AC 430 Financial Accounting III Department of Accounting and Finance School of Business University of Alabama at Birmingham Fall 2013

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1 AC 430 Financial Accounting III Department of Accounting and Finance School of Business University of Alabama at Birmingham Fall 2013 Class: Monday 4:30pm-7:00pm; BEC 315 Instructor: Dr. Terry Grant, Ph.D., CPA Office: BEC 307C Office hours: Office phone: Monday 1:00pm-4:30pm, Tuesday 10:45am-12:00, Wednesday 10:00am-11:15, and by appointment REQUIRED TEXTBOOK Intermediate Accounting, Kieso, Weygandt, Warfield, 14 th edition, John Wiley & Sons, ISBN-13: COURSE PREREQUISITES AC 310 with a grade of C or better. WITHDRAWALS Students choosing to withdraw from this course are responsible for doing so according to University procedures and deadlines. Withdrawal from the course without following appropriate procedures will result in an F for the course. The drop date is determined by UAB not the instructor. COURSE EXPECTATIONS Some course material is rigorous. Academic success can be achieved through careful reading of the text, regular class attendance, studying PowerPoint slides, and diligent completion of homework assignments. I will strive to explain the material in an understandable fashion. As a general guideline, students should expect to spend an average of two to three hours preparation time for every hour spent in class. Therefore, this 3-hour class should require an average of 6-9 hours per week, excluding class time. Some students may benefit from study groups. However, all students should individually work homework assignments as these will help you prepare for exams. COURSE OBJECTIVES & LEARNING OUTCOMES Students will demonstrate their understanding of complex financial reporting topics including dilutive securities and earnings per share, investments, revenue recognition, income taxes, accounting changes and error analysis, pensions, leases, the statement of cash flows, and the FASB s Accounting Standards Codification (ASC). Mastery of these topics is crucial to the

2 understanding of contemporary financial reporting and in preparation for the CPA exam. ACCOUNTING STANDARDS CODIFICATION (ASC) Students will access the ASC and work assigned ASC Learning Guide Exercises. The FASB s Codification can be accessed at: UAB Student Access to the Codification (all students use the same login information). Note that the username and password is case sensitive. Username: AAA51256 Password: 8yZzvFH Starting September 3, 2013, the username and password will change to the following: Username: AAA51256 Password: BDWHapF AC 430 GRADING Exams 30%) 90% Attendance/Participation 10% Total 100% AC 530 GRADING Exams 28%) 84% Financial Reporting Case 10% Attendance/Participation 6% Total 100% Course grades will be based on the following percentages: 90%-100% A 80%-89% B 70%-79% C 60%-69% D Below 60 F EXTRA CREDIT There will be no extra credit assignments. Please keep up with all assignments throughout the course to ensure you earn the grade you desire. 2

3 A grade of C or better is a passing grade for undergraduates at UAB. ATTENDANCE/PARTICIPATION Students are expected to attend all scheduled classes. Regular class attendance will make it much easier to master the material and prepare for exams. Class attendance will be taken at most, but not necessarily all, class meetings. TEXT MESSAGING Text messaging, ing, or other forms of electronic communication are NOT permissible during class. CELL PHONES Cellular telephones and similar devices should remain in the off or silent position throughout the entire class period! LAPTOP COMPUTERS Use of Laptop Computers is NOT permissible during class. Students are expected to bring hard copies of PowerPoint slides to class to facilitate note taking. EXAMINATIONS AC 430 will include two midterm exams as well as a non-comprehensive final exam. These exams will be equally weighted to determine course grades as explained above. There are no make-up exams unless you have a serious and compelling reason that was beyond your control for missing an exam. For example, a written physician s excuse indicating you were too ill to take the exam at its regularly scheduled time would qualify you for a make-up exam. If this occurs, you should also contact me as soon as possible via to indicate you will miss the exam and will provide me with a written physician s excuse. Unexcused missed exams will result in a grade of zero on that exam. Approved make-up exams will not be given during the semester. Instead, if a student misses an exam, and if a make-up exam is permitted, it will take the form of a comprehensive final exam in place of the non-comprehensive final exam that will be taken by students that sit for both midterm exams. A comprehensive final exam may be used to replace only one previously missed and excused exam. AC 530 ADDITIONAL ASSIGNMENTS In addition to the regular AC 430 assignments, AC 530 students will complete a financial reporting case study that requires use of the FASB Codification. Graduate students will be assigned to groups for this purpose. Graduate students will also present their answers to the class and explain their ASC research process regarding the ASC assigned lessons for September 9 th as indicated on the syllabus. Blackboard Learn 9.1

4 Students should become familiar with the Blackboard Learn 9.1 Student Support (Bb Learn) site to aid in resolving any issues they may encounter when using Bb Learn. An entire UAB Blackboard Student Support site is dedicated to help students succeed in the Blackboard Learn 9.1 (Bb Learn) environment. The site provides tutorials and other helpful information. Bb Learn can be accessed directly from UAB s main page. Open the Quick Links drop down menu located in the upper right corner of the page and select Blackboard. Your login ID and password are the same as your Blazer ID and password. Instructions for setting up your computer and tutorials are linked in the Getting Started module and Help link both provided on the Course Menu. If you are unable to access Bb Learn or experience technical issues, contact AskIT via at or call hours a day 7 days a week. Library Services All students, those on campus and at a distance, have access to the resources available at the UAB Libraries. Please visit the UAB Libraries web site for more information. School of Business/UAB Policies School of Business Policies 1. View the School of Business Professional Code of Online Conduct to learn about policies regarding conduct online. 2. View the School of Business Professional Code of Classroom Conduct if you will be attending class on campus to learn about policies regarding conduct in the classroom. UAB Policies The University of Alabama at Birmingham expects all members of its academic community to function according to the highest ethical and professional standards. Students, faculty, and the administration of the institution must be involved to ensure this quality of academic conduct. Academic misconduct undermines the purpose of education. Such behavior is a serious violation of the trust that must exist among faculty and students for a university to nurture intellectual growth and development. Academic misconduct can generally be defined as all acts of dishonesty in an academic or related matter. Academic dishonesty includes, but is not limited to, the following categories of behavior: Abetting is helping another student commit an act of academic dishonesty. Allowing someone to copy your quiz answers or use your work as their own are examples of abetting. Cheating is the unauthorized use or attempted use of unauthorized materials, information, study aids, the work of others, or computer-related information. Plagiarism means claiming as your own the ideas, words, data, computer programs, creative compositions, artwork, etc., done by someone else. Examples include improper citation of referenced works, the use of commercially available scholarly papers, failure to cite sources, or copying another person's ideas. 4

5 Fabrication means presenting falsified data, citations, or quotations as genuine. Misrepresentation is falsification, alteration, or the misstatement of the contents of documents, academic work, or other materials related to academic matters, including work substantially done for one class as work done for another without receiving prior approval from the instructor. For more information read the Undergraduate Student Handbook or the Graduate Student Handbook. Disability Support: All students with disabilities seeking reasonable accommodation must register with the Office of Disability Support Services, (voice), (TDD). Thereafter, the students are encouraged to schedule appointments with the professor to discuss reasonable accommodations requests verified by the Office of Disability Support Services. UAB Academic Honor Code The University of Alabama at Birmingham expects all members of its academic community to function according to the highest ethical and professional standards. All UAB students are expected to read and agree to the UAB Academic Honor Code. The Code represents a commitment to integrity in the academic community and respect for an individual s educational endeavors: I have read and, by choosing to become a member of the UAB academic community, accept the UAB Academic Honor Code. I understand that violation of this code will result in penalties as severe as expulsion from the University. I promise and confirm that I will not, at any time and under any circumstances, involve myself with abetting, cheating, plagiarism, fabrication, or misrepresentation while enrolled as a student at the University of Alabama at Birmingham. Code of Professional Classroom Conduct UAB School of Business The behavior expected in class is that exhibited by professionals in a business meeting. This is the official policy for classes in the UAB School of Business You are a student in a business class at the University of Alabama at Birmingham. The mission of the School of Business is to prepare graduates to be successfully employed as business professionals. To accomplish that mission, the faculty is committed to teaching you: 1. core knowledge of business functions and processes used by business professionals and 2. knowledge of behavioral expectations that the business world will have for you. To be successful in your career, whatever your chosen path, you should learn how to plan, organize and control some business or business-like operations. Additionally, you will have to know how to conduct yourself in professional settings. What you say, how you say it, how you dress, and how you present 5

6 yourself will all significantly affect your ability to secure employment as a professional and to succeed in your career. It is the faculty s goal and responsibility to help you understand both the concepts of business and the behavior that will help you to excel in your career. With these goals in mind, a Code of Professional Classroom Conduct that is consistent with workplace expectations has been adopted for School of Business classes. 1. ATTENDANCE & CONTRIBUTION a. Attend all class meetings. i. Class meetings are considered normal work assignments. Failure to attend class is equivalent to missing a day s work. ii. If you must miss class, inform your instructor in advance (or as soon as is practical) of the reason for your failure to meet your obligation. If you are ill, do not attend class, but inform your instructor. b. Be on time and don t expect to leave early. Showing up late to work and slipping away early are unacceptable workplace and business classroom behaviors. If you become ill or have a legitimate reason to leave class early, inform your instructor of the circumstances at an appropriate time. c. Be prepared and participate meaningfully in all class meetings. d. Be interested and be interesting to others in your class. Engage your instructor and peers in meaningful discussion of the class topics. In business meetings, participants must be engaged and make contributions. Placing your head on your desk and/or sleeping is not allowed. e. Come to class prepared to contribute meaningfully in discussions. Class assignments are akin to business work assignments. Failing to do assigned work is not acceptable. f. Ask questions to seek understanding and answer questions to the best of your ability. 2. DRESS CODE a. Neat and clean casual attire is expected. Dress for the occasion a business class. b. Casual caps or hats (such as baseball caps) are not to be worn inside of buildings or in business meetings. c. Shirts with vulgar or unprofessional language or visual images are inappropriate. Clothing that is suited for parties, sporting events and other social occasions may not be suited for business meetings. 3. CLASSROOM PARTICULARS a. Academic dishonesty will not be tolerated. University policy is clear. Undergraduate students see: n_degree.pdf (pp ). Graduate students see: (pp ). Students found guilty of academic misconduct will be subject to these prescribed policies, which can entail serious penalties, including dismissal from the University. b. Gum or tobacco use is not allowed in the classroom. c. Activities not related to the present class are not allowed (e.g., sleeping, reading, etc.). d. Turn all cell phones off. If you anticipate an emergency call, set the phone to vibrate. e. The use of cell phones for talking and/or text messaging in class is not allowed. f. Laptop computers and other electronic devices may be used but only to take notes or 6

7 actively participate in the classroom activities. Surfing the Internet, playing games and reviewing materials unrelated to your class are unprofessional and not allowed. g. Passing notes and whispering in class are inappropriate behaviors for a professional setting. h. Do not walk around during class. Avoid leaving the class for any reason. If you must depart, do so quietly and respectfully. If you believe that you will have difficulty fulfilling any of these expectations, please discuss your concerns with your instructor at the beginning of the semester. Special accommodations will be made if justified. Some instructors have more restrictive policies than those included in this Code. 7

8 Tentative Schedule AC 430 Financial Accounting III, Fall 2013 STUDENTS ARE RESPONSIBLE FOR ANY CHANGES ANNOUNCED IN CLASS Date Text (CE=Codification Exercises; BE=Brief Exercise; E=Exercise; P=Problem) Aug 26 Chapter 16 FASB Codification (ASC) Sep 2 Labor Day No Class Meeting Dilutive Securities and Earnings per Share FASB Codification Presentation Sep 9 Sep 16 Sep 23 Sep 30 Chapter 16 E: 3, 8, 11, 13, 15, 16, 26, 27, 28. (CE: 1, 2, 3, 4). Chapter 17 FASB Learning Guide Exercises: Lesson # 1, p. 1; Lesson # 2, p. 11; Problem 1, p. 21; Problems 1-2, p. 34; Lesson #5, Citing Codification Content, p. 44. Investments Chapter 17 BE: 1, 3, 4, 5, 6, 7, 8; E: 3, 5, 6, 9, 12; (CE: 1, 2, 3, 4). Chapter 18 Revenue Recognition Chapter 18 E: 2, 4, 5, 8, 9, 10, 12, 13, 19, 23. Review for Exam Exam 1 (Chapters 16, 17, 18 + FASB Codification) Oct 7 Chapter 19 Return Exam 1 Accounting for Income Taxes Oct 14 Chapter 19 E: 1, 4, 6, 9, 13, 14 Chapter 20 Accounting for Pensions & Postretirement Benefits Oct 21 Chapter 20 E: 2, 3, 4, 5, 6, 8, 12 (E8 Assumes that the 2011 beginning of the year balance of Accumulated OCI Gain/Loss = 0.) 8

9 Review for Exam 9

10 Tentative Schedule AC 430 Financial Accounting III, Fall 2013 STUDENTS ARE RESPONSIBLE FOR ANY CHANGES ANNOUNCED IN CLASS Date Text (CE=Codification Exercises; BE=Brief Exercise; E=Exercise; P=Problem) Oct 28 Exam 2 (Chapters 19-20) Nov 4 Chapter 21 Return Exam 2 Accounting for Leases Nov 11 Nov 18 Chapter 21 E: 1, 2, 3, 6, 7, 11, 14 Chapter 22 Chapter 22 E: 3, 4, 6, 9, 15, 20 Chapter 23 Accounting Changes & Error Analysis Statement of Cash Flows Nov 25 Fall Break No Class Meeting Dec 2 Dec 9 Mon Chapter 23 E: 1, 5, 6, 8, 11, 13, 14. (Note: The solution to P23-7 will be provided so students may work an additional problem on their own) Review for Final Exam Final Exam (4:15pm-6:45pm) (Chapters 21-23) 10

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