners guide to the City Code on takeovers and mergers 2009/2010, Sweet and Maxwell
Listing rules of the Irish and London Stock Exchange (www.ise.ie)
WEBSITES www.ise.ie [The Irish Stock Exchange] www.londonstockexchange.com [The London Stock Exchange] www.ifsra.ie [The Financial Regulatory] www.wsj.com [The Wall Street Journal online] www.cfo.com [CFO] www.investmentinternational.com www.cpaireland.ie
NEWSPAPERS
The Economist www.economist.co.uk