Faculty of Business: Accounting
Credit points: 6 cp

Subject level: Undergraduate

Result Type: Grade and marks

Requisite(s): 22107 Accounting for Business
These requisites may not apply to students in certain courses.
There are also course requisites for this subject. See access conditions.

Handbook description

This subject introduces students to the basic concepts underlying the variety of accounting issues involved in the recording and reporting of overseas transactions. It covers relevant aspects of documentation, foreign exchange gains and losses, foreign exchange hedging, forward exchange contracts, effects of overseas inflation, financing overseas transactions and facilitation through government and non-government agencies. It provides skills and information needed to advise clients on overseas transactions. Concentration is placed on the operational and accounting treatment of foreign operations as distinct from a marketing or economic approach to the subject area.

Subject objectives/outcomes

On successful completion of this subject students should be able to:

1. Understand the basic concepts underlying the various accounting issues involved in the recording and the reporting of a variety of overseas transactions commonly encountered by firms engaged in foreign operations.
2. Understand the nature and importance of import/export documentation, the foreign exchange mechanism, overseas inflation and the assistance provided by government and non-government agencies.
3. Understand the information requirements needed to advise clients in relation to overseas transactions.
4. Further develop seminar skills and gain an exposure to oral questioning on selected seminar topics.
5. Further develop information collecting, report writing and teamwork skills.

Contribution to graduate profile

The subject provides an in depth study of accounting concepts and techniques in an area of increasing importance to managers and accountants. The subject content is particularly relevant to students who, as accountants, may find themselves advising business clients on various aspects relating to overseas transactions and operations in foreign markets.

Teaching and learning strategies

The learning process will focus on conceptual and technical material through practical exercises, case studies, selected readings, discussion and debate. Students will take part in both individual presentations and group project work on selected topics under the guidance of the lecturer. Student reports will be presented to the class by each student group in seminars during the semester. Class discussion and questions relating to report presentations will form valuable feedback and will assist the group in the finalisation of their written report.

Content

• Introduction and overview
• Review of basic accounting concepts.
• Import/export documentation.
• Methods of payment.
• Insurance.
• Government assistance, concessions and regulations
• Dumping and anti-dumping regulations.
• Foreign exchange concepts and market mechanism.
• Australian accounting standards.
• Accounting for foreign currency transactions.
• Foreign operations and investment overseas.
• Transfer pricing.
• Taxation effects and double tax agreements.

Assessment

Final examination	60%
The final exam will focus on the assessment of objectives 1, 2 and 3.
Individual topic presentation	20%
The presentations will test the achievement of objectives 1, 2, 3 and 4.
Syndicate project presentation	20%
The major project report presentations will emphasise the assessment of objectives 1, 2, 3 and 5.

The examination will be conducted under University examination conditions, and hence thoroughly address concerns regarding secure assessment. The project presentation will be secured through an assessment based partly on the in-class presentation.

Recommended text(s)

Gernon, H. and Meek, G.K., (2001), Accounting: An International Perspective, 5th edition, McGraw-Hill, New York.

Indicative references

Australian Institute of Export (NSW), (1997)The Export Handbook. 16th edition, College of international Business Ltd., Sydney.

Australian Society of Accountants. (2000). Approved Accounting Standards: AASB 1012: Foreign Currency Translation.

Daniels, J.D. and Radebaugh, L.H. (1998). International Business Environments and Operations. 8th. Edition, Adison-Wesley, Mass, USA.

Galston, N. and Smit, H. (1994). The United Nations Conventions on Contracts for the International Sale of Goods. Bender, New York.

Radebaugh, L.H. and Gray S.J. (1997). International Accounting and Multinational Enterprises. 4th.Edition, John Wiley and Sons. New York.

Madura, J. (2003). International Financial Management. 7th edition, South-Western Publishing.

Shapiro, R. (2003), Multinational Financial Management, 7th edition, John Wiley and Sons, New York.

Whittred, G., Zimmer, I.and Taylor, S., (2000), Financial Accounting: Incentive effects and economic consequences. 5TH Edition, Harcourt Brace, Sydney.