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ACCT 305 Intermediate Accounting II Course Guide

Course Description

 

This course expands upon the underlying framework and concepts of Financial Accounting in the context of how accounting fits into the overall business environment of contemporary society. This course is the second in a two-course sequence of Intermediate Accounting. It provides a comprehensive review of the accounting process that was initially discussed in Financial Accounting and expanded on in the first course of this Intermediate Accounting sequence. Student will study the conceptual basis of accounting. Students will also deepen their understanding of the preparation and understanding of classified financial statements and related information and apply analytical tools in making both business and financial decisions.

This course will focus on the study of contemporary accounting theory and application of generally accepted accounting principles to various specific topics and financial statement elements. GAAP is a significant basis used by external users when making financial decisions regarding a company. GAAP principles may be properly employed, but can produce different results dependent upon the techniques utilized. Accounting technical knowledge is an ever-evolving science that requires life-long learning to support the business specialization of the practice of accounting.

Topics examined include those related to cash flows, accounting for company’s financing and investing activities and related tax accounting. Students will study more complex accounting systems and will be shown how the various accounting alternatives for recording financial transactions impact on the usefulness of the information provided for decision-making. During coverage of these topics, discussion will include a development of the understanding of full and fair disclosures based on GAAP, ethical and moral implications, and the related concept of transparency.

Learning Objectives
 

The primary learning objective of this course is to provide more depth to students that accounting is an information development and communication function that supports economic decision making. To support this basic objective, at the completion of ACCT 305 a student will be able to:
1. Analyze transactions and develop an understandable explanation of GAAP. (Analysis)
2. Be aware of the contrasting differences between International Financial Reporting Standards and GAAP. (Comprehension)
3. Construct financial statements and develop full and fair disclosures based on GAAP. (Analysis)
4. Exercise professional judgment to differentiate and employ GAAP technical concepts to construct and present financial statements and related disclosures to less informed users. (Analysis/Synthesis)
5. Research accounting issues and related authoritative accounting technical resources to illustrate the application of GAAP. The student will provide a written summation of their research and the interpretation of GAAP for an issue. (Analysis)

In ACCT 305 The Accounting and Business Law Goals of (1) ethical and professional responsibility, (2) accounting information literacy, (3) reporting of accounting and legal issues, (4) accounting technical knowledge, and (5) issue resolution will be reinforced through various assignments.
In ACCT 305 the School of Business Learning Goals for (1) problem solving, (2) communication, and (3) moral consideration will be reinforced through various discussion and/or assignments.

Course Outline
 

1. Statement of Cash Flows
a. Understand where an entity’s cash flow come from and go.
b. Discuss how investors and creditors know what happen.
2. Debt
a. Understand what a liability is, how long term debt is computed upon issuance and valued on an ongoing basis.
b. Discuss who cares if an entity has liabilities and why they care.
c. Discuss how individuals outside a corporation know what is happening with the entity.
3. Equity
a. Understand what equity is and how it differs from debt.
b. Discuss why someone contributes equity and is it the only way a company obtains equity.
c. Discuss how an investor knows what equity exists and how they get something back for their investment.
4. Investments
a. Understand why and the different ways a corporation invests in another corporation.
b. Discuss how an investor measures their return.
c. Discuss how investors know what types of investments a corporation has made.
5. Leases
a. Discuss why an entity leases to/from another entity.
b. Understand how lease payments are computed.
c. Understand how the leases is valued by the lessee and lessor.
d. Discuss how information regarding leases is reported to individuals outside a corporation.
6. Deferred Income Taxes
a. Understand the impact of deferred taxes on the entity’s balance sheet.
b. Discuss GAAP’s accrual accounting concept affect on accounting for deferred income taxes.
c. Understand the computation,disclosure and presentation of income tax expense and deferred tax assets/liabilities in the financial statements.
7. Postretirement Benefits and Pensions
a. Discuss the terms related to postretirement and pension accounting.
b. Understand the computation of pension expense.
c. Understand the computation of OPEB expense.

Recommended Teaching Methodology


This course will be structured in such a way as to facilitate the use of different methods of instruction. Students are expected to take an active role in their learning experience and will be expected to have read the assigned material prior to class and to have prepared any written assignments. Classroom time will consist of one or all of the following: lecture, question and answer, group discussions and class exercises and problems. Work may be done individually or in small groups. The readings will come from the required text. Lectures and discussions will enable the Professor and the students to expand on and clarify the material presented in the readings. Additionally, two writing assignments will be given during the semester. These assignments are to be done on an individual basis. Additional research materials and resources will be made available by the Professor throughout the semester.

Recommended Assessment Measures


Accounting and Business Law Department Goal, Accounting Information Literacy, will be assessed in ACCT 305. Assessment measures will include examinations and writing assignments. Examination may require students to demonstrate knowledge of preparation (including disclosures) in financial statements. Writing assignments will require students to research accounting issues and related technical authoritative literature to illustrate the application of GAAP.

Required AACSB Assessment of Learning Objectives
The Accounting and Business Law Program Objective for technical competence in ACCT300 and ACCT305 will be assessed through a Departmental Assessment Question developed explicitly to be given through the Final Exam in ACCT305.
Technical competence in the course will be assessed via a common Departmental Final Exam. Accounting information literacy will be assessed in a written assignment using a common rubric.

Use of calculators:
The accounting department has adopted a policy of restricting the use of certain programmable calculators in class and final exams in the accounting courses. Students may bring a simple four-function calculator for exams. All personal electronic devices (including cell phones) must be stored during class.

Statement of Expectations


This course is a required core course for all accounting and finance majors in the School of Business. Students are expected to take an active role in their learning experience and will be expected to have read the assigned material prior to class and to have prepared any written assignments. Students should attend and actively participate in all classes.

Most of the learning will not take place in the classroom. Students should be informed that most learning occurs as they are doing the required work outside of class. This includes their reaching, critical thinking, and application of the concepts to the real-world problems and exercises. The amount that they learn and the level of skill that they develop will be directly proportional to the amount of effort they put forth in preparing for class.

The student’s learning expectations of Accounting and Business Law Department Goals for technical knowledge regarding valuation and reporting of liabilities and equity will be assessed in ACCT 305.

The concept of academic integrity lies at the very heart of any college. This is particularly true at Siena with its strong Franciscan tradition and its dedication to fostering sound moral growth. In such an environment, academic dishonesty cannot be tolerated. Work that students submit for this course must be entirely their own. Although students are encouraged to study together, they are required to produce their own solutions to all work they submit (including, obviously, exams). In any situation in which a student is unsure what constitutes academic dishonesty, it is the student’s responsibility to raise the question with his or her instructor. It is also the student’s responsibility to be familiar with the student guidelines on academic dishonesty: Academic Integrity and the Siena Student.

Course Prerequisites


This course requires that the student have completed ACCT 300 – Intermediate Accounting I and assumes a working knowledge of computers, including Word and Excel. Additionally students must be comfortable with mathematical tools necessary for business. Normally this knowledge would be obtained by completing QBUS 100 – Mathematics for Decision Making I. The student must be able to communicate effectively and be able to work in groups.

Institutional Mechanism for Providing Feedback for Continuous Quality Improvement


The Accounting department will annually review assessment results from assessment projects that might be undertaken. Specifically, assessment results of the learning outcome areas will be analyzed to determine the level of success in achieving these learning outcomes. Any deficiencies in achieving learning outcomes will be addressed and appropriate changes designed to improve the success in achieving these learning outcomes will be implemented. There also will be a periodic review of the course curriculum to accommodate changes in accounting practice or classroom experience.

Student’s learning expectation of the Accounting and Business Law Department Goal of Accounting Information Literacy regarding the use of Financial Accounting research databases will be assessed in ACCT 305.

Student’s learning expectation of the Accounting and Business Law Department Goal of Technical Knowledge regarding the valuation and reporting of Liabilities and Stockholder’s Equity will be assessed in ACCT 305.

In ACCT 305, the Accounting and Business Law Goal for Problem Resolution will be reinforced through various assignments.

In ACCT 305, the Accounting and Business Law Goal for Reporting of Accounting Issues will be reinforced through various assignments.

In ACCT 305, the Accounting and Business Law Goal for Written Communication will be reinforced through various assignments.