Online Business School is now open. Business/Management
and Research curriculum and learning contents subscriptions
are available to International Universities,
Colleges, Management Development and Training Centres and their
Students and Staff throughout the world.
The
second part of the accounting course introduces standard costing
and budgeting, and covers the allocation and management of resources.
While
this unit will develop students’ ability to apply a range of
management accounting techniques, quantitative methods and resource
management strategies to the modern business environment, students
will also have to demonstrate understanding of these tools and the
issues that surround their use.
Students
must also appreciate the contribution made by information technology
to management accounting.
Learning
Outcomes
Upon
successful completion of this course, the student should be able
to:
1.
Discuss the objectives of financial and management accounting.
2.
Recognise the international standards and ethical issues affecting financial accounting.
3.
Understand and evaluate accounting information systems.
4.
Prepare and evaluate statements.
5. Discuss the impact of changing technology on management accounting
and reporting.
6.
Understand and evaluate appropriate valuation techniques and issues involved in acquisitions, disposition or property, plant and equipment.
7.
Discuss the impact of changing technology on management accounting
and reporting.
8.
Analyse accounting information, select relevant data, and prepare
reports or models to support the management functions of planning,
controlling, coordinating and evaluating.
9.
Present relevant data in analytical models to support various short-term
and capital expenditure decisions.
10.
Work in small groups to resolve problems or cases for written or
oral presentation.
Accounting
changes and Error Corrections fall into one of three categories: Changes in principle,
Changes in estimates, Changes in reporting entity. Errors
occur when transactions either are recorded incorrectly or
not recorded at all. Most changes in accounting principles
are recorded and reported by the "current approach." How is
a change from the LIFO method to another inventory valuation
method recorded and reported?
Characteristics
of Liabilities. What is a Current Liability? Accounts Payable
and Notes. How is interest calculated on short-term notes?
Accrued Liabilities. Assume salaries of $600,000 have been
earned by employees by the end of the period, but will not
be paid to employees until the following period. How are the
expense and related liability recorded? When can short-term
obligations be reported as long-term liabilities? Unasserted
Claims and Assessments. Gain Contingencies. Decision-Makers'
Perspective.
The
Nature of Shareholders' Equity. Sources of Shareholders' Equity.
Shareholders' Equity in Financial Statements. Paid-In Capital.
Suppose common shares are issued for land. How is the transaction
amount measured? Reacquired Shares. The Nature of Retained
Earnings. Dividends. Stock Distributions. Decision-Makers'
Perspective. If a company has no "potentially dilutive securities"
we consider it to have a simple capital structure. When the
number of shares changes, EPS calculations are based on the
weighted average number of shares outstanding during the period.
When a company has securities that could potentially dilute
(i.e., reduce) earnings per share, it is classified as a complex
capital structure. Decision-Makers' Perspective.
Investments
- Overview. Accounting for Investment Securities: When an
Investment Security Is Acquired to be Held to Maturity, When
an Investment Is to Be Held for an Unspecified Period of Time.
How is a security available for sale reported? How is a trading
security reported? Financial Statement Presentation and Disclosure.
Are investment securities reported as current or noncurrent
assets? The Equity Method. A "One-Line Consolidation". Change
in Methods. Decision-Makers' Perspective.
Bonds
and Long-Term Notes. Nature
of Long-Term Debt. Bonds. Most corporate bonds are callable,
or redeemable. What does this mean? Pricing of Bonds. All
bonds are priced to yield the market rate. What does this
mean? Interest. Debt Issue Costs Are Incurred in Connection
with Issuing Bonds or Notes. Variations in Debt Instruments.
Long-Term Notes. Retirement, Restructuring, Derivatives, and
Disclosure. Derivatives. Disclosure. Decision-Makers'
Perspective.
Deferred
Tax Assets and Deferred Tax Liabilities. What is the balance
sheet effect of a temporary difference that produces a future
deductible amount? Valuation Allowance. Nontemporary
Differences. Change in Tax Rates. Net Operating Losses. Financial
Statement Presentation. Decision-Makers' Perspective.
The
Nature of Pension Plans. Types of Pension Plans. Suppose a
pension formula defines annual retirement benefits as: 2%
x years of service x average salary last three years. What
would be the annual retirement benefits to an employee who
retires after 25 years of service, with an average salary
of $80,000 for the three years prior to retirement? Defined
Benefit Pension Plans. The Pension Obligation and Plan
Assets. The Plan Assets. Composition of Pension Expense. A
Pension Spreadsheet.
Postretirement
Benefits Other Than Pensions. Nature of Postretirement Benefit
Plans. The Postretirement Benefit Obligation. The Plan Assets.
The Postretirement Benefit Expense. By the straight-line method,
prior service cost is recognized over what period of time?
Preretirement Compensation Plans. Stock Option Plans. Stock
Appreciation Rights (SARs). Postemployment Benefits.
Advantages
of Leasing. Lease Classification. How do we account for an
operating lease? Non-Operating Leases. In a direct financing
lease, the lessor should debit a receivable for the total
payments to be made. How does the lessor report the difference
between the total of the lease payments and the present value
of the lease payments to be received over the term of the
lease? Residual Value. When a BPO is present, both the lessor
and the lessee view the option price as an additional lease
payment. Executory costs. Initial Direct Costs. A Decision-Makers'
Perspective: Financial Statement Impact.
Cash
flows from operating activities are both inflows and outflows
of cash that result from activities reported on the income
statement. Cash flows from investing activities are related
to the acquisition and disposition of assets, other than (a)
inventory and (b) assets classified as cash equivalents. Cash
flows from financing activities result from the external financing
of a business. Either the direct or the indirect method
can be used to calculate and present the net cash increase
or decrease from operating activities.
