Accounting 414

Corporate Accounting and Reporting II

Course Description and Syllabus

Fall 2007

Teresa Gordon Location: ALB 201

Office: ALB 118 Time: 8:00 9:15 AM TTh
Office Phone: 885-8960 Office Hours: W 8:3011:00 AM
E-mail: tgordon@uidaho.edu and MW 1:00-3:00 PM, TTh 1:00-2:00 PM
or by appointment
Homepage: http://www.cbe.uidaho.edu/Acct414 If my office door is open, feel free to stop in.

Catalog Description:
Acct 414 Corporate Accounting and Reporting II (3 cr). Continuation of Acct 315. Covers more advanced topics in the preparation
of general purpose financial statements for external users according to US GAAP. Includes accounting database research. May
include evening exams. Prereq: Acct 315. (Please note that you may be concurrently enrolled in Acct 415/515.)

COURSE OBJECTIVES

Intermediate accounting is the "heart & soul" of financial accounting and reporting. In this course we will
complete the topics not covered in Acct 315 and you will have multiple opportunities to research
accounting topics using FARS. You will also have opportunities to apply your knowledge of accounting
concepts to complex transactions. Income tax implications and international comparisons will be included
in the coverage of relevant issues. An important pedagogical objective in this course is to challenge you
with problems and situations that help you to develop professional skills and to enhance your critical
thinking abilities. Todays accounting professional must be prepared to resolve unstructured problems in
an uncertain environment. The skills emphasized in this course are intended to assist you in preparing for
this business environment. The specific objectives include:
1. Become familiar with selected theoretical issues and existing GAAP and obtain a thorough
comprehension of selected topics in external financial reporting (e.g., leases).
2. Sharpen your problem solving abilities for situations where there is a single correct answer
because of the articulation of financial statements inherent the accounting equation (e.g.,
statement of cash flows).
3. Enhance your ability to conduct research in the authoritative literature using the FARS database.
4. Provide you with experience in resolving complex financial accounting and reporting issues
through a research process that requires critical thinking and results in a well-supported position
based on appropriate accounting standards.

Prerequisites, Competencies and Responsibilities:

It is assumed that you have satisfied the following minimum requirements:

1. Students enrolled in this course must have completed Accounting 315 (formerly Acct
301). This course cannot be taken concurrently with Accounting 315.
2. Students should have proficiency with PC or compatible word-processing and
spreadsheet software, email and file transfer ability and Internet/WWW research skills.
 Students lacking these personal computer competencies will need to seek help from other
students, helpdesk, accounting lab, etc.
3. Student should have a UI email account and have basic competency in sending and
receiving email. Student should be able to access course web page.

You have other professional responsibilities which include attending class on-time and being
prepared [having read all assigned material, completed (or at least attempted) all assignments],
participating in class discussion of cases, raising questions about matters of interest or issues that
you do not understand, and bringing all necessary materials with you to class (generally your
laptop, calculator, etc. but not necessarily textbook).

Our accomplishments will be function of your enthusiasm and your efforts.

Course Materials

Required:

Intermediate Accounting, 12th Edition by Kieso, Weygandt & Warfield (Wiley, 2007).
Comes with FARS CD-ROM

FARS CD-ROM. The 2006 CD that came with your KWW text. If you dont have the
CD, you can also buy the internet version (you must have internet access to use):
Go to http://www.wiley.com/college/farsonline. If you are going to buy a CD, be sure to
get the 2007 edition

Recommended:

Financial Accounting: Exam Questions and Explanations, by Irvin N. Gleim and William
A. Collins (Accounting Publications, Inc.) is a low cost means of reviewing and learning
financial accounting in preparation for professional exams. You can get it with a CD that
will remember which questions youve missed or marked for additional review.

Some students find the print-versions of GAAP useful, particularly FASB Accounting
Standards, Current Text (Vol. 1 only). The complete set of material in print form is very
expensive and bulky.

Examinations & Quiz Scores

You are expected to learn problem solving techniques, rules and facts related to the practice of
accounting, and become familiar with pervasive concepts. Accordingly, exams will consist of
multiple choice or other objective questions, plus short problems and/or essays. I often provide
"free misses" on objective questions so you do not have to get them 100% correct to receive full
credit. No make-up exams are given. An unexcused absence from an exam will result in a grade
of ZERO. If you know you will need to miss an exam, you may be able to take the exam early.
Occasional quizzes may be administered. A missed quiz cannot be made up but I will drop at
least the lowest fourth of the scores. Quiz scores will be combined with other homework
assignments as shown in the grading table below.

Homework

Solutions to all exercises and problems for suggested homework out of the textbook will be
made available through the accounting lab which is generally open Sunday-Thursday evenings.
The solution manual can facilitate the learning process by allowing feedback for the assignments
attempted. You should work through all of the homework assignments to gain mastery over the
topics we will cover. It is a simple fact that your success in this course is highly correlated with
your problem solving ability, your familiarity with the terminology, and your ability to
communicate both effectively. If you don't work the problems when it doesn't count, you can't
work them when it does! To encourage you to keep up, I will collect selected problems and have
them graded as part of the 10% of your course grade related to quiz and homework.

Major assignments will include research cases using FARS, spreadsheet assignments and
complex problems not included in textbook. Generally, the assignments will be posted on the
schedule page on the course web site with a due date clearly indicated. You will be able to
download (and print) the assignments.

ATTENDANCE and CLASSROOM DECORUM

Attending all classes will enhance your final score (unless you sleep through the lectures or play
or surf the net, of course!). I will circulate an attendance sheet for you to initial. I occasionally
administer an Attendance Quiz scored 100 for those present or provide bonus points to those
present. You are expected to arrive on time and to bring with you the necessary materials
(calculator, laptop or printouts of assignments, etc.). I have worked hard to prepare the materials
to enhance your learning and I expect you to pay courteous attention to the lectures. Talking with
your neighbors is acceptable only when we are doing in-class exercises. Visiting with your
neighbors is distracting to me and to the other students in class. Turn off your cell phone before
class begins.

PREPARATION FOR CLASS

You should always read the assigned material before the class day that it is scheduled so that the
lectures will be more meaningful. Occasionally, there may be a quiz at the beginning of the class
designed to test whether or not you are keeping up with the reading assignments. In certain
instances, I will ask you to complete an in-class exercise for the following class period. Please
check the on-line schedule for changes in due dates.
GRADING

A letter grade will be determined based on the following:

Points Percentage
2 mid-term exams - in class 400 40%
Spreadsheet and research projects, cases & other major
200 20%
assignments
Other homework (generally in textbook) and pop quizzes 100 10%
Comprehensive Final Exam 300 30%
Total 1000 100%

The specific letter grade assigned will be based upon relative point standing at the end of the
semester. The following represents a general guideline to the minimum required grade for the
indicated level of performance regardless of relative standing. Instructor discretion, as always,
governs determination of your final grade. For example, improving performance over the
semester will be taken into consideration. Likewise, a failing score on every exam would result
in an F even if homework and project grades were satisfactory to good.

Letter Grade Percentage

A 90% or higher
B 80 to 89%
C 70 to 79%
D 60 to 69%
F less than 60%

Individual vs. Group Projects

For some assignments, you will be expected to work outside of class in small groups of two to
four students. Such projects will receive a group grade. Each person on the team will receive
the same grade for the project. For individual assignments, evidence of group work will be
penalized -- the overall grade for the assignment will be divided equally among group members
or, at my discretion, a zero score will be assigned to all individuals involved. If group work
causes severe hardship for you, please come by and discuss with me during office hours.

CHANGES IN SCHEDULE

Check out the Acct414 homepage announcements page for changes in assignments, schedule
and so forth. If your e-mail address is in the UI computer system, you should also receive
periodic announcements from me about scheduled events, job interviews, and assignment
changes or clarifications.
GENERAL OVERVIEW OF COURSE CONTENT
Present value topics
General review
Serial bonds
Troubled debt restructuring & loan impairment
Leases
Pensions

Other Topics
Revenue recognition
Accounting for income taxes
Earnings per share
Accounting changes

Statement of Cash Flows

 Fall 2007 Tentative Course Schedule
Date Class Topic Reading Assignment Homework Assignment
T 1 Print a copy of Read syllabus. PVExamples.doc HO
8/21 PVExamples.doc. We will Problem sets 1 to 3 - attempt
start working some of the Familiarize yourself with course all parts. Check figures are
problems so bring financial web page and read submission provided at the end of file.
calculator with you. protocol
Sets 4 and 5 will be turned in
You will be working problem If you need a review of for grading on Tues. Aug 28
sets 1, 2 and 3 by Thursday discounted cash flow analysis,
8/23 so we can go over them read Ch 6 and/or The Time
during class. Value of Money by Jeff
Harkins
Th 2 Time Value of Money Time Value of Money Tables & Go over Problem sets 1, 2 & 3
8/23 Template (Excel) to get interest bring copy (paper or laptop)
Time Value of Money factors for other n & i to check your work
Examples & Assignment combinations
T 3 Accounting for serial bonds Ch. 6 Turn in HW #1 - PV problem
8/28 Get serial bond examples from sets 4-5
Bond Example - Review (doc) web page and bring paper coy
with you to class Note that we will go over
Starter Blanks - Serial Bond Serial Bond Problems 1 and 2
Amortization Tables (briefly) on Thursday and you
will have time to fix any errors
before turning in #3 and #4
Th 4 Troubled Debt Lecture (ppt) Ch 14 Appendix A (pp. 697-706) E14-20, E14-21, E14-23, E14-
8/30 25, E14-26, E14-27 and
Troubled Debt Examples - CN Loan Impairment & practice problems from course
Excel Blanks (includes new Troubled Debt Restructuring notes on Troubled debt
example 5) (solution in notes). I strongly
recommend doing textbook
problems before attempting
Project #1
T 5 Loan Impairment and Ch 14 Appendix A (pp. 697-706)
9/4 troubled debt restructuring HW#2 is due - deadline to turn
CN Loan Impairment & in Serial bond problems 3 and
Troubled Debt Examples (doc) Troubled Debt Restructuring 4
Bring paper copy to class with (includes slightly revised flow
you chart)
Th 6 Introduction to Accounting Ch 21 read introduction to Practice Problems on leases:
9/6 for Leases chapter before class (pp. 1088- BE21-9, BE21-10, E21-1,
1101) E21-2, E21-12
 Date Class Topic Reading Assignment Homework Assignment
7 Accounting for Leases Ch 21 Turn in Trouble Debt Project
T 1 (problems 1 & 2)
9/11 Begin working on E21-6, E21-
7, E21-8, E21-9, E21-10, E21-
12, Professional Simulations 1
& 2 (p. 1149-1150)
Th 8 Accounting for Leases Ch 21 Begin working on P21-4 and
9/13 Distribute Lease amortization P21-5, P21-10
problem (Project 2). This project
is due by email no later than 9 HW #3 due E21-1, E21-2,
AM Wed Sept. 19 E21-6, E21-7, E21-8, E21-9,
E21-10 and E21-12
T 9 Advanced topics in lease Ch 21 + FARS material Project #2 - Lease
9/18 classification Get started on Project 2 amortization & journal entries
(amortization tables and journal due (in Excel, submit via
entries for lessee and lessor) email following Submission
Protocol directions): no later
than 9AM Wed Sept 19
group work (teams of 2)
Th 10 Using FARS techniques and Distribute lease research project
9/20 tips (Project 3) you may work in
groups of 2 to 3 students on this
assignment.

T 11 Revenue recognition Ch. 18 (concentrate on pages Begin work on E18-4, E18-7,

9/25 912-922) E18-10, P18-2 and P18-6

Work on lease research project

Th 12 Revenue recognition Ch. 18 (concentrate on pages Turn in HW #4 (E18-10, P18-2,
9/27 912-922) P18-6 and P18-7) no later than
We'll continue working on the Tues Oct 2 (to avoid late
example problems penalty). Not accepted after
beginning of Exam 1 on Oct 4
(no late fee)
T 13 Go over lease research project Ch 21 Lease research project #3 due at
10/2 during class as review for Project 3 - FARS Research on beginning of class (no late
Exam 1 Leases with assignments accepted), You
Answer Sheet for Lease may work in groups of 2-3
Research Project students on this project.

Th 14 Exam 1 (200 points) Exam 1 covers present value, Turn in HW#4 at beginning of
10/4 Exam will in regular classroomtroubled debt, serial bonds, exam if not submitted on
leases, and construction Tuesday
accounting. You may start no
earlier than 7:30 AM
 Date Class Topic Reading Assignment Homework Assignment
T 15 Introduction to accounting Ch 20 is obsolete. Download and HW#5 (handout pension
10/9 for pensions read revised Ch. 20 from KWW problems using SFAS 158)
web page
Begin work on textbook
www.wiley.com/college/kieso problems (from revised
chapter!): BE20-1, BE20-2,
BE20-3, BE20-8, BE20-10
E20-2, E20-5, E20-6, E20-8,
E20-18
Th 16 Accounting for Retirement In Class Pension Examples Using Project #4 - Turn in Pension
10/11 Benefits Working paper approach accumulation & amortization
Pensions & Other Post schedules (you may work in
Employment Benefits After Start on HW #5 groups of 2) - it will be
FASB No. 158 (ppt) HW #5 - Pension Workpapers (2 accepted through March 20
plans, 2 years each) The without late penalty but if at all
Pension Example for Class assignment is given in Excel but possible, get it done before
Room Use (xls) Bring copy you may do it by hand Spring Break!
with you to class today and
Thursday
T 17 Pensions & Other Post Glossary of Pension Terminology Turn in Project 4
10/16 Employment Benefits after Work on HW#5
FASB No. 158 (ppt) Distribute FARS research case
(Project #5)

Th 18 Accounting for Income Taxes Ch 19 Begin work on E19-1, E19-2,

10/18 (ppt) E19-4, E19-6, E19-7

Last day to turn in pension

accounting HW#5 and Project
4
 Date Class Topic Reading Assignment Homework Assignments
T 19 Accounting for Income Ch 19 Begin work on E19-5, E19-9,
10/23 Taxes and FARS research E19-10, E19-23, P19-1, P19-2,
and CA19-6

Project #5 (FARS case) is due

no later than Tuesday March 27
(electronic copy AND paper
copy)
Th 20 Ch. 19
10/25 Accounting for Income Project #5 (FARS case) is due
Taxes and FARS research today (electronic and paper
copy)
T 21 Finish up Deferred Tax Ch 16 (pp. 785-792 only) Begin work on E16-10, E16-
10/30 (there will probably be a 11, E16-12, E16-28 & E16-29
quiz)
HW #6 due no later than Th
Introduction to Employee 11/1 (P19-1, P19-2, P19-3,
Stock-based compensation P19-4, P19-9)
Th 22 Earnings per share Ch 16 (pp. 788-803)
11/1 Begin work on E16-17, E16-18
and E16-19

T 23 Earnings per share Ch 16 (pp. 788-803) Begin work on E16-21, E16-

11/6 22, E16-26, P16-4 and P16-5
Project 6 - EPS Research Project

Th 24 Accounting Changes Read part of Ch 22 (pp 1151- Turn in HW #7 (E16-28, P16-

11/8 (after completing EPS) 1173) 3, P16-4, P16-6 and P16-8

Chapter 22: Accounting Begin work on BE22-9, BE22-

Changes and Error Analysis 10, E22-8, E22-1, E22-10,
E22-11 (Due 11/29)
Accounting changes will
NOT be tested on Exam 2.
Questions may appear on
final exam
T 25 Go over earnings per share Ch 16 Project #6 EPS due. You may
11/13 project as review for exam work in groups of 2 people

Th 26 EXAM 2 (200 points) Covers material since Exam 1 Remember to turn in HW #6

11/15 (pensions, deferred taxes, and HW #7 if you haven't
You may begin early as employee options, & earnings per already done so.
early as 7:30 AM share)
11/19 to Fall Recess
11/23
 Date Class Topic Reading Assignment Homework Assignment
T 27 Introduction/Review of Ch 23 Turn in HW #8 [E22-1, E22-
11/27 Statement of Cash Flows 10, E22-11] - short and easy -
get a head start on the last 3
Palouse Pottery and Moscow HW grades!
Moving & Storage bring
PAPER copies to class with Begin work on BE23-3, E23-1,
you E23-8, E23-9, E23-13 and/or
the Ulliman and Driskoll
practice problems
Th 28 Statement of cash flows Ch 23 Begin work on P23-2 and P23-
11/29 I strongly recommend that you do 4 and/or Wenatchee Whirlpool
Ex 3R - Avery Arrowheads Inc. WWW before attempting the World example (the one with
Ex3-Avery Arrowheads for Endicott Engines homework the most complete explanations
students - working paper (excel) problem or Project 7 (KKK). in the solution)

T 29 Statement of cash flows Ch 23 HW #9 (Endicott Engines) is

12/4 We'll probably continue with due Thursday Prepare it by
Avery Arrowheads example or HW#9 Endicott Engines hand on paper as practice for
start a new example TBA final exam. You may type SCF
if you prefer but do the
working paper by hand.
Th 30 Statement of cash flows Ch 23 Turn in HW#9 (if you need the
12/6 grade). Not accepted after
Problem will be handed out Proj 7 - Kamiak Kanoos Korp today since solution will be
during class - a "practice exam" to SCF Problem (doc) This file has posted.
get you ready for the final exam the facts but no working paper.
question. Print working paper from excel Project 7 (SCF problem) is an
file to do "by hand" or use the individual assignment. Don't
Camperdown Co. SCF - Old excel version with selected forget to include the formal
Exam Question formulas provided statement of cash flow in good
Blank Working Paper for Kamiak form with headings, etc.
Solution - Camperdown Problem Kanoos SCF. Doing it by hand
would be the best practice for the
final exam.
Thurs. Final Exam (comprehensive) Regular classroom at 7:30 to 9:30 Project #7 accepted through
Dec 13 AM beginning of final exam
7:30
AM

Key for abbreviations on schedule

CN = Course Notes generally Microsoft Word files

HO = handout (indicates homework provided by way of e-mail, web-site, or hard copy rather than something from
the textbook)
TBA = to be announced and sent by email or posted on web page
XLS = Excel file
PPT = PowerPoint file
DOC = Microsoft Word file