PBL: Accounting Analysis & Decision Making. Competency: Advanced Accounting

Transcription

1 Competency: Advanced Accounting 1. Describe historical trends in types of business combinations. 2. List the reasons why firms engage in business combinations, mergers, acquisitions, divestures, and liquidations. 3. Calculate the excess purchase price for stock or assets over the book value and the appropriate allocation of this difference to identifiable assets and goodwill. 4. Prepare the journal entries for acquiring firm under the fair value and equity methods. 5. Explain the concept of control as used in reference to consolidations. 6. Prepare the journal entries for the acquiring firm that has purchased control over another firm s assets under the purchase method. 7. Register journal entries on the parent s books and records to record an investment under the equity method. 8. Prepare consolidated financial statements as of the date of acquisition and for periods subsequent to the date of acquisition. 9. Explain how the impairment of goodwill is treated and what is done with any reduction in the value of goodwill. 10. Explain the characteristics of variable interest entities who must become part of a consolidated group, or whose relationship must be disclosed in financial statements of a controlled group. 11. Discuss the limitations of consolidated financial statements. 12. Create the eliminations for intercompany asset dispositions. 13. Create eliminations for consolidation when subsidiary issues new common stock or treats preferred stock as a debt equivalent. 14. Create eliminations for intercompany transactions arising when the parent purchases the bonds of the subsidiary. 15. Explain how distribution to a partner affects the value of his or her interest and the interests of other partners. 16. Demonstrate an understanding of the accounting techniques and methods associated with the formation and liquidation of partnerships. 17. Demonstrate an understanding of current GAAP related to Business Combinations and its relationship to present reporting practices. 18. List and describe common foreign currency transactions. 19. Apply the correct exchange rates in measuring or translating financial statement data from one currency to another. 20. Prepare and analyze accounts for importing and exporting transactions denominated in foreign currencies, as well as accounting for forward exchange contracts. Page 1

2 21. Compare the IASB and different standards as it relates to international financial reporting standards. 22. Conduct research using the FASB Codification database. Competency: Auditing 1. Define and contrast auditing, attestation, and assurance series. 2. List and describe the activities that auditors undertake before beginning an audit engagement. 3. Identify the procedures and sources of information auditors may use to obtain knowledge of a client s business and industry. 4. Distinguish between management s and auditor s responsibilities regarding an entity s internal control. 5. Explain the phases of an evaluation of control and risk assessment and the documentation and extent of audit work required. 6. Describe the approach used to examine major revenue and expense accounts. 7. Describe the finance and investment cycle, including typical source documents and controls. 8. Describe the production cycle, including typical source documents and controls. 9. Describe the acquisition and expenditure cycle, including typical source documents and controls. 10. Describe the revenue and collection cycle, including typical source documents and control procedures. 11. Define and explain the differences among several kinds of employee frauds that might occur in an entity. 12. List three general functions of the auditors report on an entity s financial statements. 13. Explain the significance of each of the paragraphs in the auditors standard report on an entity s financial statements. 14. Describe the basic principles of sampling, including the differences between statistical and non-statistical sampling and sampling and non-sampling risk. 15. Define and describe the five basic components of internal control and specify some of their characteristics. 16. Explain the importance of the completeness assertion for the audit of accounts payable and list some procedures for a search for unrecorded liabilities. 17. Describe some common errors and frauds in the acquisition and expenditure cycle and design some audit and investigation procedures for detecting them. 18. Describe the payroll cycle, including typical source documents and controls. 19. Summarize important communications made by auditors following completion of the audit and audit report release date. 20. Identify procedures performed by auditors to evaluate contingencies including the use of an attorney letter, during the completion of the audit. 21. Give examples of tests of controls over purchases of inventory and services. 22. Give examples of tests of controls over conversion of materials and labor in a production process. 23. List and describe the general and application controls in a computerized information system. 24. Name the various practice standards for internal, governmental, and independent auditors and public accounting firms and identify their sources. Page 2

3 Competency: Intermediate Accounting I & II 1. Discuss the conceptual framework underlying financial accounting. 2. Identify objectives of financial accounting. 3. Prepare reports in compliance with generally accepted accounting principles (GAAP). 4. Discuss the international movement towards one global set of financial statements under the International Financial Reporting Standards (IFRS) initiative. 5. Discuss and evaluate disclosure requirements for various balance sheet accounts. 6. Evaluate a statement of cash flows using both the direct and indirect methods. 7. Explain and evaluate the internal controls systems used to protect cash and receivables. 8. Explain and evaluate transactions about a company s operational assets including computing depreciation, depletion, and amortization using a variety of methods. 9. Discuss the recognition criteria for revenues, expenses, and gains and losses. 10. Define and discuss the three levels of the FASB s conceptual framework. 11. Discuss disclosure requirements for intangible assets. 12. Discuss disclosure requirements for property, plant, or equipment and the related depreciation charge. 13. Analyze complex transactions. 14. Prepare and analyze financial statements. 15. Measure and journalize transactions for intangible assets. 16. Calculate depletion of natural resources. 17. Calculate and journalize acquisition and depreciation of property, plant, and equipment. 18. Estimate the value of ending inventory using the gross profit and the retail methods. 19. Determine cost of merchandise inventory valuation, using current costing methods. 20. Define master budget and explain its major benefits to an organization. 21. Critique the master budget and its components. Page 3

4 Competency: Managerial & Cost Accounting 1. Define managerial accounting and related terms. 2. Distinguish between cost of merchandise sold and cost of goods sold. 3. Differentiate between job order and process accounting and give examples of items produced under each system. 4. Summarize the process of accounting for materials, including appropriate documentation, determination of material cost, and the journal entry to record the flow of materials into production. 5. Define factory overhead, explain the use of the factory overhead ledger, and list the major sources of charges to this account. 6. Identify and connect the controlling accounts and subsidiary ledgers normally used in job order cost accounting. 7. Record journal entries for the issuance of materials, factory labor, and factory overhead. 8. Prepare journal entries for goods completed and transferred to finished goods. 9. Prepare journal entries for the cost of goods sold. 10. Break down service departments and explain the allocation of service department costs to departmental factory overhead accounts. 11. Record journal entries for the allocation of service department costs. 12. List the elements which comprise processing costs. 13. Explain the calculation of the unit processing cost. 14. Summarize the concept of equivalent units. 15. Describe the four purposes for allocating costs to cost objects. 16. Record journal entries for the flow of factory costs between departments. 17. Record journal entries for the application of factory overhead and determine the amount and nature of the balances in departmental factory overhead accounts. 18. Record journal entries for routine business transactions related to manufacturing operations. 19. Prepare various budgets such as a sales budget, production budget, factory overhead budget, operating expenses budget, capital expenditures budget, and an inventory, purchases, and cost of goods sold budget. 20. State the primary reasons for using flexible budgets. 21. Describe the difference between a static budget and a flexible budget. 22. Explain the nature of capital investment analysis and how managers make decisions about capital investments. 23. Adapt the factors that complicate capital investment such as income tax, lease vs. buy, changes in price levels, and uncertainty. Page 4

5 Competency: Tax 10% 1. Identify the manner in which tax law is formulated. 2. Explain the influence of economic, social, equity, and political considerations on the development of the tax law. 3. Compare the taxation of individuals and corporations. 4. Identify fundamental considerations involved in tax planning and research tax laws and resources. 5. Discuss the tax rules and reporting process for corporations. 6. Explain the reason for the alternative minimum tax. 7. Identify the tax consequences of incorporating a business. 8. Summarize the role that earnings and profits play in determining the tax treatment of distributions and dividends for shareholders. 9. Distinguish between taxable and nontaxable stock dividends and stock rights. 10. Apply the fundamental concepts of consolidated tax returns. 11. Discuss governing principles and theories of partnership taxation. 12. Compute depreciation and depreciation recapture for pre-acrs, ACRS, and MACRS properties. 13. Identify differences in tax accounting methods and financial accounting methods. Page 5

6 References: Career Cluster Resources for Business, Management and Administration National Association of State Directors of Career Technical Education Consortium. Washington, DC. Career Cluster Resources for Finance National Association of State Directors of Career Technical Education Consortium. Washington, DC. Business Education Standards. National Business Education Association. Reston, VA. Intermediate Accounting I, II and II, Advanced Accounting, Accounting for Not-For-Profits, Audit & Attestation, Taxes I Course Descriptions, North Central College, Naperville, IL. Intermediate Accounting I & II Course Objectives, Thomas Edison State College, Trenton, NJ. Managerial Accounting Course Competencies, Technical College System of George, Atlanta, GA. Intermediate Accounting I Syllabus, Lone Star College, Montgomery, TX. Advanced Accounting Course Outline, Saint Leo University, Saint Leo, FL. Intermediate Accounting I and II, Advanced Accounting Course Guides. Siena College, Loudonville, NY. Intermediate Accounting I & II, Managerial Accounting, Advanced Accounting, Cost Accounting and Audit I Course Descriptions, Virginia Community College System, Richmond, VA. Federal Income Tax Accounting Course Syllabus, Oral Roberts University, Tulsa, OK. Internal Control and Auditing, Cost Accounting, and Government and Not-for-Profit Accounting Course Syllabuses, Austin Community College, Austin, TX. Managerial Accounting e-learning Course Outline, Jeter and Chaney. Advanced Accounting, 4 th Edition, John Wiley & Sons, NJ. Page 6