BA204 - Financial accounting

Credit Points: 15 credit points

Workload: 36 hours

Prerequisite: BB104 Introductory Accounting

Co-requisite: N/A

Aims & Objectives

This is a second-year Core Unit in the Bachelor of Business, major in Accounting, and offered as an Elective Unit in the Bachelor of Business Marketing, and Bachelor of Business Management. For Course Learning Outcomes and further information relating to Bachelor of Business programs please visit our website:

This unit builds on the basic accounting principles covered in BB104 Introductory Accounting. It assists student understanding of financial accounting information, and the regulatory accounting environment. The unit develops expertise in the accumulation, processing and presentation of financial information in relation to sole proprietorships and partnerships in the trading, and service sectors. This unit lays the foundation for advanced core accounting units.
Unit topics include:

  • Review of accounting principles and the accounting equation
  • Recording business transactions using the double entry system
  • Adjusting and closing entries
  • Preparation of financial statements
  • Accounting for inventory
  • Internal control and cash
  • Property, plant and equipment, Intangibles
  • Accounting for partnerships
  • Receivables accounting for bills receivable and bad debts
  • Liabilities warranties and contingent liabilities

Learning Outcomes

4.1 Course Learning Outcomes
The Course learning outcomes applicable to this unit are listed on the Melbourne Institute of Technology’s website:

4.2 At the completion of this unit students should be able to:
a. Interpret and explain accounting concepts and principles
b. Discuss the importance of accounting standards
c. Identify, evaluate and design solutions to ethical issues in accounting
d. Record financial accounting transactions using the accrual method of accounting
e. Prepare general purpose financial statements


Assessment Task Due Date A B Unit Learning Outcomes
1. Formative Assessment Week 3 - 5% a
2. Contribution and Participation  Weeks 1-12 - 5% a-e
3. Assignment [Individual] No. 1 Week 5 - 20% d,e
4. Assignment [Individual] No. 2 Week 10 20% - d,e
5. Case Study Analysis [3 hours] TBA - 50% a-e
TOTALS   20% 80% 100%

Task Type: Type A: unsupervised, Type B: supervised.

Contribution and Participation (5%)

This unit has class participation as an assessment. The assessment task and marking rubric will follow the Guidelines on Assessing Class Participation ( Further details will be provided in the assessment specification on the type of assessment tasks and the marking rubrics.

Teaching Methods

NOTE: All School of Business units 3-hour workshops Flipped Classroom Mode. 

Textbook and Reference Materials

Note: Students are required to purchase the prescribed text book and have it available each week in class.

Prescribed Text Book

  • Nobles, T., Mattison, B., Matsumura, E., Best, P., Fraser, D., Tan, R., & Willett, R., (2019). Horngren’s Financial Accounting e-book, 8th edition. Australia: Pearson Education.

Other recommended references

  • Nobles, T., Mattison, B., Matsumura, E., Best, P., Fraser, D., Tan, R., & Willett, R., (2016). Horngren’s Financial Accounting, 8th edition. Australia: Pearson Education.
  • Trotman,K., Gibbins,M., & Carson, E., (2019). Financial Accounting: An Integrated Approach, 7th edition. Australia: Cengage Learning.
  • Atrill, P., Harvey, D., & McLaney, E., (2020). Accounting: an introduction, 8th edition., Port Melbourne: Pearson Education Australia.
  • Weygandt, J., Kieso, D., & Kimmel, P. (2020). Financial Accounting, 11th edition. NJ: John Wiley.
  • Thomas,A., & Ward, A.M., (2019). Introduction to Financial Accounting, 9th edition. McGraw-Hill Australia.

Journal articles

  • Boisjoly, R.P., Conie Jr, T.E., McDonald IV, M.B.  J. (2020). “Working capital management: Financial and valuation impacts”, Journal of Business Research 108:1-8.
  • Horák J., and Bokšová J. (2018). “Influence of Big Data on Financial Accounting.” International Advances in Economic Research 24(2):205–6.
  • Laing, G., & Perrin, R. (2018). Artifacts and institutions of financial accounting. Journal of New Business Ideas & Trends, 16(1).
  • Katz, D. (2017). A boon for derivatives users: The financial accounting standards board's ruling on hedge accounting has something for everyone. Cfo, 33(6).
  • Dutta S and Patatoukas P.N. 2017. “Identifying Conditional Conservatism in Financial Accounting Data: Theory and Evidence.” Accounting Review 92(4):191–216.

The Referencing style for this using is APA: See the MIT Library Referencing webpage: and the Unit Moodle page for additional referencing support material and weblinks.

Graduate Attributes

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


Levels of attainment Extent covered
The attribute 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 attribute 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 attribute 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 attribute 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 attribute is not considered, there is no theory or practice or activities associated with this attribute.