This unit introduces students to accounting for investments in entities that are controlled, significantly influenced, or jointly controlled by the investor. The unit starts by assessing whether an investment should be consolidated, the process of consolidation, the preparation of consolidated financial statements for corporate groups, including the treatment of goodwill, intra-group transactions and non-controlling interests. Other aspects of group accounting, such as equity accounting, segment disclosures, related party disclosures, and foreign currency translation are investigated. A critical analysis of group accounting is then undertaken, including a consideration of the outcomes of related processes, and the impacts on users. The unit also critically evaluates current issues in accounting regulation and practice, and the politics of the standard-setting process. Accounting issues regarding financial instruments are further developed focusing on hedge accounting as a special case. Finally, voluntary disclosures for social and environmental reporting are considered. This unit aims to further develop students' written communication skills and critical and analytic skills within the context of corporate group activities.
1x 2hr lecture and 1x1hr tutorial per week
Mid-semester examination (30%), group presentations (10%), individual assignment (10%), and final examination (50%)