22777 International Accounting
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Subject handbook information prior to 2025 is available in the Archives.
Credit points: 6 cp
Subject level:
Postgraduate
Result type: Grade and marksRequisite(s): 22747 Accounting for Managerial Decisions
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.
Description
This subject commences with a discussion of the causes of diversity in corporate financial accounting and considers the remaining differences in accounting standards and practice internationally. The subject also discusses the risks associated with transacting internationally and considers the accounting for transactions used to reduce this risk. The subject also analyses the accounting issues faced by global enterprises including international auditing, transfer pricing and international taxation and tax avoidance.
Subject learning objectives (SLOs)
| 1. | Critically assess the sources of diversity in accounting practice and reporting internationally |
|---|---|
| 2. | Analyse and contrast the differences in financial reporting requirements between IFRS and the USA and Japan |
| 3. | Account for transactions used by entities to hedge foreign currency risk |
| 4. | Evaluate major issues in international accounting (consolidations, transfer pricing, international auditing and international taxation and tax minimisation) |
| 5. | Successfully undertake a project requiring team collaboration and oral presentation skills |
Contribution to the development of graduate attributes
This subject is intended to provide students with an understanding of the national, cultural and legal diversity around the world that impacts on the presentation of financial accounting information to users. The study of this diversity empowers students to interpret accounting reports with greater precision and caution.
This subject contributes to the development of the following graduate attribute(s):
- Intellectual rigour and innovative problem solving
- Professional and technical competence
Teaching and learning strategies
Discussions of international accounting issues are supported by reviews of international financial reports and case studies.
Each 3-hour seminar class (except for Week 1) begins with a tutorial covering the lecture topic from the preceding week and this is followed by a lecture on the next topic. Students are expected to attempt the weekly homework questions and case studies prior to class from Week 2. Typical in-class student engagement activities include presentations and small group discussions. Students are required to present their solutions to homework questions for comments by other students and class instructor. The class instructor will provide and explain likely alternative answers and challenge students to assess how acceptable the alternative solutions are.
Prior to the in-class exam in Week 8, students will be briefed on the structure of the exam (multiple choice, case study) and the preparation necessary to attain a Pass, Credit, and Distinction grades.
Following the conclusion of formal teaching, students will be given opportunities to review their preparedness for the final exam. This takes the form of individual consultation (20 minutes per student) over the last three days prior to the centrally organised final exam.
Content (topics)
- Global accounting practice differences, before and after IFRS adoption.
- Comparison of technical accounting rules in IFRS and US GAAP.
- Foreign currency risk for businesses and the accounting for methods used to minimize foreign exchange risk.
- Issues for global businesses include international taxation and tax avoidance, transfer pricing and foreign currency consolidation.
Assessment
Assessment task 1: Assignment (Group)
| Intent: | Structured group reflection and presentation of findings |
|---|---|
| Objective(s): | This addresses subject learning objective(s): 1, 2, 3, 4 and 5 |
| Weight: | 30% |
| Length: | 6 -12 minutes + 2 - 4 minutes (for questions) depending on group size (presentations of approximately 3 minutes per student). |
Assessment task 2: In-class examination (Individual)*
| Objective(s): | This addresses subject learning objective(s): 1, 2 and 3 |
|---|---|
| Weight: | 20% |
| Length: | 40 minutes. |
| Criteria: | *Note: Late submission of the assessment task will not be marked and awarded a mark of zero. |
Assessment task 3: Final Exam (Individual)
| Objective(s): | This addresses subject learning objective(s): 1, 2, 3 and 4 |
|---|---|
| Weight: | 50% |
| Length: | 2 hours plus 10 minutes reading time. |
Minimum requirements
Students must achieve at least 50% of the subject’s total marks.
Required texts
There is no required text in this subject
Recommended texts
Nobes, C and Parker, R, 2016, Comparative International Accounting, 13th edition, Prentice Hall, London.
References
AASB Accounting Standards www.aasb.gov.au/Pronouncements/Current-standards.aspx
August, R.,2013, International Business Law, Pearson NJ
Carsbaugh, R.J., 2015, International Economics, Cengage Learning, Boston
Collier, R.S., 2017, Transfer Pricing and the arm's length principle after BEPS, Oxford University Press
Choi, F. and Meek, G., 2011, International Accounting: International Edition, 7th edition, Pearson Education, Upper Saddle River.
Daniel, P., 2017, International Taxation and the Extractive Industries: resources withour borders. Routledge. NY
Doupnik, T. and Perera, H., 2015, International Accounting, 4th edition, McGraw-Hill Irwin.
Krugman, P.R., 2015, International Trade - theory and policy. Pearson. Boston.
Malbon, J., 2015, Australian export: A Guide to Law and practice. Cambridge University Press, Melbourne
Miller, R., 2018, International Political Economy: Contrasting World Views. Routledge. NY
Vicek, W., 2017, Offshore Finance and Global Governance; disciplining the tax nomad. Palgrave Macmillan. London.
CCH Worldwide Tax database. University Library
The Australian Financial Review Newspaper
UTS Library
The Australian Financial Review Newspaper
The Financial Times Newspaper
Other resources
In addition to the above references, students are encouraged to refer to relevant items on the webpages of international accounting organisations. Students in this subject are provided with an extensive list of various resources on the internet through Canvas.