BSAD 161 Intermediate Accounting I FALL 2015

Transcription

1 BSAD 161 Intermediate Accounting I FALL 2015 Instructor: Susan B. Hughes, Ph.D., CPA Office: 314 Kalkin Hall Office Hours: Monday 1:30 3:00; Wednesday 2:00 3:00 and by appointment Phone: [email protected] Materials: Things you need to acquire: Texts: Intermediate Accounting. Kieso, Weygandt and Warfield (Wiley, 15 th edition, with access to WileyPlus). Available at the Bookstore. Access to: class URL: News: The Wall Street Journal Purchase at wsj.com/class Instructor: Susan Hughes Ancillary: Academic Accounting Access to the FASB and GASB accounting standards: aaahq.org/asclogin.cfm. Username AAA51391 Password: Ne48GCY Access to Asscess to Inform (formerly PWCComperio). Available through library.uvm.edu. Find: Articles & More Article Databaase Browse by subject: Business Reference Sources Inform (formerly Comperio) Then use the following login info: user name: UVMACCT, Password GOCATS or UVMACCT1, Password GOCATS1) Prerequisites: BSAD 60, junior standing. The course meets the requirements of: The School of Business Global theme An Accounting Concentration An Accounting Minor And is helpful for those interested in learning more about financial reporting in the US and abroad; students entering the MAcc program Overview: Intermediate Accounting I reviews the structure of the accounting standards established by the U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). Although intended primarily for accounting majors, the course also benefits those pursuing a career in corporate finance or the securities industry. 1

2 The course concentrates on the basics of financial accounting and the composition and usefulness of the four basic financial statements. It uses a systems approach to address accounting and reporting issues in the sales cycle (revenue recognition, accounts receivable, including the allowance for doubtful accounts, notes receivable, cash receipts, and accruals), the purchase cycle (inventory, noncurrent assets, accounts payable, cash disbursements, depreciation and impairments); and accounting for investment securities. As such, by the end of the course, you should have a good understanding of most asset accounts, and the accounts commonly included within current liabilities. You will also be able to identify when revenue should be recognized, when various expenses are incurred, and how these activities affect the Statement of Cash Flows. Both U.S. generally accepted accounting principles (GAAP) developed by the FASB and International Financial Reporting Standards (IFRS) developed by the IASB, will be covered in the course. Course Content: Overview of the FASB s and IASB s conceptual frameworks of financial reporting Time value of money Revenue recognition Properly account for items in the balance sheet, recognize relationships with income statement accounts: Cash Marketable securities Investments Accounts receivable Inventory Property, plant and equipment Intangible assets, including accounting for research and development and IPR&D Current liabilities and contingencies Fair value Preparing and interpreting the income statement Preparing and interpreting the balance sheet Preparing and interpreting the statement of cash flows Course Learning Objectives: Successful completion of the course should allow you to: Explain the need for generally accepted accounting principles; Identify steps in the accounting cycle; Record transactions in journals, post to general ledger accounts, and prepare a trial balance; Explain the objectives of financial reporting; Explain the significance of the FASB and IASB s Conceptual Framework projects; Describe the basic assumptions of accounting; Identify the timing of revenue recognition for simple and complex transactions; Explain why revenue recognition was a joint project of the FASB and IASB; Explain the purpose of notes that accompany the primary financial statements; 2

3 Differentiate cash from other assets; Identify different types of receivables; Identify when receivables must be discounted from their face value; Determine an appropriate allowance for doubtful accounts; Properly account for the assignment or sale of accounts receivable; Properly account for trading and available-for-sale equity securities; List the three major classes of inventory; Distinguish between perpetual and periodic inventory systems; Describe and differentiate inventory cost flow assumptions; Explain the significance of a LIFO reserve and the impact of LIFO liquidations; Understand the implications of LIFO for global companies; Be able to determine if inventory is impaired; List different types of current liabilities; Appropriately value accrued liabilities; Explain the treatment of contingent liabilities; Explain and provide one recent example of the concept of cookie-jar reserves ; Describe which intangible assets are included in the balance sheet, which are expensed; Differentiate when intangible assets are amortized or tested for impairment; Compute goodwill; Test goodwill for impairment; Identify the costs included in the acquisition of property, plant and equipment; Account for the disposal of property, plant and equipment; Explain the concept of depreciation; Compute straight-line and accelerated depreciation expense; Identify the need to test fixed assets for impairment; and Differentiate the use of historic cost and fair value within all aspects of financial reporting. Prepare a multi-step income statement; Explain the uses and limitations of an income statement; Prepare a classified balance sheet; Explain the role of other comprehensive income; Explain the uses and limitations of a balance sheet; Prepare the net cash flows from operating activities using the direct and indirect methods; Describe the purpose of the statement of cash flows; Differentiate net income and net cash flows from operating activities. Course Structure CAUTION! Intermediate Accounting is MUCH more difficult than BSAD60 and 61. We can discuss concepts in class, and we can work problems, but only you can actually learn the material. As in many other courses, much of the actual learning will occur on your own, outside of class. A good rule-of-thumb is that you should expect to work three to four hours outside of class for every hour of class time. To be prepared for class, you must read the chapter prior to the class period in which it will be discussed. The course material is challenging, you need to be familiar with the topics and standards prior to the class discussion. During class, we will discuss the major topics, work through some sample problems, and compare the US GAAP and IFRS treatments, 3

4 where applicable. Solutions to the assigned homework problems will be available through Blackboard only after the material is covered in class. It is your responsibility to make corrections to your homework. We will often talk about the business context of financial reporting. Accounting students often wonder if everything they need to know for the CPA exam will be included in the course. The straight answer is no. Some of the course content will be on the exam; some of it covers material that is not yet on the CPA exam. All of the content is selected because it will help you be a better accountant. When you get ready to sit for the CPA exam, you will use CPA exam prep materials that will fill in the content we just can t fit into a three hour course. GRADED COMPONENTS In-Class Quiz and Exams We have one in-class quiz and three in-class exams. There is a comprehensive final exam. The in-class quiz covers only Chapter 3, a review of material learned in BSAD 60. The three exams will occur during the regular class period and will consist of problems, short essay, and multiple-choice questions. 20% of the second and third exams will cover course content from the prior exam(s). The final exam will be given in our classroom on the scheduled date and time, as shown on the Registrar s homepage. Other than University excused absences, there are no make-up exams in this class. If you miss an exam, I will substitute your final exam score for that exam. If you miss more than one exam, you will receive a zero for each exam missed over one. The comprehensive final exam score will be substituted for your lowest exam score during the semester, assuming your final exam score is higher than the prior exam. Online Graded Homework You must have access to WileyPlus to complete the points allotted to online homework. Please register on the website, watch the tutorial, and prepare to complete the homework assignments included in your syllabus. Homework for each chapter is due no later than the beginning of a new chapter. All due dates are clearly shown on the syllabus. Professional Research (3) [Alone or with one partner. Pre-Macc students and those repeating the course are expected to complete the assignment alone.] Over the course of the semester you are expected to complete three professional research assignments. Your submission for each assignment should be in the form of a memorandum addressed to me from you. You have one page (single spaced, appropriate professional language, appropriately cited, no grammatical errors) in which to present your solution to the assignment. Your solution should be based upon professional guidance issued by the FASB or IASB, or both. All necessary professional guidance is available through the databases and websites listed on the first page of this syllabus. Your memorandum is due prior to the beginning of class on the date listed on the syllabus. Late assignments will not be accepted. 4

5 Current Events Discussion Board Assignments (4) You will be formed into Discussion Board groups for this assignment. This discussion forum will be an important part of your learning experience. Many students find that participating in discussions helps with not only understanding of the course content, but deepens their learning and ability to think critically. Keep your post focused on the topic, relating any class readings and materials from the current module in your post (as applicable). Proofread and review your response before hitting the submit button! Participate regularly. Improve your learning by being an active and engaged student. Successful students follow and participate in the assigned discussion throughout the module, logging on at least three times a week while reading and participating in forums as assigned in the module. Post your original thoughts within three days of the beginning of each discussion board to help develop discussion before the end of the assignment period. To contribute to the class discussion you must be familiar with what s going on in the business world. Read The Wall Street Journal each day. Some of the articles will deal with national and international news items. Some will report on corporate earnings, acquisitions and other aspects of accounting or finance. Some of the articles report on business activities and trends. For this Blackboard assignment you should focus on the latter: stories that focus on business activities and trends. I will start the thread for assignment 1. Each group will be provided with the content of an article I think is interesting from an accounting standpoint. That accounting tie will not be obvious in the article itself. It s up to each of you to read the article and provide linkages between what the article has to say and accounting or financial statement implications of the article. I look forward to seeing your group more fully develop the linkages as you participate in the discussion. For assignments 2 4, each group member will have to identify a different article, provide its citation (for example, WSJ, October 3, page 3), and explain the content of the article in one sentence. You should then go on to explain the linkage to accounting. As each of you will need to provide a different article, you will have lots to discuss. GRAMMAR AND SPELLING ARE IMPORTANT COMPONENTS OF YOUR GRADE. PLEASE BE SURE TO PROOFREAD YOUR POSTS. Rubric/Scoring 5: The author explores several aspects of the material and makes connections. The writing includes specific examples, reflective thought and insights about the topics. The writer responds to other posts over the course of the week with constructive feedback and/or a connection or illustration while facilitating the discussion on their thread. 4: The writing includes adequate development and one or two specific examples. The writer acknowledges 2-3 ideas posted by others. 5

6 3: The writing has only superficial summaries with 1 example and responds to one other writer. 2: The writing does not relate to the reading or prompt. 1: The writing is haphazard and unfocused. Gleim Assessment Quizzes The syllabus lists Gleim Assessment Quizzes at the end of some chapter(s). These quizzes are only available through the Gleim website. Each quiz becomes available at 11 pm on the Saturday prior to the quiz due date. The quiz window closes at 11:59 pm on the due date. Each quiz contains from 6 to 10 questions that have appeared on past CPA exams. You will have 40 minutes to complete each quiz. If you leave your computer during the 40 minutes the time will expire and you will not be able to complete the quiz. Please use your time wisely. After 11:59 pm on the due date you can revisit the website and review the quiz. You are expected to complete each quiz on your own. Grading: Your course grade will be determined as follows: Percentage Assignment of Total In class quiz (Chapter 3) 50 Term Exams (3 x 110) 330 Comprehensive Final 200 Online Homework 100 Gleim Assessment Quizzes 80 Professional Research (3) 160 Current events discussion boards 80 Grades will be assigned on no less than the following basis: A A A B B B C C C D D D ,000 Academic Honesty The principal objective of the policy on academic honesty is to promote an intellectual climate and support the academic integrity of the University of Vermont. Academic dishonesty or an offense against academic honesty includes acts that may subvert or compromise the integrity of the educational process. Such acts are serious offenses that insult the integrity of the entire academic community. 6

7 Offenses against academic honesty are any acts that would have the effect of unfairly promoting or enhancing one s academic standing within the entire community of learners which includes, but is not limited to, the faculty and students of the University of Vermont. Academic dishonesty includes knowingly permitting or assisting any person in the committing of an act of academic dishonesty. The policy distinguishes between minor and major offenses. Offenses purely technical in nature or in which the instructor does not perceive intent to achieve advantage are deemed minor and handled by the instructor. Major offenses are those in which intent to achieve an academic advantage is perceived. A full statement of the policy can be found in the Cat s Tale. Each student is responsible for knowing and observing this policy. Classroom Code of Conduct Faculty and students will at all times conduct themselves in a manner that serves to maintain, promote, and enhance the high quality academic environment befitting the University of Vermont. To this end, it is expected that all members of the learning community will adhere to the following guidelines: 1. Faculty and students will attend all regularly scheduled classes, excpt for those occasions warranting an excused absence under the policy detailed in the catalogue (e.g., religious, athletic, medical). 2. Students and faculty will arrive prepared for class and on time, and they will remain in class until the class is dismissed. 3. Faculty and students will treat all members of the learning community with respect. Toward this end, they will promote academic discourse and the free exchange of ideas by listening with civil attention to the comments made by all individuals. 4. Students and faculty will maintain an appropriate academic climate by refraining from all actions which disrupt the learning environment (e.g., making noise, ostentatiously not paying attention, and leaving and reentering the classroom inappropriately). Instructors will inform students of any special/additional expectations. Religious Holidays: Students have the right to practice the religion of their choice. Each semester students should submit in writing to their instructors by the end of the second full week of classes their documented religious holiday schedule for the semester. Faculty must permit students who miss work for the purpose of religious observance to make up this work. 7

8 Tentative Class Schedule and Assignments. All assignments are subject to change. Date Class Topic Homework Assignment * (each assignment is due on the date indicated) Part 1: The Accounting System and Sales Cycle M 8/31 Introduction to the course and the accounting profession W 9/2 Ch. 3: The Accounting Information System: Review of debits, credits, journal entries and adjusting entries M 9/7 LABOR DAY HOLIDAY TUES 9/8 WileyPlus Assignments due 11:59 pm BE3-1, 9 E1, 3, 5 W 9/9 Complete Ch. 3 IFRS Insight p. 155 THURS VISIT THE ACCOUNTING AND 9/10 FINANCE CAREER FAIR TODAY SAT 9/12 WileyPlus Assignments due 11:59 pm P3-5 M 9/14 Quiz on chapter 3 (40 minutes) Ch. 2: The Conceptual Framework (35 minutes) Rosh Hashanah WED 9/16 WileyPlus Assignments due 11:59 pm BE2-1, 2, 6 W 9/16 Complete Chapter 2 Ch. 6: Time Value of Money Transaction entries E3-17 Adjusting entries E3-6, 10 Adjusting and closing entries P3-9 Worksheet P3-12 IFRS multiple choice #2-5 Usefulness and objectives E2-1, 2 Qualitative characteristics E2-4 Elements of financial statements E2-5 Assumptions E2-6 Ch. 7: Notes receivable E18, P9 DISCUSSION BOARD 1 OPENS Gleim assessment quiz Chapter 2 opens at 5:00 9/16 and closes at 11:59 pm 9/19 SAT 9/19 WileyPlus Assignments due 11:59 pm E6-5, 13 M 9/21 Ch. 7: Cash and Accounts Receivable including Appendix 7A Cash Controls Bad debts and allowance for doubtful accounts E7-11, P7-4, 5 WED WileyPlus Assignments due 11:59 pm E7-1, 19, P7-2 9/23 W 9/23 Chapter 7: Concluded Yom Kippur Assignment and sale of accounts receivable E7-13, 16, 17, P11 Impairment E7-26 Bank reconciliations P7-13 * BE = Brief Exercise, E = Exercise, CA = Concepts for Analysis, P= Problem 8

9 Date Class Topic Homework Assignment * (each assignment is due on the date indicated) SAT 9/26 WileyPlus assignments due 11:59 pm E7-25, E7-15 DISCUSSION BOARD 1 CLOSES M 9/28 EXAM 1 W 9/30 Ch. 18: Revenue Recognition Basics: BE18-1, 3, 5; Contract modifications: E18-4 Right of return E18-5 SAT 10/3 WileyPlus Assignments due 11:59 pm BE18-2, 4, 6 E18-6 M 10/5 Ch. 18 Revenue, cont. Allocate contract price: E18-13 Bill and hold: E18-18 Consignment: E18-19 WED WileyPlus Assignments due 11:59 E18-10, 11 10/7 W 10/7 Ch. 17: Investments in Equity Securities HANDOUT HANDOUT Ch. 17: P6 Gleim assessment quiz Chapters 17&18 opens at 5:00 pm on 10/7 and closes at 11:59 pm on 10/10 SAT WileyPlus Assignments due 11:59 pm BE17-8, E1, 9, 13 10/10 Part 2: The Purchase Cycle M 10/12 Ch. 8: Inventories I Inventory errors E8-5, 11, P2 WED 10/14 WileyPlus Assignments due 11:59 pm E8-4 RESEARCH ASSIGNMENT 1 DUE 10/14 Ch. 8: Inventories, cont. Ch. 8: Inventory valuation E8-15, 21, Ch. 9: Inventories II Ch. 9: Research: US GAAP LCM Lower of cost or market E9-3 IFRS Insight p IFRS LCNRV IFRS 9-6 Gross profit method E9-12 Retail sales method E9-20 DISCUSSION BOARD 2 OPENS Gleim assessment quiz on chap. 8 and 9 opens at 5:00 pm 10/14 and closes at 11:59 pm 10/17 SAT 10/17 WileyPlus Assignments due 11:59 pm E8-16 E9-5, 7, P7 * BE = Brief Exercise, E = Exercise, CA = Concepts for Analysis, P= Problem 9

10 Date Class Topic Homework Assignment * (each assignment is due on the date indicated) M 10/19 Ch. 13: Current Liabilities IFRS Insights p , stop at Onerous Contracts Classification E3, IFRS 13-7 Warranties E10, 11, IFRS 13-9 Premiums E15 WED WileyPlus Assignments due 11:59 pm E13-4, 12 10/21 W 10/21 Complete Chapter 13 Asset recovery obligations E14, handout Contingencies CA13-6 Ratios E18 DISCUSSION BOARD 2 CLOSES Gleim assessment quiz on Chapter 13 opens at 5:00 pm 10/21 and closes at 11:59 pm 10/24 SAT 10/24 M 10/26 Exam 2 WileyPlus Assignments due 11:59 pm E13-16 Part 4: Long-term Assets W 10/28 Ch. 10: Fixed Assets I Acquisition costs E1 Zero interest notes payable E14 Capitalized interest E7, 9, 10 SAT WileyPlus Assignments due 11:59 pm E10-5, 8 10/31 M 11/2 Ch. 10 cont. Subsequent expenditures E21 Nonmonetary transactions E18, 19 RESEARCH ASSIGNMENT 2 DUE WED WileyPlus Assignments due 11:59 pm E10-23, 20 11/4 W 11/4 Fair Value HANDOUT IFRS Insights p Asset impairment P11-9 IFRS 11-9, 11, 12 DISCUSSION BOARD 3 OPENS SAT WileyPlus Assignments due 11:59 pm E11-16, 17 11/7 M 11/9 Ch. 10: Fixed Assets I, cont. Subsequent expenditures E21 WED 11/11 Nonmonetary transactions E18, 19 WileyPlus Assignments due 11:59 pm E11-1 * BE = Brief Exercise, E = Exercise, CA = Concepts for Analysis, P= Problem 10

11 Date Class Topic Homework Assignment * (each assignment is due on the date indicated) W 11/11 Ch. 12: Intangible Assets IFRS Insights p Amortization: E9 Research & development: E17 Impairment: E14, IFRS 12-8 Goodwill: E12, 15, P5, IFRS DISCUSSION BOARD 3 CLOSES Gleim assessment quiz on Chapter 12 opens at 5:00 pm 11/11 and closes at 11:59 pm 11/14 SAT 11/14 WileyPlus Assignments due 11:59 pm E12-4, 13, 16 Part 5: Financial Statements M 11/16 Ch. 4: Income Statement Research: US GAAP extraordinary items IFRS Insights p Multi-Step Income Statement:E4-6, 11 Change in principle: E4-14 Comprehensive income: E4-15 EPS: E4-10 WED WileyPlus Assignments due 3:00 pm E4-8, 13, 16 11/18 W EXAM 3 11/18 11/21- THANKSGIVING BREAK 11/29 M 11/30 Ch. 5: Balance Sheet Classification of accounts: E3 Current assets and liabilities: E7, 10 WED WileyPlus Assignments due 11:59 pm E5-2, 4, 11, P2 12/2 W 12/2 Ch. 5: Statement of Cash Flows Part 1 Statement of cash flows: E5-13, 14, 16 RESEARCH ASSIGNMENT 3 DUE DISCUSSION BOARD 4 OPENS M 12/7 Statement of Cash Flows Part 2 IFRS Insights p Statement of cash flows: CA5 IFRS 5-5 W 12/9 Catch-up, Wrap-up, review for final exam DISCUSSION BOARD 4 CLOSES Gleim assessment quiz on Chapter 5 opens at 5:00 pm 12/9 and closes at 11:59 pm 12/12 SAT WileyPlus Assignments due 11:59pm E5-15, 17, 18 12/12 12/14, 10:30 AM 1:15 PM MONDAY FINAL EXAM 001 KALKIN HALL There is no alternate time to take this exam. Please plan accordingly. * BE = Brief Exercise, E = Exercise, CA = Concepts for Analysis, P= Problem 11

12 September 2015 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 31 Class Starts Labor Day 8 WP Ch. 3 due 11:59pm 9 10 Acct & Fin. Career Fair WP Ch. 3 due 11:59pm WP Ch. 2 due Gleim available DB 1 open Gleim closes WP Ch WP Ch. 7 due WP Ch. 7 DB 1 closes Exam

13 October 2015 Sunday Monday Tuesday Wednesday Thursday Friday Saturday WP Ch WP Ch. 18 Gleim opens WP Ch. 17 Gleim closes Columbus Day WP Ch. 8 RA 1 due Gleim opens DB 2 opens WP Ch. 8&9 due Gleim closes WP Ch. 13 Gleim opens DB 2 closes WP Ch. 13 due Gleim due Exam WP Ch. 10 due Halloween

14 November 2015 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 RA 2 due 3 4 WP Ch. 10 due DB 3 opens WP Ch. 11 due WP Ch. 11 due DB 3 closes Gleim opens Veterans Day WP Ch. 4 due Exam Gleim closes WP Ch. 12 due Break Thanksgiving Day

15 December 2015 Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1 2 WP Ch. 5 due DB 4 opens RA 3 due Gleim opens DB 4 closes Gleim closes WP Ch. 5 due Final Exam 10:30 am 001 Kalkin Hall Christmas 26

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