Faculty of Business: Accounting
Credit points: 6 cp

Subject level: Undergraduate

Result Type: Grade and marks

Requisite(s): 22207 Accounting Transactions and Business Decisions
These requisites may not apply to students in certain courses.
There are also course requisites for this subject. See access conditions.

Handbook description

Together with the corequisite subject, this subject deals with the application and analysis of prescribed accounting treatments and surveys the institutional and legal framework of modern Australian accounting. It refers to international accounting standards and local and overseas standards and exposure drafts and emphasises reporting. Main topics include accounting for companies including debt and equity and its restructuring, accounting for acquisition of assets including business enterprises, valuation and goodwill, consolidated accounts of complex economic entities, accounting for associate companies and joint ventures, corporate restructuring and liquidation. The subject deals with preparation of accounts to meet corporate law and professional disclosure requirements and looks at emerging issues and exposure drafts. It makes extensive use of spreadsheet programs. Students are expected to produce business-quality reports using word-processing programs.

Subject objectives/outcomes

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

1. Prepare general purpose financial statements for economic entities.
2. Understand and apply the range of local, overseas and international regulations that determine accounting and reporting for economic entities.
3. Extend accounting and reporting techniques to non-routine circumstances and new events.
4. Argue for, and communicate verbally and in written form, an opinion as to the appropriate accounting treatment applicable in the circumstances.

Contribution to graduate profile

This subject builds on the foundation provided in 22207 Accounting Transactions and Business Decisions to extend the financial accounting knowledge required for a major program of study in accounting within the Bachelor of Business and Bachelor of Accounting. It contributes to the objectives of the accounting major by focusing on the development of accounting and reporting techniques currently applicable to corporate entities in Australia, with appropriate consideration of international requirements.

Teaching and learning strategies

Lecture and tutorial sessions are for introducing the principles and methods necessary to prepare general purpose financial statements, and practical examples thereof, for exchanging ideas in a collegial manner and to help you overcome any learning difficulties. Students are encouraged and expected to ask relevant questions and participate actively in all discussions.

Content

• Consolidation process
• Consolidated accounts and reports
• Accounting for investments in associates
• Accounting for interests in joint ventures
• The regulatory environment for corporate and other reporting entities in Australia.

Assessment

Two Multi-Choice Tests	40%
Tests objectives 1 and 3.
Final Examination	60%
Examines the achievement of objectives 1-4.

To obtain a pass in this subject, a student must participate in all assessment tasks and receive at least 40% (24/60) in the final examination as well as obtain an overall mark of 50/100 in the subject.

Examinations will be conducted under University examination conditions, and hence thoroughly address concerns regarding secure assessment. The multi-choice tests will be secured through a combination of updating of assessment tasks across semesters.

Recommended text(s)

Leo, K., and J Hoggett., (2001) Company Accounting in Australia, 5th ed., Wiley, Australia.

Indicative references

ASCPA and ICA., (2004) Accounting Handbook 2004, Vol. 1, Prentice Hall, Australia.

Eddey P, Arthur N, and Knapp, J. Accounting for Corporate Combinations and Associations. Prentice Hall. 5th edition. 2001.

Jubb P, Langfield-Smith I, and Haswell, S. Company Accounting. Nelson. 3rd edition. 2002.

Gaffikin, M., Dagwell., and G. Wines, Corporate Accounting in Australia, UNSW Press 2nd Edition 2004.

Sims M, and Clift R. Australian Corporate Accounting, McGraw Hill, 2001.