For use by students enrolled at Monash University in ACF2100, ACC2100 and ACB2491 only.
20 Earnings per share
IAS 33 Earnings per Share
After studying this chapter, you should be able to:
1 explain the ob
ACC/ACF2100 Financial Accounting
Topic 9 Equity Accounting
Chapter 23 Associates and Joint Ventures
1. What is an associate entity?
Paragraph 2 of AASB 128 defines an associate as:
An entity, including an unincorporated entity such as a p
Week 2 Tutorial
ACF2100 - Financial Accounting
Redemption of preference share
Share options and journal entries
Option issued at no cost
When shareholders purchase the option
No journal entry
Is a measure of how responsive one variable (dependent variable, caused by, say Y) is to
changes in another variable (independent variable, causes, say X).
%change Y Y /Y Y X
It is generally defined as
%change X X /
Market efficiency and government policies
A buyers willingness to pay is the maximum price that
the buyer is willing and able to pay for a good.
It is reflected in the demand curve.
Consumer surplus is the area below the demand curve
Impairment of assets & Business combinations
Impairment of assets (Ch 13)
Entities are required to conduct impairment tests to ensure their assets are
An impairment loss results when an assets carrying amount (CA) is greater
than its reco
TOPIC 6: Consolidation Wholly Owned Subsidiaries
Consolidated financial statements Involves the preparation of a single set of
financial statements for a group of companies
Presented as if they were a single economic entity
Group comprises the parent an
Accounting for Income Tax I
Differences between accounting and income tax treatments
o Accruals basis(ACCOUNTING)
Revenue Expenses = Accounting profit
o Principally cash basis(TAX)
Taxable income (TI) tax deductions (TD) = Taxable profit
Regulations & Financing Company Operations
Which companies need to prepare financial statements?
Reporting entities: An entity where it is reasonable to expect the existence of
users who rely on General Purpose Financial Reports (GPFR) for information
Introduction to Microeconomics
The study of the choices people and societies make to attain their unlimited
wants, given their scarce resources (i.e. to deal with the problem of scarcity)
Economics deals with allocation of scarce resources. Scarcity is wh
Demand, Supply, and Market Equilibrium
A market is a group of buyers and sellers of a particular good or service.
A market may be highly organised, such as the Sydney Fish Market, or less organised,
such as the market for ice-cream in your town.
Gains from trade
Specialization based on comparative advantage leads to increased
Secure gains by producing and exporting goods and services in which the
economy has a comparative advantage
Import goods an