ACCTING 3501 - Corporate Accounting III

North Terrace Campus - Semester 2 - 2015

Topics may include business combinations; amalgamations and takeovers; inter-corporate investments and consolidated accounts; and joint arrangements, foreign currency transactions and translation.

  • General Course Information
    Course Details
    Course Code ACCTING 3501
    Course Corporate Accounting III
    Coordinating Unit Adelaide Business School
    Term Semester 2
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Up to 4 hours per week
    Available for Study Abroad and Exchange Y
    Prerequisites ACCTING 2501
    Assumed Knowledge CORPFIN 2500 & ECOMMRCE 1000 or equivalent
    Course Description Topics may include business combinations; amalgamations and takeovers; inter-corporate investments and consolidated accounts; and joint arrangements, foreign currency transactions and translation.
    Course Staff

    Course Coordinator: Associate Professor Chelsea Liu

    Course Coordinator: Dr Chelsea Liu 

    Dr Chelsea Liu
    Location: Room 13.43, Level 13, Building: 10 Pulteney Street

    Course Website:  

    Contact details and consultation times of all tutors will be published on the MyUni course website.

    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

  • Learning Outcomes
    Course Learning Outcomes

    This course seeks to develop your knowledge and understanding in relation to the following areas:

    1.     The different types of relationships between entities and how these relationships are defined for accounting purposes;

    2.     The implications of these inter-entity relationships with respect to determining 'reporting entities' for the purpose of financial reporting;

    3.      The appropriate accounting treatment for each of the different inter-entity relationships as prescribed by the relevant accounting standards, and the application of relevant accounting techniques;

    4.      The strategic and business model issues associated with business combinations;

    5.      The accounting for foreign operations belonging to a reporting entity;

    6.      Some issues in the analysis of consolidated reporting entities (e.g., segment reporting; related party transactions).


    A.      A thorough knowledge of those accounting standards and other regulatory pronouncements that address accounting for inter-entity relationships;

    B.     An understanding of the concepts which underlie group accounting practice;

    C.     An ability to apply these concepts and accounting standards to resolving practical problems in accounting for inter-entity relationships;

    D.     An ability to prepare consolidated financial statements;

    E.     Skills in problem definition and problem solving;

    F.     An ability to deal with the constant innovation and change found in contemporary
    accounting practice; and

    G.    Skills in written and verbal communication, including the presentation and defence of accounting policy choices.
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. A - C
    The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. D, G
    An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. E - G
    Skills of a high order in interpersonal understanding, teamwork and communication. G
    A proficiency in the appropriate use of contemporary technologies. D
    A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. B, C, E, F
    A commitment to the highest standards of professional endeavour and the ability to take a leadership role in the community. E,F
    An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. B, E, F
  • Learning Resources
    Required Resources

    Leo,K., Knapp, J.,, McGowan, S., and Sweeting, J., Company Accounting, 10th Edition, 2015, J. Wiley and Sons, Australia.

    [Please do not use a prior edition of the textbook, as you will be significantly disadvantaged by not having access to all the learning materials.] 
    2015 Accounting Handbook / Financial Reporting Handbook
    [either the CPA Australia OR ICAA versions are acceptable. Note an e-book version is available but cannot be taken into exams]. 

    You are permitted to take your handbook into the examinations of this course but the handbook cannot contain any writing, notes, tabs, or any other form of unauthorised assistance. Underlining and highlighting are permitted.

    You are allowed to take a prior edition of the handbook into the exam, however, no marks will be awarded if references are made to outdated sections of the accounting standards.


    Additional compulsory readings in the form of short articles or book chapters have been provided on MyUni to either elaborate on, or supplement, items in the textbook.  In some cases, there are no relevant readings in the textbook and you will need to use the readings provided on MyUni.

    Reading is a very important mechanism for your learning in this course. Lectures will only serve to highlight the key points in each topic, which are to be supplemented by completing the prescribed readings. Everything covered in the prescribed readings is potentially examinable.
    Recommended Resources

    See MyUni course website for recommended resources.

    Online Learning

    Course materials for each topic are distributed online via the MyUni course website.

    Lectures will be recorded and posted on the MyUni course site.

  • Learning & Teaching Activities
    Learning & Teaching Modes

    For each topic of this course, the following steps are designed to enable you to maximise your learning efficiency and effectiveness:

    [Stage 1: Background Information]

    1.  Read the course materials and prescribed readings (all readings are potentially examinable) before attending lectures.

    [Stage 2: Instructions & Demonstrations]

    2.  Lectures: serve to highlight the key content of each topic. Lectures will be recorded and posted on MyUni.

    [Stage 3: Practice and Feedback]

    3.  Tutorials: allow you to explore issues and material in an interactive small group setting and receive feedback and guidance. 

    Please attempt your tutorial questions before attending the tutorials, which is vital to your successful completion of this course. If you have not prepared beforehand you will have significant difficulties in understanding what is going on in the class session.

    [Stage 4: independent learning]

    4. Self-Study Questions: help you to further solidify your understanding of each topic.

    [Stage 5: further feedback and guidance]

    5. Discussion Boards and Consultation Times: are available for your to resolve any remaining queries.


    Tutorials commence in Week 2.

    Students must attend the tutorial in which they are enrolled. Lecturers and tutors do not have the authority to override the university enrolment system. If you attend a tutorial in which you are not enrolled, you may be asked to leave.

    You are only allow to sit the in-class test in the tutorial in which you are enrolled (see below for details in the 'Assessments' section).

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The University expects full-time students (ie those taking 12 units per semester) to devote a total of 48 hours per week to their studies.

    Learning Activities Summary

    This course will cover the following topics. For more details please refer to the 'Course Information' tab on the MyUni course site.

    Topic 1 - Inter-entity relationships & Accounting for simple share investments

    Topic 2 - Due Diligence in Business Acquisitions & Takeover and Competition Laws

    Topic 3 - Business Combinations through acquiring assets and liabilities

    Topic 4 - Consolidation - Introduction(the concept of control)

    Topic 5 - Consolidation - Wholly Owned Subsidiaries

    (Note:Mid-Semester Exam will take place in week 6 during the usual lecture time; tutorials will run as normal).

    Topic 6 - Consolidation - Intra-Group Transactions (weeks 7-8)

    Topic 7 - Consolidation - Non-Controlling Interest

    Topic 8 - Investments in Associates - Equity Accounting

    Topics 9 and 10 - Accounting for Joint Arrangements & Foreign Currency Translation

    Topic 11 - Segment Reporting & Related Party Disclosures.

    Note: the relevant readings and tutorial activities for each topic are provided on separate topic outline handouts provided on the MyUni site for this course.

    Specific Course Requirements


    As this is a course in advanced accounting, you are expected to have a strong understanding of material covered in prior related courses. Accounting courses build on one another and so prior accounting studies inevitably are examinable in this course, e.g., accounting for income tax. As a minimum, you are expected to be already familiar with specific topics covered in chapters 1 -3, 5 - 6, 9 and 11 of the textbook.

  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary

    The assessments of this course are as follows: 

    In-Class Tests 10%

    - Three (3) tests will take place in your tutorial classes throughout the semester.
    - The timing of the tests will NOT be announced in advance, designed to encourage your to prepare for and attend every tutorial.
    - Each test will cover the materials up to the previous week (e.g. if a test is held in Week 3, Topics 1-2 would be examinable).
    - The final score would be the average of the best 2 out of 3 test marks. 

    Oral Communications Assignment 20%

    - To be completed in groups of 3 students.
    - Further details are provided in a separate handout and via the ‘Assignments’ tab on the MyUni site for this course.

    Mid-Semester Exam 20%

    - Date: Friday, 4th September
    - Time: 1:00pm - 2:30pm (starts at 1pm, NOT 1:10pm)
    - Venue: Bonython Hall
    - Duration: 1.5 hours.
    - Topics examined: Topics 1 - 4. 

    Final Exam 50%

    - Duration: 3 hours.

    Important Note: In order to pass this course, students must achieve a passing grade (50%) in the final exam, as well as an overall course result of 50% or more, in order to gain a pass for this course. Students who fail the final exam will be awarded a maximum mark of 49 as the final course mark.

    Assessment Related Requirements
    In-Class Tests and Tutorial Enrolments

    Students can only sit the in-class tests in the tutorials in which they are officially enrolled (via Access Adelaide).

    If you attend a tutorial in which you are not enrolled, you might be asked to leave and will not be allowed to sit the in-class test.

    Students can only change their tutorial enrolments through Access Adelaide. Lecturers and tutors do not have the authority to override the university enrolment system.
    Assessment Detail

    The detailed requirements of each assessment item will be posted on the MyUni site for this course.


    The detailed requirements will be posted on the MyUni site for this course.

    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy ( course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.