Subject Guide ACCT2000 2 2021 SM2 v1 PDF

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ACCT20002 Intermediate Financial Accounting SUBJECT GUIDE

Semester 2, 2021

Prepared by Subject Coordinator: Jagjit Kaur

Department of Accounting Faculty of Business and Economics

1

Subject Outline Introduction Welcome to ACCT20002 Intermediate Financial Accounting This subject focuses on more advanced external financial reporting obligations applicable to entities within the framework of the Australian reporting environment. In particular, it examines key technical Accounting Standards integral to the preparation of general purpose financial statements by reporting entities. It also considers the theories that help explain why financial accounting exists as well as what motivates and affects the judgments of managers when making financial accounting reporting decisions. Finally, it critically reviews important contemporary accounting issues affecting the business community and under consideration of accounting standard setters. Subject Overview and Aims The overall aim of Intermediate Financial Accounting is to introduce students to the foundation principles and key accounting standards associated with the preparation of General Purpose Financial Statements in the Australian jurisdiction.

Learning Outcomes Learning Outcomes and Generic Skills To view the subject objectives and the generic skills you will develop through successful completion of this subject, please see the University Handbook: https://handbook.unimelb.edu.au/2021/subjects/acct20002 Awareness Issues At a broader level, studying this subject will increase your awareness of issues such as: •

The fundamental importance of accounting information derived from external financial reports as a decision-making tool used by shareholders, investors, creditors, suppliers and regulators

•

The potential for preparers of financial statements to make policy choices that influence the information contained in external reports (i.e. earnings management issues)

•

The international nature of accounting and the influence of the convergence of world capital markets (globalisation)

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Eligibility and Requirements To view the eligibility and requirements, including prerequisites, corequisites, recommended background knowledge and core participation requirements for this subject, please see the University Handbook: https://handbook.unimelb.edu.au/2021/subjects/acct20002/eligibility-and-requirements

Academic Staff Contact Details Please see the subject page on Canvas for full contact details of the teaching staff in this subject. Subject Coordinator

Name: Dr Jagjit Kaur Email: [email protected] Phone: 8344-7665 Consultation Hours: Thursday 5:00pm – 6:00pm Email Protocol Please note that we are only able to respond to student emails coming from a University email address. Please do not use personal email addresses such as Yahoo, Hotmail or even business email addresses. Emails from non-University email addresses may be filtered by the University’s spam filter, which means that we may not receive your email. All correspondence relating to this subject will only be sent to your University email address. Note that you must first activate your University email address before you can send or receive emails at that address. You can activate your email account at this link: http://accounts.unimelb.edu.au/. While academic staff endeavor to address queries received via email, it is more appropriate to resolve substantive questions during lectures and tutorials and during normal consultation hours. With this in mind, we encourage students to attend all lectures and tutorials and to familiarise themselves with the consultation hours offered by the lecturers and tutors in this subject. Zoom – Student Privacy Please refer to the following page for the privacy rights of students in Zoom meetings and recordings and situations where an audio or video presence may be required. https://lms.unimelb.edu.au/students/student-guides/zoom-student-privacy 3

Lectures Lecture slides will be placed on the LMS page for this subject prior to each lecture Lectures commence week beginning July 26 (i.e., week 1) Lecture Schedule:

No.

Date

Topics

Loftus References Chapter 3

1

July 29

2

Aug 5

3 4 5

Aug 12 Aug 19 Aug 26

6

Sept 2

7

Sept 9

8

Sept 16

9

Sept 30

Measurement basis (emphasis on Fair Value measurement AASB13) PPE (AASB116), Intangibles (AASB138) & Impairment (AASB136) Leases (AASB16) Accounting for Income Tax (AASB112) Revenue from contracts with customers (AASB15) Financial Instruments (AASB7, AASB9, AASB132) Business Combinations (AASB3) – direct acquisition Consolidations – controlled entities Consolidations – wholly owned entities (AASB10) Non-teaching Week September 20 – September 26, 2021 Consolidations – Intragroup transactions

10

Oct 7

Consolidations – Non-controlling interest

11

Oct 14

Equity accounting (AASB128) Accounting policy, Chapter 31 changes in accounting estimates & errors Chapter 18 (AASB108) Post balance sheet events (AASB110) Related Chapter 21 party (AASB124)

12

Oct 21

Course review

Chapter 5, 6&7 Chapter 10 Chapter 12 Chapter 15 Chapter 11 Chapter 25 Chapter 26 Chapter 27

Chapter 28 Chapter 29

Recorded Lectures Audio and video recordings of lectures delivered in this subject will be made available for review. These recordings allow you to revise lectures during the semester, or to review them in preparation for the end of semester exam. You can access recorded lectures by clicking on the Modules-Lecture navigation tab on the LMS. Please note that for live classes, recordings are not a substitute for attendance; rather they are designed for revision. On rare occasions the recordings can fail to take place due to technical reasons. In such cases, a substitute recording will be made available. 4

Tutorials Tutorial Delivery Format and Times ฀ Tutorials commence in week beginning August 2 (i.e., week 2) and conclude week ending October 22 (last day of week 12). There are no tutorials in week beginning July 26 (i.e., week 1). ฀ Tutorials will be delivered via either face-to-face tutorials or online Zoom tutorials. Five tutorials will be held each week in the following times: o o

Wednesday 1 pm – 2 pm (online Zoom tutorial) Wednesday 2:15 pm – 3:15 pm (online Zoom tutorial)

o o o

Thursday 10 am – 11 am (face-to-face tutorial) Thursday 11 pm – 12 pm (face-to-face tutorial) Thursday 12 pm – 1 pm face-to-face tutorial)

฀ Details of the locations of tutorials and Zoom tutorial links will be available on Canvas. Tutorial Topics Schedule:

No. 1

Week beginning Aug 2

Topics

2

Aug 9

3

Aug 16

Measurement basis (emphasis on Fair Value measurement AASB13) PPE (AASB116), Intangibles (AASB138) & Impairment (AASB136) Leases (AASB16)

4

Aug 23

Accounting for Income Tax (AASB112)

5

Aug 30

Revenue from contracts with customers (AASB15)

6

Sept 6

Financial Instruments (AASB7, AASB9, AASB132)

7

Sept 13

Business Combinations (AASB3) – direct acquisition Consolidations – controlled entities

8

Sept 27

Non-teaching Week September 20 – September 26, 2021 Consolidations – wholly owned entities (AASB10)

9

Oct 4

Consolidations – Intragroup transactions

10

Oct 11

Consolidations – Non-controlling interest

11

Oct 18

Equity accounting (AASB128) Accounting policy, changes in accounting estimates & errors (AASB108) Post balance sheet events (AASB110) Related party (AASB124)

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Tutorial Materials To promote understanding of the lecture content, students will be provided with the following materials: ฀ Review and preparation questions - These are provided to enhance your understanding of the lecture content. Suggested solutions to review and preparation questions will be available from the subject page on Canvas at the same time as the prescribed questions.

฀ Tutorial questions - For your tutorial preparation, each week assigned online tutorial questions will be posted on the Canvas. Students are expected to attempt these questions before attending their respective tutorials. In the tutorials, these questions will be discussed with solutions presented. Solutions/recordings will also be made available on the Canvas subject page by the end of the relevant tutorial week.

Private Tutoring Services The Faculty has become increasingly concerned about the existence of a number of private tutoring services operating in Melbourne that heavily target University of Melbourne students enrolled in FBE subjects. Students are urged to show caution and exercise their judgement if they are considering using any of these services, and to please take note of the following: Any claim by any of these businesses that they have a “special” or “collaborative” or “partnership” style relationship with the University or Faculty is false and misleading. Any claim by a private tutoring service that they are in possession of, or can supply you with, forthcoming University exam or assignment questions or “insider” or “exclusive” information is also false and misleading. The University has no relationship whatsoever with any of these services and takes these claims very seriously as they threaten to damage the University’s reputation and undermine its independence. It is also not appropriate for students to provide course materials (including University curricula, reading materials, exam and assignment questions and answers) to operators of these businesses for the purposes of allowing them to conduct commercial tutoring activities. Doing so may amount to misconduct and will be taken seriously. Those materials contain intellectual property owned or controlled by the University. We encourage you to bring to the attention of Faculty staff any behaviour or activity that is not aligned with University expectations or policy as outlined above.

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Assessment Assessment Overview Your assessment for this subject comprises the following:

Assessment Task

Date

Weighting

Participation: Online assessment tasks

Details below Date/time to be communicated via Canvas

10%

Mid-semester test

Covers topics of lectures 1 – 4 Date/time to be communicated via Canvas

20%

End-of-semester exam

Covers all topics On a date to be advised during the endof-semester examination period

70%

Participation - Online assessment tasks (10%) To be awarded participation marks allocated to this subject of 10%, students are required to complete a series of online WileyPlus quizzes.

Quiz details: Date: •

Quizzes will be made available progressively. There are nine (9) quizzes in total.

•

The quizzes must be completed by the due date assigned to each quiz.

•

Note that multiple attempts are allowed and after your 3rd attempt, solutions to the WileyPlus Quizzes will be visible.

•

The quizzes are an opportunity for students to test their understanding of the topic. To assist understanding, solutions are provided after the 3rd attempt. Students should use this opportunity to not only enhance understanding of the topic but also as an opportunity to earn their full participation marks.

Marks: Assigned to each quiz. Type of questions: A mix of multiple-choice questions and journal entries Grade: The grade for each of the online assessment quizzes will count towards your participation mark. Schedule/topics: Open and close dates communicated via the subject page on Canvas.

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Mid-Semester Test (20%) The mid-semester test will comprise 20 online multiple-choice questions (MCQs) covering topics from Lectures 1 to 4 of the lecture program. You will have 60 minutes in which to complete the test with 5 minutes for reading time. There will be one mark awarded for each correct answer with no deductions for an incorrect answer. Further details including date/time of the mid-semester test will be provided on Canvas closer to the date of the test. No past papers will be made available but practice MCQs will be provided on the Canvas subject page. End-of-semester Exam (70%) The end-of-semester examination will be a three-hour examination covering all topics. All questions will be application questions. There is a hurdle requirement on the final examination to pass this subject. Subject to this hurdle, final assessment is based on a combination of each of the three assessment criteria. A grade of 49 NH is awarded where the exam hurdle has not been satisfied. This grade does not necessarily indicate that the student was one mark short of obtaining a pass in the subject. Late submissions will attract a 10% penalty (of the total maximum mark for the exam) if submitted after the scheduled completion time (for instance, an exam scheduled at 3:00pm with 180 minutes writing time + 30 minutes reading time will have a completion time of 6:30pm). Submissions 30 minutes after the completion time will not be marked. This exam requires file uploads; these files may take some time to complete their upload in peak exam times. Students are advised to allow sufficient time to upload and check files prior to the scheduled completion time. File uploads must be fully completed by the examination completion time. Students who were prevented from submitting due to technical difficulties will need to apply for technical consideration with supporting documentation. Practice papers will be provided on the Canvas subject page.

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Subject Resources Prescribed References The following textbook is prescribed for this subject: Loftus, J., K. Leo, S. Daniliuc, N. Boys, B. Luke, H. Ang, K. Byrnes, Financial Reporting, Wiley, 2019, 3rd edition (ISBN: 9780730369462). Throughout the course, lecture slides will make reference to Australian Accounting Standards. Students are not expected to print these out. This course will apply Accounting Standards as they have been updated to 1 December 2019. Students should be mindful of the risks associated with referring to outdated standards. Other Subject Resources The following resources are provided to assist your learning: Online resources: Materials for this subject are available via the subject page on Canvas.

➢ ➢ ➢ ➢ ➢ ➢ ➢ ➢

Announcements and updates Subject guide Lecture notes Lecture recordings Tutorial program - prescribed and review questions Tutorial recordings Suggested tutorial solutions Practice papers for mid-semester test

➢ Practice papers for final exam To access the online resources, you will need your University of Melbourne e-mail account username and password. It is every student’s responsibility to regularly check the Canvas subject page and their University email accounts for course information, announcements and updates. Students should note that the subject page on Canvas will not be available after the endof-semester examination.

9

Consultation Sessions Consultation sessions will commence in the second week of the semester via online Zoom meetings or face-to-face meetings. Details of dates/times will be published on the Canvas subject page. Accounting Standards Australian

Accounting

Standards

which can

be

accessed

at

the

following link: http://www.aasb.gov.au/Pronouncements/Current-standards.aspx The Accounting Standards, with IFRS equivalents in parenthesis, of particular relevance to this subject are: AASB Framework

Framework for the Preparation and Presentation of Financial Statements

AASB 3 (IFRS 3) AASB 7 (IFRS 7)

Business Combinations Financial Instruments: Disclosures

AASB 9 (IFRS 9)

Financial Instruments

AASB 10 (IFRS 10) Consolidated Financial Statements AASB 12 (IFRS 12) Disclosure of Interests in Other Entities AASB 13 (IFRS 13) Fair Value Measurement AASB 15 (IFRS 15) Revenue from Contracts with Customers AASB 16 (IFRS 16) Leases AASB 108 (IAS 8) Accounting Policies, Changes in Accounting Estimates and Errors AASB 110 (IAS 10) Events after the Reporting Period AASB 112 (IAS 12) Income Taxes AASB 116 (IAS 16) Property, Plant and Equipment AASB 117 (IAS 17) Leases AASB 121 (IAS 21) The Effects of Changes in Foreign Exchange Rates AASB 123 (IAS 23) Borrowing Costs AASB 124 (IAS 24) Related Party Disclosures AASB 127 (IAS 27) Separate Financial Statements AASB 128 (IAS 28) Investments in Associates and Joint Ventures AASB 132 (IAS 32) Financial Instruments: Presentation AASB 136 (IAS 36) Impairment of Assets AASB 138 (IAS 38) Intangible Assets AASB 1053 Application of Tiers in Australian Accounting Standards AASB 1054 Australian Additional Disclosures Note that these Standards are presented as reference material only. It is not an expectation that students print or download these Standards.

10

Business Examples Students are encouraged to access the web sites of publicly listed companies to view their annual reports. There is no need to download (print) a copy of these but students wishing to experience the real world side of the content in IFA are advised to use these as a reference benchmark. Model sets of financial statements prepared under the AIFRS regime (PwC, Deloitte) and AASB regime (Ernst & Young, KPMG) are also available online for student use. An illustrative example from EY can be found at the following link: https://assets.ey.com/content/dam/ey-sites/ey-com/en_au/topics/ifrs/ey-good-groupaustralia-limited-dec-2019-june-2020.pdf

Non-assessable Revision Materials Review questions provided as part of the Tutorial program can be used either to assist ongoing revision throughout the semester and/or as part of your Swotvac revision prior to the final examination. Online MCQ sets will also be available to assist preparation for the mid-semester test (in the case of the first five topics) as well as your overall revision. These questions are provided for revision purposes only and are NOT intended to necessarily reflect the style or standard of questions that will appear on the mid-semester test. Past Exams Practice papers will be available from the Canvas subject page towards the end of the semester. These papers are provided for revision purposes to assist preparation for the final examination and are NOT intended necessarily to reflect the style or standard of questions that will appear on the exam.

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Academic Integrity Academic Honesty The University maintains high academic standards in its courses and subjects and expects students to conduct themselves in a manner which is fair, honest and consistent with the principles of academic integrity, particularly when undertaking assessment and research. http://academicintegrity.unimelb.edu.au/ Referencing All sources used for a written piece of assessment must be referenced. This is to acknowledge that your material is not based entirely on your own ideas, but is based, in part, on the ideas, information, and evidence of others. This is desirable as you are attending University in order to learn from others. You will be required to use the APA system or Harvard System of referencing. The library has pr...