AFG1002

Introductory accounting B

Mr Les Hardy

6 points · One 1-hour lecture and one 2-hour tutorial per week · Distance, approximately 12 hours per week · First and second semester · Gippsland · Prerequisite: AFG1001

Objectives On completion of this unit students should understand the definitions and recognition criteria for the elements of financial statements and be able to apply them on an issues basis. Students will be able to evaluate the accounting system in use within Australia and be able to evaluate and implement at a basic level some alternative measurement systems. Students should be able to analyse and interpret accounting information in a decision making context. 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. Students will be able to consider business structures in the context of partnerships and companies. Students will be expected to complete a computerised practice set and to understand the principles of the time value of money.

Synopsis 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, Gavens 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