Swinburne
- to provide an understanding of the theoretical framework underlying the discipline of accounting - very different from first and second year accounting Units - be prepared to be challenged: - often no right answer but ability to see both sides of an issue and come to a conclusion is what is valued - many feel uncertainty/ambiguity and an undermining of the rules learned in earlier Units - this Unit is a required element of accreditation by the professional accounting bodies - if you are floundering ask early for assistance
SCIENCE | TECHNOLOGY | INNOVATION
Swinburne
- Regulatory frameworks - Accounting theories - Measurement issues in accounting - Application of theories and measurement issues to a number of financial accounting standards - Non-financial corporate reporting information and issues
Swinburne
Critically evaluate and be prepared to discuss in class the role of regulation in financial reporting and the political forces at play; Critically evaluate and be prepared to discuss in class whether information provided in financial reports is useful to investors and creditors; Apply a conceptual approach to the definition and measurement of assets, liabilities, income, revenue, and equity; Critically evaluate and be prepared to discuss in class the major approaches to the formulation of an accounting theory in relation to financial reporting; In writing and in discussion during class, explain the role of positive accounting theory in explaining and predicting accounting policy choice, the behaviour of the capital markets and the behaviour of relevant individuals, including ethical issues that may arise;
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Research, analyse and be prepared to discuss in class complex contemporary financial accounting issues, formulate well-reasoned and coherent arguments and reach well-considered conclusions in relation to those issues; and Identify theoretical concepts and principles embodied in specific accounting standards.
Swinburne
- Analysis - Problem solving - Communications - Ability to tackle unfamiliar problems - Ability to work independently
Swinburne
- 2 hours of lectures and a 1 hour tutorial per week, - You should expect to spend, on average, 12-1/2 hours of total time a week on this Unit
PRESCRIBED TEXT
Swinburne
- Deegan, C., Australian Financial Accounting, 7th Edition, (2012), McGraw Hill Australia Pty Ltd. - Accounting Standards either in hardcopy or electronically (available via the AASBs website: http://www.aasb.gov.au/) - Links to standards appear in Blackboard
Assessment
Assessment Task Individual/ Group Task Final Examination Closed book Mock exam available now Assignment Individual Weighting
Swinburne
Due Date
60 %
Examination Period
Individual
20%
Available now on Blackboard Assessment Mid -Semester Test Individual (on-line test) Topics 1-4 Participation Not a mark for showing up
SCIENCE | TECHNOLOGY | INNOVATION
15%
Online available over 5 days 2 attempts available 2nd attempt grade taken Ongoing throughout the semester
Individual
5%
Assessment (cont.)
Swinburne
Students are expected to: - achieve a satisfactory level of performance in all assessment components; and - achieve at least the minimum pass mark (50%) in the final exam, in order to obtain an overall pass in this Unit.
10
Assignment (20%) Individual (1500 words) Report Fair value accounting and the GFC
Swinburne
SUGGESTED REPORT STRUCTURE - Title Page - Contents Page - Executive Summary (which provides an overview of the whole report) - Introduction and Purpose - Responses to specific task using appropriate headings and sub-headings - Conclusion - References
SCIENCE | TECHNOLOGY | INNOVATION
11
Swinburne Assignment
According to Laux and Leuz (2009, p. 833) accounting rules and changes in them are shaped by political processes. Laux, C. & Leuz, C. 2009. The crisis of fair-value accounting: Making sense of the recent debate. Accounting, Organizations and Society, 6-7, 826-834. Required: You have been commissioned by the Chair of the Australian Accounting Standards Board to write a Report explaining the foregoing Laux and Leuz (2009) claim in the context of the controversy surrounding whether or not fair-value accounting contributed to the global financial crisis of 2008.
12
Swinburne
Presentation (30%) (editing, grammar, punctuation, structure, role play Quality of Executive Summary (10%) Quality of response to assignment task (research, logic and coherence of argument) (40%) Quality of conclusion (10%) Quality of referencing (10%)
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Participation How can you participate? - Discussion in lectures - Discussion during tutorials
Swinburne
- Bringing up news items relevant to Unit in lectures/tuts - Volunteering to present solutions in class if tutor agrees - Asking questions on Blackboard - Role of anonymous questions - Participating in discussion on Blackboard - Participating in collaborate sessions
SCIENCE | TECHNOLOGY | INNOVATION
14
Honours in Accounting?
Swinburne
- Doing well in this Unit is a very good predictor of success at Honours level - Doing well at Honours level is a good predictor of success in a higher degree by research (Master or PhD)
15
Swinburne
- All questions are selected from Deegan 7e and are typical of the type of questions (i.e. based on theory) that will be on the final exam - Note different approach from prior semesters - No debits or credits, no journal entries - Multiple choice questions-role of Topic quizzes - Prepare your attempts at this mock exam for revision: - Can be attempted after each of the relevant topics, or - Under timed conditions at completion of Unit - Brief suggested solutions will be provided before the final exam
SCIENCE | TECHNOLOGY | INNOVATION
16
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King, Agnes. Unwieldy Rules useless for investors. Australian Financial Review 6/2/12 International accounting standards are unusuable from an investors viewpoint and make global allocation of capital more complex instead of simplifying it, chief financial officers at large listed entities say. Millions of dollars have been spent adopting IFRSs to help investors make like-for-like comparisons between companies in global capital markets. But CFOs say they are useless and have driven financial disclosures to unmanageable levels. The criticism comes as the US, the worlds largest capital market, decides whether to retire its domestic accounting standard (US GAAP) and adopt IFRS.
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Q1 (cont.)
In seven years I never got one question from fund managers or investment analysts about IFRS adjustments, former AXA head of finance Geoff Roberts said. Investors dont open the 60-70 pages of IFRS accounts, they rely on investor reports and management briefings to understand a companys numbers. If analysts did delve into IFRS accounts, they would most probably misinterpret them, according to Wesfarmers finance director Terry Bowen, who said the accounting standards were mind bogglingly complex. Once you get into the notes you have to be technically trained. If youre not, a lot of it could be misleading, Mr Bowen said.
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Q1 (cont.)
Commonwealth Bank chief financial officer David Craig said IFRS numbers were disregarded by investors because they could actually obscure an institutions true position. You are required to explain which qualitative characteristics of financial reporting, as per the IASB conceptual framework, do not, in the opinion of the above quoted individuals, appear to be satisfied by current reporting practices pursuant to IFRS. Also, you are required to consider whether the views are consistent with the view that corporate financial reports satisfy the central objective of financial reporting as identified in the Conceptual Framework.
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