Contact information Prerequisites Learning objectives Course materials Schedule Grading Quizzes 500 points Exam 500 points In-class Policies Subject to revision Contact information Instructor: Elizabeth Stanny, PhD Email (best way to contact me): stanny (at) sonoma (dot) edu Office hours: In-person: by appointment Online: Fridays 3 - 6 PM on Zoom click here If joining with an app, the meeting room is 904-996-6788. Prerequisites BUS 330A BUS 330B Proficiency in spreadsheet software Learning objectives Equity method of accounting for investments Identify the sole criterion for applying the equity method Prepare equity method journal entries Allocate the purchase price of an equity method investment and compute additional amortization when purchase price exceeds carrying values Explain why unrealized gains on intra-entity transfers are deferred Explain the rationale and reporting implications of the fair-value option for equity investments Consolidation Explain when consolidation is necessary Determine the total consideration transferred for an acquisition and allocate it Prepare the journal entry to consolidate the accounts of a subsidiary if dissolution takes place Prepare a worksheet to consolidate the accounts of two companies that form a business combination Prepare consolidated financial statements subsequent to acquisition when the parent has uses the equity method to account for its investment Test for impairment of goodwill Describe the valuation principles underlying the acquisition method of accounting for the non- controlling interest Allocate consolidated net income across the controlling and noncontrolling interests Describe how to account for mid-year acquisition Prepare the consolidation entry to eliminate the intra-entity inventory transactions Understand the difference between upstream and downstream intra-entity transfers and how each affects the noncontrolling interest accounts Describe a variable interest entity Prepare a consolidated statement of cash flows Foreign currency transactions and hedging Account for foreign currency transactions Understand how foreign currency forward contracts are used to hedge foreign exchange risk Account for forward contracts used as hedges of foreign currency denominated assets and liabilities, firm commitments and forecasted foreign currency transactions Translation of financial statements Describe when to use the current rate method and when to use the remeasurement method to translate financial statements Translate a financial statements using the current rate and remeasurement methods For relevant topics discuss the primary differences between U.
Contact information Prerequisites Learning objectives Course materials Schedule Grading Quizzes 500 points Exams 500 points In-class Policies Subject to revision Contact information Instructor: Elizabeth Stanny, PhD Email (best way to contact me): stanny (at) sonoma (dot) edu Office hours: In-person: by appointment Online: Fridays 3 - 6 PM on Zoom click here If joining with an app, the meeting room is 904-996-6788. Prerequisites BUS 230A Proficiency in spreadsheet software Learning objectives Environment and conceptual framework Describe the function and primary focus of financial accounting Explain the difference between cash and accrual accounting Discuss FASB’s conceptual framework Accounting cycle Record transactions using journal entries Post the effects of journal entries to general ledger accounts Prepare an unadjusted trial balance, adjusting journal entries, adjusted trial balance, and closing journal entries Prepare basic financial statements Convert from cash to accrual basis net income Balance sheet and financial disclosures Describe the purpose of the balance sheet and its usefulness and limitations Distinguish among current and non-current assets and liabilities Explain the purpose of financial statement disclosures, the management discussion and analysis disclosure and of an audit Calculate liquidity and financing ratios Income statement and statement of cash flows Discuss the importance of income from continuing operations and its components Define discontinued operations and its income statement presentations Explain the accounting treatments of changes in estimates and accounting principles and correction of errors Define earnings per share (EPS) and explain required disclosures of EPS Explain the difference between net income and comprehensive income Describe the purpose and classifications of the statement of cash flows Income Measurement and Profitability Analysis Discuss the revenue recognition criteria Discuss the implications for revenue recognition of allowing customers the right of return Identify and calculate the common ratios used to assess profitability Cash and receivables Distinguish between the gross and net methods of accounting for cash discounts Account for merchandise returns and anticipated uncollectible accounts receivable Describe the two approaches to estimating bad debts Differentiate between the use of receivables in financing arrangements accounted for as a secured borrowing and those accounted for as a sale Inventories Explain the difference between perpetual and periodic inventory systems Explain which physical quantities of goods should be included in inventory Determine the expenditures that should be included in the cost of inventory Determine the cost of ending inventory and cost of goods sold using the specific identification, FIFO, LIFO, dollar-value LIFO, retail inventory, gross profit and average cost methods Describe supplemental LIFO disclosures and the effect of LIFO liquidations on net income Apply the lower of cost or net realizable value rule used to value inventories Property, plant and equipment and intangibles Identify costs included in the initial cost of property, plant, and equipment, natural resources, and intangible assets Determine the initial cost of individual property, plant, and equipment and intangible assets acquired as a group for a lump-sum purchase price, in exchange for a deferred payment contract, in exchange for equity securities or through donation Explain how to account for dispositions and exchanges for other non-monetary assets Identify the items included in the cost of a self-constructed asset and determine the amount of capitalized interest Explain the concept of cost allocation as it pertains to property, plant, and equipment and intangible assets Calculate depreciation and amortization expenses Account for changes in estimated service lives and residual value of property, plant, and equipment and intangible assets Discuss when long-lived assets must be tested for impairment Investments Demonstrate how to identify and account for investments classified as held-to-maturity, trading, available-for-sale and the equity method Explain what constitutes significant influence by the investor over the operating and financial policies of the investee Explain how electing the fair value option affects accounting for investments For each topic discuss the primary differences between U.
The California Board of Accountancy (CBA) has extensive information for CPA Exam Applicants and for CPA Licensing Applicants here. Exam educational requirements The educational requirements to take the exam are listed in the Uniform CPA Exam Handbook (p. 3): A baccalaureate degree 24 semester units of core accounting subjects 24 semester units of business-related subjects Licensure educational requirements The additional educational requirements to be licensed as a CPA are listed in the Uniform CPA Exam Handbook (p.
Equity Investments Fair-value Through Net Income (ASC 321) Equity method (ASC 323) Equity method: significant but not controlling influence Equity method: adjustments to investment Fair value election option (ASC 825) Fair value method Journal entries: Fair value Effects on income statements: fair value method Effects on balance sheet statement: fair value method Effects on cash flow statement: fair value method Equity method Journal entries: equity method Effects on income statements: equity method Effects on balance sheet statement: equity method Effects on cash flow statement: equity method Equity Investments Equity -how classify and account for depends on level of influence