AFB1002

Introductory accounting B

Mr Les Hardy

6 points · Two 1-hour lectures and one 1-hour tutorial per week · First semester · Berwick · Prerequisite: AFB1001

Objectives This subject will equip students with a thorough understanding of basic accounting principles and practice related to accounting concepts, systems and procedures. Students will consolidate and build on earlier studies of accounting as an information and control system for decision making. They will be prepared for further study in financial and managerial accounting.

Synopsis The accounting environment and framework, theoretical concepts and principles, the accounting cycle, special journals and ledgers, control accounts and subsidiary accounts, accounting for trading enterprises, accounting for cash, receivables, merchandise and payables, computer accounting systems, non-current assets and capital expenditure, partnerships, companies, internal control, computer system controls. This subject involves a study of the following topics: an overview of historical cost accounting and a consideration of alternative accounting measurement systems; the time value of money; and the role of computers within an accounting information system. The definitions and recognition criteria of the conceptual framework will be considered on an issue basis for all of the elements (assets, liabilities, equity, revenue and expenses). Issues will include problems of recognition attached to all of the elements and for example will include issues such as the valuation of assets, depreciation and leases. Accounting for business structures in a partnership and company form will be considered; as will the interpretation and analysis of financial information.

Assessment Project assignments: 30% · Examination (3 hours): 70% · Students must obtain satisfactory results in assignments and the examination.

Prescribed texts

Australian Society of CPAs and The Institute of Chartered Accountants in Australia Accounting handbook 1998/99
Carnegie, Govers and Gibson Cases in financial accounting 3rd edn, Harcourt Brace
Peirson G and Ramsay A Accounting: An introduction Longman, 1996
Computerised practice set - to be advised

Back to the 1999 Business and Economics Handbook