22777 International Accounting

Warning: The information on this page is indicative. The subject outline for a particular semester, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject level:

Postgraduate

Handbook description

In the context of many corporations operating in an extensive 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. The identities and interests of stakeholders in this process are considered. The subject is intended to equip 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 diverse cultural and other factors impacting on each country's national accounting profession.

Subject objectives/outcomes

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

1. examine the complex causes of diversity in accounting practice and reporting internationally
2. evaluate the effects of the differences in national accounting practices and accounting reports
3. 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 course aims and graduate attributes

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 also 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 are also heavily involved in team seminar presentations on relevant and substantial national studies of accounting practices around the world.

Content

1. Financial reporting in a global context
2. International classification of accounting systems
3. 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
4. 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
5. Issues in financial accounting reporting and disclosure in a global context
6. Across-border aspects of financial accounting reporting internationally
7. Managerial issues in international accounting especially risk management

Assessment

Assessment Item 1: Group Assignment

Assessment Item 2: In-class examination no. 1

Assessment Item 3: In-class examination no. 2

Required texts

There are no required textbooks for this subject.

Recommended texts

Nobes, C and Parker, R, 2012, Comparative International Accounting, 12th ed, Prentice Hall, London.

Choi, F. & Meek, G., 2011, International Accounting: International Edition, 7th Edn, Pearson Education, Upper Saddle River.

CCH Worldwide Tax database. University Library

The Australian Financial Review Newspaper

The Financial Times Newspaper

www.businessspectator.com.au

http://www.nytimes.com/pages/business/index.html

http://www.bloomberg.com/

http://www.ifrs.org/Home.htm

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.