22207 Accounting Transactions and Business Decisions

Subject level: Undergraduate

Handbook description

This subject continues the study of accounting as an information system and equips students with the appropriate accounting skills necessary to participate in a managerial capacity in the analysis of accounting information as it is used to facilitate and enhance decision making, accountability and control. Ethical implications of decisions are considered throughout the subject. The subject covers areas in both financial and management accounting, including the preparation and examination of accounting reports for partnerships and companies, the development of relevant cost concepts used in cost systems, and the use of this information in performance evaluation. A computer software package is used in the review and presentation of accounting information.

Subject objectives/outcomes

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

1. integrate the perspective of accounting information into the internal and external decision-making of an economic entity
2. understand and further demonstrate analytical skills in problem solving and quantitative skills in fundamental accounting processes and issues
3. demonstrate skills in the processing of accounting information and preparation of financial statements in a manual and computer based environment
4. apply a computer software package in the application of accounting concepts and principles to the analysis and presentation of accounting information
5. develop an awareness of the ethical issues facing the accounting profession and understand the ethical framework in which accounting operates
6. prepare and report accounting information according to generally accepted accounting principles
7. effectively communicate accounting information in a business context.

Contribution to graduate profile

This subject contributes to the Bachelor of Business program by providing students with the accounting knowledge to understand the principles of accounting they require to continue their accounting studies. It focuses on the development of a vocationally relevant understanding of accounting generally, fundamental accounting processes and issues, as well as critical, analytical and quantitative skills. They will be equipped with the knowledge and skills to deal with accounting information systems in the business environment. It also provides students with professional skills including the appropriate consideration of ethical issues, communication and information technology in the context of organisations in Australia and internationally.

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, The computer assignment extend students' self-directed learning.

Content

• Using and preparing accounting information
• Internal control and cash
• Accounting for current and non-current assets
• Accounting for current and non-current liabilities
• Different forms of business: partnerships, companies
• Accumulating cost information including activity based costing
• Accounting information as inputs to management decisions; relevant costing, variances

Assessment

Assessment item 1: Workshop Learning and Computer Assignment

Assessment item 2: Mid-semester exam

Assessment item 3: Final Examination

Required text(s)

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

Pazmandy, G, MYOB Version 17 — A Practical Guide to Computer Accounting, Tekniks Publications, Sydney, 2006.

Recommended text(s)

Faculty of Business, Guide to Writing Assignments, Faculty of Business, University of Technology, Sydney, 2006

www.business.uts.edu.au/resources/guide.html

Indicative references

CPA Australia or The Institute of Chartered Accountants in Australia (2008), Accounting Handbook 2007, Sydney: Prentice Hall or John Wiley

CPA Australia or the Institute of Chartered Accountants in Australia (2008), Auditing Handbook 2007, Sydney: Prentice Hall or John Wiley

Hoggett, J., and Edwards, L., Medlin, J. (2003), Accounting in Australia (5th 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. (2007) Accounting: Information for Decisions (2nd Ed.), Thomson Publishers.

Journals and business publications

• Abacus
• Accountancy
• Accounting and Finance
• Accounting Review
• Accounting and Business Research
• The Australian Accountant
• Australian Accounting Review
• Charter
• CA Magazine
• Cost and 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 and 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.