AUSTIN COMMUNITY COLLEGE

ACCOUNTING DEPARTMENT

COURSE SYLLABUS

 

INTERMEDIATE FINANCIAL ACCOUNTING I-ACNT 2303

(Formerly ACCT 2033)

 

CIP CODE AREA:

COURSE LEVEL:  (Intermediate-Junior Level)

COURSE NUMBER:  ACNT 2303

COURSE TITLE:  Intermediate Financial Accounting I

CREDIT HOURS:  3

PREREQUISITE:   ACCT 2302 (or its equivalent) and ACNT 1171

METHOD OF PRESENTATION:  Three lecture/discussion hours per week

OTHER:  Practice set, research project, writing, computer applications and problem-solving; individual and/or group presentation, group work.

CATALOG DESCRIPTION:  Critical analysis of generally accepted accounting principles, concepts, and theory underlying the preparation of financial statements. Emphasis on current theory and practice. An intense study of accounting standards and principles used by accounting professionals for disclosing accounting information related to enterprise assets. Examines professional accounting pronouncements for measuring, recording, and reporting of asset values.

TEXTBOOK:   Intermediate Accounting,  Kieso, Weygandt and Warfield; John Wiley, 11th edition

 


COURSE CONTENT

 

I.                     Financial Reporting: 

A.      Historical perspective

B.      Conceptual Framework

C.      GAAP hierarchy

D.      Ethical environment

 

II.                   Accounting Information System:  Processing and External Reporting

A.      Accounting cycle

B.      Balance Sheet

C.      Income Statement

D.      Statement of Retained Earnings/Statement of Stockholders' Equity

E.       Statement of Cash Flows

F.       Disclosures

G.      Financial Statement Analysis

H.      Time value of money

 

      III.            Economic Resources:  Asset Recognition and Measurement

A.  Cash and Cash Equivalents

B.  Receivables

C.  Inventory

D. Operating Assets

 

       IV.           Revenue/Expense Recognition

 

 


 

 

 

 

COURSE LEARNING OBJECTIVES:  Upon successful completion of this course, students should be able to -

 

Chapter I

Explain how accounting assists in the efficient use of scarce resources

Identify some of the challenges facing accounting

Identify the objectives of financial reporting.

Explain the need for accounting standards.

Identify the major policy-setting bodies and their role in the standard-setting process.

Explain the meaning of generally accepted accounting principles.

Describe the impact of user groups on the standard-setting process.

Understand issues related to ethics and financial accounting.

Chapter 2

Describe the usefulness of a conceptual framework.

Describe the FASB’s efforts to construct a conceptual framework.

Understand the objectives of financial reporting.

Identify the qualitative characteristics of accounting information.

Describe the impact that constraints have on reporting accounting information.

Chapter3

Differentiate the cash basis of accounting from the accrual basis of accounting.

Identify adjusting entries that may be reversed.

Record  reversing entries.

Chapter 4

Identify the uses and limitations of an income statement.

Explain how irregular items are reported.

Measure and report gains and losses from discontinued operations.

Explain intraperiod tax allocation.

Prepare a retained earnings statement.

Identify content and format of statement of stockholders' equity.

Explain how other comprehensive income is reported.

Chapter 5

Identify the uses and limitations of a balance sheet.

Identify balance sheet information requiring supplemental disclosure.

Identify major disclosure techniques.

Chapter 24

Review the full disclosure principle and describe problems of implementation.

Explain the use of notes in financial statement preparation.

Describe the disclosure for major segments of a business.

Describe the accounting problems associated with interim reporting.

Identify the major disclosures found in the auditor’s report.

Understand management’s responsibilities for financials.

Identify issues related to financial forecasts and projections

Describe the profession’s response to fraudulent financial reporting.

Chapter 6

Solve future and present value of 1 problems (using tables, software, calculator).

Solve future value of ordinary and annuity due problems (using tables, software, calculator).

Solve present value of ordinary and annuity due problems (using tables, software, calculator).

Apply the expected cash flow approach to present value measurement.

Chapter 7

Identify items considered cash and cash equivalents.

Indicate how cash and related items are reported.

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.

Explain accounting issues related to recognition of notes receivable.

Explain accounting issues related to valuation of notes receivable.

Explain accounting issues related to disposition of accounts and notes receivable.

Explain how receivables are reported and analyzed.

Chapter 8

Identify the major classifications of inventory.

Distinguish between perpetual and periodic inventory systems.

Identify the effects of inventory errors on the financial statements.

Identify the items that should be included as inventory cost.

Describe and compare the flow assumptions used in accounting for inventories.

Explain the significance and use of a LIFO reserve.

Explain the effect of LIFO liquidations.

Explain the dollar-value LIFO method.

Identify the major advantages and disadvantages of LIFO.

Identify the reasons why a given inventory method is selected.

Chapter 9

Explain and apply the lower of cost or market rule.

Identify when inventories are valued at net realizable value.

Explain when the relative sales value method is used to value inventories.

Explain accounting issues related to purchase commitments.

Determine ending inventory by applying the gross profit method.

Determine ending inventory by applying the retail inventory method.

Explain how inventory is reported and analyzed.

Determine ending inventory by applying the LIFO retail methods.

Chapter 10

Describe the major characteristics of property, plant, and equipment.

Identify the costs included in the initial valuation of land, buildings, and equipment.

Describe the accounting problems associated with self-constructed assets.

Describe the accounting problems associated with interest capitalization.

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.

Chapter 11

Explain the concept of depreciation.

Identify the factors involved in the depreciation process.

Compare activity, straight line, and decreasing charge methods of depreciation.

Explain special depreciation methods.

Explain the accounting issues related to asset impairment.

Explain the accounting procedures for depletion of natural resources.

Explain how property, plant, equipment, and natural resources are reported and analyzed.

Describe income tax methods of depreciation.

Apply basic income tax depreciation methods.

Chapter 12

Describe the characteristics of intangible assets.

Identify the costs included in the initial valuation of intangible assets.

Explain the procedure for amortizing intangible assets.

Identify the types of intangible assets.

Explain the conceptual issues related to goodwill.

Describe the accounting procedures for recording goodwill.

Explain the accounting issues related to intangible asset impairments.

Identify the conceptual issues related to research and development costs.

Describe the accounting procedures for research and development costs and for other similar costs.

Indicate the presentation of intangibles and related items.

Identify the accounting treatment for computer software costs.

Chapter 18

Apply the revenue recognition principle.

Describe accounting issues involved with revenue recognition at point of sale.

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

Apply the completed-contract method for long-term contracts.

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

Describe the installment sales method of accounting.

Explain the cost recovery method of accounting.


COURSE COMPETENCIES (SCANS)

 

Participates as a member of a team:  Works cooperatively with others and contributes to group with ideas, suggestions, and effort.

 

Uses Computers to Process Information:  Employs computers to acquire, organize, analyze, and communicate information. 

 

Writing:  Communicates thoughts, ideas, information, and messages in writing; records information completely and accurately; composes and creates documents such as letters, directions, manuals, reports, proposals, graphs, flow charts; uses language, style, organization, and format appropriate to the subject-matter, purpose, and audience.  Includes supporting documentation and attends to level of detail; checks, edits, and revises for correct information, appropriate emphasis, form, grammar, spelling, and punctuation.    

 

Responsibility:  Exerts a high level of effort and perseverance towards goal attainment.  Works hard to become excellent at doing tasks by setting high standards, paying attention to details, working well and displaying a high level of concentration even when assigned an unpleasant task.  Displays high standards of attendance, punctuality, enthusiasm, vitality, and optimism in approaching and completing tasks.