AC303 lecture 1

1
AC303 lecture 1

• Barry Smith (Q113)
• http//webpages.dcu.ie/smithba/
• Lectures (except reading week 7)
• Monday 10.00 to 11.00
• Thursday 11.00 to 12.00
• Tutorials begin week 3 (except reading week 7)
• Tuesday 18.00 20.00
• Office hours
• Tuesday 12.00 to 13.00
• Thursday 12.00 to 13.00
• Otherwise email for an appointment

2
Course topics

• Group accounts
• Background to group accounts
• Regulatory framework underpinning group accounts
• Methods of accounting for subsidiaries, mergers,
  associates, joint ventures, minority interests,
  goodwill
• Deferred tax
• Current topics

3
Group accounts

• Sources
• Relevant FRSs, IASs, exposure drafts and
  discussion documents
• Accounting for Groups 1st edition,
  Barker/OhOgartaigh
• Principles and Practice of Group Accounts 1st
  edition, Pierce/Brennan
• Financial Accounting and Reporting 8th edition,
  Elliott and Elliott, chapters 18 to 21
• Financial Reporting 6th edition, Alexander and
  Britton, chapter 24
• Advanced Financial Accounting 6th edition, Lewis
  and Pendrill, chapters 8, 9
• Introduction to financial accounting 4th edition,
  Thomas, chapter 35

4
Background to group accounts

• What is a group?
• A reporting entity which consists of a parent
  undertaking, its subsidiaries, associates, joint
  ventures and interests in joint arrangements
• Where a parent undertaking exercises varying
  degrees of influence over other undertakings, it
  may be necessary to present the results and
  position of all undertakings as though they are
  the results and position of a single undertaking
• Importance of group accounts is evidenced by the
  volume of guidance provided

5
Background to group accounts

• Historical influences
• Industrial revolution
• US developments at the beginning of the 20th
  Century
• Later development in UK and Ireland
• Introduction of legislation in Ireland
• Group accounts requirement based on legal control
• No detailed definition of group accounts
• CA 1963, sections 150 ff.