Business and Economics

Unit Guide: Semester 2, 2013

AFW 1002

Introduction to Financial Accounting

SYNOPSIS: This unit will cover various aspects of financial accounting and builds on the principles introduced in AFW1000. Aspects associated with transaction reporting and the preparation of financial statements investigated include: the recording of inventory in a retail context, the use of control accounts, the role of specialised journals, a range of balance day-adjustments, reversing entries and account reconstruction. The unit also focuses on internal control procedures. The definition, recognition and disclosure criteria of financial statement elements are explored as well as the cost and fair value measurement of various financial statement elements
Mode of delivery: Workload: ON-CAMPUS On-campus: This is a six credit point unit with three hours class contact per week over 12 teaching weeks. It is expected that you will spend, on average, nine hours in self-directed study each week, in addition to the three hours of class contact. Self-directed study for a particular unit may exceed nine hours during weeks preceding an in-semester test, submission of a major assignment or final examination. Students must have passed one of the following: AFG1000, AFW1000 or AFW1001 (pre 2009) before undertaking this unit

Prerequisites: Co-requisites: Prohibitions: Chief examiner: Campus Contact details Lecturer: Campus Contact details Lecturer: Campus Contact details Lecturer: Campus Contact details

AFC1030, AFF1121, AFW1002 Les Hardy Les.Hardy@monash.edu Gippsland Email: Les.Hardy@monash.edu Jon Phillips Berwick +61 3 990 26652

YB Foo Malaysia Email: foo.yee.boon@monash.edu Email: foo.yee.boon@monash.edu

South Africa

HANDBOOK ENTRY: http://www.monash.edu.au/pubs/2013handbooks/units/AFW1002.html

Australia

Malaysia South Africa Italy India

8 MAY 2013

ACADEMIC OVERVIEW Learning objectives

The learning objectives associated with this unit are to:
1. account for the recording and reporting of inventory applying the periodic and perpetual method as per issues raised in AASB 102/IAS 102. Prepare and complete balance day adjustments, closing entries and internal control systems to allow all final statements and bank reconciliations to be completed 2. apply the principles of double entry according to the reconstruction of accounts 3. demonstrate how the regulatory environment affects accounting statements in the context of a range of organizational forms 4. apply the definition and recognition criteria for elements of financial statements as per the Framework and specific international financial reporting standards. Consider accounting and accountability issues that arise from different measurement methods 5. apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with financial accounting and demonstrate in individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by AFG1002.

Graduate attributes
Monash prepares its graduates to be: 1. responsible and effective global citizens who: a) engage in an internationalised world b) exhibit cross-cultural competence c) demonstrate ethical values 2. critical and creative scholars who: a) produce innovative solutions to problems b) apply research skills to a range of challenges c) communicate perceptively and effectively

Assessment summary ASSESSMENT TASK

Mid-Semester Test Assignment Exam

DUE DATE
Week 5 beginning August 26 7th October 4-22 November TOTAL

VALUE
15% 15% 70% 100%

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Hurdle requirement There is a hurdle requirement for this unit. The learning outcomes of this unit require you to demonstrate a comprehensive understanding of the topics covered in the unit. Hence the hurdle requirement for this unit requires that you must attain a mark of at least 50% in the final examination. If you fail the unit solely because of failure to satisfy the hurdle requirement, a mark of 48 will be determined by the faculty's Board of Examiners on the recommendation of the unit's Chief Examiner. The outcome from application of the hurdle requirement is often misunderstood by students who are awarded 48N. For example, some students mistakenly believe that 48N means they failed the final examination by two marks and that a second re-mark of their examination paper might find two extra marks. Whereas 48N does not provide any indication of the mark attained in the final examination other than a mark less than 50% was awarded. The following example should make the application of the hurdle requirement clear. In this unit 30% of the assessment regime is allocated to in-semester assessment and 70% to the final 3-hour examination. A student enrolled in this unit might achieve 25 out of 30 for their in-semester assessment and 30 out of 70 for the final examination. While the overall total of these marks is 55 P the final examination mark is five marks below the required 50%. Consequently a mark of 48N will be determined by the faculty's Board of Examiners on the recommendation of the unit's Chief Examiner. Second marking Where an assessment task is given a fail grade by an examiner, that piece of work will be marked again by a second examiner who will independently evaluate the work, and consult with the first examiner. You will not be awarded a fail grade for an assessment task or unit without a second examiner confirming the result. Note: Exceptions to this are individual pieces of assessment contributing 10% or less of the final mark, unless the total of such pieces exceeds 30% of the final mark. Return of final marks for the unit Faculty policy states that the final mark that a student receives for a unit will be determined by the Board of Examiners taking into account all aspects of assessment. The final mark for this unit will be released on Monday December 9th. Exam viewing Feedback on student performance in examinations and other end-of-semester assessment is required. The feedback should be in accordance with the University's procedures on Unit Assessment. Details of the examination script viewing arrangements set down by the Department of Accounting and Finance.

Learning and teaching approach

Students will be expected to work through their study materials, undertake all interactive and selfdirected exercises, and contribute when appropriate to online discussions forums. The unit syllabus comprises 12 topics, with one topic dealt with each week over 12 weeks. Note taking Students are responsible for taking their own notes from the prescribed unit texts. In many instances students notes will provide answers to tutorial questions. On completion of required reading, students should attempt the associated tutorial questions and assignments. Students should ensure that their answers are included in their notes for each topic which will assist their revision of the material covered throughout the semester.

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Reading and using the accounting handbook The Accounting Handbook 2012\13 should be treated as a reference book. Students are not expected to read all sections of the handbook listed under the required reading. Rather they should refer to the sections mentioned in the text, along with quotes and references made in lectures. If the issue has been covered, then the reading may stop, unless students wish to read further out of their own interest. Clearly students are encouraged to read widely. Tutorial questions and tutorials Tutorial questions in regard to each topic in this unit are provided in this unit guide. The questions are not graded in difficulty, nor do they relate exclusively to the topic under consideration. At the completion of each topic and summarisation of the text, students should review the questions with a view to answering all questions in the context of the topics objectives. In many instances a students notes will already have provided answers to the tutorial questions. The tutorial unit schedule only lists the minimum number of questions that should be attempted. Students are encouraged to attempt further questions from the text. Model solutions to all the listed tutorial questions will be available on Moodle on a weekly basis for internal students. Off-campus students will have all of the solutions provided to them in an OCL block on moodle from the beginning of the semester. OCL students can also discuss their tutorial answers or raise issues relating to these questions using the Moodle bulletin board.

Feedback
Our feedback to you will be of a continuous nature:there will be verbal communication with individuals when appropriate; written comments on Moodle as is appropriate both to individuals and the class; written comments on assignments on an individual basis; written comments providing feedback to the whole class on assignments. Your feedback to us Monash is committed to excellence in education and research and regularly seeks feedback from students, employers and staff. One of the key formal ways students have to provide feedback is through Student Evaluation of Teacher and Units (SETU) survey. The Universitys student evaluation policy requires that every unit is evaluated each year. Students are strongly encouraged to complete the surveys. The feedback is anonymous and provides the department and faculty with evidence of aspects that students are satisfied and areas for improvement.

Previous student evaluations of this unit

Student feedback has highlighted the following strength in this unit: Digital recording of lectures. Student feedback has also contributed to continuous improvements, including: curriculum changes to put more emphasis on the accounting handbook. Go to Unit Evaluation Reports if you wish to view previous evaluations.

Required resources
Virtual learning environment (VLE): Moodle Material used in class together with other information of importance to you will be published online via the units Moodle site. In order to access information about this unit in Moodle you must be enrolled in the unit and have a valid student account with authcate username and password. Access to Moodle is HERE; or Moodle can be accessed through my.monash portal. When you log in to the portal you access Moodle in the home page by clicking on the Moodle 2 link under Online Systems. If you need some help with Moodle 2 then check out the Moodle 2 Support for Students page.

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Moodle is a web-based learning management resource that provides students with a virtual classroom, allowing you to communicate readily with your lecturers and fellow students. For students unfamiliar with Moodle, the following briefly describes some of the information available on the site: 1. The Unit Outline, Unit Guide, Lectures, Assignments and other associated material can be downloaded and saved to your own computer. Please note that downloadable material is often saved as a PDF file that can be opened in Adobe Acrobat (a viewer version of this software can be downloaded free from your Moodle page). 2. Weekly recorded lectures, PowerPoint slides and tutorial solutions: these are usually saved as Acrobat files. 3. The main communication tool for student use is the discussion board. Note that the discussion board is a tool to enable you to communicate with other students and staff involved in the unit. Academic staff can also be contacted using the bulletin board; however, to promote student discussion, academic staff will tend to be lurkers and will answer email questions/discussions only where students get on the wrong track or are covering a particularly difficult issue. The academic staff would prefer students to use the bulletin board as a facility to answer each others questions rather than expect the academic staff to provide all of the answers. Remember, as university students you are expected to be independent learners and this tool will enable you to develop the skills required for independent learning while working as a group. Please use the site regularly as this is a way we can all keep in touch. Q Manual Work submitted for assessment must be consistent with the guidelines set down in the Q Manual, which is the faculty's student guide for producing quality work on time. Copies of this manual can be purchased at the bookshop or accessed online. Calculators Electronic devices (including calculators) are not permitted in tests and examinations in this unit unless identified with an approved for use label. These labels are available from: Gippsland campus: Rhonda Briggs (building 5N, room 152) Off-campus students who are unable to attend a Monash University campus must email a clear image of their calculator to rhonda.briggs@monash.edu. If approved, the clear image will be returned by post with an approved for use label. This document should be taken into the examination. Required resources Prescribed custom publication available from the University Bookshop Gerrand, J., Hardy, L., & Contessotto, C. M. (Eds.). (2012). Introduction to financial accounting. McGraw Hill. (ISBN-13 978-1-12-127628-4). This custom publication was prepared by the editors for use at Monash with chapters from: Jackling, B., Raar, J., Wines, G., & McDowall, T. (2011). Accounting: A framework for decision making (3rd ed.). McGraw-Hill Deegan, C. (2009). Australian financial accounting (6th ed.). McGraw-Hill. Deegan, C. (2009). Financial accounting theory (3rd ed.). McGraw-Hill.

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Accounting handbook available from the University Bookshop Locke, C. (Ed.). (2013). Financial reporting handbook 2012. Milton, Qld: John Wiley & Sons for The Institute of Chartered Accountants in Australia. OR Shying, M., & Subramanian, R. (Eds.). (2013). Accounting handbook 2012. Frenchs Forest, NSW: Pearson Education Australia for CPA Australia. Either handbook is acceptable and provided the text is not annotated will be allowed to be taken into the exam. It is also available online

Recommended resources
Atrill, P., McLaney, E., Harvey, D., & Jenner, M. (2012) Accounting: An introduction (5th ed.). Frenchs Forest, NSW: Pearson Australia. Gerrand, J. (2011). Introductionfinancial accounting. Milton, Qld: Wiley. Hoggett, J., Medlin, J., Edwards, L., Tilling, M., & Hogg. E. (2012). Accounting (7th ed.). Milton, Qld: Wiley. Leo, K., Hoggett, J., Sweeting, J., & Radford, J. (2012). Company accounting (9th ed.). Milton, Qld Wiley. Peirson, G., & Ramsay, A. (2009). An introductionfinancial accounting. Melbourne: PearsonPrentice-Hall. Picker, R., Leo, K., Loftus, J., Clark, K., & Wise, V. (2009). Australian accounting standards (2nd ed.). Milton, Qld: Wiley. Weygandt, J. J., Chalmers, K., Mitrione, L., Fyfe, M., Kieso, D. E., & Kimmel, P. D. (2010). Principles of financial accounting (2nd Australian ed.). Milton, Qld: Wiley.

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UNIT SCHEDULE

WEEK BEGIN

SYLLABUS
2226 JULY

WEEKLY ACTIVITIES AND/OR READINGS

ORIENTATION WEEK Topic 1 Custom Book: pp. 1012; Short-answer questions 1.1.11, 1.1.14; Extended analysis 1.1.32, 1.1.33; p. 84 Additional Tutorial Problems 1, 2, 3, 4, 5.

29 JUL Topic 1: Review AFG1000; Elements in the conceptual framework and the concept of capital maintenance Specialised journals and control accounts Custom Book Ch. 1, pp. 184 Accounting Handbook 2012/13. 5 AUG Topic 2: Internal control, cash management and incomplete records Custom Book Ch. 2, pp. 85120 Refernotes on incomplete records on Moodle 12 AUG Topic 3: Accounting for inventory measurement and valuation Custom Book Ch. 3, pp. 121183 Accounting Handbook 2012\13 AASB 102 (IAS 22) AASB1031

Topic 2 Custom Book: pp. 113117; Short-answer questions 2.13, 2.14, 2.20, 2.22, 2.26; pp. 119120 Additional Tute Problems 1, 2, 3.

Topic 3 Custom Book: pp. 143146; Understanding and application 3.29, 3.36; pp. 157158 Review questions 3.3, 3.6, 3,7; pp. 178179 Review questions 1, 11, 13, 14; pp. 183184 Additional Tute Questions 1, 2.

19 AUG Topic 4: Balance day adjustments Topic 4 Custom Book: pp. 213222; Short-answer questions 4.18, 4.27, 4.29, 4.37, and accounting for receivables: Custom Book Ch. 4, pp. 185228 4.39, 4.47, 4.51; p. 228 Additional Tute Questions 1, 2, 3. 26 AUG Topic 5: Backgroundfinancial regulation Custom Book Ch. 5, pp. 229261 Accounting Handbook 2012\13 AASB 101 (IAS 1) AASB 134 (IAS 34) 2 SEP Topic 6: Companies: accounting for contributions and distributions Custom Book Ch. 6, pp. 263265; 273 310 [Note: Partnerships are not covered in this unit] 9 SEP Topic 7: Accounting for noncurrent assets Custom Book Ch. 7, pp. 311350 Accounting Handbook 2012/13 AASB Accounting Framework AASB 116 (IAS16) AASB 136 (IAS 36) AASB 138 (IAS 38) 16 SEP Topic 8: Accounting for liabilities and equity Topic 5 Custom Book: Attempt in the following order p. 261 Additional Tute Question 2; pp. 255256 Review questions 5.2, 5.5, 5.12; p. 261 Additional Tute Questions 3, 4.

Topic 6 Custom Book: pp. 294303; Understanding and application 6.12, 6.13, 6.20, 6.29, 6.39, 6.41; pp. 309310 Additional Tute Questions 1, 2. Topic 7 Custom Book: pp. 346349; Review questions 7.2, 7.3, 7.14, 7.15, 7.18; Challenging questions 7.21, 7.26; p. 350 Additional Tute Questions 1, 2.

Topic 8 Custom Book: pp. 368370; Short-answer questions 8.11, 8.18;

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Custom Book Ch. 8, pp. 351422 Accounting Handbook 2012/13 AASB Accounting Framework AASB 117 (IAS17) AASB 119 (IAS 19) AASB 137 (IAS 37) 9 23 SEP Topic 9: Accounting for income Custom Book Ch. 9, pp. 423474 Accounting Handbook 2012\13 AASB Accounting Framework AASB 118 (IAS 18) AASB 111 (IAS 11) 30 SEPTEMBER 4 OCTOBER 10 7 OCT Topic 10: Accounting for expenses and Intangibles Custom Book Ch. 10, pp. 475549 Accounting Handbook 2012\13 AASB Accounting Framework AASB 108 (IAS 8) AASB 116 (IAS 116) AASB 136 (IAS 36) AASB 138 (IAS 38))

Understanding and application 8.20, 8.27; p. 392 Review question 14; p. 398 Challenging question 30 (article 8.9); pp. 421422 Additional Tute Questions 1, Refer to Moodle for Deegan p. 434 Questions 14,15. Topic 9 Custom Book: pp. 442445; Short-answer question 9.20; Understanding and application 9.24, 9.26, 9.30, 9.31, 9.35; p. 469 Review question 4; p. 471 Challenging question 19 (article 9.2); p. 473 Additional Tute Question 1,2 IN-SEMESTER BREAK Topic 10 Custom Book: pp. 501505; Short-answer questions 10.16, 10.19, 10.20; Understanding and application 10.25,10.29, 10.31,10.32; pp. 536542 Review questions 12, 13, 16, 20, 27 (article 10.7); p. 549 Additional Tute Questions 1, 2.

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14 OCT Topic 11: Cash Flow Statements Topic 11 Custom Book: pp. 587588; Custom Book Ch. 11, pp. 551596 Review questions 11, 12, 13, 14; pp. 594595 Additional Tute Question 1, 2. Accounting Handbook 2012\13 AASB 107 (IAS 7) 21 OCT Topic 12: Measurement systems, critique of historical/modified historical cost and the use of fair value accounting in agriculture Custom Book Ch. 12, pp. 597615 Accounting Handbook 2012\13 AASB Accounting Framework AASB 141 (IAS 41) 28 OCTOBER 1 NOVEMBER 422 NOVEMBER MONDAY, 9 DECEMBER Topic 12 Custom Book: pp. 612613; Review questions 11, 14; Challenging questions 18, 21, 22; p. 615 Additional Tute Questions 1, 2, 3

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SWOT-VAC OFFICIAL EXAMINATION PERIOD EXAMINATION RESULTS RELEASED

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ASSESSMENT TASKS Assessment task 1: In-semester test

Weighting: 15 % Learning objectives assessed: This assessment task is designed to verify your achievement of learning objectives 1 and 2. Duration: This will be a one-hour test. Date, time and location: The test will occur during Week 5 in the first hour of the lecture in the various locations. Task details: The test will be based on exam type problems and questions. Approved calculators will be permitted. Materials examinable: The in-semester test will be based on Topics 1 to 4. Return of marks: Marks will be made available to students during tutorials in Week 7. Special consideration for an in-semester test If an application for special consideration is received within two full days after an in-semester test weighted at more than 10 per cent of the final mark; and the application is approved by the Chief Examiner, then you will be offered a make-up test, which you will be required to take prior to the examination period. Criteria for assessment: Overall, the work submitted for assessment will be graded in accord with the table showing examples of grades and corresponding achievement levels published in the Q Manual (2012, p.6).

Assessment Task 2: Individual assignment

Weighting: 15% Learning objectives assessed: This assessment task is designed to verify your achievement of learning objectives 2 to 5. Due date: Monday, 7th October. Penalty for late lodgement A penalty of 1% of the total mark allocated to this assessment task will be deducted for each day, or part thereof, it is late. Task details: This is an individual assignment. The details of which will be posted onto Moodle. Referencing requirements Work submitted for assessment must be consistent with the guidelines set down in the Q Manual, which is the faculty's student guide for producing quality work on time. Copies of this manual can be purchased at the bookshop or accessed online at URL: http://www.buseco.monash.edu.au/publications/qmanual/qmanual.pdf. Marks may be deducted where in-text citations and/or the reference list is not consistent with the American Psychological Association (APA) style, which is illustrated in the Q Manual.
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Plagiarism In order to ensure the academic integrity of your submission and to deter others from copying your work, your submission may be processed by a plagiarism checker such as Turnitin. The University's plagiarism policy can be found at URL: http://www.policy.monash.edu/policybank/ academic/education/conduct/plagiarism-policy.html. Extensions of time Applications for an extension of time allocated to an in-semester assessment task must be made by completing the application form found at URL: http://www.buseco.monash.edu.au/student/exams/speccon.html. The application form must be submitted to the Chief Examiner for consideration no later than two University working days after the due date. Submission details: Assignments should be submitted via the department assignment box at various locations. Work submitted for assessment must be accompanied by a completed and signed assignment coversheet, available at URL: http://www.buseco.monash.edu.au/student/forms/assessmentcoversheet.doc. Return of marks: Marked assignments will be returned to you during tutorials in Week 12. If you do not attend the tutorial in Week 12 you may collect your assignment from your tutor during consultation times from the Swot-vac week onwards. You should retain the marked copy of your submission until the final results for the unit are released. Criteria for assessment: Overall, the work submitted for assessment will be graded in accord with the table showing examples of grades and corresponding achievement levels published in the Q Manual (2012, p.6).

Final examination
Weighting: 70% Learning objectives assessed: The final examination is designedtest your achievement of learning objectives 1 to 5. Duration: 3-hour examination Authorised materials in your possession: Calculator with an 'approved for use' faculty label. An unannotated copy of either accounting handbook. Task details: The final examination will comprise questions based on the 12 topics covered in the semester. Date and location: The final examination will be held during the official examination period. Information about examination schedule can be accessed through my.monash portal: https://my.monash.edu.au/. The Semester 1 examination period is Monday 10 Friday 28 June 2013. Materials examinable: All materials, including prescribed reading and other materials used in lectures, tutorials and assessment tasks related to the 12 topics are examinable.

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Criteria for assessment: Overall, the work submitted for assessment will be graded in accord with the table showing examples of grades and corresponding achievement levels published in the Q Manual (2012, p.6).

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OTHER INFORMATION Policies

Monash has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the Universitys academic standards, and to provide advice on how they might uphold them. Monashs Education Policies and Procedures are available online. Key educational policies and procedures include: Plagiarism Special Consideration Discipline Orientation and Transition Assessment in Coursework Programs Grading Scale Academic Calendar and Semesters Academic and Administrative Complaints and Grievances

Student services
The University provides many different kinds of support services for you. Contact your tutor if you need advice and see the range of services available online.

Monash University Library

The Monash University Library provides a range of services and resources that enable you to save time and be more effective in your learning and research. The range of services are available online or go to the library tab in my.monash portal for more information.

Disability Liaison Unit

Students who have a disability or medical condition are welcome to contact the Equity and Diversity Centre (Disability Liaison Unit) to discuss academic support services. Disability Liaison Officers (DLOs) visit all Victorian campuses on a regular basis. Berwick campus: Website: Telephone: 03 990 47019 to book an appointment with a DLO Email: dlu@monash.edu Drop In: The DLU officer is available for consultations and is located in Building 930. Sunway campus: Website: Telephone: 03 551 44996 to book an appointment with a DLO Email: hazri.haili@monash.edu

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