Professional Documents
Culture Documents
Consultation hours
An introduction to accounting
Location
PowerPoint presentation adapted from Anne Abraham University of Wollongong 2009 John Wiley & Sons Australia, Ltd
Coordinator: Dr. Cornelia Beck Senior Tutor: John Trowell Lecturer: HIGHLIGHT your Lecturer in the outline Appropriate communication Class Streams and attendance
Opportunity to change on myuni by the end of week 2 (only if the class is not full) Visiting another class must have valid reason and permission from the lecturer.
Optional PASS Program What is PASS? Whats in it for me? How do I register for it? Optional additional questions and on-line tutorials
See blackboard for details
Assessments (p.4)
2.3 - 2.4 Assessment Tasks:
Assessment (p.6)
2.5 Workload and minimum requirements
1. Academic Honesty Module (compulsory) 2. Group Assignment (20%) Groups will be formed in week 3. Information will be provided on Blackboard 3. Mid semester Quiz: (25%) When? What will it cover? What is its format? See Blackboard for more details. 4. Final Examination: (55%) How long is it, what will it cover? Sample exam questions will be provided.
How much effort is expected of the average student to get an average mark? What are the recommended weekly learning activities and process? (see summary p.6)
2.6 Feedback
Where do I get formal and informal feedback on my assessment and learning? Mid semester quiz and final exam feedback. How I can review my performance in these? What is /is not the purpose of this self review?
(NB. it will be assumed you will know these policies) eg. Code of Conduct See Student Affairs Unit for assistance
3.1 3.3 (pp.7-8) Feedback and improvements How is feedback obtained from past semesters? What improvements have come from feedback? How will we collect feedback this semester?
See Blackboard under student resources (e.g. group work, academic writing, learning support, PASS, and lots more) Check it out See Faculty Learning & Teaching website for learning support www.econ.usyd.edu.au/business/learning
Access to Blackboard
Faculty IT will email you on how to activate it once you have been enrolled and registered as a user of the system
6. You can complete the weekly reflection, self-evaluation and learning strategies exercises. 7. Take actions to improve your understanding of the topic as selected for your learning strategies. 8. Ensure you understand the material for the week so you can build on your knowledge with the following weeks work. THEN Go back to 1 and complete the cycle each week
A) What is Accounting?
Primary function of accounting is to provide financial information for decision making that is
Reliable Relevant Why are these qualities necessary?
Accounting often referred to as language of business Suggest reasons for this analogy
Public accountants
Provide their professional services to the public and work in a range of offices from small to multi-national Auditing is a primary service Also taxation and advisory services
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Government accountants
Employed by local councils, state government and federal government Variety of roles such as financial accounting and auditing
Partnership
Owned by more than one partner e.g. accountants, solicitors, doctors
Not-for-profit accountants
Work in the not-for-profit sector Engage in planning, decision making, preparing financial and management reports for both internal and external users
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Corporation
organised as a separate legal entity and owned by shareholders BHP, CSR, Westpac, RM Williams
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What are the differences between a sole trader, a partnership and a company?
Sole Trader
Separation of ownership and management Separate legal entities Liability Ownership
Partnership No No Unlimited Private (2 or more owners) As per agreement Separate Capital account for each partner
Company Yes Yes Limited Public (share traded) or Privately owned Dividends (per share) Share Capital and Retained Earnings
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Other Forms
A trust is a relationship or association between 2 or more parties whereby one party holds property in trust for the other A cooperative is member-owned, controlled and used, and must consist of 5 or more people
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What issues do you consider when advising a client on the most appropriate structure for their business? Case example PSA1.1(a)
What issues do you consider when advising a client on the most appropriate structure for their business? Possible suggestion: The concern over legal liability would make the limited liability company form a better choice over a partnership. Also, the corporate form will allow the business to raise cash more easily which may be of importance in a rapidly growing industry.
Three information systems lecturers have formed a business to improve the speed of information transfer over the Internet for stock exchange transactions. Each has contributed equal amounts of cash and knowledge to the venture. Although the approach looks promising, they are concerned about the legal liabilities that their business might confront.
Required: Determine what form of organisation the business is likely to take sole proprietorship, partnership or company. Give reasons 25 for your choice.
NOT-FOR-PROFIT ORGANISATIONS
Associations
Generally formed by small, non-profit, community-based groups May be incorporated e.g. Australian Medical Association, Epilepsy Association of Australia
Government
Organisations are owned by government: federal, state or local Departments or segments are operated as business enterprises
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Investing Activities
Acquisition or sale of resources/assets needed to operate the business Examples:
Purchase or sale of property plant and equipment Purchase of investments
Operating Activities
Results from operational activities undertaken to earn income:
Revenue (sale of goods, provision of services, return from investments) LESS Expenses (cost of resources/assets consumed or services used) = Profit (internal generation of funds to finance operations, invest or pay dividends)
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Practical implications
PSA1.2 (a) Although the decision maker should refer to all financial statements, state whether the decision maker would be most likely to place the main emphasis on information provided by the income statement, statement of financial position or statement of cash flows. Choose one financial statement and provide a brief justification for your choice.
North Sales Ltd is considering extending credit to a new customer. The terms of the credit would require the customer to pay within 30 days of receipt of the goods.