NATIONAL UNIVERSITY OF SINGAPORE

NUS Business School

Department of Accounting

COURSE OUTLINE

ACC1701X ACCOUNTING FOR DECISION MAKERS

Semester 1, 2018/19

Faculty:

Email
Name Role Room

Associate Prof. Edmund Admin. Co- BIZ1 07-21

bizkct@nus.edu.sg
Keung ordinator

Module Co-
Ms Elaine Tan Coordinator & biztsje@nus.edu.sg BIZ2 01-02
Lecturer

Ms Yong Ching Lian Tutor bizycl@nus.edu.sg BIZ2 01-02

Mr Philip Toh Tutor biztkpp@nus.edu.sg BIZ2 01-02

1. Overview

Accounting is the language of business, facilitating communication of the financial aspects of

business. This module provides an introduction to the financial accounting branch of accounting. The
activities and events of a business entity are summarised by the financial accounting process into
published financial statements to be used by external users such as investors and creditors. Such
users would need to understand both the financial accounting process and its outputs in order to
make investing or lending decisions. This course introduces the principles of financial accounting and
familiarizes students with the financial statements. Therefore, students will learn to read,
understand and use published financial statements for decision-making. Published financial
statements of listed companies in Singapore and Asia will be used as examples. This module is
targeted at non-business students and will be taught from the user perspective.

Note: This module should be distinguished from ACC1701, which is also introductory financial accounting, but
to be taught to business students.

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2. Module Objectives

The key objectives of this module are:

1. To understand the basic concepts and principles underlying financial accounting.

2. To learn how business transactions are measured and reported, and how such transactions
affect the financial statements.
3. To analyse and interpret financial reports.
4. To understand and use most of the common information presented in published financial
statements.

Note: There is no prerequisite for this module.

3. Evaluation

50% Final Examination

2-hour closed-book exam. Materials covered in all lectures, self-study and tutorial
assignments and assigned readings are examinable. The Registrar’s Office has scheduled the
exam on 1 December (Saturday) at 0900hr to 1100hr. There is no make-up exam, so absentees
will get zero mark.

30% Mid-Term Test

1-hour closed-book test. Materials covered in all lectures, self-study and tutorial assignments
and assigned readings up to and including Topic 5 are examinable. The mid-term test is
scheduled on date/day/time. Students who fail to take the test will get zero mark.

10% Class Participation

Assessed by the quantity and quality of a student’s participation during tutorials. Note that
mere attendance at tutorials is not considered participation, and it is possible to get zero
mark for participation.

10% Class Presentation

Students are to form into groups of 4 to deliver an in-class presentation during the tutorial
sessions. The tutor will assess the quality of the presentation and the performance of each
student.

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4. Schedule and Outline

Week Session

1 Accounting in Business

Learning objectives:
 Explain the purpose, importance, users, and uses of accounting
 Explain generally accepted accounting principles and the Conceptual Framework
 Define and interpret the accounting equation
 Compute and interpret return on assets
 Identify the typical financial statements and explain how they interrelate

Reading:

Wild, Kwok, Shaw and Chiappetta, Chapter 1

2 Analyzing and Recording Transactions

Learning objectives:
 Analyze business transactions using the accounting equation
 Define debits and credits and explain double-entry accounting
 Record transactions in the journal and post entries to a ledger
 Compute the debt ratio and describe its use in analyzing financial condition
 Prepare and explain the use of a trial balance

Reading:

Wild, Kwok, Shaw and Chiappetta, Chapter 2

3 Adjusting Accounts and Preparing Financial Statements; Completing the Accounting

Cycle – Part 1

Learning objectives:
 Explain accrual accounting and how it improves financial statements
 Prepare and explain adjusting entries
 Prepare an adjusted trial balance
 Compute profit margin and describe its use in analyzing company performance

Reading:

Wild, Kwok, Shaw and Chiappetta, Chapter 3 (exclude Appendices)

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4 Adjusting Accounts and Preparing Financial Statements; Completing the Accounting
Cycle – Part 2

Learning objectives:
 Explain a classified statement of financial position
 Prepare financial statements from an adjusted trial balance
 Describe and prepare closing entries
 Compute the current ratio and describe what it reveals about a company’s financial
condition

Reading:

Wild, Kwok, Shaw and Chiappetta, Chapters 3 & 4 (exclude Appendices and steps 9 & 10
of the Accounting Cycle)

5 Cash and Internal Controls

Learning objectives:
 Define internal control and identify its purpose and principles
 Define cash and cash equivalents and explain how to report them
 Compute the days’ sales uncollected ratio and use it to assess liquidity
 Explain and record petty cash fund transactions
 Prepare a bank reconciliation

Reading:

Wild, Kwok, Shaw and Chiappetta, Chapter 7 (exclude Appendices)

6 Receivables

Learning objectives:
 Describe accounts receivable and how they occur and are recorded
 Apply the direct write-off method to account for accounts receivable
 Apply the allowance method and estimate uncollectibles based on accounts
receivable
 Account for notes receivable and adjustments for interest
 Compute accounts receivable turnover and use it to help assess financial condition.

Reading:

Wild, Kwok, Shaw and Chiappetta, Chapter 8 (exclude Disposal of Receivables on pages
334-335)

7 Inventories and Cost of Sales

Learning objectives:
 Identify items to be included in Inventory Cost

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  Account for inventory under the perpetual system
 Compute Ending Inventory and Cost of Goods Sold using different costing methods
 Apply the Lower of Cost and Net Realizable Value
 Compute and interpret ratios for inventory management

Reading:

Wild, Kwok, Shaw and Chiappetta, Chapter 6 (exclude pages 241-2 and Appendices)

8 Non-Current Assets

Learning objectives:
 Determine cost of property, plant and equipment (PPE)
 Understand capital vs revenue expenditure
 Compute depreciation of PPE using different depreciation methods
 Account for impairment and revaluation of PPE
 Account for disposals of PPE
 Account for intangible assets

Reading:

Wild, Kwok, Shaw and Chiappetta, Chapter 9 (exclude “Section 2 - Natural Resources”
and Appendix)

9 Income and Equity

Learning objectives:
 Understand the components of shareholders’ equity
 Account for the issue of shares
 Compute and account for cash dividends
 Account for bonus issues and share splits
 Account for share buybacks
 Prepare a Statement of Comprehensive Income
 Prepare a Statement of Changes in Equity

Reading:

Wild, Kwok, Shaw and Chiappetta, Chapter 12 (with exclusions)

10 1. Current Liabilities

Learning objectives:
 Account for certain/known liabilities
 Account for provisions
 Account for contingent liabilities

Reading:

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 Wild, Kwok, Shaw and Chiappetta, Chapter 10

2. Statement of Cash Flows (Part 1)

Learning objectives:
 Understand the importance of cash flow analysis
 Distinguish between cash flows from operating, investing and financing activities
 Prepare the operating cash flows section of the Cash Flow Statement (CFS) using the
direct method

Reading:

Wild, Kwok, Shaw and Chiappetta, Chapter 13

11 Statement of Cash Flows (Part 2)

Learning objectives:
 Prepare the investing cash flows section of the CFS
 Prepare the financing cash flows section of the CFS
 Disclose non-cash investing and financing activities
 Interpret a cash flow statement

Reading:

Wild, Kwok, Shaw and Chiappetta, Chapter 13

12 Financial Statement Analysis

Learning objectives:
 Understand the importance of financial analysis
 Apply horizontal and vertical analyses
 Apply ratio analysis

Reading:

Wild, Kwok, Shaw and Chiappetta, Chapter 14

13 Revision/Consultation

5. Module Learning Guide

Learning in this module is achieved through the following components, which are not in order of
importance:

1. Lecture (2 hours per week), where major points of a topic are covered. Lecture slides can be
downloaded from the module workbin in the NUS IVLE (Integrated Virtual Learning
Environment) on a weekly basis.

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2. Tutorial (1 hour per week), where the student is expected to complete assigned tutorial
questions before class, and to contribute to discussions during class. Tutorial questions are as
listed in the detailed course outline in the module workbin.

3. Self-Study questions as listed in the detailed course outline, and the answers that will be
uploaded weekly, are recommended to be reviewed before the tutorial class.

4. Compulsory readings assigned from recommended text.

5. Voluntary consultations with lecturer/tutor.

6. Voluntary participation in IVLE online discussion forum.

Please refer to the Appendix for the ACC1701X Summary Teaching Schedule.

6. Recommended textbook

Main Text
John J. Wild, Winston Kwok, Ken W. Shaw and Barbara Chiappetta, Financial Accounting:
Information for Decisions (3rd Ed), 2017, McGraw-Hill Education (Asia)

Supplementary Text
Fred Phillips, Robert Libby, and Patricia Libby, Fundamentals of Financial Accounting, McGraw-
Hill, 5th edition.

7. Academic Honesty & Plagiarism

Academic integrity and honesty is essential for the pursuit and acquisition of knowledge. The
University and School expect every student to uphold academic integrity & honesty at all times.
Academic dishonesty is any misrepresentation with the intent to deceive, or failure to acknowledge
the source, or falsification of information, or inaccuracy of statements, or cheating at
examinations/tests, or inappropriate use of resources.

Plagiarism is ‘the practice of taking someone else's work or ideas and passing them off as one's own'
(The New Oxford Dictionary of English). The University and School will not condone plagiarism.
Students should adopt this rule - You have the obligation to make clear to the assessor which is your
own work, and which is the work of others. Otherwise, your assessor is entitled to assume that
everything being presented for assessment is being presented as entirely your own work. This is a
minimum standard. In case of any doubts, you should consult your instructor.

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Additional guidance is available at:
http://www.nus.edu.sg/registrar/adminpolicy/acceptance.html#NUSCodeofStudentConduct
Online Module on Plagiarism: http://emodule.nus.edu.sg/ac/

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Appendix

ACC1701X Summary Teaching Schedule (2018/19 Semester 1)

Week
Week
Beginning Lecture Topic Tutorial Topic
No.
(2018)

1 13 Aug Topic 1: Accounting in Business N.A.

2 20 Aug Topic 2: Analyzing and Recording Transactions N.A.

Topic 3: Adjusting Accounts and Preparing Financial

3 27 Aug Topic 1
Statements; Completing the Accounting Cycle – Part 1

Topic 3: Adjusting Accounts and Preparing Financial

4 3 Sep Topic 2
Statements; Completing the Accounting Cycle – Part 2

5 10 Sep Topic 4: Internal Controls and Cash Topic 3

6 17 Sep Topic 5: Receivables Topic 4

Recess (22 to 30 Sep)

7 1 Oct Topic 6: Inventories and Cost of Sales Topic 5

Topic 7: Non-Current Assets

8 8 Oct Topic 6
Mid-Term Test: date/time (Topics 1 to 5) tbc

9 15 Oct Topic 8: Income and Equity Topic 7

Topic 9: Current Liabilities

10 22 Oct Topic 8
Topic 10: Statement of Cash Flows (Part 1)

11 29 Oct Topic 10: Statement of Cash Flows (Part 2) Topics 9 & 10

12 5 Nov Topic 11: Financial Statement Analysis Topic 10

13 12 Nov Revision/Consultation Topic 11

WeekNo.

Note:

1. Lectures for this module are on Tues and Thurs, 9am to 11am.

2. Tutorials commence from Week 3 (week beginning 27 Aug 2018). Students should stick to their assigned
tutorial slots, unless otherwise approved by the BBA Program Office (Dean’s Office).

3. Lecturer will provide details of lecture sub-topics, reading references and tutorial and self-study questions
in a separate detailed course schedule to be downloaded from the IVLE workbin.

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