Credit Points: 15

Prerequisite: BA214 Corporate Accounting

Co-requisite: N/A

Workload: 36 contact hours

Campus: Melbourne, Sydney

Aims & Objectives

This is a third-year Core Unit in the Bachelor of Business, major in Accounting. This unit provides students with the understanding of some of the major contemporary issues in accounting. Upon completion of this unit, students are expected to be able to explain why particular accounting procedures and policies are commonly adopted and why certain accounting choices are made by the corporate management. This unit also enables students to enter debates on trends within financial reporting and accounting in general. It presents the Conceptual Framework in detail, and facilitates students to develop the capability to critically evaluate the accounting practices adopted by corporations from a social and ethical perspective.

The unit topics include:

  1. Financial Accounting Standard setting
  2. The Conceptual Framework for Financial Reporting
  3. The Conceptual Framework: Recognition &Measurement of the elements of financial statements
  4. The Presentation of Financial Statements
  5. Accounting for current assets, PPEs, company income tax, leases and equity investments
  6. Industrial accounting standards: Accounting for the construction industry
  7. The role of accounting in the community and accounting ethics

Learning Outcomes

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

  1. Describe the financial accounting standard setting process of Australia.
  2. Discuss current issues and developments in accounting theory and financial reporting.
  3. Evaluate different accounting theories and their implication in policy choice by managers.
  4. Explain the Conceptual Framework and apply it to accounting activities, and identify strategies to meet accounting issues and problems.
  5. Develop an ethical and social perspective on the use of accounting information.

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%
Mid-term test a,b* 10%
Group assignment (written report) c,d,e* 30%
Final Exam (3 hours) a-e* 50%
Total   100%

*refer to learning outcomes above.

Textbook

Loftus, J., Leo, K., Boys, N., Daniliuc, S., Luke, B., Hong, A., & Byrnes, K., (2016). Financial Reporting, 1st edition. Australia: Wiley.


Reference Reading

  • Henderson, S., Peirson, G., and Herbohn, K. F., Ramsay, A & Borg, V. (2014). Issues in Financial Accounting, 15th edition. Frenchs Forest, NSW: Pearson Prentice-Hall
  • Picker, R., Clark, K., Dunn, J., Kolitz, D., Livne, G., Loftus, J., & van der Tas, L., (2016). Applying IFRS Standards, 4th edition. Australia: Wiley.
  • Deegan, C. (2013). Australian Financial Accounting, 7th edition. Sydney, NSW, McGraw-Hill

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