Handbook : Unit informationEdith Cowan University

School: Business and Law

This unit information may be updated and amended immediately prior to semester. To ensure you have the correct outline, please check it again at the beginning of semester.

• Unit Title

  Accounting Concepts and Applications

• Unit Code

  ACC6010

• Year

  2016

• Enrolment Period

  2

• Version

  1

• Credit Points

  20

• Full Year Unit

  N

• Mode of Delivery

  On Campus
  Online

Description

This unit provides graduates of other disciplines with an introduction to accounting and lays the foundation for further accounting units. Students will gain an understanding of the fundamental accounting concepts and principles and apply them to prepare and interpret financial statements. The unit focuses on developing the technical skills to account for sole proprietorship, partnership, and corporate forms of business entities at an introductory level.

Learning Outcomes

On completion of this unit students should be able to:

1. Analyse and interpret financial statements using financial ratio analysis.
2. Apply appropriate accounting concepts, assumptions and principles to the analysis of business transactions.
3. Evaluate financial performance of a small business and provide a written report to management.
4. Generate financial statements for sole proprietorship, partnership and corporation at an introductory level.
5. Process the accounting records for a small business using manual and computerised accounting information systems.

Unit Content

1. Overview of financial accounting as an information system and an introduction to accounting standards.
2. Accounting for liabilities, including determination of the nature of provisions and contingent liabilities, and analysis of liabilities for decision-making purposes.
3. Completion of the accounting cycle, including the rules of double entry, the use of special journals and balance day adjustments in manual and computerised accounting information systems.
4. Preparation of income statement, balance sheet, statement of changes in equity and statement of cash flows.
5. Accounting for inventory, including the use of different valuation methods under the periodic and perpetual inventory systems.
6. Accounting for non-current assets, including purchase, sale, revaluation and depreciation of non-current assets.
7. Accounting for partnerships and corporations.
8. Cash management and control, including preparation of bank reconciliation statement.
9. Preparation of cash flow statement using both direct and indirect method showing reconciliation of net cash from operating activities to profit in income statement.
10. Application of accounting concepts and basic computer knowledge for critical analysis and interpretation of financial reports.

Additional Learning Experience Information

On-campus students are expected to participate actively in weekly lectures and tutorials and access online materials regularly through Blackboard. Lecture sessions include activities such as group discussions and presentations to provide students with the opportunity to work in teams. Critical thinking and problem solving skills are developed when students apply accounting concepts and techniques to work examples. Communication and presentation skills of students are enhanced through presentations. The assignment requires students to work collaboratively in small groups to prepare a company's financial statements using computerised accounting software systems. Students are expected to apply appropriate accounting concepts and basic computer knowledge such as Word, Excel and MYOB accounting software to analyse and interpret results from the financial statements. Students will provide recommendations for business improvement based on their analysis of the company's business performance by preparing a formal business report. Students studying the unit using an online mode work through a study program with resources provided online via Blackboard. Students are required to review learning materials each week and to complete assigned questions on each topic. Regular online access is required. The assignment aims to equip students with good problem solving and critical thinking skills when they apply accounting concepts and knowledge to analyse financial reports. Students are expected to demonstrate clarity of communication and analytical skills in the written report of the assignment.

Assessment

GS1 GRADING SCHEMA 1 Used for standard coursework units

Students please note: The marks and grades received by students on assessments may be subject to further moderation. All marks and grades are to be considered provisional until endorsed by the relevant Board of Examiners.

^ Mandatory to Pass
* Assessment item identified for English language proficiency

Text References

• ^ Hoggett, J., Edwards, L., Medlin, J., Chalmers, K., Hellmann, A., Beattie, C. & Maxfield, J. (2015). Financial accounting (9th ed.). Milton Qld: John Wiley & Sons.
• ^ Pabst, W., & Perrin, B. (2014). e-Generation: A computerised accounting practice set using MYOB AccountRight Plus Version 19. Milton Qld: John Wiley & Sons.
• Crosling, G. M., Murphy, H. M., Cotesta, P. V., & Sands, J (2005). Writing and presenting in accounting (2nd ed.). Sydney: LexisNexis Butterworths.
• Deegan, C. (2012). Australian financial accounting (7th ed.). North Ryde, NSW: McGraw-Hill Australia.

Website References

• http://www.aasb.com.au

^ Mandatory reference