ADVANCED ACCOUNTING ISSUES

ACC5AAI

2018

Credit points: 15

Subject outline

In this subject, you will be studying some of the major contemporary issues in financial accounting. Following discussion and evaluation of different theories of accounting, and their implications for accounting practice, consideration will be given to significant accounting issues which impact on reported performance and financial position. Case studies will be used as a basis for critically examining issues surrounding the measurement, definition, and recognition of the elements of financial statements-assets, liabilities, revenues, expenses and owners' equity. Topics covered include accounting for intangible assets, asset revaluation, construction contracts, financial instruments and impairment, provisions and contingent liabilities and leases.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorKamran Ahmed

Available to Study Abroad StudentsYes

Subject year levelYear Level 5 - Masters

Exchange StudentsYes

Subject particulars

Subject rules

Prerequisites Advanced Corporate Reporting (ACC5CRE)

Co-requisitesN/A

Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditions Core in courses: LMAFM, LMPACBA, LMPACPA, LMPACIS, LZFAPA, LMPAC, LMPASY

Readings

Resource TypeTitleResource RequirementAuthor and YearPublisher
ReadingsAustralian Financial AccountingPrescribedDeegan, Craig, 2016, 8 editionMcGraw-Hill
ReadingsFinancial Accounting TheoryRecommendedDeegan, Craig, 2014, 4 editionMcGraw-Hill Irwin
ReadingsApplying International Financial ReportingRecommendedPicker et al. 3rd EditionWiley

Graduate capabilities & intended learning outcomes

01. Understand the regulatory environment of accounting as background to the consideration of particular accounting theories and regulation.

Activities:
1. Identify the main bodies involved in the regulation of accounting and describe their responsibilities 2. Explain the changes in the accounting setting arrangements in Australia 3. Articulate and apply different theories of regulation in an accounting context
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)

02. Critically evaluate specified prescriptive ("normative"), and explanatory and/or predictive ("positive") financial accounting theories

Activities:
1. Discuss the relevance and reliability of accounting measures in an external financial reporting context 2. Explain agency and contracting theories and how they relate to theories of accounting policy choice (positive accounting theories) 3. Provide examples, and discuss criticisms, of positive accounting theory 4. Define, and specify the recognition criteria for, the elements (ie. assets, liabilities, revenues, expenses, owner#s equity) of financial statements as per the Australian Accounting Standards Board conceptual framework (normative theory) 5. Apply the conceptual framework element definitions and recognition criteria to particular items/events
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

03. Understand specified accounting issues and related regulation/standards and have the capacity to critically evaluate relevant regulation/standards in the context of accounting for particular events or items.

Activities:
1. Have knowledge of, apply, and discuss critically accounting regulations which relate to the revaluation and impairment of assets, provisions and contingent liabilities, identifiable intangible assets and leases 2. Identify inconsistencies between the conceptual framework element definitions and recognition criteria, and other accounting regulation covering the treatment of certain liabilities, intangible assets, and leases 3. Explain the rationale underlying accounting for leases and critically evaluate that rationale. 4. Account for basic leases 5. Be able to explain the differences between operating and financial leases 6. Be able to account for both operating and financial leases for lessors and lessees.
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

04. Analyse and apply the accounting standards for entities in specialised industries

Activities:
1. Be able to account for revenue recognition and cost allocation for long-term construction constructs in accordance with the accounting standard for construction contracts. 2. Be able to explain why extractive industries pose some unique accounting issues. 3. Be able to account for preproduction costs in accordance with the accounting standards for mineral resources and asset impairment. 4. Be able to provide the necessary disclosures in conformity with accounting standards affecting companies in the extractive and construction industries.
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

05. Analyse and apply the accounting standards for complex transactions

Activities:
1. Be able to distinguish the different types of financial instruments and be able to compare and contrast them. 2. Be able to account for the basic types of financial instruments in accordance with the relevant accounting standards. 3. Be able to provide the necessary disclosures in conformity with the accounting standards for financial instruments. Be able to explain why transactions denominated in overseas currencies must be translated, and be able to choose the appropriate exchange rate for the translation. 4. Be able to describe and explain types of hedges and swaps. 5. Be able to account for (1) hedged and (2) unhedged foreign currency transactions for a purchase or a sale.
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups)
Discipline -Specific Knowledge and Skills (Discipline-Specific Knowledge and Skills)

Subject options

Select to view your study options…

Start date between: and    Key dates

Melbourne, 2018, Semester 1, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorKamran Ahmed

Class requirements

Lecture/Seminar Week: 10 - 22
One 3.0 hours lecture/seminar per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Three 20 minute tests worth 5 marks each in lecture room (400 word equivalent each)20 01, 02, 03, 04, 05
One 1500-word assignment30 02
One 2-hour final examination (2000 word equivalent)Students must achieve at least 45% on the final examination as well as an overall total of 50% to pass the unit.50 01, 02, 03, 04, 05

Melbourne, 2018, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorKamran Ahmed

Class requirements

Lecture Week: 31 - 43
One 2.0 hours lecture per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

WorkShop Week: 31 - 43
One 1.0 hours workshop per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Three 20 minute tests worth 5 marks each in lecture room (400 word equivalent each)20 01, 02, 03, 04, 05
One 1500-word assignment30 02
One 2-hour final examination (2000 word equivalent)Students must achieve at least 45% on the final examination as well as an overall total of 50% to pass the unit.50 01, 02, 03, 04, 05

Sydney, 2018, Study Period 1, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorKamran Ahmed

Class requirements

Lecture Week: 10 - 22
One 2.0 hours lecture per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

WorkShop Week: 10 - 22
One 1.0 hours workshop per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Three 20 minute tests worth 5 marks each in lecture room (400 word equivalent each)20 01, 02, 03, 04, 05
One 1500-word assignment30 02
One 2-hour final examination (2000 word equivalent)Students must achieve at least 45% on the final examination as well as an overall total of 50% to pass the unit.50 01, 02, 03, 04, 05

Sydney, 2018, Study Period 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorKamran Ahmed

Class requirements

Lecture Week: 31 - 42
One 2.0 hours lecture per week on weekdays during the day from week 31 to week 42 and delivered via face-to-face.

WorkShop Week: 31 - 42
One 1.0 hours workshop per week on weekdays during the day from week 31 to week 42 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Three 20 minute tests worth 5 marks each in lecture room (400 word equivalent each)20 01, 02, 03, 04, 05
One 1500-word assignment30 02
One 2-hour final examination (2000 word equivalent)Students must achieve at least 45% on the final examination as well as an overall total of 50% to pass the unit.50 01, 02, 03, 04, 05

Sydney, 2018, Study Period 3, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorKamran Ahmed

Class requirements

Lecture
One 2.0 hours lecture per week on weekdays during the day and delivered via face-to-face.

WorkShop
One 1.0 hours workshop per week on weekdays during the day and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Three 20 minute tests worth 5 marks each in lecture room (400 word equivalent each)20 01, 02, 03, 04, 05
One 1500-word assignment30 02
One 2-hour final examination (2000 word equivalent)Students must achieve at least 45% on the final examination as well as an overall total of 50% to pass the unit.50 01, 02, 03, 04, 05