IPA003 Accounting Standards and Practice

Click here for a video overview of this unit

This unit covers some of the more complex areas of financial accounting, including consolidations, accounting for income tax, impairments of assets, various assets and expenses, and foreign currency issues. In addition to the more technical areas of accounting, the fundamentals of accounting theory and accounting for corporate social responsibility are introduced.

Unit Learning Outcomes
At the end of this unit, students should be able to:

  • Explain, evaluate and apply a range of advanced accounting theories and standards.
  • Identify, define and integrate explanations that can inform solutions to relevant accounting issues.
  • Reflect and critically examine personal actions and responsibilities for applying and learning theories and standards in accounting principles and practice.
  • Work with others effectively and provide constructive feedback that is supportive and promotes improvement in understanding of advanced accounting principles and practice.
  • Critically analyse and discuss concepts surrounding corporate ethical and social responsibilities within the global context of accounting.

Topic outlines

  1. Theories of financial accounting 
  2. Accounting for non-current assets 
  3. Accounting for intangible assets 
  4. Accounting for employee benefits and superannuation 
  5. Accounting for income tax 
  6. Consolidations 
  7. Accounting for share-based payments 
  8. Accounting for foreign currency transactions 
  9. Accounting for Agriculture 
  10. Corporate Social Responsibility (CSR)

Unit Mode
Cloud (Study anywhere)

Study Commitment
150 hours over the trimester

Assessments

One exam worth 100% of the final score.

The examination will be a two hour closed book examination with additional reading time. The exam will consist of a number of short answer, or problem based questions. You can typically expect four to seven questions in the exam.

A non-programmable calculator will be required for the exam.

All examinations will be held in venues notified by Deakin University. All exams will be held during the exam periods set by the University. Students will be notified of the exact date, time and location of the exam, approximately four weeks before the exam.

Prescribed Text

Deegan, C. 2016. Australian Financial Accounting, 8th edition, McGraw-Hill, Sydney.

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Detailed Unit Topics

Topic 1: Theories of financial accounting

a) Normative
b) Positive
c) How theories explain accounting decisions
d) ‘Efficiency perspective’ vs ‘opportunistic perspective’

Topic 2: Non-current assets
a) Definition
b) Disclosure requirements
c) Measurement options
d) Depreciation
e) Disposal

Topic 3: Accounting for intangible assets
a) Tangible vs intangibles
b) Accounting treatment
c) Amortisation
d) Impairment

Topic 4: Accounting for employee benefits and superannuation
a) The nature and types of employee benefits
b) Measurement requirements
c) Disclosure

Topic 5: Accounting for Income Tax
a) Why the need to account for income taxes
b) Deferred tax assets and liabilities
c) Taxation losses

Topic 6: Consolidations Part 1
a) Group structures
b) Control
c) Calculations: goodwill/discount on acquisition
d) Consolidated journal entries
e) Using a worksheet

Topic 7: Consolidations Part 2
a) Intergroup transactions
b) Non-controlling interests
c) Disclosures

Topic 8: Accounting for share-based payments
a) Explanation of share based payments
b) Equity-settled share-based payments’ vs ‘cash-settled share-based payments’
c) Journal entries

Topic 9: Accounting for foreign currency transactions
a) Functional vs Presentation currency
b) Translation of financial statements and transactions
c) Qualifying assets
d) fair value hedge vs cash flow hedge
e) journal entries
f) foreign currency swaps

Topic 10: Agriculture
a) Biological assets and their attributes
b) Measurement
c) Journal entries

Topic 11: Accounting for corporate social responsibility
a) Differing perspectives: financial accounting vs CSR
b) Theoretical perspectives
c) Limitations of financial accounting
d) Frameworks