22320 Accounting for Business Combinations

UTS: 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:

prepare general purpose financial statements for economic entities
understand and apply the range of local, overseas and international regulations that determine accounting and reporting for economic entities
extend accounting and reporting techniques to non-routine circumstances and new events
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

Assessment item 1: Two Multi-Choice Tests

Objective(s):	1, 3
Weighting:	40%
Task:	Tests objectives 1 and 3.

Assessment item 2: Final Examination

Objective(s):	1-4
Weighting:	60%
Task:	Examines the achievement of objectives 1-4.

Required text(s)

e-ConsolidatedAccounts (code: E-ConsAcc)

Picker, R, Leo, K, Alfredson, K, Radford, J, Pacter, P, and Wise, V, 2006, Australian Accounting Standards, John Wiley & Sons, Queensland. (code:PL84A)

Indicative references

Alfredson K., Leo K., Picker R., Pacter P, and Radford J., Applying International Accounting Standards, Wiley, 1st edition 2005. (code: ALPP&R)

Barton, A., 1982, Objectives and Basic Concepts of Accounting, Australian Accounting Research Foundation

CPA Australia., (2006) Accounting Handbook 2006, Vol. 1, Prentice Hall, Australia. (code: H)

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

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

ICAA., (2006) Accounting Handbook 2006, Vol. 1, Wiley, Australia. (code: H)

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

Leo K., Hoggett J., Sweeting J., and Radford J., (2005) Company Accounting, 6th ed., Wiley, Australia. (code: L&H)

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

Arthur N., Grose R., Campbell J., Luff L., (2007) Accounting for Corporate Combinations and Associations 6th ed Pearson Education Australia

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