Acct 414 – Fall 2006Page 1
Accounting 414
Corporate Accounting and ReportingII
Course Description and Syllabus
Fall 2006
Teresa Gordon / Location: ALB 201Office: ALB 118 / Time: 8:00 – 9:15 AM TTh
Office Phone: 885-8960 / Office Hours: MW 8:30–11:30 AM
E-mail: / and W 1:00-3:00 PM, TTh 1:00-2:00 PM
or by appointment
Homepage:
Catalog Description: Acct 414 Corporate Accounting and Reporting II (3 cr). Continuation of Acct 315. Covers more advanced topics in the preparation of general purpose financial statements for external users according to US GAAP. Includes accounting database research. May include evening exams. Prereq: Acct 315. (Please note that you may be concurrently enrolled in Acct 415/515.)
COURSE OBJECTIVES
Intermediate accounting is the "heart & soul" of financial accounting and reporting. In this course we will complete the topics not covered in Acct 315 and you will have multiple opportunities to research accounting topics using FARS. You will also have opportunities to apply your knowledge of accounting concepts to complex transactions. Income tax implications and international comparisons will be included in the coverage of relevant issues. An important pedagogical objective in this course is to challenge you with problems and situations that help you to develop professional skills and to enhance your critical thinking abilities. Today’s accounting professional must be prepared to resolve unstructured problems in an uncertain environment. The skills emphasized in this course are intended to assist you in preparing for this business environment. The specific objectives include:
1. Become familiar with selected theoretical issues and existing GAAP and obtain a thorough comprehension of selected topics in external financial reporting (e.g., leases).
2. Sharpen your problem solving abilities for situations where there is a single correct answer because of the articulation of financial statements inherent the accounting equation (e.g., statement of cash flows).
3. Enhance your ability to conduct research in the authoritative literature using the FARS database.
4. Provide you with experience in resolving complex financial accounting and reporting issues through a research process that requires critical thinking and results in a well-supported position based on appropriate accounting standards.
Prerequisites, Competencies and Responsibilities:
It is assumed that you have satisfied the following minimum requirements:
1. Students enrolled in this course must have completed Accounting 315 (formerly Acct 301). This course cannot be taken concurrently with Accounting 315.
2. Students should have proficiency with PC or compatible word-processing and spreadsheet software, email and file transfer ability and Internet/WWW research skills. Students lacking these personal computer competencies will need to seek help from other students, helpdesk, accounting lab, etc.
3. Student should have a UI email account and have basic competency in sending and receiving email. Student should be able to access course web page.
You have other professional responsibilities which include attending class on-time and being prepared [having read all assigned material, completed (or at least attempted) all assignments], participating in class discussion of cases, raising questions about matters of interest or issues that you do not understand, and bringing all necessary materials with you to class (generally your laptop, calculator, etc. but not necessarily textbook).
Our accomplishments will be function of your enthusiasm and your efforts.
Course Materials
Required:
Intermediate Accounting, 11th Edition by Kieso, Weygandt & Warfield (Wiley, 2004). If you don’t already own this textbook, buy the new 12th edition instead!
FARS CD-ROM. You probably have the 2005 edition which should be adequate although the 2006 CD is preferred. If your CD is the 2004 edition, you should buy the latest version or sign up for the internet version:
Go to You may also buy a new CD for an academic price which is what I’d recommend since you can use it when you don’t have an internet connection. The bookstore should have a few or you can order at the wiley.com web site.
Recommended:
Financial Accounting: Exam Questions and Explanations, by Irvin N. Gleim and William A. Collins (Accounting Publications, Inc.) is a low cost means of reviewing and learning financial accounting in preparation for professional exams. You can get it with a CD that will “remember” which questions you’ve missed or marked for additional review.
Some students find the print-versions of GAAP useful, particularly FASB Accounting Standards, Current Text (Vol. 1 only). The complete set of material in print form is very expensive and bulky.
Examinations & Quiz Scores
You are expected to learn problem solving techniques, rules and facts related to the practice of accounting, and become familiar with pervasive concepts. Accordingly, exams will consist of multiple choice or other objective questions, plus short problems and/or essays. I often provide "free misses" on objective questions so you do not have to get them 100% correct to receive full credit. No make-up exams are given. An unexcused absence from an exam will result in a grade of ZERO. If you know you will need to miss an exam, you may be able to take the exam early.
Occasional quizzes may be administered. A missed quiz cannot be made up but I will drop at least the lowest fourth of the scores. Quiz scores will be combined with other homework assignments as shown in the grading table below.
Homework
Solutions to all exercises and problems for suggested homework out of the textbook will be made available through the accounting lab which is generally open Sunday-Thursday evenings. The solution manual can facilitate the learning process by allowing feedback for the assignments attempted. You should work through all of the homework assignments to gain mastery over the topics we will cover. It is a simple fact that your success in this course is highly correlated with your problem solving ability, your familiarity with the terminology, and your ability to communicate both effectively. If you don't work the problems when it doesn't count, you can't work them when it does! To encourage you to keep up, I will collect selected problems and have them graded as part of the 10% of your course grade related to quiz and homework.
Major assignments will include research cases using FARS, spreadsheet assignments and complex problems not included in textbook. Generally, the assignments will be posted on the schedule page on the course web site with a due date clearly indicated. You will be able to download (and print) the assignments.
ATTENDANCE and CLASSROOM DECORUM
Attending all classes will enhance your final score (unless you sleep through the lectures, of course!). I will circulate an attendance sheet for you to initial. I occasionally administer an “Attendance Quiz” scored 100 for those present or provide bonus points to those present. You are expected to arrive on time and to bring with you the necessary materials (calculator, laptop or printouts of assignments, etc.). I have worked hard to prepare the materials to enhance your learning and I expect you to pay courteous attention to the lectures. Talking with your neighbors is acceptable only when we are doing in-class exercises. Visiting with your neighbors is distracting to me and to the other students in class. Turn off your cell phone before class begins.
PREPARATION FOR CLASS
You should always read the assigned material before the class day that it is scheduled so that the lectures will be more meaningful. Occasionally, there may be a quiz at the beginning of the class designed to test whether or not you are keeping up with the reading assignments. In certain instances, I will ask you to complete an in-class exercise for the following class period. Please check the on-line schedule for changes in due dates.
GRADING
A letter grade will be determined based on the following:
Points / Percentage2 mid-term exams - in class / 400 / 40%
Spreadsheet and research projects, cases & other major assignments / 200 / 20%
Other homework (generally in textbook) and pop quizzes / 100 / 10%
Comprehensive Final Exam / 300 / 30%
Total / 1000 / 100%
The specific letter grade assigned will be based upon relative point standing at the end of the semester. The following represents a general guideline to the minimum required grade for the indicated level of performance regardless of relative standing. Instructor discretion, as always, governs determination of your final grade. For example, improving performance over the semester will be taken into consideration. Likewise, a failing score on every exam would result in an F even if homework and projectgrades were satisfactory to good.
Letter Grade / PercentageA / 90% or higher
B / 80 to 89%
C / 70 to 79%
D / 60 to 69%
F / less than 60%
Individual vs. Group Projects
For some assignments, you will be expected to work outside of class in small groups of two to four students. Such projects will receive a group grade. Each person on the team will receive the same grade for the project. For individual assignments, evidence of group work will be penalized -- the overall grade for the assignment will be divided equally among group members or, at my discretion, a zero score will be assigned to all individuals involved. If group work causes severe hardship for you, please come by and discuss with me during office hours.
CHANGES IN SCHEDULE
Check out the Acct414 homepage “announcements” page for changes in assignments, schedule and so forth. If your e-mail address is in the UI computer system, you should also receive periodic announcements from me about scheduled events, job interviews, and assignment changes or clarifications.
GENERAL OVERVIEW OF COURSE CONTENT
Present value topics
General review
Serial bonds
Troubled debt restructuring & loan impairment
Leases
Pensions
Other Topics
Accounting for income taxes
Earnings per share
Accounting changes
Full Disclosure
Revenue recognition
Statement of Cash Flows
Key for abbreviations on schedule
CN = Course Notes – generally Microsoft Word files
HO = handout (indicates homework provided by way of e-mail, web-site, or hard copy rather than something from the textbook)
TBA = to be announced and sent by email or posted on web page
XLS = Excel file
PPT = PowerPoint file
DOC = Microsoft Word file
Accounting 414, Fall 2006
Tentative Course Schedule
(subject to revision as needed – the official schedule is the one posted at
where you will also find necessary files, lecture slides, notes, etc.)
T
8/22 / 1 / Course Introduction
Time Value of Money
Accounting for bonds (review) / Familiarize yourself with course web page and read “submission protocol”
If you need a review of discounted cash flow analysis, read Ch 6 and/or“The Time Value of Money” by Jeff Harkins / PVExamples.doc HO
Problem sets 1 to 3 - attempt all parts. Check figures are provided at the end of file
Th
8/24 / 2 / Time Value of Money (continued) / Ch. 6
Get serial bond examples from web page / Go over Problem sets 1, 2 & 3
T
8/29 / 3 / Accounting for serial bonds
Loan Impairment and troubled debt restructuring / Ch 14 Appendix A (pp. 695-704)
CN – Troubled Debt Restructuring (doc) / Turn in HW #1 - PV problem sets 4-5
Practice problems from course notes on Troubled debt (solution in notes) and E14-26, E14-27, E14-28
Th
8/31 / 4 / Loan Impairment and troubled debt restructuring
Troubled Debt Examples (doc) / Ch 14 Appendix A (pp. 695-704)
CN – Troubled Debt Restructuring (doc) / HW#2 is due. We'll go over Serial Bond problems 1 & 2 during class. You may make corrections and turn in Serial Bond HW problems 3 & 4 no later than T 9/05
T
9/05 / 5 / Introduction to Accounting for Leases / Ch 21 – read chapter before class (at least pp. 1085-1098)
CN – Leases / Turn in Trouble Debt HW #3 – problems 1 & 2 (HO)
Practice Problems on leases: BE21-6, BE21-9,
E21-1, E21-2
Th
9/07 / 6 / Accounting for Leases / Ch 21 / Begin working on E21-4, E21-6, P21-2, Professional Simulations 1 & 2 (p. 1146-1147)
T
9/12 / 7 / Accounting for Leases / Ch 21 / Begin working on P21-4 and P21-5, P21-10
Th
9/14 / 8 / Advanced topics in lease classification / Distribute Lease amortization problem (Project 1). This project is due by email no later than 9 AM Monday Sept. 18 / HW #4 due C21-3, P21-2 & P21-4, P21-10
Date / Class / Topic / Reading Assignment / Homework Assignment
T
9/19 / 9 / Using FARS – techniques and tips / Distribute lease research project (Project 2) – you may work in groups of 2 students on this assignment. / Project #1 - Lease amortization & journal entries due (in Excel, submit via email following Submission Protocol directions): NO LATE ASSIGNMENTS ACCEPTED – individual work only
Th
9/21 / 10 / Revenue recognition / Ch. 18
Accounting for LT Construction Contracts - Notes (.doc) - about 3 pages / Begin work on E18-4, E18-7, E18-10, P18-2 and P18-6
T
9/26 / 11 / Revenue recognition
Introduction to revenue recognition case(s) which will be due AFTER first exam / Ch. 18 / Turn in P18-1, P18-2 and P18-6 no later than the beginning of Exam 1 next Tuesday. This will be HW#5
Th
9/28 / 12 / Go over lease research project during class as review for Exam 1 / Ch 21 / Lease research project #2 due at beginning of class (no late assignments accepted), You may work in groups of 2 students on this project.
T
10/03 / 13 / Exam 1 (200 points)
Exam will in regular classroom / Exam 1 covers present value, troubled debt, serial bonds, leases, and construction accounting / Turn in HW#5 if you haven’t already done so.
Th
10/05 / 14 / Introduction to Employee Stock-based compensation / Ch 16 (pp. 781-788 only) is OLD GAAP - Please refer to pages UP-8 thru UP-15 at front of book. If not there, you can down-load the update from the textbook web page: / Begin work on E16-10, E16-11, E16-12 and E1613
T
10/10 / 15 / Introduction to accounting for pensions
Pension present value example (one-person defined benefit pension plan) / Ch 20 will probably be obsolete due to issuance of new standard so don’t miss class! / Project #3 - Revenue recognition case(s) due (group project)
Practice problems BE20-1, BE20-2, E204
Th
10/12 / 16 / Accounting for Retirement Benefits / In Class Pension Examples Using Working paper approach / HW problems will be distributed since the ones in the book will be old GAAP
T
10/17 / 17 / Pensions and post-retirement benefits / Distribute Project #5 (prepare a footnote disclosure) / Project #4 - Turn in Pension accumulation & amortization schedules (you may work in groups of 2)
Date / Class / Topic / Reading Assignment / Homework Assignment
Th
10/19 / 18 / Accounting for Income Taxes
First Place Inc. Example / Ch 19 / Turn in pension homework problems (HO) today – this will be HW#6. Accepted through T 10/24 without late penalty
Begin work on E19-1, E19-2, E19-3, E19-14, E19-15, P19-3, P19-4
T
10/24 / 19 / Accounting for Income Taxes
Second Best Example / Ch. 19 / Begin work on P19-5, P19-8, and C19-3
Turn in pension accounting HW#6 if you haven’t already done so
Th
10/26 / 20 / Accounting for Income Taxes and FARS research
Distribute and discuss ARO case assignment / Ch 19
Project #7 (small group research case) / HW #7 due (P19-5, P19-7, P19-8, P19-9)
T
10/31 / 21 / Introduction to earnings per share / Ch 16 (pp. 788-803) / Project #5 due (pension footnote) – you may work in groups of 2 students
Begin work on E16-19, E16-22 and E16-23
Th
11/02 / 22 / Earnings per share / Ch 16 (pp. 788-803)
Distribute Research Project #6 (EPS) / Begin work on P16-5, P16-6 and P16-8
T
11/07 / 23 / Earnings per share / Ch 16 / Turn in HW #8 (E16-23, P16-5, P16-6 & P16-8)
Th
11/09 / 24 / Accounting Changes and Subsequent Events / Ch 22 (this chapter is also obsolete so read the material from Update 2 - p. UP26 - UP37). The new rules are in FASB No. 154
Ch. 24 (primarily pages 1272-1282) / Do assignments from the UPDATE material, not textbook: UE22-1, UE22-2, UE22-3, UP22-1
From Chapter 24: E24-1, E24-2, C24-1, C24-3, C24-4
T
11/14 / 25 / Go over earnings per share project as review for exam / Ch 16 / Project #6 EPS due. You may work in groups of 2 people
Th
11/16 / 26 / EXAM / Covers material since Exam 1 (pensions, deferred taxes, earnings per share and accounting changes & full disclosure) / Professor out of town – exam will be proctored by grad student
T 11/21 / Fall Recess
Th 11/23 / Fall Recess
Date / Class / Topic / Reading Assignment / Homework Assignment
T
11/28 / 27 / Introduction/Review of Statement of Cash Flows
Palouse Pottery and Moscow Moving & Storage examples / Ch 23 / Project #7 due (ARO case, group assignment)
Begin work on E23-9, E23-11, E23-12 and/or the Ulliman and Driskoll practice problems
Th
11/30 / 28 / Statement of cash flows
Avery Slings and Arrows example / Ch 23 / Begin work on P23-2 and P23-4 and/or Wenatchee Whirlpool World example (the one with the most complete explanations in the solution)
T
12/05 / 29 / Statement of cash flows
Orofino Outfitters Example
In-class practice SCF exam / Ch 23
HW #9 Camperdown Co (SCF problem) / Project #8Endicott Engines (SCF problem) is an individual assignment. Work paper must be handwritten (but SCF may be typed)
Th
12/07 / 30 / Statement of cash flows
In class practice SCF exam / Ch 23
HW #9 Camperdown Co (SCF problem) / HW #9 due today – I recommend doing it by hand on paper as practice for final exam
Tuesday
12/12 / Final Exam (comprehensive) / Regular classroom at 7:30 to 9:30 AM / Project #8 accepted through beginning of final exam