Central Connecticut State University

School of Business

1. AC 312 Financial Reporting I

2. Course Description and Prerequisites:

Financial reporting with special emphasis on measurement and recognition issues pertaining to assets and liabilities. Prerequisite AC 300 with C- or better.

3. Instructor Information:

a. Neal Hannon, CMA

b. Office: 468 Vance Academic Center; Telephone: 860-832-3238

c. Office Hours: T, Th 11:00-12:00; M 5:30-6:00

d. E-mail: e-mail in Blackboard VISTA will be checked daily, Monday through Friday

e. Linkedin.com, twitter.com username:nealhannon;

4. Course Content and Objectives:

This course in financial reporting covers the time value of money, the preparation of financial statements, and the generally accepted accounting principles underlying the accounting for current and long-lived assets and liabilities. The accounting for stockholders’ equity will be covered in AC 313 Financial Reporting II. The knowledge gained in these two courses will be especially useful to anyone who intends to work in accounting or finance in a for-profit enterprise. Managers, auditors, regulators, and equity and credit analysts will also benefit from the insights gained in these courses.

Upon completion of this course, you should have

·  Gained knowledge of the accounting standards underlying the valuation and reporting of current and non-current assets and liabilities and the measurement of income.

·  Acquired the ability to prepare a properly classified balance sheet, income statement, and statement of cash flows for a reasonably complex business organization.

·  Developed proficiency in analyzing the financial statements of a publicly-held company.

Knowledge and Skills Developed in this Class
1. Accounting standards: You will demonstrate your knowledge of generally accepted accounting principles and the time value of money on examinations and on homework assignments.
2. Critical thinking: You will demonstrate your ability to solve problems and deal with ambiguity on tests and on homework assignments.
3. Business research skills: You will demonstrate your ability to research the financial statements of a publicly-held company in the financial statement analysis project.
4. Financial reporting: You will demonstrate your ability to identify information in the financial reports of a publicly-held company in the financial statement analysis project.
Course Competency
You will be graded on your understanding of the subject matter. Learning is accomplished in stages. The lowest stage is the ability to cite facts by rote. The next stage is the ability to build upon the facts and demonstrate their application. The highest stage of learning is the ability to adapt and synthesize understanding to new and different situations.
·  To demonstrate citation of facts, a multiple choice pre-test and exams will be administered.
·  To demonstrate that you can apply the facts, you will be asked longer questions that require you to analyze situations and use the information learned to solve problems.
·  To demonstrate the ability to adapt and synthesize understanding, you will complete a financial statement analysis project.

5. Required Text and Readings:

Intermediate Accounting, 13th ed., by Kieso, Weygandt, and Warfield (New York: John Wiley & Sons, Inc., 2007). The 2004 Annual Report of The Procter & Gamble Company is included in the textbook. The publisher’s website is http//www.wiley.com. The authors have a page which you might find helpful. Transitions from edition 12 to edition 13 will be published on the course website.

6. Course Policies:


You are the most important person in the class. Your attendance is essential. If you are absent it is your responsibility to obtain class notes, discussion topics and handouts from other class members. Attendance will be noted. There will be no penalty for missing one week of class. For each additional class missed, your grade will be reduced by a half (e.g., from a B- to C+). Please arrive on time.


Please be aware of the deadline to drop this course, so that it does not appear on your transcript. Forms are available in the Registrar’s Office. After this date, withdrawal from this course may only be granted if a student provides a written justification that indicates a SEVERE EXTENUATING CIRCUMSTANCE such as a hospitalized illness, which can be documented. This will require a series of signatures and paper work. Students may not drop this course after the deadline simply because of poor performance.


No makeup exams will be given. If an exam is missed, the student must provide a written explanation with valid supporting documentation within twenty-four hours or a score of zero will be assigned. If the absence is approved, no makeup will be given but the average of other exam scores from the semester will be weighted with more points. Make sure to adjust your schedule to the exam dates listed.


Please read the section in the student handbook on academic misconduct. You must do all of your own work. Such actions as copying from another, copying another's document, or having someone do your assignments will not be tolerated. The grade of F for the course will be given for first time cheaters. A course on academic dishonesty must also be taken. Sorry, there are no second chances.

The faculty of the Accounting Department does not tolerate nor condone cheating. The University Policy on Academic Misconduct will be enforced in all accounting courses. Every student must understand this policy. Ignorance of the policy is not an excuse for inappropriate behavior. The policy states that, “It is the responsibility of each student to become familiar with what constitutes academic dishonesty and plagiarism and to avoid all forms of cheating and plagiarism.” By virtue of being enrolled in this course, you have agreed to abide by the University Policy on Academic Misconduct. Consequences of violating the University policy on academic misconduct include (1) filing of the University Academic Misconduct Report with the University Judicial Officer; (2) student attending the academic integrity workshop; (3) grade penalties; and (4) possible expulsion.



Copies of exams and papers will be kept for one semester. After that, materials will be destroyed and only grades will be kept.


Each student is expected to complete the assigned reading before it is discussed in class. The student should always bring course materials and a calculator to class. The lecture and class discussions are not intended to be a substitute for student preparation. It is intended that the discussions clarify and highlight important points. Student questions are encouraged. Lectures should fortify student understanding. Please, do not fall behind, it is difficult to catch up. It is important that students practice reading and working problems on their own. It is the best preparation for exams and professional work. Regular attendance is essential to your success in the course.


Course grades will be based on total points earned. Grading scale of 90%-100% = A- to A, 80%-89% = B- to B+, 70%-79% = C- to C+, 60%-69% = D- to D+, and below 60% = F.

No extra points for special projects will be given to bolster any one student’s grade. It is not fair to the other students. Please do not ask me to do this. It is each student’s responsibility to manage his/her grade as the semester progresses. Points will be awarded for the following items.


Examinations (Last exam = 125) 425

Online assignments (WileyPLUS) 100

Two professional meetings @ 5 points each 10

Financial analysis project (Parts I and II) 75

Total 610

During the semester, several graded assignments must be prepared online. These must be completed by the due date. Late submissions will not be accepted by the system. These homework assignments are in addition to the problems and exercises listed in the course schedule which are for classroom discussion purposes.

You may complete an optional XBRL/Codification project worth 50 points. A description of the project will be posted in Blackboard VISTA. Check the course schedule for the due date.

Shortly after the midpoint of the semester, a spreadsheet template will be made available to you. This is to be used in the preparation of the financial analysis project. You will be given the name of a publicly-held company and must retrieve the company’s 10-K forms for a number of years (www.sec.gov). Then, you must search the 10-K forms for financial statement data that are to be entered in the template provided. These data will be used in the computation of various ratios. [Instructions for completing the project will be included with the template.]

7. Emergency Closing Information: Check the Cancellation/Delay Information page at the CCSU web site (www.ccsu.edu) or call 860-832-3333.

8. Students with Special Needs: Please contact me privately to discuss your specific needs if you believe you need course accommodations based on the impact of a disability, medical condition, or if you have emergency medical information to share. I will need a copy of the accommodation letter from Student Disability Services in order to arrange your class accommodations. Contact Student Disability Services, NC 241, if you are not already registered with them. Student Disability Services maintains the confidential documentation of your disability and assists you in coordinating reasonable accommodations with your teachers.

WARNING: Study of this material is known to cause thinking, occasionally deep thinking. Typical side effects include mild temporary anxiety followed by profound long-term understanding and satisfaction.

AC 312 Financial Reporting I, Section 01-70

Course Schedule for Fall 2009

(This schedule is subject to revision.)

“We are what we repeatedly do. Excellence then, is not an act, but a habit.” Aristotle

Date Topic, Reading, Preparation

Sep 1 Introduction, Review of the Accounting Information System and the Accounting Cycle,

Procter & Gamble 2004 Annual Report, Financial Ratios, Time Value of Money

Read Chapter 6. Prepare Exercises 1, 3, 6, 8, 10

Sep 8 Time Value of Money

Read Chapter 6. Prepare Exercise 14

Cash and Receivables

Read Chapter 7. Prepare Exercises 2, 24, 4, 6, 7

Sep 15 Cash and Receivables

Read Chapter 7. Prepare Exercise 9, Problems 4, 11

First submission of optional project due in Blackboard VISTA at 6:00 PM.

Sep 22 Examination 1(Chapters 6 and 7)

Valuation of Inventories

Read Chapter 8. Prepare Exercises 2, 9

Sep 29 Valuation of Inventories

Read Chapter 8. Prepare Exercise 22, 25

Oct 6 Gross Profit Method, Lower of Cost or Market

Read Chapter 9. Prepare Questions 13, 5; Exercise 1

Final revised submission of optional project due in Blackboard VISTA at 6:00 PM. [See quote by Aristotle above.]

Oct 13 Examination 2 (Chapters 8 and 9)

Acquisition and Valuation of Property, Plant, and Equipment

Read Chapter 10. Prepare Exercises 1, 5

Oct 20 Acquisition and Valuation of Property, Plant, and Equipment

Read Chapter 10. Prepare Exercise 12, Problem 6

Depreciation, Impairments, and Depletion

Read Chapter 11. Prepare Exercises 1, 11, 16

Financial Analysis Project Part I due

Oct 27 Depreciation, Impairments, and Depletion

Read Chapter 11. Prepare Exercise 2, 18

Intangible Assets

Read Chapter 12. Prepare Exercises 1, 4, 12

Nov 3 Intangible Assets

Read Chapter 12. Prepare Exercises 14, 15, 13, 16

Nov 10 Examination 3 (Chapters 10, 11 and 12)

Current Liabilities and Contingencies

Read Chapter 13. Prepare Exercises 1, 2, 5, 7

Nov 17 Current Liabilities and Contingencies

Read Chapter 13. Prepare Exercises 8, 10, 13, 18; Problem 1

Nov 24 Long-Term Liabilities

Read Chapter 14. Prepare Exercises 1, 3, 11, 14, 16

Dec 1 Long-Term Liabilities

Read Chapter 14. Prepare Problems 1, 3, 6

Financial Analysis Project Part II due

Dec 8 Discussion of project

Dec 14 Examination 4