BUS 430 Syllabus Fall 2018

Advanced accounting

Subject to revision

Contact information

  • Instructor: Elizabeth Stanny, PhD
  • Email: stanny@sonoma.edu
  • Office: Wine Center 1016
  • Office phone: 707-664-4287
  • Office hours:
    • Mondays 11 to 11:50 AM
    • by appointment

Prerequisites

  • BUS 330A
  • BUS 330B
  • Proficiency in spreadsheet software

Course format

  • This is a hybrid course. We will meet on Mondays in the Wine Center 1003. Attendance is required.
  • Course site: stanny.moodle.school. If you are enrolled in the course, I will send you login information.
    • I am solely responsible for this site.
    • If you have any questions about the site, please ask me.
    • Videos, notes, quizzes and other materials are posted on the site.
    • As you watch the videos you should work along and replicate the spreadsheets. You will use the spreadsheets in your quizzes.

Course materials

  • Required
  • ASC (Accounting Standards Codification) (required).
    • Logon credentials will be posted on the course site.
  • Textbook (recommended)
    • Halsey and Hopkins. Advanced Accounting, 3rd Edition. Cambridge Business Partners, ISBN: 978-1-61853-190-2. You do not need a code.
  • Spreadsheet Software (required)
    • I recommend LibreOffice, but you can use any spreadsheet program. LibreOffice is open source (free) and is compatible with Microsoft Excel. Any skills you learn in LibreOffice Calc will be transferable to Microsoft Office (Excel). I don’t recommend Numbers or Google sheets because these skills are less transferrable to MS Excel, which is still used by most businesses.

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
  • Segment and interim reporting
    • Explain how an entity determines its operating segments
    • Describe disclosure requirements for operating segments
    • Describe when and what types of information must be disclosed for geographic areas and major customers
    • List the minimum disclosure requirements for interim financial reports
  • Financial reporting and the SEC
    • Describe the origin and role of the SEC
    • Discuss the purposes of various federal securities laws
    • Describe the SEC’s role in establishing GAAP
    • Describe an issuer’s required SEC filings
    • Explain an issuer’s registration process
  • For relevant topics discuss the primary differences between U.S. GAAP and IFRS
  • For each topic discuss the primary differences between U.S. GAAP and IFRS
  • Analyze public companies annual reports (10-Ks)
  • Relate course topics to current events

Schedule

Date Topic Quiz due Closes at Attendance
Aug 20 1: Equity Method 1
Aug 27 2: Consolidation: Date of Acquisition 1 12 PM (noon) 2
Sep 10 3: Consolidation: After Acquisition 2 12 PM (noon) 3
Sep 17 4: Consolidation: Differences CV and FV 3 12 PM (noon) 4
Sep 24 5: Consolidation: Intra-Entity Asset Transactions 4 12 PM (noon) 5
Oct 1 Review 5 12 PM (noon) 6
Oct 8 Exam (Topics 1-5)
Oct 15 6: Consolidation: Cash Flow Statement 7
Oct 22 7: Foreign Currency Transactions and Hedging 6 12 PM (noon) 8
Oct 29 8: Translation of Financial Statements 7 12 PM (noon) 9
Nov 5 9: Segment Disclosures 8 12 PM (noon) 10
Nov 19 10: Interim Reporting 9 12 PM (noon) 11
Nov 26 Review 10 12 PM (noon) 12
Dec 3 Exam (Topics 6-10)
Dec 10 Bonus (optional) 12 PM

Grading

There are 1000 possible points in the course (excluding possible makeup points). Your grade will be determined by your total points:

Grade Points
A 950
A- 900
B+ 870
B 830
B- 800
C+ 770
C 730
C- 700
D+ 670
D 600

In-class participation 200 points

  • Part 1: 100 points (max)
    • 10 points each attendace day that you
      • arrive on time
      • are mentally and physically present for the entire class
      • respond to question(s) on moodle during class
  • Part 2: 100 points (max)
    • 30 points each time you present a 2-3 minute summary of your group’s in-class discussion
    • 30 points each time you present a 2-3 minute summary of material we covered in the previous week
    • 30 points each time you present a 2-3 minute summary of article that relates to the course material
    • other options will be announced on moodle

Quizzes 400 points

  • Questions will be short-answer, numerical and multiple-choice.
  • You can attempt each quiz twice and you will receive the highest grade scored.
  • Late quizzes will not be accepted. Please do not ask.
  • There will be multiple versions of quizzes. You can work with others on the quizzes, but you must enter and understand the answers yourself. When you submit your answers you are acknowledging that you can explain your answers.

Exams 400 points

  • The exams will be in assigned computer labs during the scheduled class time.
  • The exams are open-book and open-note.
  • You should use the spreadsheets that you have created for the quizzes.

Make-up 100 points

  • 10 minute recorded conversation on Zoom with me on the course topics. Sign up on Dec 5 for time slots during Exam week.

Policies

  • You must adhere to SSU’s Cheating and Plagiarism policy. Academic dishonesty (e.g., cheating, plagiarism, etc.) will not be tolerated and will result in a zero grade (i.e., no points) on the quiz or exam and, possibly, a failing grade in the course.
  • Please be advised that the on-line software allows me to track every click you make on the course site. I know whether, when and where you attempt quizzes, access notes, etc.
  • There are no opportunities for points not listed above. Please do not ask.
  • Disability Services for Students (DSS)
    • Academic Accommodation: If you are a student with a disability, and think you may need academic accommodations, please contact Disability Services for Students (DSS), located in Salazar Hall, Room 1049, Voice: (707) 664-2677, TTY/TDD: (707) 664-2958, as early as possible in order to avoid a delay in receiving accommodation services. Use of DSS services, including testing accommodations, requires prior authorization by DSS in compliance with university policies and procedures.
  • Students may not record (audio or video) in this class except in accordance with ADA accommodations. Any recordings made in connection with a disability accommodation are for the student’s personal academic use only and may not be distributed in any manner to any other individual.