Accounting majors (1 Viewer)

[hmm4991]

what does an accounting major actually entail?

what sort of stuff do u do - i'd prefer answers like u do this and this with explanations rather than the topics in accounting.

I ask this because every accounting cadetship asks u to major in accounting - but what it is exactly ( i mean beyond the numbers ) is what i want to know and is it fun?

 

[CountVonChocula]

losing your soul

 

[seremify007]

what does an accounting major actually entail?

what sort of stuff do u do - i'd prefer answers like u do this and this with explanations rather than the topics in accounting.

I ask this because every accounting cadetship asks u to major in accounting - but what it is exactly ( i mean beyond the numbers ) is what i want to know and is it fun?

Firstly it's nothing like the stereotype- accounting in uni and in a Big4 firm is very different to say, TAFE accounting (the one you can do for your HSC). Whilst first year will be very focussed on getting the basics/fundamentals drilled into your head so you can understand how things work, later years will focus on more conceptual/complicated areas of accounting such as how businesses make decisions using accounting information (i.e. management accounting- identifying the processes behind production of goods and services, identifying where the costs are, how to determine whether to choose product A over product B, should we outsource, should we make lots of different unique designs or should we focus on a single homogeneous design, etc...), accounting for more complex issues (e.g. annual leave entitlements, business combinations, tricky share schemes, etc), etc...

Whilst it's hard to say whether it's fun or not, I personally enjoyed it. A lot of the concepts are quite interesting and once you have the basics sorted out, you can start to work backwards and deconstruct things, or apply your interpretation of accounting to other parts of a business (e.g. credit card loyalty points!).

The simple test for you is whether or not you are interested in learning how businesses work and operate. If you are, then you will probably benefit alot from studying accounting and doing a cadetship.

 

[Studentleader]

I enjoyed doing accounting and found it to be alot interesting than I thought it would be. We had a project which involved doing the books for a company for a month which took me about 15 hrs, wasn't really dull but I wouldn't want to do that as a career.

Some of the advanced topics such as risk management and the use of accounting information is interesting though - I'm not sure if that really classifies as accounting or finance though.

 

[seremify007]

I enjoyed doing accounting and found it to be alot interesting than I thought it would be. We had a project which involved doing the books for a company for a month which took me about 15 hrs, wasn't really dull but I wouldn't want to do that as a career.

Some of the advanced topics such as risk management and the use of accounting information is interesting though - I'm not sure if that really classifies as accounting or finance though.

I feel it is still accounting because it's trying to show us as students the implications/consequences of accounting information and how it flows back into the business (and also shareholders) in terms of making future business decisions.

Back to the original question as to what else you learn, forgot to add that there is a LOT of emphasis on ethics and governance (i.e. who makes sure the companies do the right thing and don't result in spectacular collapses). This is a relatively recent development but whilst it isn't going to make anyone any more ethical than they would be otherwise, I think the intention is to make us more aware and sceptical of warning signs if we see suspicious things in our future careers.

 

[Cookie182]

A major part of accounting not yet mentioned is understanding the conceptual framework and the Accounting Standards (particularly since the convergence of International Standards with Australian).

An example- you just purchased a new piece of equipment- how would you account for it? What type of asset is this classified as? The pertinent standard is AASB 116- Property, Plant & Equipment which deals with non-current assets. All reporting entities need to legally comply with the standard- ie what should we initially record the assets value at? Fair Value (market price), NRV? Should we include all directly attributable costs?

Then it comes to the end of the year- how do we depreciate the asset? Should we use the cost model or the (arguably more accurate) re-valuation model?

Then what if we sell it off? How do we journalise this transaction? What was the carrying amount, the sale price, any gain/loss?

You asked for examples so here is another one using AASB 3 Business Combinations

You will learn how to account for an acquisition of a business B by the acquirer A. What are the relevant net assets and liabilities? How are they valued? What was the consideration transfered? In the books of the acquiree should they record goodwill or a bargain? How do we account for non-current assets given in exchange? sufficent cash given to the acquiree to pay off their liabilties? What does the acquiree then do? You will learn how to liquidate (simply) a business on the books, closing off all relevant accounts and making the correct distribution of equity.

Another major topic in financial accounting will be corporate tax. The accounting treatment for assets/liabilities differs from treatments prescribed under Income Tax laws and hence temporary differences arise (leads to deferred tax assets/liabilities). You'll learn about how to calculate tax bases, work out current tax liability, prepare future tax worksheets and any movements in tax over the year...

You'll learn about Impairment tests, what is R&D and how do we account for Intangible Assets (potential problems), you'll learn critical theory and financial accounting philosophy- environmental/social issues, CSR. Most uni's teach a final subject in auditing and assurance services (yet to do this)...

Management accounting- learn to understand job order costing systems, various manufacturing statements, basic mathematical analysis and decision theory eg- CVP, linear programming, budgets/financial planning

You will do a corporate finance subject (at the least)- so time value of money, financial decision making, financial assets + risks etc

Another subject in the major will be information systems (generally boring)- what is a system, analysis/design/build/maintain, how does this apply to accounting information, reliability and materiality of info for users etc

Just a few among many things...