AFC1030: Introduction to Financial Accounting

This unit essentially continues on from the accounting topic in AFC1000, but in more detail. The main topics are:

Week 1 - Conceptual Framework + capital maintenance
Not a whole lot in week 1. You should already be familiar with the conceptual framework from 1000, and capital maintenance is to do with how much profit can be distributed while maintaining the wealth of the business.

Week 2 - Incomplete records, internal control
Involves the reconstruction of accounts, which is important for the later lecture on cash flows. The main part of internal control discussed is bank reconciliation.

Week 3 - Inventory
Looks at AASB102, and covers what is included as part of the cost of inventory, and that inventories should be recorded at the lower of cost and Net Realisable Value (NRV)

Week 4 - Balance day adjustments
Prepayments, accruals, straight line and reducing balance depreciation, and allowance for doubtful debts.

Week 5 - Background to financial regulation (zzzzz)
The various regulatory bodies of financial reporting, really dry stuff.

Week 6 - Companies
Also pretty dry, introduces goodwill and the purchase of companies, as well as the creation of a new company and issuing of shares via a prospectus.

Week 7 - Non-current assets
What is included as part of the cost of a non-current asset, and their subsequent revaluation and impairment. Also intangible assets.

Week 8 - Liabilities/Leases
Looks at liabilities, operating and finance leases, provisions and contingent liabilities

Week 9 - Income
Looks at when to recognise income, and construction contracts (which weren't covered this semester, John ran out of time in his lecture)

Week 10 - Expenses and intangibles
Looks at whether particular items should be recognised as an asset or expense, such as oil exploration and research and development.

Week 11 - Cash flow statements
Primarily involves being given an income statement and balance sheet, and you have to create a cash flow statement.

Week 12 - Agriculture
The valuation of biological assets, tension/conflict between accounting standards and the conceptual framework (touched on in earlier weeks too) and revision.


The two tests are pretty straight forward, if you can do the tute questions you should be ok. The first one was almost entirely practical, but the second one had a bit more theory. The exam was VERY similar to the past papers, so if you work through them all then you can get through the exam fairly easily.

I didn't enjoy this unit much at all really. It's not particularly difficult, and doesn't involve much actual "study" I found. If you can force yourself to do the tute questions each week and read the lecture slides, then all should fall into place. It's just getting used to applying the various rules that you learn in a practical sense, which can be done easily from doing the past exams. Apart from the regulation week that is, I really do feel for anyone who has to endure that week, and also for John who has to give that lecture again...

You'll be doing this unit of you want to major in accounting, but if you know that you're not going to major in accounting, I suggest doing something else as an elective. Sure it's not too taxing, but can be very dry which makes its not very enjoyable and difficult to force yourself through if you don't have an interest. Leases were my favourite part of the course, the rest was all pretty similar.

Alan Serry: packs a lot into his lectures, but goes through things step by step and logically. Definitely worth going to his lectures. Also, he leaves part of the slides blank, so you at least have to watch them online to get all of the journal entries.

John Gerrand: As much as I love John, his lectures weren't particularly helpful. Although he did cover the more boring topics, so its not his fault.

Yes, about 7 all with solutions

2.5 out of 5

Yes

Introduction To Financial Accounting 2ed - Gerrand J & Hardy L & Contessotto C: Not a particularly helpful book to learn the material covered, but it has the tute questions in it, so you'd better get a copy.

Accounting handbook - this is what contains all of the accounting standards. Is recommended, and you're allowed to take it into the exam and tests with underlining (no writing). I hardly used it at all really, all of the relevant standards are covered in the lecture notes well enough, and its not too difficult to just remember the important aspects. If you're planning on doing more accounting, or have a really poor memory, or don't like studying then I suggest getting it, but if you aren't sure then maybe postpone buying it until you know whether it would be useful.

Two 1-hour lecture plus one 1.5-hour tutorial = 3.5 hours

2013 Semester 2

90 HD