Syllabus

School of Business ACC/545 Version 4 Financial Reporting

Copyright 2010, 2009, 2008 by University of Phoenix. All rights reserved.

Course Description

This course prepares students to address concepts of financial reporting for roles as CPAs. Students learn important criteria for calculating capital changes, applying concepts of fixed assets and cost determination, and preparing consolidated financial statements. Other topics include the professional responsibilities of CPAs, deferred taxes, cash flow statements, balance sheet preparation, restructuring of troubled debt, and the intricacies of comprehensive income.

Policies

Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents:

University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum.

University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality.

Course Materials

Arens, A. A., Elder, R. J., & Beasley, M. S. (2006). Auditing and assurance services: An integrated approach (11th ed.). Upper Saddle River, NJ: Pearson.

Bline, D. M., Fischer, M. L., & Skekel, T. D. (2004). Advanced accounting. Hoboken, NJ: Wiley.

Comiskey, E. E., & Mulford, C. W. (2000). Guide to financial reporting and analysis. New York, NY: Wiley.

Kieso, D. E., Weygandt, J. J., & Warfield, T.D. (2007). Intermediate accounting (12th ed.). Hoboken, NJ: Wiley.

Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2005). Financial accounting theory and analysis (8th ed.). Hoboken, NJ: Wiley.

All electronic materials are available on the student website.

Resource

Wiley CPA Examination Review website

Week One: Reporting Issues

Details Due Points

Objectives

1.1 Differentiate among the services provided by auditors. 1.2 Explain procedures for reporting accounting changes and error corrections. 1.3 Describe the professional responsibilities of accountants in financial reporting. 1.4 Compare and contrast the forms of business structure. 1.5 Explain the methodology used to determine deferred taxes.

Readings

Read Ch. 1 of Auditing and Assurance Services. Read Ch. 19 & 22 of Intermediate Accounting. Read Ch. 7 of Advanced Accounting. Read Ch. 17 of Financial Accounting Theory and Analysis.

Participation Discussion Questions Individual CPA Report

Participate in class discussion. Respond to weekly discussion questions. As the CPA for a large organization, your manager has asked you to provide information to outside CPAs who are examining a subsidiary that has been set up as a corporation. As part of their review, the CPAs have asked you to provide them with the following explanations:

1.8 1.8 10

The methodology used to determine deferred taxes

The procedures for reporting accounting changes and error corrections The rationale behind establishing the subsidiary as a corporation

Prepare your response to the three questions. Before submitting your response, your manager would like to know a little bit more about the request. She has asked you to tell her what your professional responsibilities are as a CPA, and the difference between a review and an audit.

Provide draft responses to the above questions. Additionally, provide your manager with a summary of your responsibilities in an internal memo (no more than 1,050 words).

Week Two: Reporting Working Capital Changes

Details Due Points

Learning Team Objective Objectives

Complete the learning team charter and submit by Wednesday, Day 2 of week 2. 2.1 Calculate amounts to be reported for current assets. 2.2 Calculate amounts to be reported for current liabilities. 2.3 Prepare a statement of cash flows.

Readings

Read Ch. 7, 13, & 23 of Intermediate Accounting.

Participation Discussion Questions Learning Team Los Lobos Ledger Preparation

Participate in class discussion. Respond to weekly discussion questions. Resource: University of Phoenix Material: Los Lobos Ledger Data Review the information in the Los Lobos Ledger Data. Prepare a statement of cash flows using the direct and indirect methods. Prepare a classified balance sheet.

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Week Three: Assets

Details Due Points

Objectives

3.1 Apply inventory cost determination concepts. 3.2 Apply fixed asset concepts. 3.3 Construct the investment section of the balance sheet, including note disclosures. 3.4 Prepare the note disclosures required for lease transactions.

Learning Team Objective Readings Participation Discussion Questions Individual CPA Exam

Respond to Team Discussion question Read Ch. 8, 10, 17, & 21 of Intermediate Accounting. Participate in class discussion. Respond to weekly discussion questions. Resource: Week Three Student Roadmap Access the Wiley CPA Examination Review website

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1.8 1.2 3

Review

from the link on the student website. Use the Week Three Student Roadmap to complete the Wiley CPA Examination assignment.

Individual Jamona Corporation Scenario

Resource: University of Phoenix Material: Jamona Corporation

Review the Jamona Corporation information.

Prepare journal entries that relate to the balance sheet items above with appropriate backup lead schedules for investments, inventory, fixed assets, and capital leases. Prepare appropriate note disclosures.

Week Four: Liabilities

Details Due Points

Objectives

4.1 Analyze reporting requirements for different types of debt issuances. 4.2 Create journal entries for a troubled debt restructuring. 4.3 Prepare the schedules and notes required for postemployment benefit reporting.

Learning Team Objective Readings Participation Discussion Questions

Respond to Team Discussion question Read Ch. 14 & 20 of Intermediate Accounting. Participate in class discussion. Respond to weekly discussion questions.

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1.8 1.2

Individual Restructuring Debt

Resources: University of Phoenix Material: Restructuring Debt Data

Review the Restructuring Debt Data information.

Part A: Provide your manager a comparison of the current reporting for debt, explaining the requirements for each type (bond, mortgage, capital lease, and others). Then, prepare the journal entries for the restructuring.

Part B: To satisfy various benefit issues that have arisen as a result of the restructuring, new postemployment benefits have been created. The company currently has a defined benefits plan and is considering switching to a defined contribution plan to save costs. Compute the costs associated with keeping the current plan versus the costs of a defined contribution plan where the employer pays 3% of payroll.

Week Five: Equities

Details Due Points

Objectives

5.1 Construct the equity section of the balance sheet, including note disclosures. 5.2 Determine the effect of derivatives and hedging activities on other comprehensive income. 5.3 Determine the effect of foreign currency translation on other comprehensive income.

Learning Team Objective

Respond to Team Discussion question

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Readings

Read Ch. 15 & 16 of Intermediate Accounting. Read Ch. 6 of Guide to Financial Reporting and Analysis. Read Ch. 6 of Advanced Accounting.

Participation Discussion Questions Individual Lee Corporation Equity Scenario

Participate in class discussion. Respond to weekly discussion questions.

1.8 1.2

Resource: University of Phoenix Material: Lee Corporation Equity Scenario Review the following Lee Corporation Equity Scenario information. Prepare a statement of changes in owners equity and accompanying notes appropriate to the section.

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Note. Record the necessary journal entries before attempting to calculate other comprehensive income.

Week Six: Consolidated Financial Statements

Details Due Points

Objectives Readings Individual Assignment CPA Exam Review

6.1 Prepare consolidated financial statements. Read Ch. 14 of Advanced Accounting. Resource: Week Six Student Roadmap Access the Wiley CPA Examination Review website from the link on the student website. Use the Week Six Student Roadmap to complete the Wiley CPA Examination assignment. 3

Individual Final Examination

Click the link to the Final Examination on the student website available from the end of Week Five through the end of Week Six. Complete the Final Examination. You are allowed one attempt to complete the exam, which is timed and must be completed in 3 hours. Results are auto graded and sent to your instructor.

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Learning Team Consolidated Financial Statements

Complete the exercise titled Consolidation Work and Financial Statements Subsequent to Acquisition found in the course materials forum. Be sure to show all your work.

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Week One Discussion Questions

What are the advantages and disadvantages of the primary types of auditors? Which type interests you the most? Explain. (Ch. 1 of Auditing and Assurance Services)

Why is it important to understand the difference between an originating temporary difference and permanent difference in a company? Explain if this concept is relevant for personal finance. (Ch. 19 of Intermediate Accounting)

Which business structure would you choose if you were to set up your own CPA practice: a partnership, proprietorship, or corporation? Why? Explain what factors affect your decision. (Ch. 7 of Advanced Accounting)

Week Two Discussion Questions

What is cash? Think in terms beyond its monetary function. (Ch. 7 of Intermediate Accounting)

When might a negative cash flow be considered positive? Provide an example and explain. (Ch. 23 of Intermediate Accounting)

Which method do you prefer in determining net cash flow from operating activities, the direct method or the indirect method? Explain. (Ch. 23 of Advanced Accounting)

Week Three Discussion Questions

What are the advantages and disadvantages of using a LIFO inventory system? In what circumstances would you make the case for using LIFO? How do you feel about the IASB approach to LIFO compared to the FASB approach? Which is more appropriate and why? (Ch. 8 of Intermediate Accounting)

What are the costs to include in the initial valuation of fixed assets? How would you report them? Provide an example from among property, plant, and equipment, as well as other costs you can identify as should be included. (Ch.

10 of Intermediate Accounting)

TEAM DQ: What are some of the views on capitalization of leased assets? In what situations do you think leased assets should be reported as capital? Why? Select an asset that does not meet the GAAP requirements for capitalization on a technical basis (either the 75% or 90% test), would it be capitalized under IFRS? Which is more in keeping with the needs of investors? (Ch. 21 of Intermediate Accounting)

Week Four Discussion Questions

Describe the accounting procedures for both bonds and long-term notes. How are they similar? Provide an example of each. (Ch. 14 of Intermediate Accounting)

TEAM DQ: What types of situations result in troubled debt? What are some of the general rules for recognizing gain or loss by both parties in a troubled debt situation? How would you report these gains or losses? (Appendix 14A of Intermediate Accounting)

What are asset gains and losses and liability gains and losses, and how are they documented for postemployment benefits reporting? Provide examples of each in your response. (Ch. 20 of Intermediate Accounting)

Week Five Discussion Questions

 TEAM DQ: What are the elements that should be included on the equity section of a balance sheet? Provide examples of these elements. (Ch. 15 of Intermediate Accounting)

What are the disclosure requirements for traditional and derivative financial instruments? Should companies disclose if such instruments are used for hedging or speculation? Why? (Appendix 17A of Intermediate Accounting)

What are the two methods used to convert trial balances from foreign currencies into U.S. dollars? Describe the situations when you would use each method. (Ch. 6 of Advanced Accounting)

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Final exams contain third-party copyrighted materials. Portions are: Copyright 2010 University of Phoenix. All rights reserved. Copyright 2010 Wiley & Sons. All rights reserved. Copyright 2010 Pearson Education. All rights reserved.

Edited in accordance with University of Phoenix editorial standards and practices.

Sincerely, Melissa Cottrill, MBA, CPA Online Faculty cpa01@phoenix.edu