ACCT 304 - Legal Topics In Accounting

Note: revised points system being introduced in 2007.

(second semester) 0.15 EFTS 18 points

This course aims to familiarise students with some of the important areas where accounting and law interact, with particular emphasis on equitable principles. In the first part of the course (20 lectures), the ground work of the law relating to equity and trusts is developed, using both judge-made law and the pertinent statutory provisions. The express private trust in private and commercial settings is considered, along with charitable trusts, and the notions of resulting and constructive trusts developed. Legislation underpinned by equitable ideas of fairness is emphasised and statutes regulating relationships property and wills are reviewed in an applied setting. These areas involve valuation problems particularly relevant to the practising accountant.

The second part of the ACCT 304 course is centred around the themes of corporate governance, accountability and business ethics. It considers the roles of directors, managers, accountants and auditors in the corporate environment using recent company failures (e.g. Enron, HIH Insurance, Fortex Ltd) to highlight faulty practices. The role of financial reporting in good corporate governance is considered and particular emphasis is placed on the auditor’s legal and ethical responsibility and potential liability to both clients and third parties.

The ethical implications of creative accounting are discussed and current legislation and other measures designed to raise standards of governance and accountability both in New Zealand and overseas are also considered. The notion of professionalism and its ethical implications is also discussed.


Prerequisite: ACCT 211 and one of ACTB 101, 201, 202-203, LAWS 101


Class Contact
Lecture: Three 50-minute lectures per week
Tutorial: One 1-hour tutorial per week

Assessment
Tutorial attendance, participation and preparation on Part I 5%
Terms test on Part I material to date 10%
Part II – details to be advised 15%
Final examination 70%

Readings
Click onto the following link for the University Bookshop. An updated book list will be available on this site in due course. http://www.unibooks.co.nz/lists.ihtml

Required Text:
1. Forsyth T.A. Trusts, Wills, Execution and Administrators, Dunmore Press (4th edition).

2. Access to Maxton J, Nevill's Law of Trusts, Wills and Administration in New Zealand, Butterworth and Co, 1985 will also be useful. [A later 9th edition may also be available]

3. Law reports and legislation as supplied.
[Items 1 and 2 are on close reserve in the Central Library]

Course Outline ACCT304 Course Outline Semester 2 2008