ACCOUNTING 401-100

ADVANCED ACCOUNTING

SYLLABUS

SUMMER I SEMESTER 2009

 

Class Meeting Times:

Monday, Tuesday, Wednesday, Thursday, Friday

2:00 – 3:35 pm

Room 104 Wehner Building

 

Instructor:

S. H. Kratchman

Price Waterhouse Professor of Accounting

460 G Wehner Building

5-3175

S-Kratchman@tamu.edu

      http://acct.tamu.edu/kratchman/

 

Office Hours:

     Tuesday, 4:00 - 5:00 pm

     Wednesday, 10:00 – 11:00 am

     Thursday, 4:00 - 5:00 pm

     Others by appointment

 

Course Objectives:

    To expose students to the following areas of financial accounting:

1.      Accounting for investments in subsidiaries

2.      Business combination

3.      Consolidated financial statements

4.      Foreign currency transactions

5.      Foreign currency translation

6.      Governmental accounting

7.      Not-for-profit accounting

8.      SEC accounting

In addition, it is the objective of this class to enhance students’ communication skills.

 

Important Note:

   We have beautiful and state-of-the-art classrooms in the Wehner Building.  We want to maintain the high quality conditions of these classrooms for the students in

    future years.  Thus, it is necessary for you to adhere to the established policy of NO BEVERAGE, FOOD, TABACCO PRODUCTS, OR ANIMALS (unless

    approved) within the Wehner Building classrooms.

 Your assistance in enforcing this policy is greatly appreciated.

 

 

 

Academic Integrity Statement:

 

The accounting profession has a long established reputation for its high level of ethical conduct. This reputation extends into the academic arena where the profession's future leaders are prepared. It follows that accounting students are expected to conduct themselves in a manner which is above reproach in all of their own course related activities.

 

Academic dishonesty in any form simply will not be tolerated. Such actions include, but are not limited to:  copying, sharing or obtaining information from any unauthorized source during examinations or quizzes; copying from or unauthorized sharing of homework assignments; attempting to take credit for the intellectual creation of others as one's own work; falsifying information; and giving or receiving information about a test, quiz, practice problem or assignment to students in your class or in other sections of the course.  There should be no question as to what constitutes academic dishonesty.

 

As commonly defined, plagiarism consists of passing off as one's own the ideas, words, writings, etc., which belong to another. In accordance with this definition, you are committing plagiarism if you copy the work of another person and turn it in as your own, even if you have the permission of that person. Plagiarism is one of the worst academic sins, for the plagiarist destroys the trust among colleagues.

 

The texts, supplements and all materials used in this course are copyrighted. This includes all materials generated for this class, which include, but are not limited to, syllabi, exams, quizzes, problems, in class materials, review sheets, and additional problem sets. Because these materials are copyrighted, you do not have the right to copy these materials unless permission is expressly granted in writing.

 

Any student involved in academic dishonesty will be penalized to the full extent, in accordance with published University Rules and Regulations.

 

Aggie Honor Code:

The Aggie Honor Code:  An Aggie does not lie, cheat, or steal or tolerate those who do” is to be applied by all students. 

 

Upon accepting admission to Texas A&M University, a student immediately assumes a commitment to uphold the Honor Code, to accept responsibility for learning and to follow the philosophy and rules of the Honor System.  Students will be required to state their commitment on examinations, research papers, and other academic work.  Ignorance of the rules does not exclude any member of the Texas A&M University community from the requirements or the processes of the Honor system.  For additional information please visit:

http://www/tamu.edu/aggiehonor

 

You are urged to visit to the above website and carefully read the Honor Council Rules and Procedures.  You may address any questions to Dr. Kratchman.

 

Americans with Disabilities Act (ADA) Policy Statement:

The Americans with Disabilities Act (ADA) is a federal anti-discrimination statute that provides comprehensive civil rights protection for persons with disabilities.  Among other things, this legislation requires that all students with disabilities be guaranteed a learning environment that provides for reasonable accommodation of their disabilities.  If you believe you have a disability requiring an accommodation, please contact the Department of Student Life, Services for Students with Disabilities, in Room 126 of the Koldus Building or call 845-1637.

 

Building:

The Wehner Building consists of beautiful and state-of-the-art classrooms.  We wish to maintain the high quality conditions of these classrooms for the students of future years.  Thus, it is necessary for you to adhere to the established policy of NO BEVERAGES, FOOD, TOBACCO PRODUCTS, OR ANIMALS (unless approved) in the Wehner Building classrooms.

 

You can help with another related building issue.  During the day, newspapers such as The Battalion are available in the building.  Please dispose of them properly when you are finished with them.  Blue recycle bins have been placed throughout the first floor for your use.  USE THEM!

 

 

Required Materials:

Hoyle, Joe B, Thomas F. Schaefer, Timothy S. Doupnik, Advanced Accounting, Ninth Edition, McGraw-Hill Irwin, 2009, ISBN: 978-0-07-337945-6 

 

Optional Materials:

An intermediate accounting text and your class notes to be used as references, if needed.

Business periodicals such as The Wall Street Journal, Business Week, etc. in order to reference current events.

 

Semester Grade:                                                                                Points

            Examinations                                                                         300

            Final Examination (Comprehensive)                                   100

            Mystery Paper Project                                                            40

            Case Assignments                                                                    40

            Worksheet Project                                                                  20

            Total                                                                                       500

                

Website:

Check Dr. Kratchman’s website (http://acct.tamu.edu/kratchman) as often as possible for updates and other important information.

 

Projects:

 

1.      Accounting Mystery Paper – Each student will write an 8 – 10 page mini-mystery.  The paper must be connected, in some way, to at least one of the topics in the Advanced Accounting Course.  The connection does not have to be major, but some connection must be there.  Indicate the topic on your title page.  Murder may or may not be involved.  Be sure to proof your paper before turning it in to Dr. Kratchman.  About sixty percent of your grade for the project will be based on the clarity of the writing.

 

2.      Case Assignments – Several cases will be given to you by Dr. Kratchman.  For each case, you will be required to write a 3 to 4 page paper.  The papers should begin with a 1 or 2 paragraph summary of the case.  This introduction should constitute no more than half of a page.  The remainder of each paper should be used to answer the questions given below.   Papers should be double-spaced.  Clarity of the writing will count up to fifty percent of the grade for each case.

  

a.       Content of Papers

(1). Brief summary of case – no more than 1 or 2 short paragraphs.

(2). The following questions are to be addressed:

(a).    What are the financial accounting issues?

(b).    What are the ethical issues?  Discuss in depth.

(c).    What are the alternative courses of action?

(d).   Put yourself into the position of the main character in the case – What would you do?  i.e., what course of action should be selected?  Why?

If the case does not include any financial accounting issues, simply skip that question.

It is suggested that you divide the papers into separate sections

e.g., - according to the questions shown above.

Creativity is certainly acceptable, but not required.

 

b.      Be sure to proof read papers before turning them in.  Spelling errors will affect your score. 

 

 

3.      Worksheet Project – Near the end of the semester Dr. Kratchman will give you a special Excel worksheet assignment to complete.  Providing feedback will be an important part of your assignment.  Additional details will be given later in the session.  

 

Homework:

1.      Read chapters in text prior to the classroom discussion dates.  Read over any demonstration problems and handouts prior to class discussions.

2.      Complete as many of the exercises and problems at ends of text chapters as possible.  Dr. Kratchman will make some suggestions for each chapter.

3.      Bring your text to class when requested, so that your instructor may refer to it during class discussions.

 

Make-up Exams:

Make-up exams will be given only for university-approved excuses.  A written explanation must be presented to your instructor in such cases.  If necessary, these exams will be available on the Monday afternoon following the regularly scheduled exam.

 

Incomplete Grade:

An incomplete grade (1) is given for coursework deficiency and not for performance deficiency.  TAMU’s regulations state:

A temporary grade of “I” (Incomplete) at the end of a semester or summer term indicates that the student (graduate or undergraduate) has completed the course with the exception of a major quiz, final examination, or other work.  The instructor shall give this grade only when the deficiency is due to an authorized absence or other cause beyond the control of the student.

 

 

Key Dates:

June 1                            First day of Summer Session I classes

 

June 4                            Last day to add/drop courses for Summer Session I.

 

June 5                            Last day to apply for degrees awarded in August for students completing requirements

                                      in Summer I

 

June 10                          Project 2 – Case Assignments due

 

June 12                          Examination 1

 

June 15                          Project 1 – Accounting Mystery Paper due

 

June 19                          Examination 2

 

June 19                          Last day for all students to drop courses with no penalty for the

                                      first summer term (Q-drop).

                                      Last day to change Kinesiology 198/199 grade type for first term.

                                      Last day to officially withdraw from the University for the first term.

 

June 22                          Project 3 – Excel Worksheet Project due

 

June 26                          Examination 3

 

July 1                             Last day of Summer I Semester classes.

                                       No 10-week classes.

                                       5 pm- Last day to register for the second term and pay fees.

 

July 2                             Final Examination (comprehensive)

                                       3:30 – 5:30 pm

                                       Room 104 Wehner Building                                                           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class Organization

 

 

Class Date                  Topic(s)                            Chapter in Text                     Suggested Problems             

 

June 1                    Course Introduction                       

                              The Equity Method                           1                                1, 2, 4, 6, 8

 

June 2                    The Equity Method                          1                                10, 12, 13, 15, 19

                              Business Combinations

                              Consolidations                                  2                                 1, 2, 4, 5, 6, 7

                       

June 3                    Consolidations-                                2                                 8, 9, 10, 11, 19                                                       

                                The Acquisition Method

                                The Purchase Method                                

                                                                                                        

June 4                    Consolidations                                  2                                21, 23, 25, 28

                              Consolidations Subsequent               3                                2, 3, 4, 5, 6

                                                                                                                                                                                           

June 5                    Consolidations Subsequent               3                                7, 10, 11, 12                        

                                                                                                     

June 8                    Consolidations Subsequent               3                                13, 14, 15 

                                                         

June 9                    Consolidations Outside Owners       4                                 2, 6, 8, 9, 10, 11, 22, 24, 27, 38

                                                                                                                                                                                                                                                                                                                                                                                                                                     

June 10                  Consolidations Intercompany           5                                1, 2, 4, 7, 8, 9

                               Asset Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

June 11                  Inter-company Transactions              5                                10, 11, 12, 13, 14, 15, 17, 19

 

June 12                  Examination 1                                                                                                                                                                                                                                                                                                                                                                         

June 15                  Foreign Currency Transactions          9                                1, 3, 6, 8, 11, 12 

 

June 16                  Foreign Currency Transactions          9                                14, 15, 16, 17, 21, 22, 27

                               

June 17                  Foreign Currency Translation           10                               1, 3, 4, 5, 6, 7, 10, 11                                               

                                                                                                                

June 18                  Foreign Currency Translation           10                               13, 16, 17, 23, 24, 27                                                                                                                           

                          

June 19                  Examination 2            

 

June 22                  State and Local Governments-         16                               1, 3, 5, 6, 10, 12, 14, 19, 20

                                 Part 1

 

June 23                  State and Local Governments-         16                               22, 26, 28, 29, 30, 36

                                 Part 1

 

June 24                  State and Local Governments-          17                              2, 3, 4, 7, 8, 9, 12, 13, 14

                                 Part 2

 

June 25                  State and Local Governments-          17                              15, 16, 19, 22, 23, 27, 28

                                 Part 2

 

June 26                  Examination 3

 

June 29                   Not-For-Profit Organizations            18                              1, 2, 4, 5, 7, 10, 12, 14, 15, 18, 25

 

June 30                    Financial Reporting                          12                              1, 3, 4, 6, 8, 11, 13, 16, 17, 19

                                  And the SEC

 

July 1                      Review                           

 

 

July 2                       Comprehensive Final Examination (3:30 – 5:30 pm)