AC-321 Intermediate Accounting II

Course Description:

This course is a continuation of the first intermediate accounting course. The course is intended to further develop the student's competence in financial reporting. Topics covered will include accounting for: short- and long-term liabilities and contingencies, receivables, investments, and stockholders' equity. Special topics such as income recognition and measurement of net assets; leases; the cash flow statement; accounting changes and errors; and post-employment benefits will also be covered.

A.  PROGRAM LEARNING OUTCOMES (PLOs):

The student will be able to:

1.      Demonstrate an understanding of intermediate accounting principles by describing the financial reporting environment and the conceptual framework of financial accounting, analyzing financial statements in detail, and accounting for cash and receivables, inventories, property, plant and equipment, intangibles, liabilities, stockholders’ equity, and other special areas.

2.      Demonstrate an understanding of cost accounting systems relevant to managerial-decision making, planning and control by solving problems involving various costing and budgeting methods; by applying financial, inventory and production management techniques in cost accounting; and by accurately measuring short- and long-term organizational performance.

3.      Demonstrate competence in analyzing and recording various transactions for state and local governments, the federal government, colleges and universities, and other nonprofit organizations; in preparing and interpreting financial statements; and in explaining differences between public and private sector accounting.

4.      Demonstrate an understanding of wide range of tax concepts with special focus on the taxation of business entities in the United States and the Federated States of Micronesia and a minor emphasis on the individual taxation in the two countries.

5.      Demonstrate an understanding of the statistical methods of sampling and estimating population statistics and competence in using computer software to calculate point estimates and confidence intervals and use statistical methods to test hypotheses, recognize trends and make forecasts to support decisions in the business/economics environment

6.      Apply knowledge acquired from accounting and other courses by solving real world accounting and general workplace problems in a particular organization in the COM-FSM Internship Program.

B. STUDENT LEARNING OUTCOMES (SLOs) – GENERAL:

The student will be able to:

  1. Further develop and demonstrate a broader understanding of financial reporting, with focus on accounting for long-term liabilities, stockholders’ equity and other special areas in financial reporting.

SLO

PLO1

PLO2

PLO3

PLO4

PLO5

PLO6

1

DM

ID

I = Introduced

D = Demonstrated

M = Mastered

C.  STUDENT LEARNING OUTCOMES (SLOs) – SPECIFIC:

The student will be able to:

General SLO 1: Further develop and demonstrate a broader understanding of financial reporting, with focus on accounting for long-term liabilities, stockholders’ equity and other special areas in financial reporting.

Student Learning Outcomes

Assessment Strategies

1.1   Describe the nature of, and the different kinds of long-term debts; correctly account for long-term debt transactions; and present and analyze long-term debt and their related accounts in financial statements in accordance with Generally Accepted Accounting Principles (GAAP).

Pre-/Post-Testing

1.2   Discuss the characteristics corporations and the terms associated with corporate equity; and account for stock issuances and various dividend transactions according to GAAP.

Pre-/Post-Testing

1.3   Account for convertible securities stock warrants, and stock compensation plans in accordance with GAAP; and compute earnings per share in both simple and complex capital structures.

Pre-/Post-Testing

1.4   Identify the three categories of investments in debt and in equity securities, and account and report each category in financial statements in accordance with GAAP.

Pre-/Post-Testing

1.5   Apply various revenue recognition principles prescribed by GAAP for service, merchandising, manufacturing, and construction businesses; and certain transactions involving long-term contracts and installment sales.

Pre-/Post-Testing

1.6 Describe, account for, and present in financial statements pretax financial income and taxable income, temporary and permanent differences, deferred tax asset valuation allowance, deferred income taxes, loss carry-back/carry-forward.

Pre-/Post-Testing

1.7 Explain the nature of employer’s pension plan and accounting for the pension fund; record transactions involving various pension plans with alternative measures for valuing the pension obligation; and describe the requirements for reporting pension plans in financial statements. 

Pre-/Post-Testing

1.8  Explain the nature, economic substance and advantages of different lease transactions; apply GAAP principles in accounting for leases in the books of both the lessor and the lessee; and present different types of lease in financial statements.

Pre-/Post-Testing

1.9  Identify the types of accounting changes and correctly account for different changes in accounting principles; and report changes in accounting principles in financial statements. 

Pre-/Post-Testing

1.10          Explain the management’s responsibility on financial statement preparation and the accounting profession’s response to fraudulent reporting; explain full disclosure principle; and describe implementation problems for major business segments, interim reporting, and financial forecasts and projections.

Pre-/Post-Testing

D.  COURSE CONTENT

  1. Long-term Liabilities
  2. Stockholders’ Equity
  3. Dilutive Securities and Earnings per Share
  4. Investments
  5. Revenue Recognition
  6. Accounting for Income Taxes
  7. Accounting for Benefits and Pensions
  8. Accounting for Leases
  9. Accounting for Changes and Error Analysis
  10. Full Disclosure in Financial Reporting

E.  METHODS OF INSTRUCTION

Lectures and electronic presentations

Simulation activities

Provide student learning resources online.

F.  REQUIRED TEXT(S) AND COURSE MATERIALS

Kieso, Weygant & Warfield: Intermediate Accounting, 14th Edition, Wiley, USA: 2009 (or most recent edition).

Calculator, pens, pencil and ruler 

G.  REFERENCE MATERIALS

Nikolai, Bazley & Jones: Intermediate Accounting 10th (or current) Edition, Thomson South-Western, USA: 2007 (or mst recent edition).

Stice & Stice: Intermediate Accounting 17th (or current)Edition, South-Western College Publishers: 2009 (or most recent edition).

H.  INSTRUCTIONAL COSTS

None

I.   EVALUATION

None

J.  CREDIT BY EXAMINATION

None

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