How To Understand The Financial Reporting Environment



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Course Outline 2015 ACCTG 102: ACCOUNTING CONCEPTS (15 POINTS) Semester 2 (1155) Course Prescription The course provides an introduction to basic principles and concepts of accounting that underlie the production of information for internal and external reporting. It also provides the technical platform for second year courses in financial and management accounting, finance, and accounting information systems. Programme and Course Advice Prerequisite: ACCTG 101 This course is a core subject for an accounting or finance major you cannot enrol in any second year accounting or finance course without first passing ACCTG 102. Goals of the Course The primary goal of this course is to help students understand and use the products of accounting information systems. The first step in achieving this goal is to introduce how accounting information is processed. Accounting information systems should provide decision makers, both inside and outside the firm, with information to make optimal choices. Learning Outcomes By the end of this course it is expected that the student will be able to: 1. Describe the financial reporting environment and generally accepted accounting practice, including the Conceptual Framework that supports that practice; and show how the definitions contained in the Framework are used to help record economic events. 2. Demonstrate an understanding of the double entry system, from identifying and recording economic events to adjusting the accounts at the end of a financial period, to producing a set of financial statements at the end of that period, to closing the books; in other words, to understand the accounting cycle. 3. Account for, report on, and analyse inventory. 4. Gain a basic understanding of how GST affects financial reporting. 5. Demonstrate a basic understanding of internal control, explain the financial reporting for cash, and prepare a bank reconciliation. 6. Account for, report on, and analyse receivables. 7. Account for, report on, and analyse property, plant & equipment and intangible assets. 8. Account for, report on, and analyse liabilities. 9. Account for, report on, and analyse equity. 10. Account for, report on, and analyse prior period errors and discontinued operations.

Content Outline Weeks 1 & 2 The Financial Reporting Environment Weeks 3, 4 & 5 The Accounting Cycle Weeks 5, 6 & 7 Inventory and GST Week 7 Internal Control, Cash, & Bank Reconciliations Week 8 Receivables Weeks 9 & 10 Property, Plant, & Equipment and Intangible ets Weeks 10 & 11 Liabilities Week 12 Equity, Prior Period Errors, and Discontinued Operations Inclusive Learning Students are urged to discuss privately any impairment-related requirements face-toface and/or in written form with the course coordinator. Student Feedback A review of student feedback suggests no endemic course problems need to be addressed. Learning and Teaching There are three contact hours each week. The first two hours are lectures (large plenary theatres), and the third hour is a smaller lecture/tutorial. There is no fourth hour. It is essential for your learning that you: a) prepare for lectures by reading the assigned material and working through the lecture problems and filling in the blanks (on the power-point slides), and b) prepare for the tutorials by working through the designated tutorial exercises and problems, and c) complete all assignments. Teaching Staff Course co-ordinator and lecturer Glenn Rechtschaffen Office: OGGB 5.101 Phone: 373 7599 Ext. 87180 E-mail: g.rechtschaffen@auckland.ac.nz Tutors To be announced on CECIL. Learning Resources Textbook Weygandt, et.al., Financial Accounting, IFRS edition (Wiley, 2011). An e-book version of the textbook can also be purchased at a price much lower than the hardcopy price. Please see the file in the Information Folder on Cecil for more information. Walk-in Help Centre If you have any questions, the walk-in help centre is available. Location and times will be announced on Cecil. 2

CECIL You may access CECIL to view announcements, view your coursework marks, download instructional materials, and access lecture recordings. Instructional materials include solutions to lecture, tutorial, and assignment problems, old tests and exams and their solutions, and forms for working certain assignment problems. If you need help with CECIL, you have three options: 1/ by website www.cecil.auckland.ac.nz/studenthelp/ 2/ by e-mail-- cecilhelp@auckland.ac.nz 3/ by visiting Digital Services Helpdesk at OGGB 038. essment Your final grade will be determined as follows: Course work ignments (10) 15% Mid-Semester Test 25% Final Examination 60% Weighting As part of the requirements to pass, you must score at least 50% on the final examination. We wish to encourage maximum effort throughout the semester; therefore, there is no formal plussage. The broad relationship between the above assessments and the course learning outcomes is as follows: L.O. 1 2 3 4 5 6 7 8 9 10 Test Exam 1 X X X X X X X X X X X X 2 X X X X X X X X X X 3 X X X X 4 X X X 5 X X 6 X X 7 X X X 8 X X X 9 X 10 X 3

Part B Content Outline and Readings Week Topic Beginning 20 July Financial Reporting Environment Weekly Chapter Reading 1 & Appendix (skip pages 12-13); PDF file on Cecil (pages 30-40) 27 July Financial Reporting Environment 1 & Appendix (skip pages 12-13); PDF file on Cecil (pages 30-40) 3 August The Accounting Cycle 2 10 August The Accounting Cycle 3 & Appendix 17 August The Accounting Cycle; Inventories 4 (pages 154-170) & 5 24 August Inventories; GST 5, 6 & Appendix 6A 31 August Mid-Semester Break 14 Sept Inventories; Fraud, Internal Control & Cash; Semester Test on Sept 16 6 & 7 (pages 296-308 & 313-324) 21 Sept Receivables 8 28 Sept Property, Plant & Equipment; Intangible ets 9 & Appendix (skip pages 404-405) 5 Oct PP&E; Intangible ets; Liabilities 9 & Appendix (skip pages 404-405); 10 & Appendix F (pages F1-F3) 12 Oct Liabilities 10 & Appendices 10A & 10B 19 Oct Equity; Prior Period Errors; Discontinued Operations 11** & Appendix 11A; 14 (pages 680-682) **You are not responsible for par or no-par at stated value share issuances. ume all share issuances are at no-par. Tutorial Preparation and ignments For your tutorial, you are responsible for preparing the tutorial problems listed on Cecil. You will be called on to contribute to the class discussion, so prepare for tutorials by working through the required material. Do not come to tutorials unprepared, and please bring your textbook and/or the copied problems with you. Your solutions to the tutorial problems will not be collected. There are 11 tutorials, the first one beginning in week one. There are ten assignments, only available on Cecil, and your tutor will collect your completed assignment at the end of the applicable tutorial. Note that the first assignment is due at the end of the second tutorial in week two. ignments will not be discussed in class because of time constraints; however, assignment and tutorial solutions will be posted on CECIL each Friday at 5 PM for that week s material. ignments will be returned the following tutorial, and assignment marks will be visible at 5 PM on the Friday of the week assignments are returned. Please follow the assignment rules. 4

ignment Rules: 1) Solutions to the assignments must be stapled and turned in to your tutor at the end of your assigned tutorial. ignments that are not stapled will lose ½ mark. Cover sheets are optional. 2) You must have attended your assigned tutorial and arrived on time in order to turn in your assignment. In other words, tutors have been instructed not to accept assignments from students that arrive too late or at the end of tutorial just to turn in an assignment. 3) No late assignments will be accepted, and tutors will not mark assignments from students not in their designated tutorial. 4) ignments may be handwritten or typed. You may use pre-printed journal and ledger forms (on CECIL). 5) There are very few excuses for missing a tutorial. These include illness, funerals, jury duty, and university related athletics. If you have an excused absence, you must contact your tutor and submit your assignment to your tutor before the absence. Also, written evidence, such as a doctor s note, must be provided to your tutor or the assignment will not be marked. Week Tutorial Preparation and ignment Table Beginning Tutorial Preparation* ignments* 20 July Problems for Tutorial 1 27 July Problems for Tutorial 2 One 3 August 10 August 17 August Problems for Tutorial 3 Problems for Tutorial 4 Problems for Tutorial 5 5 Two Three Four 24 August Problems for Tutorial 6 Five 31 August Semester Break 14 Sept 21 Sept 28 Sept 5 Oct 12 Oct 19 Oct No tutorials; Semester Test Problems for Tutorial 7 Problems for Tutorial 8 Problems for Tutorial 9 Problems for Tutorial 10 Problems for Tutorial 11 *All tutorial and assignment problems are listed on Cecil. NONE DUE Six Seven Eight Nine ignment Grading: All assignments can be answered by diligently studying the textbook and materials covered in lecture and tutorials. You should always review the solutions which are available on CECIL, even if you received full marks on the assignment, because by doing this you will be able to determine your mistakes and problem areas. Five of the assignments are worth one mark each (non-bolded, above), and five are worth two marks each (bolded, above). An assignment worth one mark will receive a 0, 0.5, or 1, and an assignment worth two marks will receive a 0, 1, or 2, according to the following criteria: Ten

Full marks: at least 80% correct and reasonable. Half marks: at least 50% correct and reasonable. No marks: less than 50% correct and reasonable. Tutors will subjectively determine what constitutes the applicable correct and reasonable percentage. Not only incompleteness and quantity of mistakes are relevant to this determination, but also the nature of the mistakes made. Some errors are worse than others. For example, as an accounting major, misspelling receivable is shocking and unacceptable. This alone could cost you ½ of a mark. Here is another example: whereas reversing debits and credits may be careless in week three, it is shocking in week eight. Seek help if you are having trouble! E-mail policy E-mail queries should only be used for questions that require a simple reply. You may be asked to go to Help Centre/office hours for an answer. Your email will not be answered if: (i) the answer can be found in this course outline, (ii) the information has been announced or otherwise is provided on Cecil, or (iii) your name and net ID is not included within your email. Mid-semester test The mid-semester test, date to be announced, will start at 6:30 PM, be an hour and 30 minutes long, and will cover Chapters 1-5, including the lecture material on GST. Regarding ratios, no formulae sheet will be provided. The venues for the test will be announced and posted on CECIL. Where necessary, an application for aegrotat or compassionate consideration should be made to Registry (through Student Health or Counselling Services) within one week of the test. Occasionally students can have a clash between the time of a mid-semester test in this course and with a mid-semester test for another course they are taking. In that situation, the student must notify the course co-ordinator at least five whole working days prior to the date on which the test is scheduled to enable alternative arrangements to be made. Failure to do so may result in the student being unable to take the test. Checking your grades You should check your assignment and test marks against CECIL. Contact: 1) Your tutor for questions on assignment marks. Tutorial streams, assigned tutors, and tutor contact information will be posted on Cecil in Week 1. 2) The course coordinator for questions on test marks. If you dispute a mark, you must contact the appropriate individual within one week of the mark being posted on CECIL, or the mark will stand. ignment marks will be posted at 5 PM on the Friday of the week after the assignment was due. Final examination The final examination will be three hours long and comprehensive. As part of the requirements to pass this course, you must score at least 50% on the final examination. 6

Important Note on Cheating on ignments The University of Auckland will not tolerate cheating, or assisting others to cheat, and views cheating in coursework as a serious academic matter. The work that a student submits for grading must be the student's own work, reflecting his or her learning. The first time you are caught cheating, which includes copying solutions or another student s work, you will receive a 0 for that assignment, and your name will be placed on a cheaters list maintained by the Accounting & Finance Department. If you are caught cheating again, you will receive a 0 for all 15 assignment marks, and further action may be taken against you. He Tuākana Programme What is He Tuākana Programme? He Tuākana is a student centred programme designed to help Māori and Pacific students enrolled in the Business School. Its aim is to help our students succeed academically, socially and culturally, with professional development opportunities. For stage I students our programme focusses on providing tutoring and mentoring, as well as opportunities to develop greater confidence in your studies and university life. We run activities and events to encourage students to meet each other and form social and study networks. Furthermore we run networking events for students to meet employers and business leaders. How does He Tuākana Programme work? The academic arm of He Tuākana is designed to complement the tutorials, labs and workshops that you attend as part of your general courses. Alongside these we have our own team of tutors employed by He Tuākana to work with Māori and Pacific students. Information about our tutorials and team are on our website www.business.auckland.ac.nz/tuakana and shared at the orientation events where you can meet other students, and find out about all of the student support services. As well as set tutorial times, you can also contact our He Tuākana tutors to assist with setting up study groups, and small group sessions according to the needs of the students. Remember He Tuākana tutors and mentors really know what you are going through as you make the transition to University life and they use their knowledge and previous University experiences to help you succeed. What will He Tuākana do for me? He Tuākana Programme will help you settle into University life and support you as you strive for academic success. He Tuākana programme is a developmental and support programme with the objective of not only assisting students to pass, but to gain better grades. Students who have participated in He Tuākana have achieved better academic results than those who have chosen not to participate. For more information contact the He Tuākana Coordinator at: tuakanabusiness@auckland.ac.nz 7