Course Outline of Record

Item	Value
Curriculum Committee Approval Date	03/16/2021
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),  Pass/No Pass (B)

Course Description

This course is the first course in the intermediate accounting series that covers accounting theory, financial reporting practices, and recording and valuation methods for cash, receivables, inventory, and long-lived assets. Additional topics on the accounting conceptual framework, time value of money, revenue recognition, and International Financial Reporting Standards (IFRS) are also explored. PREREQUISITE: ACCT G101. Transfer Credit: CSU.

Course Level Student Learning Outcome(s)

1. Course Outcomes
2. Prepare a multiple-step income statement, retained earnings statement with prior period adjustments, and balance sheet in accordance with generally accepted accounting principles.
3. Perform accounting for discounted notes receivable and notes payable such as recognizing initial recognition, amortization of discount, and analyzing effect on interest revenue/expense.
4. Determine a company's inventory using a number of costing, estimation, and valuation techniques such as first-in, first-out (FIFO), last-in, first -out (LIFO), and variations thereof.
5. Apply accounting procedures and valuation methods for business transactions pertinent to an entity's cash and cash equivalents, accounts receivable, notes receivable, inventory, PPE (property, plant, and equipment), and intangible assets.
6. Apply impairment testing and record write-downs on long-term assets such as notes receivable, property, plant, and equipment, and intangible assets.
7. Identify major governing bodies and standard-setting agencies that play a major role in setting accounting standards and regulating accountants and providers of accounting information.

Course Objectives

• 1. Describe the role of standard-setting bodies such as the Financial Accounting Standards Board (FASB) in providing financial information to the public and explore the guidance collectively known as generally accepted accounting principles (GAAP).
• 2. Define the elements of accounting and apply the principles of the conceptual framework in reporting financial information.
• 3. Prepare financial statements in accordance with generally accepted accounting principles. The preparation requires the appropriate presentation of various income statement items as well as classification and valuation of balance sheet items.
• 4. Incorporate the time value of money in accounting considerations.
• 5. Define the characteristics of cash, perform primary cash functions, and understand the premises surrounding cash controls.
• 6. Define the characteristics of receivables, recognize the primary receivables transactions, and apply various valuation techniques.
• 7. Identify inventoriable costs, record transactions in accordance with prescribed inventory costing methods, and evaluate inventory for obsolescence.
• 8. Demonstrate the accounting for an entitys property, plant, and equipment - capitalizable acquisition costs, costs subsequent to acquisition, depreciation, annual test for impairment, and disposition at end of useful life.
• 9. Distinguish definite-life from indefinite-life intangible assets, rules for recording amortization, rules for impairment testing. Explore current issues related to recognition of intangible assets.

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Lecture Content

Financial accounting and accounting standards Origins of accounting standard setting Notable bodies in standard setting and regulatory compliance AICPA, FASB, IASB SEC, PCAOB  Generally Accepted Accounting Principles (GAAP) International Financial Reporting Standards (IFRS) FASB conceptual framework  Objective of financial reporting Qualitative characteristics of accounting information Elements of financial accounting Recognition, measurement, and disclosure concepts Accounting information system Elements of an accounting information system: accounts, journal entries, general ledger, trial balance posting Adjusting journal entries: accruals and deferrals Financial statements Closing entries Reversing entries Time value of money concepts Basic time value concepts Present value, future value Single sum, ordinary annuity, annuity due Time value of money applications: bond selling price, installment notes, deferred payment purchases, leases, pension obligation Financial statements Multiple-step income statement  Statement of other comprehensive income (OCI) Statement of comprehensive income Statement of retained earnings Statement of stockholders equity Balance sheet Statement of cash flows Notes and disclosures Revenue recognition Point of service Period of service Contracts with multiple performance obligations Long-term contracts Special issues  Cash and cash equivalents Types of cash and cash equivalents Bank reconcilia tions Petty cash Accounts receivable Accounting for sales: gross method versus net method Alllowance method of accounting for uncollectible accounts receivable Notes receivables Short-term versus long-term Interest-bearing versus non-interest bearing Subsequent amortization and interest revenue recognition Fair value option Inventories: measurement Inclusion of inventory costs; inventory cut-off Accounting for inventory: periodic inventory system versus perpetual inventory system, gross method versus net method Inventory costing methods:  Specific identification Average cost First-in first-out (FIFO) Last-in first-out (LIFO) Dollar-value LIFO Inventories: valuation Valuation at lower of cost or net realizable value Gross profit method of inventory estimation Retail method of inventory estimation Property, plant, and equipment (PPE): acquisition and disposition Capitalizable acquisition costs Acquisition methods: lump-sum purchase, deferred payment, issuance of stock, donated PPE Expenditures subsequent to acquisition: capitalize or expense. Disposal methods: retirement, sale, exchange Property, plant, and equipment (PPE): utilization and disposition Depreciation methods: straight-line, units of activity, sum-of-the-years digits (SYD), double-declining balance (DDB) Depletion of natural resources Impairment testing Intangible assets Types of intangible assets Capitalization Amortization of definite-life intangible assets Impairment testing of indefinite-life intangible assets 2-step test one-step test Research and development costs Software development costs

Method(s) of Instruction

• Lecture (02)
• DE Live Online Lecture (02S)
• DE Online Lecture (02X)

Instructional Techniques

Lecture Participatory discussions Application of concepts through exercises and demonstrations Problem solving through collaborative group work and student-led group work Transactional computerized accounting via QuickBooks, Microsoft Dynamics, Excel, etc. Online research: FASB database, SEC Edgar database, Journal of Accountancy, company websites.

Reading Assignments

Textbook FASB guidance Periodicals, journals, articles, and other readings as appropriate

Writing Assignments

Statement of comprehensive income Statement of retained earnings Statement of stockholders equity Statement of financial position (balance sheet) Statement of cash flows

Out-of-class Assignments

Assignments through the publisher portal Additional exercises, readings, and videos as appropriate

Demonstration of Critical Thinking

Students will apply numerous accounting and business-related concepts, principles, methods, calculations, and techniques covered in this course to specific situations. Students will demonstrate their ability to adopt the appropriate principles, methods, techniques, etc. given the particular entity and situation in question. In doing so, students will also access whether they have adhered to the guidelines and assumptions prescribed by the accounting conceptual framework.

Required Writing, Problem Solving, Skills Demonstration

Students will demonstrate their critical thinking skills when devising solutions to textbook homework problems and examinations, which require them to analyze the situation at hand, interpret financial data, and prepare step-by-step analyses and calculations to arrive at their results. In addition, students will also research a topic or issue relevant to financial accounting and present their findings in written and oral format. Lastly, students will engage in active ongoing group discussions on relevant course topics.

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 Spiceland. Intermediate Accounting, 10 ed. McGraw Hill, 2020 2. Required Kieso/Weygandt/Warfield. Intermediate Accounting , 17 ed. John Wiley Sons, 2019