Welcome to BUSN 1001

Business Reporting & Analysis

Week 1 Introduction to business

and business reporting
Academic Staff
Course Coordinator and lecturer:
Professor Neil Fargher
Head Tutor:
Karla Tejshree (Tej)
Who are you? Who is your neighbor?
Meet other students (Name, major, interest)
Please add your photo to your Wattle profile
Fargs Contacts and Consultations
Contacts:
Email: neil.fargher@anu.edu.au
Phone: 6125 0541 (business hours only)
Consultation times:
Thursday 11-12 am, Wednesday 4-5 pm
Room 2040 Hanna Neumann
Introduction to Business
Concept organization to trade goods & services, non-government
Legal entities Sole trader, partnership, private company, public
company

Relation to economics organizations within the

economy, practical application of economic principles

What business are you interested in?

(career/job in what industry, major)

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Introduction to accounting
Why learn accounting?
List 3 reasons

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Why learn accounting?
Language of business
Information for making decisions
Way of thinking
Joy of accounting
Accounting or finance career e.g. accountant, auditor, analyst, trader
Manage finances for my chosen career e.g. music teacher, lawyer, artist, engineer
Required course (because language of business used in other courses)
Did well in accounting at high school
Textbook TGC page 22-27

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What is this course about?
Financial accounting (weeks 1- 6)
Making sense of financial information
Use financial information for decision making
Business structure and recent trend in business reporting (week 8)
Management accounting (weeks 9 - 13)
How to use accounting information to plan, control and make
decisions
Course learning outcomes and lecture topics: Specified in the
Course Outline
How we will be covering it
The course comprises: The teaching team are only a
part of two of these, but we
Lectures: 2 hours/week hope to inspire you to the third.
Tutorials: 1 hour/week
Private study: at least 7 hours

Private study is vital for you to achieve the expected learning

outcomes.
Reading and Doing
The most important work is reading the
chapters before class, with pen in hand
working the examples.

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Lectures
Highlights of theories, principles, concepts and examples
Student news item (need volunteers)
Gives objectives for topic
Assumes pre-lecture reading
Covers only a few examples from the objectives
Slides will be available on Wattle a day or so prior to the lecture (These
will be incomplete.)
Not everything addressed in Lectures will be in the notes or textbook
Recordings available but you arent going to get maximum benefit from
just a recording

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Tutorials
Crucial to learning accounting
Great opportunity to get individual
feedback and interact with your peers in a
small group setting.
Start week 2

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Tutorials (admin stuff)
Tutorial group enrolments through Wattle starts from:
Thursday 4:10 p.m. of week 1
(Any crash I will know, try Friday)
Tutorial enrolment:
Details of how to do so are set out in the Course Outline
You may not necessarily get your first preference!
Starts week 2- Tutorial questions for following week posted on
Wattle
Come to tutorial with your answers for discussion.
Prescribed Text
Trotman, Gibbins, Carson Financial
Accounting 5th edition
+ Study Guide + Online site
available for purchase from the Co-op bookshop on
campus.
Code for access to website in textbook cover

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Assessment tasks
Refer course outline: tutorials, mid-
semester, assignment, final exam
Assignment:
Individual or group?

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Week 1:
INTRODUCTION
To Business Reporting

Textbook Chapter 1
(For next class read Chapter 2)
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Topic 1 learning objectives
What is accounting? (ch 1 TGC)
Explain financial and management accounting (1.1)
Discuss the users of accounting information (1.3, 1.4)
What are the 3 key financial statements (1.6)
Differences between accrual accounting and cash accounting (1.5)
Get confused about the relationship between the 3 statements (1.7)
Define some of the major terms and principles used in accounting (ch 1)
Start a vocabulary list
Who are you doing the accounting for?
(Accounting Entity Concept)
Can be Legal entities: Sole trader,
partnership, trusts, private company,
But for a public company, frequently a
group (of companies)

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Accounting entity
Distinguish between accounting entity and
personal transactions
Distinguish carefully between different
accounting entities.

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Treasury Wine Estates financial position
Key Terms
Net assets (or net wealth or owners equity)
= Assets Liabilities
The balance sheet:
Assets = Liabilities + Equity

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Oops - thejosephreport.blogspot.com
Definition - Asset
Assets are:
future economic benefits
controlled by an organisation
as a result of past transactions or other past
events.
Examples: house,
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Definition - Liability
See textbook glossary page 800
Present obligation
Arising from past events
Settlement is expected to require outflow
of entity resources

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Definition Owners Equity
Equity = Assets Liabilities
Net assets
Residual interest of owners
Sub-categories: capital, shares, retained
profits, etc.

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Income statement
1. Issued shares for $100,000.
2. Borrowed $50,000 from the bank.
3. Provided services to customers which generated sales revenue of $80,000 of
which $60,000 had been collected by year end.
4. Employees earned $30,000 of wages of which $10,000 will be paid next year.
5. Received an invoice for electricity used during the year for $8,000. The bill will
be paid next year.
Required:
What is the change in cash for the period? 190,000
What is the (accrual) profit for the period? 42 000
Change in cash:
100,00 + 50,000 + 60,000 20,000
= $190,000
Did I as the manager earn $190,000 for the
year? Does this measure my performance?
The more I borrow the better manager I
am?
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 What is a better measure of performance?

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Answer:
How to fail accounting?
Next Week Balance Sheet
Starts with an in-class question on chapter
2 (balance sheet), so reading of chapter 2
is required
Class discussion assumes knowledge of
the balance sheet

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