BA214 - Corporate Accounting

Credit Points: 15

Prerequisite: BA204 Financial Accounting

Co-requisite: N/A

Workload: 36 contact hours

Campus: Melbourne, Sydney

Aims & Objectives

This is a second-year Core Unit in the Bachelor of Business, major in Accounting.This unit is designed to enable students to interpret and apply accounting rules and standards. Building on knowledge and skills gained in earlier financial accounting units, the unit explores how corporations report to the varied users of accounting information. Emphasis is on a student’s knowledge of the corporate regulatory environment in Australia, financing company operations (including the issuing of debentures and share capital), business combinations, consolidations and liquidation. The unit also focuses on the accounting standards relating to treatment of noncurrent assets (e.g. tangibles and intangibles) including impairment.

The unit topics include:

  1. The nature and regulation of companies
  2. Financing company operations
  3. Cash Flow Statements
  4. Accounting for income taxes
  5. Cost & revaluation models
  6. Impairment of assets
  7. Business combinations; consolidation method
  8. Consolidated financial statements
  9. Liquidation

Learning Outcomes

At the completion of this unit students should be able to:

  1. Explain and apply the regulatory framework that applies to the financial accounting for corporations
  2. Account for the financing company operations - issuing of shares, debentures, share options, and the forfeiture and re-issue of shares
  3. Generate financial statements and disclosures as required by the accounting standards
  4. Analyse what constitutes a business combination and how to conduct relevant consolidation accounting
  5. Understand the liquidation process and conduct all relevant accounting

Teaching Method

Lecture: 2 hours
Tutorial/Workshop: 1 hour
Face to Face

Assessment

Assessment Task
Learning Outcomes Assessed
Weighting
Contribution in class a-e* 10%
Class Test 1 a,b* 5%
Group assignment (written report) a,b,c* 25%
Class Test 2 c,d,e* 10%
Final Exam (3 hours) a-e* 50%
Total   100%

*refer to learning outcomes above.

Textbook

Leo, K., Hoggett, J. & Sweeting, J. (2015). Company Accounting, 10th edition. Australia: John Wiley & Sons.


Reference Reading

  • Locke, C., (2016). Chartered Accountants Australia and New Zealand's Financial Reporting Handbook 2016. Milton, Qld: John Wiley & Sons Australia Ltd.
  • Loftus, J., Leo, K., Picker, R., Wise, W. & Clark, K., (2013). Understanding Australian Accounting Standards, Australia: John Wiley & Sons.
  • Henderson, S., Peirson, G., Herbohn, K. F., Artiach, T & Howieson, B., (2014). Issues in Financial Accounting, 15th edition. Frenchs Forest, NSW: Pearson Prentice Hall.
  • Jubb, P., Haswell, S. & Langfield5Smith, I., (2010), Company Accounting, 5th edition. Australia: Cengage Learning

MIT is committed to ensure the course is current, practical and relevant so that graduates are “work ready” and equipped for life-long learning. In order to accomplish this, the MIT Graduate Attributes identify the required knowledge, skills and attributes that prepare students for the industry.
The level to which Graduate Attributes covered in this unit are as follows:

Ability to communicate Independent and Lifelong Learning Ethics Analytical and Problem Solving  Cultural and Global Awareness Team work Specialist knowledge of a field of study
             

Legend

Colour coding    

Extent covered

                                The standard  is covered by theory and practice, and addressed by assessed activities in which the students always play an active role, e.g. workshops, lab submissions, assignments, demonstrations, tests, examinations
  The standard is covered by theory or practice, and addressed by assessed activities in which the students mostly play an active role, e.g. discussions, reading, intepreting documents, tests, examinations
  The standard is discussed in theory or practice; it is addressed by assessed activities in which the students may play an active role, e.g. lectures and discussions, reading, interpretation, workshops, presentations 
  The standard is presented as a side issue in theory or practice; it is not specifically assessed, but it is addressed by  activities such as lectures or tutorials
  The standard  is not considered, there is no theory or practice or activities associated with this standard