BUS 430 Spring 2018

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.


  • 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.S. GAAP and IFRS
  • Operating Segments
  • Interim Reporting
  • Accounting Standards Codification

Course materials

  • Videos, notes, quizzes and other materials are posted on SSU’s moodle site
    • As you watch the videos you should work along and replicate the spreadsheets. You will use the spreadsheets in your quizzes.
  • Spreadsheet Software
    • I highly recommend LibreOffice, but you can use any spreadsheet program. I use LibreOffice in the videos. It is open source (free) and is compatible with Microsoft Excel. Any skills you learn in LibreOffice Calc will be transferable to Microsoft Office (Excel).
    • Download LibreOffice here.
  • Textbook (optional)
    • Halsey and Hopkins. Advanced Accounting, 3rd Edition. Cambridge Business Partners, ISBN: 978-1-61853-190-2. You do not need a code.


Date In-class topic Quiz(zes) for topic closes at
Jan 22 1: ASC
Jan 29 2: Equity Method 1 4:30 PM
Feb 5 3: Consolidation: Date of Acquisition 2 4:30 PM
Feb 12 4: Consolidation: After Acquisition 3 4:30 PM
Feb 19 5: Consolidation: Differences CV and FV 4 4:30 PM
Feb 26 5 4:30 PM
Mar 5 Exam (Topics 1-5) during class time
Mar 12 6: Consolidation: Intra-Entity Asset Transactions
Mar 26 7: Consolidation: Cash Flow Statement 6 4:30 PM
Apr 2 8: Foreign Currency Transactions and Hedging 7 4:30 PM
Apr 9 9: Translation of Financial Statements 8 4:30 PM
Apr 16 10: Segment Disclosures 9 4:30 PM
Apr 23 11: Interim Reporting 10 4:30 PM
Apr 30 11 4:30 PM
May 7 Exam (Topics 6-11 including ASC) during class time


There are 1000 possible points in the course. 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

Quizzes 500 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.

Exam 500 points

  • The exam is open-book and open-note.
  • You should use the spreadsheets that you have created for the quizzes.
  • The exam will be administered in an assigned computer lab during class time.


  • The first 30 minutes of class 4-4:30 PM will be for individual help. I’ll be available to answer questions including whether your second attempt answers are correct.
  • Beginning at 4:30 PM I will review the last topic, give an introduction to the next the topic, and you will answer a question. If your answer is correct, you will receive 10 bonus points.


  • 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.
    • Emergency Evacuation: If you are a student with a disability and you think you may require assistance evacuating a building in the event of a disaster, you should inform your instructor about the type of assistance you may require. You and your instructor should discuss your specific needs and the type of precautions that should be made in advance of such an event (i.e. assigning a buddy to guide you down the stairway). We encourage you to take advantage of these preventative measures as soon as possible and contact the Disability Services for Students office if other classroom accommodations are needed.