ACCT A212: Intermediate Accounting 1
| Item | Value |
|---|---|
| Curriculum Committee Approval Date | 09/23/2020 |
| Top Code | 050200 - Accounting |
| Units | 3 Total Units |
| Hours | 54 Total Hours (Lecture Hours 54) |
| Total Outside of Class Hours | 0 |
| Course Credit Status | Credit: Degree Applicable (D) |
| Material Fee | No |
| Basic Skills | Not Basic Skills (N) |
| Repeatable | No |
| Grading Policy | Standard Letter (S) |
Course Description
An intensive study and application of Generally Accepted Accounting Principles (GAAP) and International Accounting Standards (IAS) for asset valuation, income measurement, and financial statement presentation for business organizations, including the processes through which GAAP and IAS have evolved. The emphasis in this course is on the basic financial statements and related footnotes, the time value of money, the valuation and presentation of assets, current liabilities, and related income statement accounts, and other special accounting topics. International accounting standards (IAS) will be presented parallel to GAAP due to the convergence of both sets of standards within the next five years. Suitable for CPA Exam preparation. PREREQUISITE: ACCT A101 or ACCT A101H. Transfer Credit: CSU.
Course Level Student Learning Outcome(s)
- Define and explain financial reporting standards and GAAP.
- Apply the guidelines for revenue recognition to various business situations.
- Prepare financial statements and explain their individual components.
- Analyze financial statements using ratios and other analytical tools.
Course Objectives
- 1. Define financial reporting standards under GAAP and IAS (international accounting standards).
- 2. Explain concepts and assumptions used in accounting.
- 3. Recognize an ethical situation and illustrate an ethical resolution by identifying and analyzing the principle elements.
- 4. Recognize and report irregular items in an income statement.
- 5. Prepare and understand a classified balance sheet and a statement of cash flows.
- 6. Incorporate the time value of money into accounting.
- 7. Recognize issues involving cash and recognizing and reporting accounts receivable.
- 8. Identify the characteristics of fixed assets, intangible assets, and impairment of assets.
- 9. Identify and apply the methods of depreciation to long term assets.
Lecture Content
Course will cover the following REQUIRED topics: Financial Accounting and Accounting Standards Conceptual Framework underlying Financial Accounting The Accounting Information System Income Statement and Related Information Balance Sheet and Statement of Cash Flows Accounting and the Time Value of Money Cash and Receivables Valuation of Inventories: A Cost Based Approach Inventories: Additional Valuation Issues Acquisition and Disposition of Property, Plant and Equipment Depreciation, Impairments, and Depletion Intangible Assets Course will also cover: International accounting standards, the probable convergence of US GAAP with those standards by 2014, and concentration on the interpretation and application of the new standards. Topic outlines for REQUIRED material: Financial Accounting and Accounting Standards 1. The environment of financial accounting 2. Parties involved in standard setting 3. Generally accepted accounting principles 4. Issues in financial reporting Conceptual Framework Underlying Financial Accounting 1. Conceptual framework 2. First level: basic objectives 3. Second level: fundamental concepts 4. Third level: recognition and measurement concepts The Accounting Information System The Accounting Cycle Financial Statements for a Merchandising Company Cash Basis accounting versus accrual basis accounting Income Statement and Related Information Format of the Income Statement Special Reporting Issues Irregular Items Balance Sheet and Statement of Cash Flows Usefulness of the Balance Sheet Limitations of the Balance Sheet Classification in the Balance Sheet Additional Information Reported Disclosure Techniques Purpose of the Statement of Cash Flows Content and Format of the Statement of Cash Flows Overview of the Preparation of the Statement of Cash Flows Usefulness of the Statement of Cash Flows Accounting and the Time Value of Money Basic Time Value Concepts Single Sum Problems – Future Value and Present Value Annuities More Complex Situations – Valuation of Long Term Bonds Present Value Measurements s p; Cash and Receivables Classification of cash, cash equivalents, and noncash items Controls over cash Recognition of accounts receivable Valuation of accounts receivable Recognition of notes receivable Valuation of notes receivable Disposition of accounts and notes receivable Presentation and Analysis Impairment of Receivables and Proper Measurement Valuation of Inventories: A Cost-Based Approach: Basic Issues in inventory valuation Physical Goods included in inventory Costs included in inventory Cost Flow Assumptions Special Issues related to LIFO Basis for selection of inventory method Inventories: Additional Valuation Issues: Lower of Cost or Market Valuation Valuation at Net Realizable Value Purchase Commitments Gross Profit Method of Estimating Inventory Retail Method of Inventory Presentation and Analysis Dollar Value LIFO Changing from Conventional Retail to LIFO Acquisition and Disposition of Property, Plant, and Equipment 1. Characteristics of property, plant, and equipment 2. Valuation issues 3. Self-constructed assets 4. Interest capitalization 5. Costs subsequent to acquisition 6. Dispositions of plant assets Depreciation, Impairments and Depletion Impairments – Recognizing and Measuring Depletion Presentation and Analysis Intangible Assets Intangible Asset Issues Types of Intangible Assets Research and Development Costs Presentation of intangibles and related items
Method(s) of Instruction
- Lecture (02)
- DE Live Online Lecture (02S)
- DE Online Lecture (02X)
Instructional Techniques
Lecture, discussion, demonstration, and problem solving techniques using publisher and instructor prepared power points and whiteboard. Interaction during class will take place between instructor and students using group participation. Homework problems will be assigned on an individual basis and demonstrated in class. Research on the internet required for emerging issues in accounting.
Reading Assignments
The course requires approximately 44 hours of assigned readings from the text.
Writing Assignments
Students will be required to submit research paper in addition to oral presentation of current accounting issues and/or international accounting standard issues.
Out-of-class Assignments
The course requires approximately 64 hours of Assigned readings, exercises and problems from thetext, in addition to the "Reading Assignments".
Demonstration of Critical Thinking
Three unit examinations and a comprehensive final on course content testing recall, comprehension, analysis, and problem solving skills. Homework problems assigned using online homework manager. Written and oral assignment comparing and contrasting GAAP versus IAS within real businesses.
Required Writing, Problem Solving, Skills Demonstration
Students will be required to submit research paper in addition to oral presentation of current accounting issues and/or international accounting standard issues.
Eligible Disciplines
Accounting: Masters degree in accountancy or business administration with accounting concentration OR bachelors degree in business with accounting emphasis or business administration with accounting emphasis or economics with an accounting emphasis AND masters degree in business, business administration, business education, economics, taxation, or finance OR the equivalent. Masters degree required. (NOTE: A bachelors degree in accountancy or business administration with accounting concentration, with a CPA license is an alternative qualification for this discipline)
Textbooks Resources
1. Required Kieso, Donald E., Jerry J. Weygandt and Terry Warfield. Intermediate Accounting, 17th ed. John Wiley Sons, 2019