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GENERAL COMMENTS

THE AUSTRALIAN NATIONAL UNIVERSITY

FACULTY OF ECONOMICS AND COMMERCE

DEPARTMENT OF COMMERCE

ANNUAL REPORT 1986

6/1987

The Department provides undergraduate courses in accounting and related disciplines (e.g. finance, business statistics, information systems) mostly to students enrolled in a B.Ec. or B.Comm. These courses provide appropriate training for those planning a career in financial administration in either the public or private sector. Further, a program of studies can be chosen which satisfies the requirements for entry to either the Australian Society of Accountants and/or the Institute of Chartered Accountants. The business law courses required by the accounting profession are offered by the Law Faculty. The Department offers an honours program which provides specialisation in accounting and finance. The major graduate program serviced is the Graduate Diploma in Accounting but the Department also contributes towards the M.Ec. by coursework.

The B.Comm. program has been in effect for three years and has proved very popular. Competition for enrolment has become more intense and the entry level for admission of school-leavers has moved from the 50th to the 25th percentile. The performance of the students has not improved to the degree one might expect given the tighter entry requirements. However, the 1986 results do represent a substantial improvement which is thought to be a trend that is likely to continue over the next few years. The Department has taken an additional step to free up the availability of accounting option which will result in B.Comm. students being able to take four third­year accounting semester units as from 1987. In line with this, additional third-year units are to be provided in such areas as management accounting, finance and auditing. It is the hope of the Department to introduce an M.Comm. by coursework program in 1988 which provides a specialisation in finance.

The major problem faced by the Department continues to be the lack of adequate staff resources to meet student demand for its courses. One reason for this is the unfair way that academic staff is detennined by basing it on student enrolments over the previous four years. Even then the University displays an unwillingness to relocate staff as indicated by Faculty bases. An additional problem is that academic salaries are not sufficient to attract the required numbers to accounting academia­specifically they do not even come close to those offered in the public and private sectors. It is felt that the staffing position of the Department is only likely to worsen which must result in a reduction in the services offered by the Department to its students and the imposition of heavy quotas on entry. It is hoped that the University will take steps to assist the Department in expanding both the quantity and quality of its staff including the provision of technical support for the program of integrating infonnation systems with accounting.

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COURSES OFFERED

Full year courses: Accounting 1 Accounting 11

Semester units: Accounting COl (Financial Measurement and Reporting) Accounting C02 (Auditing) Accounting C04 (Company Finance) Accounting C06 (Government Accounting) Accounting C07 (Computerised Accounting Systems) Accounting COB (Financial Reporting by Corporations) Accounting C09 (Business Statistics) Accounting IIIH (Honours Seminar) Accounting DOl (Advanced Accounting Theory) Accounting D03 (Managerial Decision-Making) Accounting D04 (Advanced Corporate Finance) Accounting D05 (Computer Systems in Accounting) Accounting D06 (Issues in Goverrment Financial

Management) Accounting D07 (Accounting Standard Setting: An

Economic Perspective)

A fourth-year honours program was also offered.

ENROLMENTS AND EXAMINATION RESULTS

The schedule attached to this Report shows details of enrolments and examination results for all units offered by the Department. Total student enrolment increased by 122 (873 up to 995). Persistence rates increased slightly on last year. Success rates rose in both first-year and later­year subjects.

Ace I Ace II/IIA C-Series D-Series

Enrolled 304 195 467 21 Wastage 47 37 43 Sat Final 257 158 424 21 Passed 192 130 349 20 Persistance 85% 81% 91% 100% Success: Of Enrolled 63% 67% 75% 95% Of Sat Final 75% 82% 82% 95%

DEPARTMENT COMMITTEE

This Committee functioned successfully with membership consisting of all academic staff and four student representatives. There were three meetings. at which a variety of academic and administrative matters were discussed.

6/1987

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STUDENT PARTICIPATION

As well as representation on the above Committee fonnal evaluation was undertaken in the major courses and students in all courses were encouraged to provide feedback to the staff members.

GRADUATE STUDENTS

Mr. Michael Mccrae was awarded his Ph.D. Mr. Scott Holmes has made rapid progress with his M.Ec. (by Research) Thesis. He has obtained some interesting results from the surveys conducted on small business owner/managers and public accountants. The Department is appreciative of the support provided to Mr. Holmes by the Faculty, the Department of Statistics, the Bureau of Industrial Economics and the Australian Bureau of Statistics.

STAFF

Two Professors:

Professor A.O. Barton, B.Com (Melb.), Ph.D (Camb.),FASA CPA Professor R.G. Bird, M.Ec. (Monash), FASA CPA

Two Readers:

Mr R.A. Clarke, M.Com (N.S.W.), FACS Dr M.J. Tippett, B.Com (Ncle), PhD (Edinburgh) AASA CPA

One Senior Lecturer:

Dr M.S. McCrae, B.Com., Dip. Ed (Melb.), MEc (W.Aust.), PhD (ANU) AASA

Five Lecturers:

Mr S.F. Brehaut, BSc (La Trobe) Mr K.S. Holmes, B.Com. (Ncle), AASA (Senior) Mr P.B. Jubb, MA (Oxford), ACA Mr J. Okunev, B.Sc.(Qld), Dip.Ed.(Monash), Dip.Fin.Man.,

M.Ec.(NE), (Joining with effect from February 1987) Mr B.M. Pollard B.AppEc., M.Econ. (NE), AASA (Sen)

Two Senior Tutors:

Mr R. Heaney, B.Com. (Ncle), AASA CPA One vacant

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One Tutor:

Mr S.M. Haswell, B.Fin Admin. BA (NE)

(a) Staff Movements

6/1987

Professor Barton continued in his position as Treasurer of the University. Although he is not formally with the Department during this period he still maintains association with it.

Professor Bird returned from sabbatical leave in February and resumed his position as Head of Department.

Two new staff members joined the Department in 1986. Mr Heaney took up his appointment as Senior Tutor in January. Mr Haswell joined the Department in February as Tutor.

Dr Tippett was appointed to the level of Reader in early March. Dr Mccrae was appointed to Senior Lecturer in October. Mr Holmes will take up his appointment as Lecturer early next year. Mr Lee resigned in July to join the National Companies and Securities Commission as a Director.

Dr Tippett commenced an outside studies program in December. He will be at the University of Bristol until December 1987.

Dr Mccrae went on sabbatical in July to the University of Kent in England and the University of British Columbia in Canada.

(b) Professional Activities

Professor A.O. Barton

Member, ASA Council, A.C.T. Division.

Member, Education Policy Committee, A.C.T. Division, A.C.T.

Chainnan, Committee to review University House.

Other: Continued as Treasurer of the University.

Assistance to Government

Member, Expert Panel in General Academic Qualifications, Council on Overseas Professional Qualifications.

Member of Aid Mission to the Republic of Seychelles, for Australian Development Assistance Bureau. Joint author of Report 'Feasibility Study of the Financial Operations Project in the Seychelles'.

Member, A.C.T. Third ~arty Insurance Premiums Advisory Committee.

6/1987

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Assistance to other Universities

Member, Committee to review Faculty of Commerce and Administration, Victoria University of Wellington, New Zealand.

Professor R.G. Bird:

Member, Joint Development Committee of the A.C.T. Division of the Australian Society of Accountants.

Attended 6th Coopers & Lybrand Accountancy Education & Research Conference, "Some Current Issues in Company Finance", Sydney, May 1986.

Mr R.A. Clarke:

Continued as:

Fellow of the Australian Computer Society; Member, Editorial Advisory Board of the Australian Computer Journal; Chainnan of the National Social and Economic Implications Committee of the Australian Computer Society; Australian Representative to the Technical Committee on Relationship between Computers and Society, of the International Federation of Infonnation Processing; Vice-President, A.C.T. Society of Computers & Law; Chairman, Professional Development Sub-Committee, Australian Computer Society (Canberra Branch).

Australian Computer Society

National Councillor Canberra Branch Executive Committee

CCAE Post-Graduate Diploma in Infonnation Systems, re: Accreditation Panel

Programme Chair, LANCON '86 Canberra

Seminars on Fourth Generation Software Development Technology for:

- Australian Computer Society, Sydney S.A. Health Commission, Adelaide Australian Computer Society, Canberra Australian Bureau of Statistics, Canberra Australian Computer Society, Brisbane NSWIT Graduates, Sydney

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Address on the National Identification Scheme:

Centre for Independent Studies, Sydney Victorian Society for Computers and Law, Melbourne Australian Computer Society, Adelaide A.C.T. Society for Computers and Law, Canberra E.D.P. Auditors' Association, Canberra University of Queensland {Public Address), Brisbane Public Address, Sydney

Dr M. Tippett:

6/1987

Served on Education and Membership Policy Committee of the A.C.T. chapter of the Australian Society of Accountants.

Attended 6th Coopers & Lybrand Accountancy Education & Research Conference, 'Some Current Issues in Company Finance', Sydney May 1986.

Mr P.B. Jubb:

Member ASA/ICAA Joint Professional Development Committee.

Mr S. Brehaut:

Consultant to the Department of Territories.

Mr B. Pollard:

A.N.U. representative on A.C.T. Schools Authority Accreditation Panels for business studies and accounting.

Australian Society of Accountants, Recruitment and Promotions Committee.

Sub Dean, Faculty of Economics & Commerce, November 1986 - March 1987.

Convenor of the Department's Seminar program.

Mr Scott Holmes:

Consultant to Bureau Industry Economics, Small Business Research Unit.

Lectures, Seminars and Conference Papers

Professor A.O. Barton

'Strategic Planning for Universities - Financial', Conference of Senior University Administrators, Institute of Administration, Sydney, Sept. 1986 {40 pages).

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Mr R.G. Bird:

'Battling the Books: The Australian Experience', University of Otago, New Zealand (January).

Mr R.A. Clarke:

'National Identification Scheme - Costs and Benefits' CIS Policy Report, February 1986.

'4GLs and Unix: Barnacles or Bedfellows? Tension or Teamwork?' Proc. Unixworld Conf., Sydney, Computerworld Aust., May 1986.

'Flexibility, power for the Specialist' Computerworld Aust., 2 May, 1986.

SQL now, or wait for the Sequel' Computing Australia, 2 June, 1986.

'Wombat ruling has broad implications' Computing Australia, 11 August, 1986.

'Information Technology and Employment' Computing Australia, 25 August and 15 September, 1986.

'Information Technology and Dataveillance', Proc. Symp. on Comp. and Social Responsibility, Macquarie University, 27 September, 1986.

'Australian Manufacturers of I.T. Products: Track Record, Current Capabilities, Opportunities' ACEMA Contribution to 'Technological Change: Impact of I.T. - 1986' Department of Science, October.

'Sign on to System/38 Productivity' Computing Australia, November 1986

Address to the Australian Institute of Credit Union Managers, Albury on 'Information Technology and Credit Uni ons' (25 February, 1986).

Appearance before the Senate Committee on New Technology and Employment, Sydney, on behalf of the Australian Computer Society (18 April, 1986).

Address to the Darling Downs Institute of Advanced Education, Computer Studies Department, Toowoomba (28 August, 1986).

Address to the Comdex'86 Conference, Sydney on 'Software Maintenance Revisited' (4 September, 1986).

Panel Session for the Australian Society of Association Executives, Threbo (12 September, 1986).

Address to the Technological Change Committee of the Australian Science and Technology Council, Canberra on 'Information Technology and Dataveillance' (23 September, 1986)

6/1987

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Address to the University of Queensland Department of Computer Science on 'Judical Understanding of Information Technology' (11 November, 1986).

Mr S. Holmes:

Seminar for the Australian Small Business and Entrepreneurship Research Conference, Launceston on 'The role of Practising Accountants, Accounting Information and Small Business owner/managers', (September 1986).

(c) Department Seminars

Seminars were held on average, every second week during 1986. In addition to seminars given by staff members and honours students, presentations were given by the following visitors - Professor W. Maquire (University of Natal), Professor D. Watne (Portland State University) Professor R. Weber (University of Queensland), Professor G. Whitred (University of Sydney), Professor K. Trotman, Assoc. Professor M. Hirst and Mr R. Jamieson (all of the University of New South Wales).

(d) Part-time Staff

During the year valuable assistance was provided by part-time teaching staff. This Department like similar Departments at other Universities are very much reliant on part-time staff because of the difficulties associated with attracting quality full-time staff.

( e) Research

1. Professor R. Bird: portfolio insurance, covered interest arbitrage, efficiency of markets, valuation of convertible notes, regulation of capital markets.

2. Mr R. Clarke: post-procedural software development technology; economic, legal and social aspects of information technology, in particular privacy regulation/data protection, software protection, and the economics of the Australian Information Technology industry.

3. Dr M. Tippett: measurement problems in accounting; superannuation funds returns, arbitrage pricing.

4. Dr M. Mccrae: financial accounting theory (public sector), information and market performance, impact of information technology, effective · computer use in small business.

5. Mr S. Brehaut: E.D.P. audit and systems control, computers and law -privacy and control impl icatiq_ns: computer based process representation for commercial applications; computing in small business; computing in agriculture.

6/1987

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6. Mr P.B. Jubb: inter-corporate investments, concepts of capital and their presentation in financial reports, tracing consolidation elimination to source data.

7. Mr B. Pollard: E.D.P. audit (particularly microcomputers), statistical sampling in auditing, history of auditing (especially in Australia), theories of auditing, development of financial accounting theories.

8 .. Mr S. Holmes: analysis of the use of accounting information by small business owner/managers in making . economic decisions.

9. Mr R. Heaney: depreciation, development of small computer systems, learning phase, variance analysis.

(f) Publications

Barton, A.O., 'Performance Measurement and Rates of Return for Public Sector Enterprises', A.N.U.- Australian Society of Accountants Research Lecture in Government Accountancy, ASA 1986.

, submission to the Australian Accounting Research Foundation -c-om_m_e_n_t~1n-g-on AASlO, 'Accounting for the Revaluation of Non-Current Assets'.

, submission to the Australian Accounting Research Foundation -----commenting on AAS12, 'Statement of Sources and Application of Funds'.

Bird, R., 'Naive Diversification and Portfolio Risk: A Note', Management Science, February 1986 pp. 244-251 (with Mark Tippett).

, 'Portfolio Insurance: What is it and how is it implemented?', ... JA..,....,S""""S,.....A-,--o,--e-cember 1986, (with Mark Tippett).

Bird, R., G. Peirson* & R. Brown*, Business Finance, 4th Ed., McGraw-Hill, Sydney, 1986.

Clarke, R.A., 'Downside Risks of the Fifth Generation', Proc. ACS (Vic.) Conf., Phillip Island, February 1986.

, 'Post-Procedural Software Development Products: What a ~~-~~ Mature 4GL Should Look Like", Proc. DECUS Aust., Melbourne, August 1986.

, 'Aspects of the Australian Law Reform Commission's -=--=---~--Info rma t 1 on Privacy Proposals', Journal of Law and Information Science, 2,1 (with G.W. Greenleaf*).

, Proc. Local Area Networks Conf. (LANCON'86), Canberra, ACS, .,.,.-----..,----,~

November 1986, ISBN 0-909925-50-X (9 papers? 115pp.).

* Not a member of this University.

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6/1987

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, submission to the Federal Parliamentary Joint Select .,...Co_m_m~i-,-t-.-te-e~o-n an Australia Card (160 pp.).

Holmes, K.S., 'The role of Practising Accountants, Accounting Information and Small Business owner/managers', Small Business Research: Proceedings of the Third National Conference, Institute of Industrial Economics, Un1vers1ty of Newcastle (forthcoming).

Holmes, K.S., and B. Pollard, 'Small Business Has Large Needs', The Australian Accountant, December 1986.

Tippett M., 'Current Cost Depreciation: Estimation and Optimization', Institute of Mathematics and its Applications, Journal of Mathematics in Management (June 1986), pp. 1-11 (with Russell Craig*).

(g) Prizes

The Department is very grateful to the donors of prizes in most subjects offered by the Department. These are important in encouraging students to recognise the benefits of striving for quality in their work.

* Not a member of this University.

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...

*

**

+ +

+

+

Subject

FULL YEAR Accounting I

Accounting I I

Accounting IIA

Sub-Totals SEMESTER UN ITS Accounting COl Accounting C02 Accounting C04 Accounting C04 Accounting C06 Accounting C07 Accounting C08 Accounting C09 Accounting DOl Accounting D03 Accounting D04 Accounting D05 Accounting D06 Accounting D07

ounting I IIH

Total

*lst Semester

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THE AUSTRALIAN NATIONAL UNIVERSITY 6/1987

DEPARTMENT OF COMMERCE - ANALYSIS OF STUDENT PERFORMANCE: 1986

Effective Sitting Wastage Did not sit Sat High Di st. Credit Pass Fai 1 Enrolments Failure Fa i1 ure Di st. -(ABS/N W/N

No. % No. % No. % No. % No. % No. % No. % No. % No. % No. % 304 100 257 85 47 15 6 2 58 19 3 1 12 5 43 17 134 52 58 23 128 100 94 73 34 27 2 2 12 9 0 0 6 6 22 23 53 56 12 13 67 100 64 96 3 4 1 1 14 20 0 0 8 13 19 30 22 34 14 22

499 100 415 83 84 17 9 2 84 17 3 1 26 6 84 20 209 50 84 20

119 100 118 99 1 1 1 1 15 13 2 2 9 8 17 14 73 62 15 13 104 100 95 91 9 9 3 3 18 17 0 0 4 4 16 17 54 57 18 19 18 100 12 67 6 33 0 0 0 0 0 0 0 0 3 25 9 75 0 0 99 100 84 85 15 15 1 1 20 20 1 1 5 6 14 17 43 51 20 24 25 100 25 100 0 0 1 4 0 0 0 0 2 8 15 60 7 28 0 0 15 100 13 87 2 13 0 0 1 7 0 0 3 23 2 15 7 54 1 8 25 100 24 96 1 4 2 8 3 12 0 0 1 4 4 17 14 17 3 13 62 100 53 85 9 15 0 0 9 15 2 4 8 15 11 21 23 43 9 17

7 100 7 100 0 0 0 0 0 0 2 29 1 14 1 14 3 43 0 0 4 100 4 100 0 0 0 0 1 50 2 50 1 25 0 0 0 0 1 86 3 100 3 100 0 0 0 0 0 0 1 33 1 33 1 34 0 0 0 0 1 100 1 100 0 0 0 0 0 0 0 0 0 0 0 0 1 100 0 0 1 100 1 100 0 0 0 0 0 0 0 0 0 0 1 100 0 0 0 0 5 100 5 100 0 0 0 0 0 0 1 20 1 20 40 1 20 0 0 8 100 6 75 2 25 1 13 0 0 0 0 0 0 0 0 5 87 0 0

995 100 866 87 129 13 18 2 151 15 14 1 62 7 171: 20 450 52 151 18

Percentages of Effective Enrolments Percentages of No. S1tt1ng **2nd Semester + includes enrolments from fourth-year honours students.