22777 International Accounting

Subject level: Postgraduate

Handbook description

In the context of many corporations experiencing a strongly developing global business environment, this subject explores the causes and effects of diversity in corporate financial accounting and evaluates the efforts undertaken to harmonise accounting standards and practice internationally. It considers the identities and interests of stakeholders in this process and equips students with the knowledge and skills to appreciate the characteristics and limitations in the interpretation of accounting reports originating from various countries and that arise from cultural and other factors impacting on each country's national accounting profession.

Subject objectives/outcomes

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

1. demonstrate an understanding of the complex causes of diversity in accounting practice and reporting internationally
2. recognise and describe the effects of the differences in national accounting practices and accounting reports
3. identify and explain the limitations that apply when analysing financial statements from international corporations in foreign jurisdictions
4. discuss the issues involved in, and evaluate the success of, international harmonisation projects for accounting practice and reporting standards.

Contribution to graduate profile

This subject is intended to provide students with an understanding of the national, cultural and legal diversity around the world that impacts on the presentation of financial accounting information to users. The study of this diversity empowers students to interpret accounting reports with greater precision and caution.

Teaching and learning strategies

International Accounting is particularly suitable as a vehicle for students to use the internet for learning and skill acquisition. The range of activities include not only communicating among participants but obtaining current information from reliable sources on international associations and organisations, and especially contemporary materials on accounting practices and financial reports from foreign sites for critical analyses and discussion. Students will also be heavily involved in team seminar presentations on relevant and substantial national studies of accounting practices around the world.

Content

• Financial reporting in a global context
• International classification of accounting systems
• Examination of the function and strengths of employing classification systems. Application of a classification system to accounting practices worldwide. The value and usefulness of knowing a practical classification of accounting practices globally
• The nature and factors that give rise to and impact exchange rates. The international accounting standard on foreign currency translation. Accounting issues related to financial reporting and disclosure. The difficulties posed for international companies by constantly changing rates. The purpose, advantages and practice of providing consolidated financial statements
• Issues in financial accounting reporting and disclosure in a global context
• Across border aspects of financial accounting reporting internationally
• Managerial issues in international accounting.

Assessment

Assessment item 1: Workshop Presentation: Country Study (Group)

Assessment item 2: Mid-semester Examination (Individual)

Assessment item 3: Final Examination (Individual)

Required text(s)

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

Indicative references

Daniels, J., Radebaugh, L. & Sullivan, D. 2007, International Business: Environments and Operations, 11th ed, Prentice Hall, London

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

Nobes, C. & Parker, R. 2008, Comparative International Accounting, 10Th Ed, Prentice Hall, London

Radebaugh, L,. Gray, S. & Black L. 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

Stangor, C. 2007, Research Methods for the Behavioral Sciences, Houghton Mifflin, Boston

Other resources

In addition to the above references, students are encouraged to refer to relevant items on the websites 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.