Faculty of Business and Economics

Undergraduate - Unit

This unit entry is for students who completed this unit in 2013 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

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6 points, SCA Band 3, 0.125 EFTSL

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FacultyFaculty of Business and Economics
Organisational UnitDepartment of Accounting and Finance
OfferedSunway First semester 2013 (Day)
Berwick Second semester 2013 (Day)
Sunway Second semester 2013 (Day)
South Africa Second semester 2013 (Day)
Sunway Summer semester A 2013 (Day)


This unit will cover various aspects of financial accounting and builds on the principles introduced in AFW1000. Aspects associated with transaction reporting and the preparation of financial statements investigated include: the recording of inventory in a retail context, the use of control accounts, the role of specialised journals, a range of balance day-adjustments, reversing entries and account reconstruction. The unit also focuses on internal control procedures. The definition, recognition and disclosure criteria of financial statement elements are explored as well as the cost and fair value measurement of various financial statement elements.


The learning goals associated with this unit are to:

  1. account for the recording and reporting of inventory applying the periodic and perpetual method as per issues raised in AASB 102/IAS 102. Prepare and complete balance day adjustments, closing entries and internal control systems to allow all final statements and bank reconciliations to be completed
  2. apply the principles of double entry according to the reconstruction of accounts
  3. demonstrate how the regulatory environment affects accounting statements in the context of a range of organizational forms
  4. apply the definition and recognition criteria for elements of financial statements as per the Framework and specific international financial reporting standards. Consider accounting and accountability issues that arise from different measurement methods
  5. apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with financial accounting and demonstrate in individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by AFW1002.


Within semester assessment: 30%
Examination: 70%

Chief examiner(s)

Contact hours

3 hours per week


Students must have passed one of the following: AFG1000, AFW1000 or AFW1001 (pre 2009) before undertaking this unit.