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 judgments 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

Assessment item 1: Final Examination

Assessment item 2: Mid-Semester Examination

Assessment item 3: Class Mark

Required text(s)

Horngren, C, Harrison, W, Bamber, Best, P, Fraser, D and Willett, R, Accounting, 5th Australian edn, Pearson Education Australia, 2007

Recommended text(s)

Tyler, J, Accounting Study Guide, 5th edn, Pearson Education Australia, ISBN 978-0-7339-7869-2 (available with the textbook), 2007

Faculty of Business, Guide to Writing Assignments, Faculty of Business, University of Technology, Sydney, www.business.uts.edu.au/resources/guide.html

Indicative references

CPA Australia or The Institute of Chartered Accountants in Australia (2009), Accounting Handbook 2009, Sydney: Prentice Hall or John Wiley

CPA Australia or the Institute of Chartered Accountants in Australia (2009), Auditing and Assurance Handbook 2009, Sydney: Prentice Hall or John Wiley

Hoggett, J., and Edwards, L., Medlin, J. (2006), Accounting in Australia (6th Ed.), Brisbane: John Wiley & Sons

Kimmel, P. D., Carlon, S., Loftus, J., Mladenovic, R., Kieso, D. E., Weygandt, J. J. (2006), Accounting: Building Business Skills (2nd Ed.), Brisbane: John Wiley & Sons

Trotman, K., Gibbins, M. (2005) Financial Accounting: An Integrated Approach (3rd Ed.), Thomson Publishers

Jackling, B., Raar, J., Williams, B., Wines, G. (2007), Accounting: A framework for decision making (2nd Ed.), McGraw-Hill Irwin

Juchau, R. Flanagan, J., Mitchell, G., Tibbits, G., Ingram, R., Albright, T., Baldwin, B., Hill, J. (2006) Accounting: Information for Decisions (2nd Ed.), Thomson Publishers

Journals and Business Publications

• Abacus
• Accountancy
• Accounting & Finance
• Accounting Review
• Accounting & Business Research
• The Australian Accountant
• Australian Accounting Review
• Charter
• CA Magazine
• Cost & Management
• Journal of Accounting and Economics
• The Journal of Accountancy
• Business Review Weekly
• Australian Financial Review
• Sydney Morning Herald
• Business Reports on Free-to-air Nightly News Programs

This is but a small sample of the relevant journals in the area of accounting and finance. They are published by professional bodies such as The Australian CPA by CPA Australia or the Accounting Review by the American Accounting Association. The Accounting and Finance Association of Australia and New Zealand also publishes a journal called Accounting and Finance.

The course will also refer to the AASB series. AASB refers to the series of standards approved by the Accounting Standards Review Board, a body established by the Companies Act & Codes to approve accounting standards for companies.

Students are strongly encouraged to read the daily financial press, the business section of the Sydney Morning Herald (SMH) is ideal. Student discounts are available on newspaper subscriptions including the SMH which can be delivered to your home on the weekend and picked up from campus newsagents Monday to Friday during semester.

Weekly publications such as Business Review Weekly are also excellent. Subscriptions to Business Review Weekly are available to students at a substantial discount on the newsstand price. Students are encouraged to take a keen interest in current business developments. See www.studentmagazines.com.au for details.