1996 Swinburne Higher Education Handbook

LBC204 Financial Management 1
3 hours per week Lilydule Prerequisite: completion of all
core subjects Assessment: examination/assignments
A stage 2 subject in the Bachelor of Business and Bachelor of
Social Science
Objectives
The objectives of this subject are:
to provide students with an understanding of the
concepts of corporate finance;
to develop in students the skills of analysis and
evaluation needed to apply the concepts of corporate
finance to financial management.
Content
The course is structured from the point of view of
orientating the student to the fundamentals of managing the
financing and investment aspects of a business and covers
the following specific topics:
concepts of valuation;
evaluation and selection of investment projects;
cost of capital;
sources of finance and financial intermediaries;
dividend policy;
5 '
2 financing methods and impact on capital structure;
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Recommended reading
Ross, S.A., Thompson, S., Christensen, M., Westerfield, R. and
Jordan, B., Fundamentals of Corporate Finance, 1st Aust. edn.
Hutchinson, P., Alison, S., Gregory, W., and Lumby, S.
Financial Management Decisions, 1st Aust. edn, Nelson, 1994
Bishop, S.R., Crapp, H.R. and Twite, G.J. Corporate Finance. 3rd
edn, Sydney, Holt, Rinehart and Winston, 1988
Brealey, R.A. and Myers, S.C., Principles of Corporate Finance,
4th edn.
Gitman, L.J., Principles of Managerial Finance, 7th Edn.
Peirson, G., Bird, R., Brown, R., and Howard. R., Business
Finance, 6th edn
LBC300 Accounting Theory
3 hours per week Lil~dale Prerequisite: All second year
subjects required for professional accounting recognition
Assessment: examination/essay/tutorial pe$ormance/test
A stage 3 subject in the Bachelor of Business and Bachelor of
Social Science
Objectives and Content
The objectives of this subject are:
to examine the development of theory accounting and
the methodology used by accounting theorists;
to describe and critically analyse a framework of
accounting concepts including assets, liabilities and
income:
to use the methodology and the framework developed
in the subject to study specific issues in financial
accounting including the development of accounting
standards, agency theory, current cost accounting ethics
and accounting for income tax, intangibles, mining and
foreign currency translation;
although the subject is concerned with theory,
considerable use is made of practical problems in parts
of the course, to illustrate the application of theory.
Recommended reading
Henderson, M.S. and Peirson, G. Issues in Financial Accounting.
6th edn, Melbourne, Longman Cheshire, 1994
Godfrey, J. et al., Accounting ZIeory, 2nd edn, Brisbane, Wiley, 1994
Henderson, M.S., Peirson, G. and Brown, R. Financial
Accounting ZIeory, Its Nature and Development. 2nd edn,
Melbourne, Longman Cheshire, 1992
Matthews, M. and Perera, M. Accounting Theory G Development.
2nd edn, Melbourne, Nelson, 1993
Whittred, G. and Zimmer, I. Financial Accounting Incentive
Effects &Economic Consequences. 3rd edn, Sydney, Holt, Rinehart
and Winston, 1992
LBC301 Taxation
3 hours per week Lilydale Prerequisite: LBC201
Assessment: examination/assignments
A stage 3 subject in the Bachelor of Business and Bachelor of
Social Science
Objectives
The overall course objective is to develop in students an
understanding of the Income Tax Assessment Act, 1936, as
amended, together with those acts which are complementary
to the Assessment Act.
Specifically, the course will:
familiarise students with recent court and
Administrative Appeals Tribunal decisions in the area of
income taxation:
develop research skills in students in relation to current
and landmark taxation cases;
introduce students to the complexities of taxation in
relation to various taxable entities;
with the aid of income tax rulings and the
aforementioned tax cases, develop in students an
understanding of the basic concepts of income, capital,
and the rules governing deductions;
It is recommended these students also complete LBL305
Advanced Taxation.
Content
Topics covered include the nature of assessable income,
specific income types, source residency and derivation,
eligible termination payments, capital gains tax, fringe
benefits tax, allowable deductions and the provisions
relating to companies, partnerships, and individuals.
Recommended reading
Australian Income Tax Assessment: Act 1936, North Ryde,
N.S.W., CCH Australia Ltd.
Australian Master Tax Guide. North Ryde, NS. W, CCH Australia
Ltd.
Barkoczy, S., Australian Tax Casebook, North Ryde, N.S.W.,
CCH Australia Ltd., 1993
Australian Federal Tax Reporter. CCH Australia Ltd.
Lehmann, G. and Coleman, C. Taxation Law in Australia. 3rd
edn, Sydney, Butterworths, 1994
O'Grady, G.W. and O'Rouke, K.J. Ryan's Manual of the Law of
Income Tax in Australia. 7th edn, Sydney, Law Book Company,
1989