22107 Accounting for Business

Subject level: Undergraduate

Handbook description

In most economies, business success is measured in financial terms. It is the accountants who undertake this measurement. Many decisions in business are made based on accounting information, both historical (based on past events) and projected (based on estimates of the future). Understanding accounting as a systematic way of measuring and communicating financial information on the financial status of various business entities is the foundation for any successful career in both the private and public business sectors.

Subject objectives/outcomes

On successful completion of this subject, students should be able to evaluate the financial position and performance of corporate and non-corporate organisations by:

1. identifying the role of accountants and accounting information in external and internal decision contexts of a business.
2. processing accounting information to prepare external financial statements and internal management reports
3. having the foundational analytical skills needed to critically interpret accounting reports and make judgements based on accounting information
4. recognising the ethical framework in which accounting operates and understand their own value systems
5. being able to interpret the basic business information provided in the popular media.

Contribution to graduate profile

The objective of this subject is based on the premise that in business accounting information is used for decision-making. Thus familiarity with accounting concepts, processes, reports and analysis is desirable. This subject equips students with the broad and basic knowledge and skills to deal with the accounting information systems in the business environment and is also a foundation for further study in accounting.

Teaching and learning strategies

The subject is taught in large lectures and smaller tutorial. The lectures provide the structure of the topic area, discussion of the theory and some practical examples. Tutorials provide an opportunity to discuss ideas, ethical issues and make practical application of the theory. Extensive use is made of UTSOnline, with all material posted electronically and a discussion board providing a response within 24 hours. The Study Guide is available to extend students' self-directed learning.

Content

• Recording business transactions and preparation of financial statements.
• Adjusting entries.
• Inventory and cost of goods sold.
• Conceptual framework.
• Controversial issues; doubtful debts, depreciation, intangibles, revaluations.
• Financial Statement Analysis; ratios and limitation and interpretation.
• Management Accounting; budgets, costing, C-V-P, capital budgeting.

Assessment

Students choose from one of three assessment packages.

1. Final Examination only (Assessment of objectives 1,2,3,4,5,6,7&8): 100%
   

   Students will be assumed to have chosen this alternative if they have not attended the mid semester examination. Tutorial attendance is optional. The final exam includes multiple choice questions and both theory (words) and practical (numbers) accounting questions.

2. Final and Mid-Semester Examination
   

   Students will be assumed to have chosen this option if they attend the mid-semester, but they have not had their attendance in the tutorial recorded, and they have not hand in tutorial assignments when they are collected in their tutorial. Tutorial attendance is optional.

• Mid-Semester Exam (Assessment of objectives 1,2,4,6&7): 40%
• Final Exam (As above): 60%
3. Class Mark, Mid-Semester Examination and Final Examination
   

   Students must attend tutorials, participate in the discussions and be prepared to hand in their tutorial work when randomly collected by the tutor. Marks will be awarded for submitted work. Tutorial attendance is compulsory. Students who choose this option must sit the pre-released mid-semester examination.

• Class Mark (Assessment of Objectives 1,2,3,4,5,6,7,&8): 10%
• Mid-Semester Examination (As above): 30%
• Final Examination (As above): 60%

Examinations will be conducted under University Examination conditions, and hence thoroughly address secure assessment concerns. Individual handed in work will be collected randomly, which makes it difficult for students submit work that is not their own.

Required text(s)

Horngren, C., Harrison, W., Bamber, Best, P., Fraser, D. and Willett, R. (2004) Accounting. 4th (Australian) Edition Prentice Hall Australia ISBN 9-781741-031263

Recommended text(s)

Tyler, J (2004) Accounting Study Guide 4th Edition Pearson Education Australia ISBN 9-74103-310-3 (available with the above text as a 'value pack' ISBN 0922972001)

Indicative references

CPA Australia and The Institute of Chartered Accountants in Australia. (2004). Accounting Handbook 2004. Sydney: Prentice Hall.

CPA Australia and The Institute of Chartered Accountants in Australia. (2004). Auditing Handbook 2004. Sydney: Prentice Hall.

Gaffikin, M. (2001) Principles of Accounting(4th ed), Sydney: Harcourt Brace.

Hoggett, J., and Edwards, L. (2003). Accounting in Australia (5th ed.). Brisbane: John Wiley & Sons.

Kimmel, P.D., Carlon, Loftus, Mladenovic, Kieso and Weygandt (2002) Accounting: Building Business Skills Brisbane: John Wiley & Sons.

Trotman, K. & Gibbins (1998) Financial Accounting: An Integrated Approach Nelson ITP