22240 International Accounting

Subject level: Undergraduate

Handbook description

In a rapidly changing world environment, the significance of international accounting has grown substantially, along with the expansion of international business activity. This subject enables students to explore the complexity and diversity of the international dimensions of accounting. It introduces a range of issues with special reference to the comparative development of national accounting systems, international accounting standards and transnational reporting issues. The subject covers a number of important areas and does not only inform students about the major issues, ideas and developments, but also stimulates further inquiry and debate.

Subject objectives/outcomes

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

1. identify and explain the numerous variables that drive diversity in accounting practice around the world
2. critically analyse the current responses in the international environment to the diversity in financial reporting and evaluate the alternate strategies available for harmonising worldwide financial accounting disclosure practice
3. select, compare and apply appropriately the analytical tools of international accounting statements
4. recognise and evaluate major issues in international accounting (planning and control systems, performance evaluation, consolidations, transfer pricing, foreign currency translations, international taxation).

Contribution to graduate profile

The knowledge and skills gained from this subject can provide an understanding of the information available from and the appropriate analysis of international accounting statements together with an appreciation of the source and importance of limitations and cautions that ought to be brought to the analysis. The study of this subject can extend the understanding of a domestic accounting system in the comparisons it provides as well as complementing and enriching the knowledge and skills gained through other internationally focused subjects.

Teaching and learning strategies

The lectures and seminars incorporate a range of learning strategies especially through the extensive use of the internet for accessing information on international and regional organisations and for obtaining current and extensive collections of international accounting statements by students for study and analyses. Student seminar presentations, videos, case studies, web-based debates and discussions, and practical sessions constitute the learning package for this subject. UTSOnline forms an essential part of the package.

Content

• Classification of the major accounting clusters worldwide
• Variables shaping accounting development internationally
• Global accounting practice differences
• The consequences of global diversity
• Disclosure practices worldwide
• Harmonisation through international standards
• Other strategies to reduce the impact and disadvantages of diversity
• Analytical tools applicable to international accounting statements
• Cautions applicable to interpretation of foreign-based financial statements
• Accounting information systems in multinational corporations
• Performance evaluation in a global context
• Emerging issues in international accounting.

Assessment

Assessment item 1: Workshop Presentation (Group)

Assessment item 2: Mid-semester in-class examination – essay questions (Individual)

Assessment item 3: Formal in-class examination - essay questions (Individual)

Recommended text(s)

Nobes, C and Parker, R 2008, Comparative International Accounting, 10th ed, Prentice Hall, London.

Indicative references

Choi, F. & Meek, K. 2008 International Accounting, 6th ed, Pearson Education, Upper Saddle River.

Doupnik, T.& Perera, H. 2007, International Accounting, McGraw-Hill, New York.

Gernon, H. & Meek, G. 2001, Accounting: An International Perspective, 5th ed, McGraw-Hill New York.

Herring, H. 2002, Business Combinations and International Accounting, South-Western, Cincinnati.

Radebaugh, L. Gray, S. & Black, E. 2006, International Accounting and Multinational Enterprises, 6th ed,

John Wiley, New York.

Roberts, C., Weetman, P. & Gordon, P. 2005, International Financial Accounting: A Comparative Approach, 3rd ed, Prentice Hall, London.

Other resources

In addition to the above references, students are encouraged to refer to relevant items on the webpages of international accounting organisations. Students in this subject are provided with an extensive list of various resources on the internet through UTSOnline — go to course documents under international accounting for relevant internet links.