22800 Understanding Accounting and Financial Reports

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 2025 is available in the Archives.

UTS: Business: Accounting
Credit points: 6 cp

Subject level:

Postgraduate

Result type: Grade and marks

There are course requisites for this subject. See access conditions.
Anti-requisite(s): 220800 Accounting for Decision Makers AND 22747 Accounting for Managerial Decisions AND 22784 Accounting: Concepts and Applications

Note

MBA students (including C11008 Graduate Certificate and C06009 Graduate Diploma) who intend to complete the MBA with Professional Accounting specialisation to meet CPA Australia and ICAA accreditation must substitute 22747 Accounting for Managerial Decisions in place of 22800 Understanding Accounting and Financial Reports via an e-Request.

Professional Accounting specialisation in the MBA includes the Professional Accounting (MAJ08988) major and Professional Accounting Extension (SMJ10161) sub-major.

Description

This subject prepares students to be able to read and analyse accounting reports enabling the evaluation of historical business operations as well as facilitating the planning of a future business activity. Accounting information provides information for decision support to a diverse range of stakeholders, both inside the organisation (being management and board) and external (comprising shareholders, finance providers, government, customers, unions etc).

An understanding of accounting and the many information products generated by the accounting system is a fundamental requirement for business professionals as:

Accounting is the language of business and provides the financial measurement processes used in all forms of business, including for-profit, government and the not-for-profit sector.
Accounting processes are governed by a formal set of rules and regulations in the form of standards as well as legislative pronouncements that underpin the preparation and presentation of financial reports.
Knowledge of accounting enables the extraction and analysis of the information content of financial reports and provides the tools for the measurement and analysis of the operating, investing and financing activities of the business
Accounting information provides the foundation for analytical tools used to predict the future via the preparation of forecasts and budgets of future business activity.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:

1.	understand the purpose, content and format of financial statements and the methods used by accountants to prepare these statements
2.	apply Financial Accounting techniques to measure and interpret areas of business activity as disclosed by the main financial statements, including Balance Sheet, Income Statement and Cash Flow Statement
3.	explain the role of Management Accounting and the information products generated as financial and operational inputs into the decision-making process for planning and controlling business operations
4.	use accounting information and business support systems to monitor operations, confront challenges and opportunities affecting the business

Contribution to the development of graduate attributes

Familiarity with accounting processes and conventions are an essential prerequisite for reviewing past business performance and planning future business activity. Knowledge of the information products generated by accounting is a necessary prerequisite for reviewing and managing business activity. Managers use accounting information to plan and control business operations and as decision support for the many changing situations confronting the business entity. The objectives of the subject contribute directly to the skills and knowledge required for postgraduate study in accounting for both the MBA and associated specialist streams.

This subject provides the necessary accounting knowledge to support the information required for decision situations faced by management relating to the operations, investments and their financing in a dynamic business environment.

This subject contributes to the development of the following graduate attribute(s):

Communication and collaboration
Professional and technical competence

This subject also contributes specifically to develop the following Program Learning Objective of the Master of Business Administration degree:

Demonstrate advanced skills in professional business practice by researching and analysing complex information and concepts to support business decisions in local and international contexts (4.1)

Teaching and learning strategies

Teaching and learning strategies include interactive workshops, tutorials and group discussions incorporating both face-to-face and/or online delivery. The subject content will be supported by online learning modules to be accessed via Canvas.

Content delivery comprises interactive workshops and tutorials to be provided online and/or in the classroom. To enhance learning outcomes, students will be required to complete weekly homework exercises that are also reinforced by tutorial discussions.

Students will be exposed to real-life business/commercial situations and how the accounting system is used to measure and report the monetary/financial impact of these business activities. The underlying theme will be the utilisation of accounting information for decision support. In business, all decisions require a cost/benefit analysis with accounting being responsible for the generation of the quantitative data required to make this analysis.

Students are expected to complete the prescribed reading and be ready to present and discuss the assigned homework in the tutorial. Students will receive feedback in tutorials and have the opportunity to discuss issues encountered when completing the set homework.

Both workshops and tutorials will encompass in-class activities that are to be completed interactively. The questions set and discussed are designed to enable students to gauge their understanding and provide direction for self-study. Where possible, students are encouraged to work on homework and in-class activities in a collaborative learning setting.

Feedback for completed student assessments tasks will be provided on a timely basis and continuously throughout the subject's duration. Consultations and subject enquiry with the lecturer can be made at any time via online options or at a mutually agreeable time, face-to-face or online.

Students are expected to take charge of their learning and extend concepts beyond materials covered in workshops and tutorials. Students are directed to:

the recommended textbook
self-study questions
supporting documents provided on UTS-Canvas.
Online financial databases

Content (topics)

Accounting - the language of business.
Financial Accounting processes used in capturing the monetary aspects of business transactions.
Preparing financial statements - Income Statement, Balance Sheet and Cash Flow Statement
The analysis of financial statements – generating summary statistics leading to information products about the operating, investing and financing activities of the firm.
Corporate Social Responsibility (CSR) and Sustainability accounting
Management Accounting concepts and organisational mapping
Cost Behaviour and Profit Planning of business activity
Relevant Costing to support strategic decision activity
Budgeting – mapping future business operations quantitatively

Assessment

Assessment task 1: Homework and Tutorial Tasks (Individual)*

Objective(s):	This addresses subject learning objective(s): 1, 2, 3 and 4
Weight:	25%
Length:	Assessment 1 includs online quizzes and in-class contributions. Please refer to assessment task 1 details.
Criteria:	Define and identify the components of the major financial statements and comment on the information content of financial statements Analyse historical business operations and utilise accounting information to evaluate past operations and provide a framework to plan future operations Demonstrate skill in the planning and control of business operations using accounting processes to prepare budgets and forecasts of future business operations Prepare accounting reports providing information products to support management decision activity *Note: Late submission of the assessment task will not be marked and awarded a mark of zero.

Assessment task 2: Mid-Session Quiz (Individual)*

Objective(s):	This addresses subject learning objective(s): 1 and 2
Weight:	25%
Length:	Duration of exam will be 1 hour 30 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:	The final exam will be of 2 hours duration.
Criteria:	Define and identify the components of the major financial statements and comment on the information content of financial statements Analyse historical business operations and utilise accounting information to evaluate past operations and provide a framework to plan future operations Demonstrate skill in the planning and control of business operations using accounting processes to prepare budgets and forecasts of future business operations Prepare accounting reports providing information products to support management decision activity

Minimum requirements

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

Required texts

Birt, Chambers, Maloney, Brooks, Oliver and Bond 'Accounting, Business Reporting for Decision Making 8th Edition, 2022 Wiley

References

Atrill P., McLaney E., Harvey D., Cong L.M., Accounting: An Introduction, Pearson Australia, Frenchs Forest, NSW. 8th Edition, 2020

Tyler, J., Godwin,N. and Alderman, C., ACCT3 Financial: 3rd Asia-Pacific Edition, Cengage, 2019

Sivabalan, P., Wakefield, J., Sawyers, R., Jackson, S. and Jenkins, G., ACCT3 Managerial: 3rd Asia-Pacific Edition, Cengage, 2019

Deegan, C., An Introduction to Accounting: Accountability in Organisations and Society, Cengage, 2019.

Miller-Nobles, T.L., Mattison, B.L. and Matsumura, E. M. (2019) Horngren's Financial & Managerial Accounting, The Managerial Chapters and The Financial Chapters, 6th Edition, Pearson 2019

CPA Australia or The Institute of Chartered Accountants in Australia (2020), Accounting Handbook 2020, Sydney: Pearson or John Wiley