Financial accounting
Mr Grant Gay
6 points * Two 1-hour lectures and one 1-hour tutorial per week * First semester * Clayton * Prerequisites: AAF1021/2 and AAF1031/2 (pass division I)
Objectives On completion of this subject students should be able to identify the characteristics of and account for investments in alternative business structures; understand how the conceptual framework applies to group financial reports; be familiar with financial report presentation and disclosure requirements; be competent in the preparation of group financial reports; understand the nature and implications of tax-effect accounting; be familiar with the actions available to companies in financial distress.
Synopsis Topics covered in this subject include an introduction to the accounting profession, financial reporting requirements and the reporting entity; accounting for partnerships; branch accounting; accounting for interests in joint ventures; tax-effect accounting; the nature of company groups; the preparation of consolidated financial reports; equity accounting; related party transactions; segment reporting; differential reporting and business closures.
Assessment Written: 10% * Examination (3 hours): 90%
Prescribed texts
Australian Society of CPAs and the Institute of Chartered Accountants in Australia Accounting handbook Prentice-Hall, 1995