For students enrolled in or after 2015 For students enrolled in or before 2014 K1307. K0207 Introduction to Accounting. 2 credits Fall 2016

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1 For students enrolled in or after 2015 For students enrolled in or before 2014 K1307 K0207 Introduction to Accounting Introduction to Accounting INTRO TO ACCOUNTING INTRO ACCOUNTING 2 credits 2 credits Fall 2016 Fall 2016 INSTRUCTOR: Gustavo Tanaka Course Description With the growing complexity of business it has become essential that everyone who aspires to a position of responsibility should have some knowledge of the fundamental principles of accounting. This course presents the basic concepts and principles underlying the preparation and use of financial statements. Differences and similarities between Japanese GAAP, IFRS and US GAAP will be analyzed in every session. The first part discusses the context of accounting. The second part explains financial reporting issues, the third part teaches basic valuation and analysis skills. Course Objectives Upon successful completion of Introduction to Accounting, the student will be able to: Learn fundamental accounting concepts and principles and apply them in an international business context. Understand and analyze financial statements Course Requirements and Assignments a) Class Attendance and Participation: Students are expected to attend each class session. Chapters must be read before class. b) Case solution and presentation A case will be assigned to every group. Students may work in groups of no more than three students. c) Final Exam: The comprehensive exam would test the student s understanding of the course and analysis skills. Evaluation Criteria & Grading Grading for the course will be determined as follows: 1. Report submission and presentation 35% 2. Contributions to the class including class discussions, attendance 25% 3. Examination 40%

2 Course Materials (REQUIRED RESERVE READINGS) Text book: Weygandt, Kimmel, & Kieso. Financial Accounting IFRS Edition (2nd ed.). Wiley Textbook covers the basic material in the course. The lectures will cover the most important and difficult material in the textbook as well as some additional material unique to Japanese accounting. Reference books: Alexander & Nobes. Financial Accounting An International Introduction (5th ed.). Pearson Education Koga & Yao. Japan GAAP Guide (2nd ed.). CCH. 2011

3 Course Schedule: Week 1: Chapter 1 Accounting in Action Introduction. Business Ethics. Accounting: Definition. Generally Accepted Accounting Principles (GAAP). Assets, Liabilities and Owner s Equity. Japanese GAAP, IFRS, US GAAP Week 2: Chapter 2 The Recording Process. Usefulness and Characteristics of an Account. Illustration of Analyzing and Summarizing Transactions. Double-Entry Accounting System. Posting Journal Entries to Accounts. Trial Balance. Discovery and Corrections of Errors Week 3: Chapter 3 Adjusting the Accounts Nature of the Adjusting Process. Recording Adjusting Entries. Summary of Adjustment Process. Adjusted Trial Balance Week 4: Chapter 4 Completing the Accounting Cycle Flow of Accounting Information Financial Statements. Closing Entries. Accounting Cycle. Work Sheet. Sections of a classified statement of financial position Week 5: Chapter 5 Accounting for Merchandising Operations Nature of Merchandising Businesses. Financial Statements for a Merchandising Business Perpetual and Periodic Inventory Systems Sales and Purchase Transactions. Transportation Costs, Sales Taxes and Trade Discounts The Accounting Cycle for a Merchandising Business. Week 6: Chapter 7 Fraud, Internal Control, and Cash Internal Control Nature of Cash and the Importance of Controls over Cash. Control of Cash Receipts and Cash Payments Bank Accounts: Their Nature and Use as a Control over Cash Bank Reconciliation Petty Cash Presentation of Cash on the Balance Sheet. Week 7: Chapter 8 Accounting for Receivables Classification of Receivables Internal Control of Receivables Uncollectible Receivables Allowance Method of Accounting for Uncollectibles Direct Write-Off Method of Accounting for Uncollectibles Characteristics of Notes Receivable Accounting for Notes Receivables

4 Receivables on the Balance Sheet Week 8: Chapter 6 Inventories Inventory Cost Flow Assumptions Inventory Costing Methods under a Perpetual Inventory System Inventory Costing Methods under a Periodic Inventory System Comparing Inventory Costing Methods Valuation of Inventory at Other than Cost Effect of Inventory Errors on Financial Statements Presenting Merchandise Inventory on the Balance Sheet Week 9: Chapter 9 Plant Assets, Natural Resources, and Intangible Assets Nature of Fixed Assets Accounting for Depreciation Revaluation of plant assets Disposal of Fixed Assets Leasing Fixed Assets Natural Resources Intangible Assets Financial Reporting for Fixed Assets and Intangible Assets Week 10: Chapter 10 Liabilities The Nature of Current Liabilities Short-Term Notes Payable and Current Portion of Long-Term Debt Contingent Liabilities Payroll and Payroll Taxes Accounting Systems for Payroll and Payroll Taxes Employees Fringe Benefits Contingent Liabilities Financing Corporations Characteristics of Bonds Payable The Present-Value Concept and Bonds Payable Accounting for Bonds Payable Bond Redemption Balance Sheet Presentation of Bonds Week 11: Chapter 11 Corporations: Organizations, Share Transactions, Dividends, and Retained Earnings Nature of a Corporation Stockholders Equity Sources of Paid-In Capital Issuing Stock Treasury Stock Transactions Stock Splits Accounting for Dividends Reporting Stockholders Equity Week 12: Chapter 11 Corporations: Organizations, Share Transactions, Dividends, and Retained Earnings Nature of a Corporation Treasury Stock Transactions Stock Splits Accounting for Dividends Reporting Stockholders Equity Week 13: Final evaluation Week 14-15: Cases presentations

5 Note: This syllabus will be subject to changes and/or revisions