Accounting for Decision Making

This subject has the following teaching availabilities in 2011:

Students will not be permitted to enrol in FNCE90055 Financial Decision Making if they have already completed ACCT90004 Accounting for Decision Making.

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

This subject is designed to enable students to be informed users of accounting information of all types. It is divided into three parts. The first part of the subject covers the basic concepts in accounting and the terminology used by accountants. The second part deals with concepts associated with the financial reports prepared primarily for external users such as financial analysts, creditors (such as bankers), and shareholders. In this section reference is made to local and international accounting standards. The third part of the subject covers the basic concepts associated with information for managers within the firm. This includes basic cost concepts, product costing, and the techniques used for decisions such as pricing, product mix, outsourcing and capital investment.

• Describe the nature and purpose of financial statements;
• Describe the conventions and rules underlying the preparation of major accounting reports;
• Use financial ratios in financial and managerial decision making;
• Analyse financial and managerial decision making and the different accounting information that supports these decisions.

The subject will also develop the ability of participants to interpret the necessary accounting information for:

• Investment and valuation decisions;
• Profitability decisions;
• Financing decisions;
• Liquidity decisions;
• Product and service costing decisions;
• Pricing decisions;
• Working capital management decisions;
• Business control decisions;
• Make or buy decisions.

Summer:

• One 2-hour end-of-semester examination (60%)
• One assignment not exceeding 2000 words (15%)
• Mid-semester tests (25%)

Semesters 1 & 2:

• One 2-hour end-of-semester examination (60%)
• One group assignment (15%)
• Semester tests (15%)
• Workshop preparation and contribution (10%)

Note: Successful completion of this subject requires a pass (50%) in the final exam.

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

On successful completion of this subject, students should have improved the following generic skills:

In respect of issues related to accounting, to:

• Think critically about financial and managerial accounting theory, tools and techniques;
• Evaluate, analyse and interpret relevant accounting information;
• Apply financial statement analysis theory and practice;
• Utilise problem solving skills;
• Articulate responses, either orally or in written form.

In addition, students will have enhanced their ability to:

• Listen to others dispassionately and tolerantly;
• Engage in discussion and, where appropriate defend a position;
• Offer constructive criticism.

Students accepted into the Master of Management programs, the Master of Business and Information Technology, the Master of International Business, the Postgraduate Diploma in Finance and the first year of the Master of Finance are eligible to enrol in this subject. Students should note that the subject will be delivered in a lecture plus workshop format. Students will be required to attend 1 lecture and 1 workshop per week.

This subject is not available to Master of Accounting students.