BU8101

Accounting: A User Perspective

_________________________________________________________________________

Academic Year : 2011/2012 Semester : 1

Dr Harshini Pushpika
Course Other Siriwardane
: Mrs. Ho-Lau Yin Kheng :
Coordinator Instructor(s) Li Bing
Zhou Bo
Pre-requisites : None

No. of AUs : 3

Course Description and Scope

This is a basic course in financial and managerial accounting meant for non-accounting and non-
business students. It exposes students to the environment of accounting and its role in providing
useful information for decision making by various stakeholders of business organizations. By the end
of the course, students should be able to appreciate the role, scope and value of information for
managing business organizations towards achieving their goals.

Students will learn fundamental concepts and techniques in financial and managerial accounting,
through solving business problems. In this course, students are treated to an understanding of a
broad range of the underlying accounting concepts without the need to be involved in too much detail
associated with the processes. Whilst non-accounting and non-business students need not have to
prepare comprehensive financial statements, it would be beneficial for them to be able to understand,
interpret, analyse and use them.

Course Learning Objectives

1. To understand the role and structure of the accounting and control functions within an
organization.

2. To use relevant financial information for control and decision making and employ basic
quantitative and qualitative techniques to interpret and analyse financial information.

3. To develop students analytical, verbal and presentation skills.

Learning & Teaching Methods

The teaching-learning mode is structured into 1.5 hours lecture and 1.5 hours seminar per week. The
first lecture will commence on 10 August 2011 and the first seminar will in the week commencing 15
August 2011.

The purpose of the lecture is to expose students to the basic concepts and principles of accounting.
The purpose of the seminars, unlike the lecture, is to have small-group classes so that detailed
analysis, interaction and discussion are possible. The seminars involve a variety of learning activities
such as (a) discussion of conceptual overview of the assigned material for the seminar, (b) critical
analysis and discussion of the relevant literature, (c) the use of relevant case studies for developing
critical analysis, discussion and presentation skills, and (d) dealing with hands-on basic numerical
problems for developing essential technical knowledge and skills.

Other learning activities outside class-contact time may include online quiz and e-learning activities
found in BU8101 Accounting Learning Centre to be set up in Edventure. Students would be
encouraged to explore the issues further through the various learning activities mentioned above.
Group discussion is strongly encouraged as it enables examining an issue or problem from multiple
perspectives and it facilitates developing communication and group working skills.

1
Course Assessments

Components Marks Individual/Group

Coursework
Presentation/Participation 20 Individual/Group
Online Quiz (closed book) 20 Individual
Final Examination (closed book) 60 Individual
Total 100

Assessment Plan

Course Learning Objective Assessment Method

Online Quiz
To understand the role and structure of the accounting and control
Examination
functions within an organization.
Presentation/Participation

Online Quiz
To use relevant financial information for control and decision making
and employ basic quantitative and qualitative techniques to interpret Examination
and analyse financial information.
Presentation/Participation

Online Quiz
To develop students analytical skills. Examination
Presentation/Participation

To develop students verbal and presentation skills Presentation/Participation

Presentation/Participation (20%)

(a) Presentation (10%)

Each student will be assigned a group at the beginning of the semester. Each group will then be
assigned on a random basis to present questions in a tutorial. Every member of the presentation
group is expected to participate and present in front of the class. All presentations must be in
PowerPoint format. Students will be assessed based on the quality of the presentation on an
individual as well as on a group basis.

(b) Participation (10%)

Assessment will be based on participation in a group assignment and in class discussions.

Participation in class discussions include asking relevant questions, volunteering a response to
instructors questions, or responding to an instructors cold call. Class participation points will not be
earned by merely attending class. In addition, absence from class without a valid medical certificate
will earn you a zero score for class participation in the week of your absence.

Online Quiz (20%)

The online quiz will be administered during tutorials in the week commencing 3 October 2011 (the
week immediately after the recess week). The quiz, which comprises multiple-choice questions, will
be conducted in IT labs. The coverage of the quiz can include all topics discussed during lectures
and tutorials up to that point. Students who are absent from the quiz without a valid medical
certificate will be awarded a zero score.

2
Final Examination (60%)
rd
The final examination is closed book and will be held on Wednesday, 23 November 2011 at 5 pm.

Academic Integrity:

Nanyang Technological University values academic integrity. Therefore all students must understand
the meaning and consequences of cheating, plagiarism and other academic offences under the
University Honour Code. You may access the University Honour Code at this website:
http://www.ntu.edu.sg/Bak_sao/Pages/default.aspx.

Readings and References

Main Text

WHB: Williams, J.R., Haka S.F. and Bettner M.S.

th
Financial and Managerial Accounting: The Basis for Business Decisions, 16 Edition,
McGraw-Hill (2011).

Supplementary Texts

The following are suggested texts to supplement the main text for additional reading materials,
whenever necessary. You need not buy them; they will be made available in the library.

WC: Wild, J.J. and Chiappetta, B.

th
Financial and Managerial Accounting: Information for Decisions, 4 Edition, McGraw-Hill
(2011)

RJMHH: Rich, J.S., Jones, J. P., Mowen, M.M., Hansen, D.R. and Heitger, D.L.
Cornerstones of Financial & Management Accounting Current Trends, International
nd
Edition, 2 Edition, Cengage Learning South Western (2011)

Other Resources

Websites

Each student registered for the course will have access to three websites in the Edventure. The first
site, BU8101 Accounting: A User Perspective, is the main website. Most of the resource materials
required for the lectures and tutorials will be posted on it. The second site, BU8101 Accounting
Learning Centre, contains self-learning material and online tutorials. There are also chapter
summaries for every chapter of the main textbook, multiple-choice quizzes, true/false quizzes and
internet exercises. Students are strongly advised to access the site and make use of the material.
The third website will be created for each tutorial group. Students of the same tutorial group will be
able to have online forum discussions and engage in information sharing with members of their class.

Course Instructors

Office Email
Instructor Phone
Location
Mrs. Ho-Lau Yin Kheng (Coordinator) S3-01C-88 6790 5694 yklau@ntu.edu.sg
Dr Harshini Pushpika
S3-B1C-92 67905708 HSIRIWARDANE@ntu.edu.sg
Siriwardane (Co-lecturer)
Li Bing (Tutor) LI0028NG@ntu.edu.sg

Zhou Bo (Tutor) ZHOU0105@ntu.edu.sg

3
Proposed Weekly Schedule
Lecture No./ Lecture Topics
Week
Commencing
1 Introduction to Accounting
8 Aug. 1. Course requirements &
administrative/housekeeping matters
2. Importance of accounting
3. The objectives and characteristics of :
Financial accounting information and
Management accounting information
4. The sources of integrity of accounting
information
5. Forms of business organizations
6. The Accounting Framework, Financial
Statements and Some Accounting
Concepts
2 The Accounting Cycle
15 Aug. 1. Capturing economic events
2. Make adjustment entries
Accruals
Deferrals
3. Prepare adjusted trial balance
4. Prepare financial statements and close
books
5. Ethics, fraud and corporate governance
Learning Objectives Readings/Activity
1. To provide an overview of BU8101 and to discuss course WHB, Chapters 1 & 2
requirements.
2. To understand the importance of accounting information in No seminar for this week
making economic decisions.
3. To understand the difference between financial and
management accounting information and their uses.
4. To know the elements of external and internal financial
reporting that creates integrity in the reported information.
5. To know the different types of business organizations.
6. To understand the nature and general purpose of financial
statements and have an overview of the accounting concepts
underlying the preparation of these financial statements.
7. To understand how certain business transactions affect the
elements of the accounting equation and how financial
statements relate to each other.
1. To understand the steps in the accounting cycle from source WHB, Chapters 3, 4 & 5
documents to adjusting and closing activities.
2. To understand the double entry accounting system. Getting to know one
3. To understand the purpose of adjusting entries and the another and briefing on
application of the accounting period, realization, matching, group presentation and
materiality and accrual accounting concepts. class participation
Discuss use of MB101
Accounting Learning
Centre
Seminar No. 1
4
 3 Financial Statements: 1. To identify the difference between current and non-current WHB, Chapter 7
22 Aug. Statement of Financial Position (Balance sheet) assets.
Accounting and Presentation of: 2. To define financial assets and their valuation in the balance Seminar No. 2
1. Current assets sheet.
Financial assets which include cash and 3. To understand the risks and control associated with accounts
cash equivalents, short-term investments receivables.
and receivables 4. To understand the risks associated with cash and the need
for control.
5. To know how to do bank reconciliation.
6. To understand financial ratios relating to accounts receivables
and liquidity.

4 Financial Statements: 1. To learn to account for inventory and cost of goods sold under WHB, Chapters 8 & 9
29 Aug. Statement of Financial Position (Balance sheet) the perpetual inventory system and its valuation in the balance
Accounting and Presentation of: sheet. Seminar No. 3
1. Current assets 2. To understand the risks associated with inventory.
Inventory 3. To understand financial ratios relating to inventory.
2. Noncurrent assets 4. To learn to account for the cost, the use and the disposal of
Fixed assets non-current assets, specifically plant assets.
Intangible assets 5. To know that plant assets may be revalued (detailed
accounting will not be taught).

5 Financial Statements:
5 Sep. Statement of Financial Position (Balance sheet)
Accounting and Presentation of:
3. Liabilities
Current liabilities
Noncurrent liabilities
Contingent liabilities
4. Owners equity
Share capital and reserves
o Common stock (ordinary shares)
o Preferred stock (preference shares)
Treasury stock
Statement of Comprehensive Income
Statement of Changes in Equity
1. To learn the characteristics of the different types of liabilities WHB, Chapters 10, 11 &
and how they are disclosed in the balance sheet. 12
2. To understand the components of owners equity.
3. To know the difference between common stock and preferred Seminar No. 4
stock.
4. To know what is treasury stock.
5. To understand the difference between debt and equity and its
impact on financial leverage.
6. To understand leverage ratio as a measurement of risk.
7. To understand the major elements of the statements of
comprehensive income and the statement of changes in
equity.

5
 6 Financial Statements
12 Sep. The Cash Flow Statement
7 Interpretation and Analysis of Financial
19 Sep. Statements
Analytical techniques
Financial ratio analysis
26 September 2011 to 2 October 2011
8 Managerial Accounting Fundamentals
3 Oct. Management accounting systems
framework
Manufacturing costs and costs flow
Contemporary Managerial Accounting Tools
Job order costing and cost allocation
o Traditional costing system
1. To understand the effect of operating, investing and financing WHB, Chapter 13
activities of the firm on its cash flow.
2. To highlight the difference between the accrual basis of Seminar No. 5
accounting and cash basis by illustrating with the preparation
of cash flow from operations using the indirect method and in
accordance with FRS 7.
1. To explain the uses of dollar and percentage changes, trend WHB, Chapters 7, 8, 10, 13
percentages, component percentages, and ratios. & 14
2. To compute ratios widely used in financial statement analysis
and explain the significance of each. Tutorial No. 6
3. To analyze financial statements from the view point of
common stockholders, creditors, and others. Self-study Seminar No. 7 is
to be completed in
assigned groups and
submitted before 30
September 2011.
Recess
1. To understand the principles guiding the design of WHB, Chapter 16 &17
management accounting systems.
2. To understand the components of manufacturing costs and Online Quiz during
distinguish between product costs and period costs, and direct tutorial time
costs and indirect costs. Location: IT labs at S4-B1
3. To learn how manufacturing costs flow through perpetual Coverage: Lectures 1 to 7
inventory accounts. & seminars 1 to 7
4. To account for the flow of costs when using job order costing.
5. To understand how overhead costs are allocated using the
traditional costing system.
6
 9 Contemporary Managerial Accounting Tools
10 Oct. Job costing and cost allocation
(continued)
o Activity based costing system (ABC)
Cost-volume-profit analysis
10 Tools for Planning and Control
17 Oct. Relevant cost information
Incremental cost analysis and decision
making
11 Tools for Planning and Control
24 Oct. Strategy and budgeting.
The master budget and behavioural
implications.
Flexible budgeting.
12 Cost Analysis and Performance Evaluation
31 Oct. Responsibility accounting
Rewarding business performance
1. To understand how product costs are allocated using the ABC WHB, Chapter 17 & 20
costing system.
2. To understand how ABC overcome the limitations of the Seminar 8
traditional costing system and improve decision making.
3. To understand the difference between fixed, variable and
semivariable costs.
4. To understand the relationship between cost, volume and
profit.
5. To learn how to perform cost-volume-profit analysis.
1. To understand the role of cost information and their relevance WHB, Chapter 21
in decision making.
2. To learn to use incremental analysis in common business Seminar No. 9
decision making.
3. To learn to evaluate decisions using quantitative and
qualitative factors.
1. To understand the purposes and benefits of budgeting. WHB, Chapter 23
2. To understand the process and approaches to developing the
master budgets. Seminar No. 10
3. To learn the preparation of flexible budgets and its uses.
4. To understand the behavioral impacts of budgets.
1. To distinguish among cost centres, profit centres and WHB, Chapter 22 & 25
investment centres.
2. To explain the need for responsibility centre information and Seminar No. 11
describe a responsibility accounting system.
3. To prepare an income statement showing contribution margin
and responsibility margin.
4. To distinguish between traceable and common fixed costs.
5. To understand the usefulness of the contribution margin and
responsibility margin in making short-term and long-term
decisions.
7
 13 Contemporary Managerial Accounting Tools 1. To define the value chain and its basic components. WHB, Chapter 19
7 Nov Value chain 2. To distinguish between non-value added and value added
Procedures to assess resource use activities. Seminar 12
across value chain. 3. To understand the various procedures to assess resource use
o Activity-based management and across value chain.
costing 4. To go through work examples on the topics discussed.
o Target costing
o Just-in-time management
o Total quality management

Final Examination
rd
Wednesday, 23 November 2011 at 5.00pm