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COLLEGE OF BUSINESS, HOSPITALITY AND TOURISM STUDIES UNIT OUTLINE

ACC 601 CORPORATE ACCOUNTING


Trimester 2, 2011

Lecturer:

Dr. Borhan Bhuiyan Room H 204 Commerce building Extn: 236 Email: borhan.bhuiyan@fnu.ac.fj

Tutor: Prerequisites: Code Level Credits Class Contract hours

N/A ACC 501 ACC 601 6 8 72

ACC 601 : Corporate Accounting Course Outline

Trimester 2, 2011

1.0 AIMS OF THE UNIT:


The aims of the unit are: i. To enhance students understanding on Fijian corporate accounting environment and financial reporting requirements for companies; To demonstrate the concept and application of International Financial Reporting Standards (IFRS), International Accounting standards (IAS) and Fiji Accounting Standards (FAS)

ii.

2.0 INTENDED LEARNING OUTCOMES:


Students will be able to understand and apply IAS and IFRS to prepare corporate financial reporting after successful completion of this unit.

3.0 TOPICS:
This unit will cover the following topics: i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. Influence of corporate accounting practices and user of financial reports; Company formation; Accounting for income tax (IAS-12); Accounting for construction contracts (IAS-11); Revenue recognition (IAS-18); Accounting for leases (IAS-17); Accounting for Research & Development (IAS-38); Disclosure requirements of financial statements (IAS-1); Reorganizing equity; Liquidation of company; Consolidated financial statement (IFRS 10); - Controlled entities: the consolidation method; - Wholly owned subsidiary; - Intra-group transaction; - Non-controlling interest; - Indirect ownership interest; Analysis of corporate financial statements.

xii.

4.0 LECTURES AND TUTORIALS SCHEDULES:


There will be 2 by 2 hour lecture per week for both Full and part time Students. In addition to these four hours of lectures, all full and part time students must attend 1 by 2 hours tutorial1. Attendance to all lectures and one tutorial per week are recommended compulsory.

4.1 SCHEDULES

Lecture and tutorial duration will be confirmed immediately after completion of enrollment.

ACC 601 : Corporate Accounting Course Outline

Trimester 2, 2011

Day Time Room No: Remarks Full Time Students: (for tutorial: Choose one suitable time)
Wednesday Thursday Monday Monday Tuesday Friday Thursday Friday Wednesday 2 4 pm 2 4 pm 8 10 am 12 2 am 10 12 pm 10 12 pm 6 8 pm 6 8 pm 8 10 pm F 104 F 104 H 001 H 002 H 001 F 103 H 202 H 202 H 001 Lecture Lecture Tutorial Tutorial Tutorial Tutorial Lecture Lecture Tutorial

Part Time Students:

Tutorial slots will have a class size ranging from 25 - 30 students. Students are required to choose only one slot. Students are expected to come prepared with their difficulties after carefully going through the relevant chapters in the recommended text(s), reference book(s), lecture notes, and other suggested resources. The focus of tutorials will be strictly on described topics in the unit and on tutorial assignments. Please note that this schedule is subject to changes with prior notice.

5.0 LEARNING AND TEACHING METHODS:


To assist in learning at this level you will be encouraged to be involved in: face to face learning activity; office hours and feedback opportunities; group discussions and presentation etc.

It is highly recommended that students prepare well before attending the class. To prepare well students must read, reflect, and summarize the readings relevant to each session. Additional reading to gain a better understanding is expected if a student is unfamiliar with the background and the broader aspects of the issue. It must be noted that the preparation time may vary from student to student depending on the familiarity, speed of reading, the use of reading approach, preferences towards topics, and so on.

6.0 RECOMMENDED TEXTBOOK 2


1. Leo, K., Hoggett, J., Sweeting, J., Radford, J. (2008). Company accounting, 4th edition, John Wiley & Sons, Australia. 2. Samkin, G., Deegan, C., (2011). New Zealand Financial Accounting, 5th edition, McGraw-Hill, Auckland. 3. Revsine, L., Collins, D., Johnson, B., Mittelstaedt, F. (2009). Financial Reporting and Analysis, 4th edition, McGraw-Hill, New York.

Students are encouraged to visit library in case of difficulty to access on recommended texts. Several customized study materials will be available for library use only.

ACC 601 : Corporate Accounting Course Outline

Trimester 2, 2011

7.0 READING RESOURCES (Research Assignment resources) 3


Oguri, T. (2005). Functions of accounting and accounting regulation: alternative perspectives based on Marxian economics, Critical Perspectives on Accounting, Vol. 77, p.77-94 Sterling, R. R., (1970), On Theory Construction and Verification, The Accounting Review, Vol. 45 (3), pp. 444457. Watts R. and Zimmerman J. (1978). Towards a Positive Theory of the Determination of Accounting Standards The Accounting Review, Vol. 53(1), pp. 112-134. Fasterling, B (2005). Best practice and better laws: Corporate governance codes in the member states of the European Union, ERA forum, 6(3)

7.1 Useful Links:


Class share: Course notices and weekly lecture handouts will be posted on class share < \\gutulei\ACC601> Fiji National University Library Database Portal

7.2 CLASS-SHARE:
Students must have access to class-share. All lecture notes, important announcements, tutorial questions and solutions, examination details and revision materials will be available on the FNU Class-share. You are recommended and strongly encouraged to visit class-share on a daily basis for any possible updates.

8.0 LECTURE GUIDELINE


Week Topics
1. Influence of corporate accounting practices and user of financial reports: Generally Accepted Accounting Principles (GAAP); Week-1 International Accounting Standards (IAS); International Financial Reporting Standards (IFRS); Fiji Accounting Standards (FAS); Leo et. al., Chapter 1 & lecture No Tutorial on first week

Reference

Tutorial

Different users of financial reports. 2. Company formation: Types of company; Process of company formation; Administering company; Types of fund; Accounting for ordinary share issue. Leo et. al., Chapter 2 See class share

The Research publications (pdf. format) will be posted on class share and the list is not conclusive

ACC 601 : Corporate Accounting Course Outline


Company formation (Contd.): Week-2 Accounting for preference share issue; Accounting forfeiture of share; Accounting for redemption of share. Leo et. al., Chapter 2

Trimester 2, 2011

3. Accounting for Income Tax (IAS-12): Current and deferred tax liabilities; Accounting for tax losses; Accounting for capital gain tax. Leo et. al., Chapter 4

See class share

Event after balance sheet date (IAS-10): Going concern assumption & disclosure requirements; Deegan and Samkin; Chapter 20, 22 See class share Deegan and Samkin; Chapter16

Related party disclosure (IAS-24) Week-3 Related party relationship & disclosure requirements

4. Accounting for construction contracts (IAS-11): Measuring progress towards completion; Accounting for long term contract loss; Claims and variations arising under contracts.

5. Revenue Recognition (IAS-18): Week-4 Criteria of revenue recognition; Recognizing revenue under various circumstances; Revenue recognition when right of return exists. Deegan and Samkin; Chapter 16 See Class share

6. Accounting for leases (IAS-17): Classification of leases; Accounting for finance lease (by Lessee and Lessor); Accounting for sale and leaseback transactions. Accounting for leases (IAS-17): Accounting for operating lease (by Lessee and Lessor); Accounting for sale and leaseback transactions. Leo et. al., Chapter 6 See class share Leo et. al., Chapter 6 See class share

Week-5

7. Accounting for research & development (IAS-38): Cost included as part of research & development; Amortization of research & development costs; Deegan and Samkin; Chapter 8

See class share

Empirical research on accounting for research & development. 8. Disclosure requirements of financial statements (IAS-1): Week-6 Objectives and components of financial statements;

Leo et. al., Chapter 11

See class share

ACC 601 : Corporate Accounting Course Outline


Disclosure components of balance sheet, income statement, cash flow statement, changes of equity statements and other disclosure. Mid semester discussion/reserve day Mid - Semester break 9. Reorganizing equity: Week7 Accounting for alteration of share capital; Accounting for uncalled capital; Accounting for bonus share issue; Leo et. al., Chapter 2

Trimester 2, 2011

See Class share

10. Liquidation of companies: Winding-up by court; Voluntary winding-up; Accounting for liquidation. Leo et. al., Chapter 20 See class share

11. Controlled entities: the consolidation methods (IFRS-10): Week8 Forms of controlled entity; Control and criteria for consolidation; Concepts of consolidation; Formats of consolidated financial statements Leo et. al., Chapter 14 See class share

Consolidation: wholly owned subsidiaries: Consolidation process; Consolidation worksheet; Acquisition analysis; Leo et. al., Chapter 15 See class share

Consolidation: wholly owned subsidiaries (contd.): Worksheet entries on acquisition date; Worksheet entries subsequent to the acquisition date; Leo et. al., Chapter 15 See class share

Week9

Revaluation in the record of the subsidiary at acquisition date. Consolidation: Intra-group transactions: Transfer of inventory; Transfer of property, plant and equipment; Intra-group service; Intra-group dividends; Intra group borrowings. Leo et. al., Chapter 17 See Class share Leo et. al., Chapter 16 See class share

Week10

Consolidation: Non-controlling interest (NCI): Effects of an NCI on consolidation process;

ACC 601 : Corporate Accounting Course Outline


Calculating NCI share if intra-group transactions; Gain on bargain purchase.

Trimester 2, 2011

Consolidation: indirect ownership interest: Direct and indirect NCI; Sequential acquisitions; Non-sequential acquisitions; Reciprocal ownership. Leo et. al., Chapter 18 See Class share

Accounting for investment in associates Week11 Identifying associates; Rationale of equity method of accounting; Leo et. al., Chapter 19 See Class share

Applying equity method: goodwill & fair value adjustment Applying equity method: inter-entity Overall discussion on consolidation 12. Analysis of corporate financial statements: Financial Statement Analysis and Accounting Quality; Financial Ratios and Profitability Analysis; Liquidity, Solvency and Credit Analysis

See class share

Week12

Revsine et al., Chapter 5

See Class share

Discussion on Final Exam preparation STUDY WEEK FINAL EXAMINATION

Preparation/see class share

[Note: If any scheduled lecture falls on a public holiday, then alternative arrangement will be organized to conduct the lecture or tutorial. Students will be informed in advance for those alternative arrangements via the means of announcements in the class share]

9.0 UNIT ASSESSMENT:


Component: 1. 2. 3. 4. Individual Assignment & Presentation Mid-Trimester Examination Tutorial Participation / surprise test Final Examination Total Weighting: 20% 20% 10% 50% 100%

ACC 601 : Corporate Accounting Course Outline 9.1 Individual Assignments & Presentation

Trimester 2, 2011

The submission date of individual assignment is 12th august 2011 (8th Week). The assignment should be submitted in printed form and no soft copy or email will be allowed. Note that failure to submit an assignment on time will lead to a penalty. Ten percent of the total marks will be deducted for each day, or part of a day, that the assignment is submitted after the due time. Any assignment submitted after a model answer has been made available will automatically be awarded a zero. An individual presentation date and time will be announced after the submission of assignments. Exceptions to this rule will only be granted where a late submission is due to reasons beyond the students control. Note that if you are unable to submit an assignment or sit a test on the appointed date you must justify proper reason in advance and university regulations will be followed to resolve this matters.

9.2

Mid-trimester examination

The objective of this test is to motivate you to keep up to date, to regularly revise course work, and to complete tutorial questions. The test will be held on Week 7, covering all material pertaining to first six week contents. However, students will be further advised via class-share. This will be a two hour closed-book examination.

9.3

Final Examination

This will be a closed-book three hour examination held during the examination period. The questions will probe themes and issues raised in the lectures, tutorials and readings. Exam questions will require students to integrate their knowledge of the unit derived from lectures and tutorials across a range of discussion and practical type questions. To prepare for the exam, students are advised to work consistently throughout the session towards achieving a solid understanding of the material covered in lectures and tutorials. While the lecturer will provide further administrative details on the examination closer to the exam date, students should not expect to be provided with any further information on actual exam content ahead of the scheduled exam time.

9.4

Tutorial Participation / Surprise Test

Students are strongly encouraged to attend the tutorial with the preparation of completed topics. A number of surprise quizzes will be scheduled as a part of unit assessment.

10.0

Academic Cheating

Cheating includes plagiarizing the work of another person or cheating in any way in examinations, tests or other assessments.

10.1 Plagiarism
Plagiarism is regarded as a serious form of cheating. Plagiarism means presenting someone elses work as if is your own. This includes the work of fellow students as well as published authors, and you are plagiarizing even by using just a few of their words, ideas or illustrations without acknowledging them. 8

ACC 601 : Corporate Accounting Course Outline

Trimester 2, 2011

Please take note that: If you use someone elses words or ideas in your assignments, you must acknowledge the author, and If you work in group to discuss an assignment, you must ensure that the final answer which you submit is your own. Similar answers to an assignment will be seen as plagiarism and results penalty for both the parties. 10.2

Academic Referencing

In the written work student will need to support their ideas by referring to scholarly literature, works of art and/or inventions. It is important that students understand how to correctly refer to the work of others and maintain academic integrity. The appropriated referencing style for this unit is the Harvard Referencing Method. The recommended text of this unit in referencing is; Fleet. W, Summers, B. 2004,Communication Skills Handbook for Accounting, John Wiley & Sons, Brisbane, that provides detail information about using the Harvard referencing system.

10.3 Late Start of Course


It is the students responsibility to catch up - the course lecturer is only required to provide a course outline and a full set of all class handouts to date. In the assessment of such students the course examiner will normally assume that they have been present from the outset - for any course exercises and tests due before they joined, will therefore be given nil marks.

11.0 Passing requirements of the unit 11.1 Mandatory course requirements


There is a 3-hour final examination. In order to pass this unit a student MUST obtain a minimum of 50% in the final examination as well as 50% overall.

11.2 Grading Scale


Grade
A+ A B+ B C+ C D E W S PT CT DNC

Marks
90 100% 80 89% 75 - 79% 65 74% 60 64% 50 59% 40 49% Below 40 Withdrawn from Unit Aegrotat Pass Pass Terminating Credit Transfer Did Not Complete

Grade Point Average


4.5 4.0 3.5 3.0 2.5 2.0 1.0 0 0 0 0 0

ACC 601 : Corporate Accounting Course Outline


12.0 PROGRAMME REGULATIONS

Trimester 2, 2011

Students attention is drawn to the universitys regulations covering such matters as aegrotats, reconsideration of assessments, withdrawals, appeals and discipline. The full General Academic Statute and Program regulations are published and available upon request. The important sections are summarized below. Aegrotat: When reasons of personal illness or injury, a student is unable to complete an assessment then they may apply for an aegrotat pass. Students have 7 days to lodge their aegrotat application and it must be lodged using the FNU aegrotat form. Withdrawals: A student may withdraw from a unit or units by written notice to the Head of Department. In order to record a withdrawal on a student academic record the written notice must be received before the end of week two. Reconsideration of Assessment: A student who believes that any piece of assessment has been unfairly marked, shall resubmit the assessment at the time the assessment has been returned. The application shall be in writing and shall specify the reasons for the application. The grade may be unchanged, raised or lowered following reconsideration. Appeals: A student may appeal their final grade. Appeals must be in writing to the Head of Department giving reason for the appeal. Students have 7 days from the posting of the results in which to lodge an appeal. The appeal is heard by the Academic Appeals Committee. Discipline: Breaches of the Universities regulations including dishonesty during assessment are viewed seriously and can lead to expulsion from the University. Finally, University Academic & Student Regulations will be followed for any misunderstanding regarding the process of this unit.

Thanks

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