The course is directed towards developing a student’s understanding and knowledge about the asset side of the balance sheet. Students will acquire in-depth knowledge of the procedural and conceptual issues as well as information on presentation and disclosure of financial statements. It explores additional issues to be addressed by an accountant in complex business phenomenon in reporting different assets in the balance sheet.
ACN 201- Accounting Principles
- It is the student’s responsibility to gather information about the assignments and covered topics during the lectures missed. Regular class attendance is mandatory. Points will be taken off for missing classes. Without 70% of attendance, sitting for final exam is NOT allowed. According to IUB system students must enter the classroom within the first 20 minutes to get the attendance submitted.
- The date and syllabus of quiz, midterm and final exam is already given here, however, announcements will be given ahead of time. There is NO provision for make-up quizzes.
- The reading materials for each class will be given prior to that class so that student may have a cursory look into the materials.
- Class participation is vital for better understanding of sociological issues. Students are invited to raise questions.
- Students should take tutorials with the instructor during the office hours. Prior appointment is required.
- Students must maintain the IUB code of conduct and ethical guidelines offered by the School of Business.
- Students must refrain from any type of cheating and/or plagiarism in a course. Any student acting otherwise will receive an “F” grade in the course. School of Business, IUB, maintains a zero tolerance policy regarding violation of academic integrity.
- Students are not allowed to keep bags, handouts, books, mobile phones, smart watches or any other smart electronic devices with them during any exam. Students are advised to keep everything in the front of the class room before the exam starts. Please note that, just carrying any smart electronic devises (even if the devise is turned off or put it in silent mode) during the exam will be considered as “cheating”. Moreover, during the exam, anything written on hand palms (or anywhere else) and carrying paper materials (whatever is written) will be considered as “cheating”. Any sorts of “cheating” will result in an “F” grade with no exception. During the exam, students are only allowed to carry pen, pencil, eraser, sharpener, ruler, highlighter and calculator in a clear plastic bag.
| Type of Evaluation | Nos. | Weight |
| Class Attendance and Participation | 100% | 5 |
| Quiz (Best two will be counted) | 3 | 15 |
| Project and Presentation | 01 | 10 |
| Midterm Exam | 01 | 30 |
| Final Exam | 01 | 40 |
| Total | 100% |
[Class attendance is mandatory; failure to do so may deduct the final marks]
The following chart will be followed for grading. This has customized form the guideline provided by the school of Business.
| A | A- | B+ | B | B- | C+ | C | C- | D+ | D | F |
| 90-100 | 85-89 | 80-84 | 75-79 | 70-74 | 65-69 | 60-64 | 55-59 | 50-54 | 45-49 | 0-44 |
* Numbers are inclusive
The course will be based mostly on the following books [some other books and journals may be referred time to time]:
- Kieso, Weygandt and Warfield; Intermediate Accounting; 15th Edition; John Wiley & sons, Inc
Link to virtual learning system: http://103.254.86.4/sb/ (School of Business – Faculty name- Login as a guest- password is 1234).
| Sessions | Topic | Learning Outcomes | Readings |
| Session -1 | Introduction
Financial Accounting and Accounting Standards |
Course introduction.
A brief review of major accounting concepts discussed in Principles of Accounting (ACN 201).
Identify the major financial statements and other means of financial reporting. Explain how accounting assists in the efficient use of scarce resources. Identify the objective of financial reporting. Explain the need for accounting standards. Identify the major policy-setting bodies and their role in the standard-setting process.
|
Course Outline
Kieso, Weygandt and Warfield, Chapter 1, Page 2-13.
Handout available on virtual learning system |
| Session -2 | Financial Accounting and Accounting Standards | Explain the meaning of generally accepted accounting principles (GAAP) and the role of the Codification for GAAP.
Describe the impact of user groups on the rule-making process. Describe some of the challenges facing financial reporting. Understand issues related to ethics and financial accounting.
|
Kieso, Weygandt and Warfield,
Chapter 1, Page 13-23.
Handout available on virtual learning system. |
| Session -3 | Conceptual Framework underlying Financial Statements
|
Describe the usefulness of a conceptual framework.
Describe the FASB’s efforts to construct a conceptual framework. Understand the objective of financial reporting. Identify the qualitative characteristics of accounting information.
|
Kieso, Weygandt and Warfield,
Chapter 2, Page 40-52.
Handout available on virtual learning system |
| Session -4 | Conceptual Framework underlying Financial Statements
|
Define the basic elements of financial statements.
Describe the basic assumptions of accounting. Explain the application of the basic principles of accounting. Describe the impact that the cost constraint has on reporting accounting information. |
Kieso, Weygandt and Warfield,
Chapter 2, Page 52-63.
Handout available on virtual learning system |
| Session -5 | Conceptual Framework underlying Financial Statements
|
Relevant Problem Solving from Text | Kieso, Weygandt and Warfield,
Chapter 2, Page 66-76.
Handout available on virtual learning system
|
| Session -6 | Income Statement and Related Information | Understand the uses and limitations of an income statement.
Describe the content and format of the income statement.
Prepare an income statement.
Explain how to report various income items.
|
Kieso, Weygandt and Warfield,
Chapter 4, Page 158-176.
Handout available on virtual learning system |
| Session-7 | Income Statement and Related Information | Identify where to report earnings per share information.
Understand the reporting of accounting changes and errors.
Prepare a retained earnings statement.
Explain how to report other comprehensive income |
Kieso, Weygandt and Warfield,
Chapter 4, Page 177-188.
Handout available on virtual learning system |
| Session -8 | Income Statement and Related Information
|
Relevant Problem Solving from Text
|
Kieso, Weygandt and Warfield,
Chapter 4, Page 189-202.
Handout available on virtual learning system |
| Session -9 | Quiz 1
Balance Sheet and Cash Flow Statements
|
Knowledge of Conceptual Framework and Income Statement.
Explain the uses and limitations of a balance sheet.
Identify the major classifications of the balance sheet.
Prepare a classified balance sheet using the report and account formats.
|
Kieso, Weygandt and Warfield, Chapter 5, Page 212-227.
Handout available on virtual learning system
|
| Session -10 | Balance Sheet and Cash Flow Statements
|
Indicate the purpose of the statement of cash flows.
Identify the content of the statement of cash flows.
Prepare a basic statement of cash flows.
Understand the usefulness of the statement of cash flows.
Determine which balance sheet information requires supplemental disclosure.
Describe the major disclosure techniques for the balance sheet.
Using Ratios to Analyze Performance
|
Kieso, Weygandt and Warfield,
Chapter 5, Page 228-246.
Handout available on virtual learning system |
| Session -11 | Balance Sheet and Cash Flow Statements | Relevant Problem Solving from Text
|
Kieso, Weygandt and Warfield,
Chapter 5, Page 256-273.
Handout available on virtual learning system |
| Session -12 | Midterm Examination
|
Knowledge of Conceptual Framework, Income Statement, Balance Sheet, and Cash Flow Statement | Kieso, Weygandt and Warfield,
Chapters 1, 2, 4, and 5. |
|
Session -13 |
Cash And Receivables |
Identify items considered cash.
Indicate how to report cash and related items.
Define receivables and identify the different types of receivables.
Explain accounting issues related to recognition of accounts receivable.
Explain accounting issues related to valuation of accounts receivable.
|
Kieso, Weygandt and Warfield, Chapter 7, Page 344-358.
Handout available on virtual learning system |
| Session -14 | Cash And Receivables | Explain accounting issues related to recognition and valuation of notes receivable.
Explain the fair value option.
Explain accounting issues related to disposition of accounts and notes receivable.
Describe how to report and analyze receivables.
|
Kieso, Weygandt and Warfield, Chapter 7,
Page 359-374.
Handout available on virtual learning system |
| Session -15 | Cash And Receivables | Relevant Problem Solving from Text
|
Kieso, Weygandt and Warfield, Chapter 7,
Page 386-404.
Handout available on virtual learning system |
| Session -16 | Inventories Valuation | Identify major classifications of inventory.
Distinguish between perpetual and periodic inventory systems.
Determine the goods included in inventory and the effects of inventory errors on the financial statements.
Understand the items to include as inventory cost.
Describe and compare the cost flow assumptions used to account for inventories.
|
Kieso, Weygandt and Warfield, Chapter 8,
Page 314-431.
Handout available on virtual learning system |
| Session -17 | Inventories Valuation | Describe and apply lower-of-cost-or-market rule.
Explain when companies value inventories at net realizable value.
Explain when companies use the relative sales value method to value inventories.
Discuss accounting issues related to purchase commitments.
Determine ending inventory by applying the gross profit method.
Explain how to report and analyze inventory |
Kieso, Weygandt and Warfield, Chapter 9,
Page 473-497.
Handout available on virtual learning system |
| Session -18 | Inventories Valuation
|
Relevant Problem Solving from Text
|
Kieso, Weygandt and Warfield, Chapter 9,
Page 506-521.
Handout available on virtual learning system |
| Session -19 | Quiz 2
Acquisition and Disposition of Property, Plant and Equipment |
Knowledge of Cash and Receivables, Inventories Valuation.
Describe property, plant, and equipment. Identify the costs to include in initial valuation of property, plant, and equipment.
Describe the accounting problems associated with self-constructed assets.
Describe the accounting problems associated with interest capitalization.
|
Kieso, Weygandt and Warfield, Chapter 8 and 9.
Kieso, Weygandt and Warfield, Chapter 10, Page 536-547.
Handout available on virtual learning system |
| Session -20 | Acquisition and Disposition of Property, Plant and Equipment Stocks | Understand accounting issues related to acquiring and valuing plant assets.
Describe the accounting treatment for costs subsequent to acquisition.
Describe the accounting treatment for the disposal of property, plant, and equipment.
|
Kieso, Weygandt and Warfield, Chapter 10,
Page 547-562.
Handout available on virtual learning system |
| Session -21 | Acquisition and Disposition of Property, Plant and Equipment Stocks | Relevant Problem Solving from Text | Kieso, Weygandt and Warfield, Chapter 10,
Page 565-581.
Handout available on virtual learning system |
| 2Session -22 | Depreciation, Impairments and Depletion | Explain the concept of depreciation.
Identify the factors involved in the depreciation process.
Compare activity, straight-line, decreasing-charge, and special methods of depreciation.
Explain the accounting issues related to asset impairment.
Explain the accounting procedures for depletion of natural resources.
Explain how to report and analyze property, plant, equipment, and natural resources.
|
Kieso, Weygandt and Warfield, Chapter 11,
Page 588-612.
Handout available on virtual learning system |
| Session -23 | Depreciation, Impairments and Depletion | Relevant Problem Solving from Text | Kieso, Weygandt and Warfield, Chapter 11,
Page 521-632.
Handout available on virtual learning system |
| Session -24 | Quiz 3
Intangible Assets |
Knowledge of Acquisition and Disposition of Property, Plant and Equipment, Depreciation, Impairments, and Depletion.
Describe the characteristics of intangible assets.
Identify the costs to include in the initial valuation of intangible assets.
Explain the procedure for amortizing intangible assets.
Describe the types of intangible assets.
Explain the accounting issues for recording goodwill. Explain the accounting issues related to intangible-asset impairments.
Identify the conceptual issues and describe the accounting for research and development costs.
Indicate the presentation of intangible assets and related items |
Kieso, Weygandt and Warfield, Chapter 10 and 11.
Kieso, Weygandt and Warfield, Chapter 12, Page 648-672.
Handout available on virtual learning system |
| Session -25 | Intangible Assets
|
Relevant Problem Solving from the Text. | Kieso, Weygandt and Warfield, Chapter 12,
Page 677-688.
Handout available on virtual learning system |
| Session -26 | Final Exam | Knowledge of Cash and receivables, Inventories, Property, plant and Equipment, and Intangibles | Kieso, Weygandt and Warfield, Chapter 7, 8, 9. 10, 11, and 12.
|
Students who are willing to audit the course are welcome during the first two classes and are advised to contact the instructor after that.
Plagiarism- that is the presentation of another person’s thoughts or words as though they were the students’ own – must be strictly avoided. Cheating and plagiarism on exam and assignment are unacceptable.
Please see the green book for further information about academic regulation and policies, including withdrawal and grading, apples and penalties for pilgrims and academic misconduct.
Students with disabilities are required to inform the School of Business/ Department of Economics of any specific requirement for classes or examination as soon as possible.