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ACCT71-600: Accounting Principles January 2020 [Standard]

General information

In this subject, students will learn to apply fundamental accounting concepts and procedures to prepare and interpret basic financial statements for different types of business entities.  Both manual and computerised accounting systems are a feature.

Users of financial information and the decisions they make based on accounting information are considered throughout the subject. Accounting Principles also introduces students to the ethical standards expected of accountants and the accounting information they produce.

Details

Academic unit:Bond Business School
Subject code:ACCT71-600
Subject title:Accounting Principles
Subject level:Postgraduate
Semester/Year:January 2020
Credit points:10

Delivery & attendance

Timetable: https://bond.edu.au/timetable
Delivery mode:

Standard

Workload items:
  • Computer Lab: x12 (Total hours: 24) - Seminar 1
  • Computer Lab: x12 (Total hours: 24) - Seminar 2
  • Personal Study Hours: x12 (Total hours: 72) - Recommended study time & reviewing materials
Attendance and learning activities: Attendance at all class sessions is expected. Students are expected to notify the instructor of any absences with as much advance notice as possible.

Resources

Prescribed resources:
  • Ken Trotman, Elizabeth Carson, Kate Morgan (2019). Financial Accounting: An Integrated Approach. 7th, Cengage AU , 720. 17
After enrolment, students can check the Books and Tools area in iLearn for the full Resource List.
[email protected] & Email:[email protected] is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student.

To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au

Enrolment requirements

Requisites: ?

Nil

Restrictions: ?

Nil

Assurance of learning

Assurance of Learning means that universities take responsibility for creating, monitoring and updating curriculum, teaching and assessment so that students graduate with the knowledge, skills and attributes they need for employability and/or further study.

At Bond University, we carefully develop subject and program outcomes to ensure that student learning in each subject contributes to the whole student experience. Students are encouraged to carefully read and consider subject and program outcomes as combined elements.

Program Learning Outcomes (PLOs)

Program Learning Outcomes provide a broad and measurable set of standards that incorporate a range of knowledge and skills that will be achieved on completion of the program. If you are undertaking this subject as part of a degree program, you should refer to the relevant degree program outcomes and graduate attributes as they relate to this subject.

Find your program

Subject Learning Outcomes (SLOs)

On successful completion of this subject the learner will be able to:
  1. Apply fundamental accounting concepts and principles for recording business transactions for a range of business structures using accrual accounting and the double entry system.
  2. Manually process accounting information to generate a set of common financial statements.
  3. Use an accounting software package to record and process accounting information.
  4. Perform reconciliations and make adjusting entries to correct errors and omissions.
  5. Analyse and evaluate financial information.
  6. Apply professional judgment in decision making.
  7. Demonstrate knowledge of the ethical requirements of a professional accountant.

Assessment

Assessment details

TypeTask%Timing*Outcomes assessed
Written Report Analyse an ethical dilemma using the code of ethics of professional accountants and provide advice. 15% Week 4 6, 7.
Written Report Skills-based assignment using accounting software package and spreadsheet application; includes a written business report. Perform reconciliations, locate coding, posting and/or recognition errors; process correcting journal entries; review results; produce financial statements. Analyse and report financial results to management, including performance improvement recommendations. Provide advice regarding accounting errors found. 35% Week 11 1, 3, 4, 5, 6.
Paper-based Examination (Closed) ^ Comprehensive Final Examination 30% Final Examination Period 1, 2, 4, 5, 6.
Paper-based Examination (Closed) Record business transactions and produce end-of-period financial statements. 20% Week 7 (Mid-Semester Examination Period) 1, 2, 5.

Pass requirement

Students must pass the final examination and achieve a mark of 50% or better overall in order to pass the subject.

  • ^ Students must pass this assessment to pass the subject
  • * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
  • C = Students must reach a level of competency to successfully complete this assessment.

Assessment criteria

High Distinction 85-100 Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking.
Distinction 75-84 Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas.
Credit 65-74 Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above.
Pass 50-64 Usually awarded to students whose performance meets the requirements set for work provided for assessment.
Fail 0-49 Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines.

Quality assurance

For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.

Study information

Submission procedures

Students must check the [email protected] subject site for detailed assessment information and submission procedures.

Policy on late submission and extensions

A late penalty will be applied to all overdue assessment tasks unless an extension is granted by the lead educator. The standard penalty will be 10% of marks awarded to that assessment per day late with no assessment to be accepted seven days after the due date. Where a student is granted an extension in writing by the lead educator, a penalty of 10% per day late starts from the new due date.

Policy on plagiarism

University’s Academic Integrity Policy defines plagiarism as the act of misrepresenting as one’s own original work: another’s ideas, interpretations, words, or creative works; and/or one’s own previous ideas, interpretations, words, or creative work without acknowledging that it was used previously (i.e., self-plagiarism). The University considers the act of plagiarising to be a breach of the Student Conduct Code and, therefore, subject to the Discipline Regulations which provide for a range of penalties including the reduction of marks or grades, fines and suspension from the University.

Bond University utilises Originality Reporting software to inform academic integrity.

Feedback on assessment

Feedback on assessment will be provided to students within two weeks of the assessment submission due date, as per the Assessment Policy.

Disability support

If you have a disability, illness, injury or health condition that impacts your capacity to complete studies, exams or assessment tasks, it is important you let us know your special requirements, early in the semester. Students will need to make an application for support and submit it with recent, comprehensive documentation at an appointment with a Disability Officer. Students with a disability are encouraged to contact the Disability Office at the earliest possible time, to meet staff and learn about the services available to meet your specific needs. Please note that late notification or failure to disclose your disability can be to your disadvantage as the University cannot guarantee support under such circumstances.

Additional subject information

As part of the requirements for Business School quality accreditation, the Bond Business School employs an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.

Subject curriculum

An introduction to the purpose and importance of financial accounting to its various users. Fundamental accounting concepts, principles and assumptions underlying financial accounting are covered. The difference between cash and accrual accounting is highlighted. Emphasis is given to the key financial statements, their informational content, and how they interconnect. Current issues in financial accounting and reporting are discussed.

Students are introduced to professional codes of conduct and required ethical standards for professional behavior through APES110 Code of Ethics for Professional Accountants and the general application of its framework. Fundamental principles, threats and safeguards, and the public interest imperative are presented. While not perfectly similar, the principles align well with other business professions’ ethical codes, e.g., Actuaries Institute, Australian Property Institute, and CFA Institute.

The content and use of financial statements with an emphasis on financial position and financial performance. This topic establishes the elements of financial statements, recognition criteria, and concepts of probability and reliability of measurement, and considers accounting policy choice. Students learn about four main types of business structures and how reporting for equity differs among them.

Focus is given to transaction analysis and the impact of transactions on the accounting equation and, consequently, on the financial statements. Students will become familiar with the double entry system of record-keeping from which the Balance Sheet and Income Statement are constructed. Instruction is given in the preparation of journal entries, the most basic means of recording accounting transactions, posting entries to ledger accounts, balancing ledger accounts, and production of a trial balance.

Making end-of-period adjustments to apply the matching principle, closing the accounts, and producing basic financial statements. The multi-column worksheet is featured, and attention is also given to contra accounts, and to third-party liability accounts. Basic financial statement analysis typically used by internal and external users of the reports is introduced.

Issues relating to sales revenues and cost of goods sold, including making sales on credit and how to account for non-payment of customers’ accounts. Accounting for the effects of providing or receiving trade and settlement discounts is featured. Inventory control and the perpetual and periodic inventory systems are investigated. The relationship between inventory valuation and cost of goods sold, and therefore, impact on profits, is established through a close analysis of popular inventory cost flow assumptions and valuation methods. Concepts relating to net realisable value of inventory items are also considered. Also highlighted is an overview of the role of special journals, subsidiary ledgers and control accounts.

Management has an imperative to maintain good internal control systems in order to protect an entity’s assets from loss, damage, misuse, and fraud, and to prevent financial statement errors. Basic techniques for control systems design are considered and students will learn how to perform basic reconciliations, including the reconciliation of bank accounts. This topic also considers the importance of budgeting and working capital management, and highlights systems and controls required to monitor and manage working capital.

Students will be instructed in using accounting software as they are introduced to a contemporary, cloud-based, accounting platform for processing accounting transactions and producing financial statements and management reports. The use and misuse of “suspense accounts” is highlighted.

Measuring the cost of an asset and various methods of calculating depreciation. We consider how the method chosen impacts profits and the balance sheet and learn how to account for transactions relating to the purchase, depreciation, and sale of an asset. Attention is also given to a basic understanding of intangible assets, asset impairments, asset revaluations, and disclosure requirements. We use fundamental financial analysis techniques to reflect on how managers’ judgements in relation to non-current assets affect the measurement of their performance.

We turn our attention to the balance sheet accounts representing sources of funding. We explore the accounting treatment for current liabilities, including accounts payable, GST-liabilities, employee deductions, and other short-term accruals and liabilities. Also covered are the accounting for, and reporting of, various types of long-term debt, as are provisions and contingent liabilities. Similar focus is given to accounting for and reporting the various components of equity. The application of financial statement analysis techniques continues.

The liquidity of a business entity is just as important, if not more important, as its profitability. We learn how to prepare a statement of cash flows and discover how it represents the key decision areas of management: operating, investing, and financing. We give focus to how this financial statement provides users with the ability to evaluate management’s performance in managing these critical cash flows as we analyse the health of the organization using basic financial statement analysis techniques.

Approved on: Dec 20, 2019. Edition: 5.3