Intermediate Accounting II

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Intermediate Accounting II

This course is designed to provide comprehensive knowledge on the liability sides of the accounting equation.  The discussion will cover from recognition and measurements of a particular liability to the presentation and disclosure of that liability in the financial statements. Topics include

  1. Current and Contingent Liabilities
  2. Long-term Liabilities
  3. Issue of Shares
  4. Earnings and its Appropriation and Retention
  5. Earnings Per Share Calculation
  6. Accounting for V A T.
  7. Accounting for Leases
  8. Accounting Changes and Error Analysis
  9. Financial Statement Analysis

ACN – 301: Intermediate Accounting I

  1. 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.
  2. 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.
  3. The reading materials for each class will be given prior to that class so that student may have a cursory look into the materials.
  4. Class participation is vital for better understanding of sociological issues. Students are invited to raise questions.
  5. Students should take tutorials with the instructor during the office hours. Prior appointment is required.
  6. Students must maintain the IUB code of conduct and ethical guidelines offered by the School of Business.
  7. 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.
  1. 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 Explanation of Course Outline

 

 

Course Introduction and quick review of ACN 301 concepts

Course Outline

 

Relevant Handouts available from virtual learning system

 

Session -2 Current Liabilities and Contingencies Describe the nature, type, and valuation of current liabilities.

 

Explain the classification issues of short-term debt expected to be refinanced.

 

Relevant problem solving from text

 

Kieso, Weygandt and Warfield, Chapter 13 Pages 700-761

 

Relevant Handouts available from virtual learning system

 

Session -3 Current Liabilities and Contingencies Identify types of employee-related liabilities.

 

Identify the criteria used to account for and disclose gain and loss contingencies.

 

Relevant problem solving from text

Kieso, Weygandt and Warfield, Chapter 13 Pages 700-761

 

Relevant Handouts available from virtual learning system

Session -4 Current Liabilities and Contingencies Explain the accounting for different types of loss contingencies.

 

Indicate how to present and analyze liabilities and contingencies.

 

Relevant problem solving from text

 

Kieso, Weygandt and Warfield, Chapter 13 Pages 700-761

 

Relevant Handouts available from virtual learning system

Session -5 Long Term Liabilities Describe the formal procedures associated with issuing long-term debt.

 

Identify various types of bond issues.

 

Describe the accounting valuation for bonds at date of issuance.

 

Relevant problem solving from text

Kieso, Weygandt and Warfield, Chapter 14 Pages 762- 819

 

Relevant Handouts available from virtual learning system

Session -6 Long Term Liabilities Apply the methods of bond discount and premium amortization.

 

Describe the accounting for the extinguishment of debt.

 

Explain the accounting for long-term notes payable.

 

Relevant problem solving from text

Kieso, Weygandt and Warfield, Chapter 14 Pages 762- 819

 

Relevant Handouts available from virtual learning system

Session-7 Long Term Liabilities Describe the accounting for the fair value option.

 

Explain the reporting of off-balance-sheet financing arrangements.

 

Indicate how to present and analyze long-term debt.

 

Relevant problem solving from text

Kieso, Weygandt and Warfield, Chapter 14 Pages 762- 819

 

Relevant Handouts available from virtual learning system

Session -8 Stockholder’s Equity

 

 

 

 

 

 

 

 

 

 

 

 

Quiz 1

Discuss the characteristics of the corporate form of organization.

 

Identify the key components of stockholders’ equity.

 

Explain the accounting procedures for issuing shares of stock.

 

 

Relevant problem solving from text

 

 

 

Chapter 13-14

Kieso, Weygandt and Warfield, Chapter 15 Pages 820-881

 

Relevant Handouts available from virtual learning system

Session -9 Stockholder’s Equity Describe the accounting for treasury stock.

 

Explain the accounting for and reporting of preferred stock.

 

Describe the policies used in distributing dividends.

 

Relevant problem solving from text

Kieso, Weygandt and Warfield, Chapter 15 Pages 820-881

 

Relevant Handouts available from virtual learning system

Session -10 Stockholder’s Equity Identify the various forms of dividend distributions.

 

Explain the accounting for small and large stock dividends, and for share splits.

 

Indicate how to present and analyze stockholders’ equity.

 

Relevant problem solving from text

Kieso, Weygandt and Warfield, Chapter 15 Pages 820-881

 

Relevant Handouts available from virtual learning system

Session -11 Dilutive Securities and Earnings per Share Describe the accounting for the issuance, conversion, and retirement of convertible securities.

 

Explain the accounting for convertible preferred stock.

 

Contrast the accounting for stock warrants and for stock warrants issued with other securities.

 

Relevant problem solving from text

Kieso, Weygandt and Warfield, Chapter 16 Pages 882-949

 

Relevant Handouts available from virtual learning system

Session -12 Dilutive Securities and Earnings per Share

 

 

 

 

 

 

 

 

 

 

 

Describe the accounting for stock compensation plans under generally accepted accounting principles.

 

Discuss the controversy involving stock compensation plans.

 

Relevant problem solving from text

 

 

 

 

 

 

 

Kieso, Weygandt and Warfield, Chapter 16 Pages 882-949

 

Relevant Handouts available from virtual learning system

 

Session -13 Dilutive Securities and Earnings per Share Compute earnings per share in a simple capital structure.

 

Compute earnings per share in a complex capital structure.

 

Relevant problem solving from text

Kieso, Weygandt and Warfield, Chapter 16 Pages 882-949

 

Relevant Handouts available from virtual learning system

Session -14 Midterm Exam  CHAPTERS 13-16 Kieso, Weygandt and Warfield, Chapter 13-16

 

Relevant Handouts available from virtual learning system

Session -15 Revenue Recognition Apply the revenue recognition principle.

 

Describe accounting issues for revenue recognition at point of sale.

 

Apply the percentage-of-completion method for long-term contracts.

 

Relevant problem solving from text

Kieso, Weygandt and Warfield, Chapter 18, Pages 1040-1115

 

Relevant Handouts available from virtual learning system

Session -16 Revenue Recognition Apply the completed-contract method for long-term contracts.

 

Identify the proper accounting for losses on long-term contracts.

 

 

Relevant problem solving from text

Kieso, Weygandt and Warfield, Chapter Pages 18 1040-1115

 

Relevant Handouts available from virtual learning system

Session -17 Revenue Recognition Describe the installment-sales method of accounting.

 

Explain the cost-recovery method of accounting.

 

Relevant problem solving from text

Kieso, Weygandt and Warfield, Chapter 18,Pages  1040-1115

 

Relevant Handouts available from virtual learning system

Session -18 Quiz 2

 

Accounting for Income Taxes

Chapter 18

 

Identify differences between pretax financial income and taxable income.

 

Describe a temporary difference that results in future taxable amounts.

 

Describe a temporary difference that results in future deductible amounts.

 

Explain the purpose of a deferred tax asset valuation allowance.

 

Describe the presentation of income tax expense in the income statement.

 

Relevant problem solving from text

 

 

Kieso, Weygandt and Warfield, Chapter 19 Pages 1116-1181

 

Relevant Handouts available from virtual learning system

 

Session -19 Accounting for Income Taxes Describe various temporary and permanent differences.

 

Explain the effect of various tax rates and tax rate changes on deferred income taxes.

 

Apply accounting procedures for a loss carryback and a loss carryforward.

 

Describe the presentation of deferred income taxes in financial statements.

 

Indicate the basic principles of   the asset-liability method.

 

Relevant problem solving from text

Kieso, Weygandt and Warfield, Chapter 19 Pages 1116-1181

 

Relevant Handouts available from virtual learning system

 

Session -20 Accounting for Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Explain the nature, economic substance, and advantages of lease transactions.

 

Describe the accounting criteria and procedures for capitalizing leases by the lessee.

 

Contrast the operating and capitalization methods of recording leases.

 

Relevant problem solving from text

 

 

 

Kieso, Weygandt and Warfield, Chapter 21 Pages 1268-1341

 

Relevant Handouts available from virtual learning system

 

Session -21 Accounting for Leases Explain the advantages and economics of leasing to lessors and identify the classifications of leases for the lessor.

 

Describe the lessor’s accounting for direct-financing leases.

 

Identify special features of lease arrangements that cause unique accounting problems.

 

Relevant problem solving from text

Kieso, Weygandt and Warfield, Chapter 21 Pages 1268-1341

 

Relevant Handouts available from virtual learning system

Session -22 Accounting for Leases Describe the effect of residual values, guaranteed and unguaranteed, on lease accounting.

 

Describe the lessor’s accounting for sales-type leases.

 

List the disclosure requirements for leases.

 

Relevant problem solving from text

Kieso, Weygandt and Warfield, Chapter 21 Pages 1268-1341

 

Relevant Handouts available from virtual learning system

Session -23 Quiz 3

 

Accounting Changes and Error Analysis

 

 

 

 

 

 

 

 

 

 

Chapter 21

 

Identify the types of accounting changes.

 

Describe the accounting for changes in accounting principles.

 

Understand how to account for retrospective accounting changes.

 

Relevant problem solving from text

 

 

 

 

 

Kieso, Weygandt and Warfield, Chapter 22 Pages 1342-1409

 

Relevant Handouts available from virtual learning system

Session -24 Accounting Changes and Error Analysis Understand how to account for impracticable changes.

 

Describe the accounting for changes in estimates.

 

Identify changes in a reporting entity

 

Relevant problem solving from text

Kieso, Weygandt and Warfield, Chapter 22 Pages 1342-1409

 

Relevant Handouts available from virtual learning system

Session -25 Accounting Changes and Error Analysis Describe the accounting for correction of errors.

 

Identify economic motives for changing accounting methods.

 

Analyze the effect of errors.

 

 

Relevant problem solving from text

Kieso, Weygandt and Warfield, Chapter 22 Pages 1342-1409

 

Relevant Handouts available from virtual learning system

Session -26 Final Exam Chapters 18, 19, 21, 22 Kieso, Weygandt and Warfield, Chapters 18, 19, 21, 22

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.