MA511 - Financial Accounting and Reporting
Credit Points: 15 credit points
Workload: 36 hours
Prerequisite: MA501 Foundations of Accounting
Aims & Objectives
This is a Year 1, Core Unit in the Master of Professional Accounting. For Course Learning Outcomes and further information relating to Master of Professional Accounting program please visit our website: http://www.mit.edu.au/study-with-us/programs/master-professional-accounting.
Financial accounting and reporting provides an entity’s financial information to external users in order to enable them to take relevant decisions based on the entity’s financial performance and position. The information is provided to the external parties by means of general purpose financial reports – income statement, balance sheet, statement of changes of equity and a cash flow statement. The reports should comply with the accounting regulatory arrangements prevailing in Australia and internationally.
This unit aims to provide students with an understanding of financial accounting information and to develop their expertise in the accumulation and presentation of financial accounting information. There is an emphasis on extending their awareness of the internal and external factors influencing business operations and decisions, and the role played by the financial accountant.
This unit includes corporate accounting issues including: formation, issue of shares, combinations and consolidations, equity accounting and liquidations of companies.
This unit will cover the following topics:
- Regulation in financial accounting.
- Conceptual framework, scope, reporting entity, objectives, general purpose financial statements.
- Company accounting: Financing company operations etc.
- Accounting for income tax.
- Accounting for assets- Property, Plant & Equipment.
- Disclosure: legal requirements and accounting policies; Presentation of financial statements.
- Introduction to business combinations.
- Introduction to consolidations.
- Preparation of consolidated statements: controlled entities and wholly owned subsidiaries.
- Consolidated statements: intra-group transactions, non-controlling interests.
- Accounting for investments in associates – equity accounting.
- Liquidations of companies.
Course Learning Outcomes
The Course learning outcomes applicable to this unit are listed on the Melbourne Institute of Technology’s website: https://www.mit.edu.au/study-with-us/programs/master-professional-accounting.
Unit Learning Outcome
At the completion of this unit students should be able to:
a. Describe and discuss the function and role of high quality financial accounting in the contemporary business environment.
b. Describe and discuss the application and basis of selected IFRSs set by the IASB.
c. Apply IFRSs including the framework in the preparation of general purpose financial statements.
d. Apply financial analytical skills to evaluate, explain and solve financial accounting problems relating to general purpose financial statements.
e. Design and develop an entity’s accounting system to maintain financial information and facilitate the preparation of general purpose financial statements.
f. Compare, contrast and review financial accounting systems to ensure efficient and reliable financial accounting information.
g. Evaluate and appraise stock exchange listed entity’s financial statements.
h. Develop and communicate solutions to ethical issues orally and in writing.
|Assessment Task||Due Date||A||B||Unit Learning Outcomes|
|1.Contribution and Participation||Weeks 1-12||-||6%||a-h|
|2.Formative Assessment||Week 3||-||4%||a|
|3.Assignment [Individual]||Week 6||20%||-||c,e|
|4.Assignment [Group]||Week 10||20%||-||b,c,e-h|
|5.Case Study Analysis [Individual] (3 hours)||TBA||-||50%||a-e|
Task Type: Type A: unsupervised, Type B: supervised.
Contribution and Participation (6%)
This unit has class participation as an assessment. The assessment task and marking rubric will follow the Guidelines on Assessing Class Participation (https://www.mit.edu.au/about-us/governance/institute-rulespolicies-and-plans/policies-procedures-and-guidelines/Guidelines_on_Assessing_Class_Participation). Further details will be provided in the assessment specification on the type of assessment tasks and the marking rubrics.
NOTE: All School of Business units 3-hour workshops Flipped Classroom Mode.
Textbook and Reference Materials
Note: Students are required to purchase the prescribed textbook and have it available each week in class.
Copies of the textbook are available in the MIT Library.
Prescribed Text Book
- Leo, K., Knapp, J., McGowan, S. and Sweeting, J. (2018). Company Accounting (11th ed.). John Wiley Milton Queensland.
Other recommended references
- Deegan, C. (2020.) Australian Financial Accounting (9th ed.). Sydney: McGraw Hill.
- Henderson, S., Peirson, G., Herbohn, K., Artiach, T. and Howieson, B. (2017). Issues in Financial Accounting (16th ed.). Pearson Higher Education AU.
- Loftus, J., Leo, K., Daniliuc, S., Boys, N., Luke, B., Ang, H. and Byrnes, K. (2020). Financial Reporting (3nd ed.). John Wiley, Milton Queensland.
- Trotman, K., Carson, E. and Gibbins, M. (2016). Financial Accounting: An Integrated Approach (6th ed.). Cengage; Learning, South Melbourne.
- Agyekum, A. A. B. and Singh, R. P. (2018) How Technology is Changing Accounting Processes: Institutional Theory and Legitimacy Theory Perspective, Journal of Accounting & Finance, 18 (7):11-23.
- Frankel, R.M. and Sun, Y. (2018). Predicting Accruals Based on Cash-Flow Properties, The Accounting Review, 93 (5):165-186.
- Glaum, M., Landsman, W.R. and Wyrwa, S. (2018). Goodwill Impairment: The Effects of Public Enforcement and Monitoring by Institutional Investors, The Accounting Review, 93 (6): 149-180.
- Hewa Dulige, J., Ali, M. J., Mather, P., & Young, S. (2020). Independent directors: Exploring the heterogeneous nature of multiple directorships. Corporate ownership and control, 17 (4), 18-34.
- Hewadulige, J., Abayadeera, N., Ali, M.J., Mather, P. (2019) Development of Accounting and reporting practices in Sri Lanka- An exploratory investigation. International Journal of Accounting, 54(2) pp 1-36.
- Huang, X., Sudha, K. and Lin, P. (2018). Tone Analysis and Earnings Management, Journal of Accounting & Finance, 18(8):46-61.
- Katselasa, D. and Rosov, S. (2018). Adoption of international ﬁnancial reporting standards and the cost of adverse selection, Accounting and Finance, 58: 1141–1168.
- Lina, K.Z., Chenga, S. and Zhang, F. (2017). Corporate Social Responsibility, Institutional Environments, and Tax Avoidance: Evidence from a Subnational Comparison in China, The International Journal of Accounting, 52 (4):303-318.
Check the unit Moodle page for additional recommended readings throughout the trimester.
The Referencing style for this unit is APA: See the MIT Library Referencing webpage: https://library.mit.edu.au/referencing/APA and the Unit Moodle page for additional referencing support material and weblinks.
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.|