Faculty of Business and Economics

Monash University

Undergraduate - Unit

This unit entry is for students who completed this unit in 2012 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

print version

6 points, SCA Band 3, 0.125 EFTSL

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered, or view unit timetables.

FacultyFaculty of Business and Economics
OfferedSouth Africa Second semester 2012 (Day)


The unit provides a detailed examination of how certain International Accounting Standards are implemented. The relevant standards focus on accounting for corporate assets under different circumstances, as well as on calculating earnings per share and borrowing costs. Students will be exposed to and learn how to prepare accounting records using commercial accounting software in a manner that comply with the standards applicable to this unit.


The learning goals associated with this unit are to:

  1. determine the key concepts that are relevant for selected topics (see list of relevant accounting standards below) in financial accounting, the need for accounting standards, and the areas of debate and difficulty that apply to the standards regulating the accounting of corporate assets
  2. apply the accounting principles prescribed in international standards to specific problems, at an advanced level, for the accounting of assets in a manual and computerised accounting system in the development of financial statements;
  3. analyse and evaluate how companies apply the standard in their annual financial reporting
  4. calculate borrowing cost and earnings per share and make recommendations on how best to present and apply the resulting information
  5. analyse and describe how companies disclose borrowing cost and earnings per share in their financial statements
  6. practically make use of a commercial accounting software package to enter and process accounting data according to accounting standards and to analyse and interpret the resulting accounting information and
  7. apply critical thinking, problem solving and presentation skills to individual and / or group activities dealing with financial accounting and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by AFW2720.

Relevant accounting standards in this unit:
  1. Inventories (IAS 2)
  2. Property, Plant & Equipment (IAS 16)
  3. Impairment of assets (IAS 36)
  4. Intangible assets (IAS 38)
  5. Investment Property (IAS 40)
  6. Non-current assets held for sale and discontinued operations (IFRS 5)
  7. Borrowing costs (IAS 23)


Within semester assessment: 40%
Examination (3 hours): 60%

Chief examiner(s)

Mr Adrian Pilley

Contact hours

3 hours per week




AFW2042, AFW3004