Module 1: The financial reporting environment (25%)
1.1 Describe the regulatory environment for financial reporting in Australia and the reasons for accounting and reporting requirements
1.2 Discuss the main types of business entity and explain the reasons for selecting each structure
1.3 Identify different types of accounting regulation, including laws, Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards
1.4 Explain how the requirements of users, together with social and environmental developments, impact the underlying principles and requirements of financial reporting and the desire to establish a single set of international accounting standards
1.5 Describe the role of the International Accounting Standards Board in developing a regulatory framework and explain how new policies and standards are established
1.6 Identify the purpose of a conceptual framework and the key characteristics in the GAAP and apply this knowledge to define and recognise the different elements of the financial statements
1.7 Describe and demonstrate the role of accounting standards and accounting policies in fairly presenting the financial performance and financial position of an entity
Module 2: The accounting theory (15%)
2.1 Compare historical cost accounting with other methods of valuation and explain the difference
2.2 Explain agency and contracting theories and how they relate to accounting policy choice (positive accounting theory)
2.3 Apply the recognition criteria for the elements of the financial statements according to the conceptual framework (normative theory)
2.6 Discuss the use of an accounting software package
Module 3: Financial statements (15%)
3.1 Prepare and present the statement of profit or loss and other comprehensive income with appropriate disclosure in accordance with relevant accounting standards and policies
3.2 Prepare and present the statement of financial position with appropriate disclosure in accordance with relevant accounting standards and policies
3.3 Prepare and present the statement of cash flows in accordance with relevant accounting standards and policies
3.4 Demonstrate the ability to detect, investigate and correct discrepancies or particular items and events while matching the financial statements to supporting documentation
Module 4: Application of specific accounting standards (22%)
4.1 Calculate the carrying amounts of different classes of intangible assets and prepare the relevant journal entries4.2 Interpret contracts to determine the amount and timing of revenue to be recognised in the financial statements and reconcile the differences between ledgers if necessary
4.3 Calculate current and deferred income tax and prepare the relevant journal entries to record the tax effect in the financial statements
4.4 Calculate and account for foreign currency transactions at transaction date and subsequent dates
4.5 Translate financial statements from a functional currency to a presentation currency
Module 5: Business combinations (13%)
5.1 Discuss the accounting issues for various forms of business combinations5.2 Explain how goodwill is measured and disclosed at the date of acquisition and prepare the relevant journal entries
5.3 Explain how goodwill is measured and impaired subsequent to acquisition and prepare the relevant journal entries
5.4 Discuss the concept of control and calculate the non-controlling interest share of equity
5.5 Prepare consolidated statements of financial position, including the entries for goodwill and non-controlling interests
5.6 Prepare consolidated statements of profit or loss and other comprehensive income, including the entries for non-controlling interests and intra-group transactions
Module 6: Analysis of financial statements (10%)
6.1 Calculate, analyse and interpret financial ratios and their interrelationship in the financial statements6.2 Explain the limitations of financial statement analysis
Module 1: The nature and purpose of Management Accounting (7%)
1.1 Explain the role and objectives of management accounting
1.2 Describe the key differences between financial, cost and management accounting.
1.3 Describe how management accounting provides information and creates value.
1.4 Outline the core parts of management accounting systems and how they enable strategic management
Module 2: Cost classification and cost-volume-profit analysis (15%)
2.1 Describe different cost classifications and their characteristics
2.2 Apply relevant techniques to separate costs into their fixed and variable components
2.3 Apply the principles of cost-volume-profit analysis in organisations
Module 3: Types of product costing (23%)
3.1 Explain the concepts underpinning product costing and the need for absorption costing
3.2 Apply overhead allocation and apportionment techniques
3.3 Apply overhead absorption and marginal costing techniques
3.4 Apply the principles of activity-based costing to and contrast it to other costing techniques
3.5 Explain the differences between job and process costing techniques
3.6 Apply costing principles to job costing and process costing organisations
Module 4: Budgeting and variance analysis (20%)
4.1 Explain the nature of budgets and the reasons that organisations use budgets
4.2 Prepare an operations budget, cash budget and budgeted financial statements
4.3 Explain incremental and zero-based budgeting approaches
4.4 Identify and analyse the human behavioural challenges to the budgeting process in organisations
4.5 Explain how standard costing can be used to assist in cost control and efficient resource allocation
4.6 Calculate and analyse various variances and identify possible corrective actions
Module 5: Performance measurement (12%)
5.1 Explain the characteristics and purpose of performance measurement systems
5.2 Analyse the different types of financial performance measures and their limitations
5.3 Describe the key characteristics of the Balanced Scorecard and its advantages over traditional performance measurement systems
5.4 Outline the characteristics of reward systems and the circumstances in which they can be tied to performance measures
Module 6: Short-term and long-term decision making (18%)
6.1 Explain the steps in the decision-making process
6.2 Use relevant information and apply techniques to support short-term operating decisions
6.3 Apply tools and techniques to support capital expenditure decisions
6.4 Explain the impact of risk on capital expenditure decisions
Module 7: Inventory and pricing decisions (5%)
7.1 Evaluate the principles of just-in-time
7.2 Explain the importance of inventory control and apply inventory management techniques.
7.3 Establish and apply the appropriate approach for long-term pricing decisions
Module 1: Introduction to capital and money markets (7%)
1.1 Specify the function and structure of the financial markets and the role of the various market participants
1.2 Discuss regulation in the finance industry
1.3 Describe sources of international finance
Module 2: Introduction to financial theories (13%)
2.1 Interpret the future and present values of a series of single cash flows and of annuities
2.2 Demonstrate the relationship between systematic risk and expected return of individual securities and portfolios using the Capital Asset Pricing Model (CAPM) and the security market line relationship
2.3 Distinguish between the weak form test, the semi strong form test and the strong form test of the Efficient Market Hypothesis (EMH)
2.4 Explain the implications of market efficiency for both investors and companies
2.5 In the context of capital markets distinguish between operating efficiency, allocative efficiency and pricing efficiency
Module 3: Introduction to risk identification, assessment and management markets (13%)
3.1 Define the term risk
3.2 Describe the different types of risk in international trade
3.3 Explain the different methods of risk assessment in international trade
3.4 Identify the key financial risks facing a business
Module 4: Sources and cost of finance (18%)
4.1 Identify the characteristics, terms and conditions of the alternative sources of short, medium and long term
finance
4.2 Evaluate the suitability of different methods of finance in a given scenario
4.3 Analyse the cost of various sources of finance
4.4 Explain the different sources of long term finance
4.5 Apply the concepts of financial mathematics to loans, and debt and equity securities with the use of effective interest rates
4.6 Calculate and interpret the weighted average cost of capital (WACC)
Module 5: Liquidity Management (11%)
5.1 Analyse the various sources of short term finance
5.2 Demonstrate the link between working capital management and corporate cash flow
5.3 Describe the operating cycle in working capital management to explain inventory management, debtor management and cash management
5.4 Prepare short term finance plans and strategies
Module 6: Capital structure and management (15%)
6.1 Describe the impact of the external financial markets
6.2 Explain the factors which influence the dividend policy decision
Module 7: Cash flow valuation and management (10%)
7.1 Explain the characteristics of major long-term investments where a 'capital budgeting' approach might be required
7.2 Apply different quantitative methods used in project evaluation
7.3 Compare and contrast the ROI, IRR, payback and NPV methods of investment appraisal
7.4 Explain why investment decisions should be analysed using the NPV method
7.5 Apply the NPV method to investment project scenarios
7.6 Select investment appraisal techniques which are appropriate to the objectives and circumstances of a given organisation taking account of working capital, inflation and tax
7.7 Undertake a sensitivity analysis of diverse projects using appropriate tools
7.8 Analyse capital rationing and draw appropriate conclusions
7.9 Calculate the weighted average cost of capital and apply it in capital budgeting
Module 8: Market and credit risk management (8%)
8.1 Describe the characteristics of derivatives and other hedging instruments
8.2 Apply different methods of managing currency risks
8.3 Select methods of managing interest rate exposure
8.4 Identify the advantages and disadvantages of different hedging strategies
8.5 Identify different methods of hedging which are appropriate to meeting an organisation's objectives
Module 9: Investment management (5%)
9.1 Demonstrate the relationship between systematic risk and expected return of individual securities and portfolios using the Capital Asset Pricing Model (CAPM) and the security market line relationship
9.2 Distinguish between the weak form test, the semi strong form test and the strong form test of the Efficient Market Hypothesis (EMH)
9.3 Explain the implications of market efficiency for both investors and companies
9.4 In the context of capital markets distinguish between operating efficiency, allocative efficiency and pricing efficiency
9.5 Analyse measures of expected return and risk using the probability distribution approach
9.6 Analyse and interpret rates of return on financial investments
9.7 Analyse measures of expected return and risk for two-security portfolios
9.8 Analyse share price in both perfect and imperfect markets
9.9 Explain the impact of portfolio leveraging and short selling on the risk and expected return of two-security portfolios
9.10 Assess portfolio risk
Module 1: Understand the purpose of Accounting (15%)
1.1 Explain the role and purpose of accounting
1.2 Explain the meaning of Generally Accepted Accounting Principles (GAAP)
1.3 Apply key accounting concepts
1.4 Apply the accounting equation
1.5 Compare different types of business entities
1.6 Identify different types of financial statements and explain their purpose for business entities
Module 2: The Accounting System and Double Entry (35%)
2.1 Classify main sources of accounting data
2.2 Identify the main types of business transactions
2.3 Illustrate the use of journals and ledgers
2.4 Apply the double-entry accounting system to record common transactions
2.5 Prepare a trial balance
2.6 Discuss the use of an accounting software package
Module 3: Accrual Accounting (10%)
3.1 Explain how the matching principle applies to accruals and prepayments
3.2 Calculate and prepare journal entries required for accruals and prepayments, including ledger posting
3.3 Explain how revenue recognition affects account receivables and payables
3.4 Calculate and prepare journal entries required for irrecoverable debt, including ledger posting
3.5 Calculate and prepare journal entries required for settlement discounts, including ledger posting
Module 4: Accounting for Inventories (5%)
4.1 Define inventories4.2 Apply FIFO and AVCO valuation methods to calculate the cost of inventory
4.3 Prepare journal entries for the adjustments for opening and closing inventory
Module 5: Accounting for Property, Plant and Equipment (10%)
5.1 Define property, plant and equipment and differentiate capital expenditure from revenue expenditure5.2 Prepare journal entries for the purchase of property, plant and equipment
5.3 Prepare journal entries for the revaluation of property, plant and equipment
5.4 Calculate depreciation using the straight line method and diminishing value method
5.5 Calculate and prepare journal entries for property, plant and equipment disposal
Module 6: Internal Control and reconciliations (15%)
6.1 Discuss the purpose of internal control procedures and outline the common methods6.2 Explain the purpose of control accounts for receivables and payables
6.3 Prepare journal entries in control accounts for receivables and payables
6.4 Perform control account reconciliations for receivables and payables
6.5 Explain the need for a record of petty cash transactions and a separate petty cash book
6.6 Illustrate how an imprest system for petty cash operates
6.7 Explain the purpose of a bank reconciliation
6.8 Prepare a bank reconciliation
Module 7: Prepare and present financial statements (10%)
7.1 Prepare and present the statement of financial position: Assets7.2 Prepare and present the statement of financial position: Liabilities
7.3 Prepare and present the statement of financial position: Equity
7.4 Prepare and present the statement of profit and loss or comprehensive income: Revenues
7.5 Prepare and present the statement of profit and loss or comprehensive income: Expenses