ACCT5942 focuses on the preparation of financial reports by corporate groups that are reporting entities in accordance with the Corporation Act, 2001 (Cth). The primary learning objective of the course is to enable students to apply the accounting standards related to company income taxes, group accounting, including consolidation accounting, equity accounting, and the line-by-line method for jointly controlled operations or jointly controlled assets. Using practical examples, students are expected to learn how to account for company income tax accordance with AASB112/IAS12 income taxes. Accounting for company income tax is based on the current and future tax consequences of transactions and events of the period, the future recovery of assets and the settlement of liabilities.
Students are also expected to learn consolidation accounting which is the process of combining the financial statements of a parent company and its subsidiaries into a single set of financial statements. Equity accounting is a method of accounting for investments in associates where the investor has significant influence over the associate. The course includes line-by-line method of accounting for jointly controlled operations or jointly controlled assets, where each party to the arrangement accounts for its share of the assets, liabilities, revenues, and expenses. Students are expected to learn concepts of translating consolidated financial statements into presentation currency. The course concludes with the introduction of analyses of consolidated financial statements.
There are a number of practical assessments based on real-life cases including group video presentation, technical assignments and a final exam. By the end of the course, students be able to account for company income taxes, understand consolidated financial statements for corporate groups, apply equity accounting for investments in associates, and use the line-by-line method to account for jointly controlled operations or jointly controlled assets. Additionally, students should have a solid understanding of the relevant accounting standards, regulations, and legal requirements governing group accounting and financial reporting for corporate groups. Overall, the course aims to equip students with the skills and knowledge necessary to prepare accurate and reliable financial reports for corporate groups, which are critical for making informed business decisions and meeting legal and regulatory obligations.
