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22814 Accounting for Value

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2019 is available in the Archives.

UTS: Business
Credit points: 8 cp

Subject level:


Result type: Grade and marks

There are course requisites for this subject. See access conditions.


This subject provides students with a managerial perspective of accounting and its role in modern business organisations. Accounting aids in assessing internal and external organisational value and in decision-making. The subject is broadly divided into two components. The first component focuses on understanding the external value of organisations. Their financial performance is examined by understanding the drivers of external value including the industry and business contexts and strategy, and an analysis of financial statements using ratios to understand how they create value for external stakeholders. Students are exposed to a comprehensive understanding of important elements of financial statements (income, balance sheets and cash flows) and the accounting concepts, principles and standards that are used in their development and interpretation. The second component looks at the role of accounting in measuring and managing internal organisational performance and value. Students are be exposed to a comprehensive understanding of costs, their classification and behaviour, and their use in costing systems and techniques as well as in product pricing and performance measurement. Students also learn how planning and budgeting, capital budgeting and performance measurement systems are designed and used.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:
1. analyse and compare the accounting tools used in internal value measurement, planning and control, including forecasting, budgeting, costs and risks and pricing methodologies
2. analyse and compare the accounting tools used in external value measurement, including competition, returns and valuation methodologies
3. apply and assess accounting information to develop strategies to improve internal and external value

Contribution to the development of graduate attributes

This subject focuses on establishing a clear linkage between accounting information and its use in measuring and improving value. The subject demonstrates accounting skills that enable students to conduct rigorous information analysis for tactical and strategic business decisions. The subject combines skills in internal and external accounting, as well as business strategy and finance, so as to enable students to develop skills in applying accounting analysis in combination. Successful completion of the subject will enable students to demonstrate the capacity for creativity, innovation and value creation in tactical and strategic business decisions. Specifically, the subject aids the development of the following UTS Business School Graduate Attributes:

  • Business knowledge and concepts – students are exposed to a range of accounting techniques and methods, and are required to personalise these concepts into their own organisational settings.
  • Communication and interpersonal skills – students are expected to work in groups to complete tasks in class as well as a group assignment, and present this assignment to the lecturer(s) and their fellow students.
  • Business practice oriented skills – students are asked to prepare weekly tasks relevant to their organizational settings for a majority of the teaching weeks, therefore requiring them to orient their skills developed to business practice.

Teaching and learning strategies

Class preparation

Students are expected to read the relevant textbook chapter prior to attending class, where the lecture is delivered.

Students are also expected to complete their textbook homework questions and homework questions based on the financial systems of student employers, or a prior employer if student is not currently employed (self-referential work based examples).

In class

The tutorials will consist of problem solving questions based on the weekly homework tasks and which will lead to group discussions of the accounting concepts being covered.

In some topics, cases and articles will be used to help students learn and apply theory to actual practical problems. As part of this, students will be working collaboratively in teams to use the concepts to apply to practical examples.


Students’ homework is marked weekly (from weeks one to eight) and returned the following week to provide direction to their self-study.

Student ideas expressed in group discussions are responded to with immediate feedback from the lecturer.

Content (topics)

  • Overview of accounting and its relation to value
  • Internal accounting for value – understanding costs, their classification and behaviour, understanding various accounting techniques (CVP, relevant decision making, overhead allocation methods) and accounting processes such as planning and budgeting, capital budgeting, performance measurement system design and use and performance evaluation and incentives
  • External accounting for value – understanding value and value creation by assessing industry and business contexts, understanding how financial statements describe accounting value and analysing financial statements using ratio analysis to understand how value has been created


Assessment task 1: Individual Portfolio


This addresses subject learning objective(s):

1 and 3

Weight: 70%
Criteria linkages:
Criteria Weight (%) SLOs CILOs
Accuracy and quality of textbook homework question completion 50 1, 3
Accuracy and quality of self-referential organisational analysis question completion 50 1, 3
SLOs: subject learning objectives
CILOs: course intended learning outcomes

Assessment task 2: Group Case Study Assignment


This addresses subject learning objective(s):


Weight: 20%
Criteria linkages:
Criteria Weight (%) SLOs CILOs
Accuracy and completeness of organisational valuations, using textbook and publically available data 100 2
SLOs: subject learning objectives
CILOs: course intended learning outcomes

Assessment task 3: Group Case Study Presentation


This addresses subject learning objective(s):

1 and 3

Weight: 10%
Criteria linkages:
Criteria Weight (%) SLOs CILOs
Quality of materials designed for the presentation, including powerpoint slides, and other multi-media tools. 50 1, 3
Quality of communication of content in the presentation, including clarity of presentation and ability to engage the audience. 50 1, 3
SLOs: subject learning objectives
CILOs: course intended learning outcomes

Minimum requirements

Students must achieve at least 50% of the subject's total marks.

Required texts

Anthony, RN, Hawkins, DF and Merchant, KA (2010) Accounting Text and Cases, 13th edn, McGraw-Hill.

The above book is available from the University Co-op Bookshop. Please buy the correct editions of texts.


  • Sivabalan, P and Tyler, J, 2014, ACCT MBA, Cengage Learning

  • Penman, Stephen H, 2007, Financial statement analysis and security valuation, McGraw-Hill

Any introductory book on financial and management accounting would be a suitable reference for background information.

Other resources

HBS Articles and Cases

Cases from Merchant and Van de Stede, 2012.