ACCT 303—Intermediate Accounting III and Theory

Fall, 2008

College of Business

Montana State University-Billings

Instructor: Dr. Barbara Wheeling                                                          Location: MCD 215

Office: MCD 255                                                                              Time: 10:30-12:00 TTh

Phone: 657-1756

Email: bwheeling@msubillings.edu

Office Hours: 10:00 – 12:00 MW, 12:00-2:00 TTh and by appointment..

ABOUT THE COURSE

Course Description:  In this course you will have an opportunity to study accounting procedures for leases, deferred taxes, pensions, and employee benefit plans.  We will also study revenue recognition, interim reporting, segment reporting, accounting changes and errors, the preparation of the statement of cash flows, and financial statement analysis that builds on the coverage in previous financial accounting courses.  This course provides helpful instruction for the audit, preparation, and analysis of financial statements.

Course Objectives:  (1) Given various financial reporting scenarios, prepare journal entries and supporting worksheets and schedules according to generally accepted accounting principles for revenue recognition, selected long-term liabilities, accounting changes, and errors.

 (2) Given a set of financial statements, interpret the results of financial statements

(3) Given a set of comparative financial statements, prepare the statement of cash flows according to generally accepted accounting principles

(4) Given various financial reporting scenarios, explain the procedures for interim reporting and the reporting of segments.

Topics of this course include:

·         The effects of transactions on financial ratios, interpretation of financial ratios over time and against benchmarks (various chapters)

·         Revenue recognition for installment sales, long-term contracts, and franchises (Chapter 5)

·         Interim reporting of financial statements (Chapter 5)

·         Segment reporting (Chapter 3)

·         Long-term liabilities, including capital leases, deferred taxes, net operating losses, pensions, postretirement benefits and stock compensation plans (Chapters 15, 16, 17)

·         Changes in accounting principle, changes in estimates, and accounting errors (Chapter 20)

·         Statement of cash flows (Chapter 21)

COB Core Values and Learning Goals:  The College of Business at Montana State University-Billings values the following experiences for students and faculty:

                In addition to the course objectives stated above, this course contributes to the learning of certain skills determined by the faculty in the College of Business at Montana State University-Billings in accordance with AACSB guidelines.  The college’s mission statement says that the academic programs of the college develop student competencies in: (1) oral and written communication, (2) critical and creative thinking, (3) quantitative skills, (4) effective utilization of information and technology for business decisions, (5) ethical decision making, and (6) the effect of globalization in business.

In this course, the following learning goals are addressed:

·         Oral communications:  You will benefit from participating in class exercises and discussions.  Feel free to ask questions!

·         Written communications: You have the opportunity in this class to work towards continued improvement in your writing skills by completing 3 writing assignments on various financial accounting topics.   

·         Critical and creative thinking:  One of the writing assignments emphasizes critical thinking skills by giving you an opportunity to recommend financial analysis procedures for a company.

·         Quantitative skills:  Topics covered in the course include financial statement analysis, emphasizing the use of quantitative skills to make conclusions about the financial performance and financial position of companies.  Most of the accounting tasks in the course involve extensive quantitative procedures.

·         Effective utilization of information and technology for business decisions:  You will have the chance to access a website on the Internet and/or electronic database for one of the writing assignments.

·         Ethics:  One of the writing assignments asks you to address an ethical issue and respond with a course of action.

·         Globalization of business:  Occasionally you may be tested on international accounting topics discussed in class.

Prerequisites:  ACCT 233, 234, 301, and 302, or equivalents.

Communication: 1. Announcements will be delivered via eCompanion. You should have received an email with instructions on how to logon to the system.

2. Documents for this course, such as the syllabus and solutions for exercises and problems, and instructions for the writing assignments, will be available on eCompanion.

3. Audio recordings of lectures will be available on eCompanion to allow you to replay the lectures for clarification or in the event that you miss class.

3. Email will be sent to your preferred email address that you submitted to the university. You can update your Preferred email address by logging into the Secure Area in Banner at:  https://atlas.montana.edu:9003/pls/blagent/twbkwbis.P_GenMenu?name=homepage  Then click on Personal Information, then on Update E-Mail Address(es), then on the address marked Preferred.

LEARNING AIDS

Texts required: 

1. Intermediate Accounting, Updated Fourth Edition, Spiceland, Sepe, and Tomassini;

2. Effective Writing: A Handbook for Accountants, Seventh Edition, May and May.

Learning aids: 

The following website for the Online Learning Center contains PowerPoint presentations, flashcards, online quizzes, practice exams, Excel templates, check figures, alternative exercises and problems, online tutoring (NetTutor), FASB pronouncements, among other things:  http://www.mhhe.com/spiceland4e.  Click on Student Edition, then the chapter. 

Tips for Studying Accounting:

General:

q  Read the assigned chapter before class.

q  Read the chapter more than once.  Here’s how.            

¨       Step 1.  The first step in reading a chapter is to skim it.  Skimming means going through the chapter and reading only the first sentence of each paragraph.  This step does not require much time and acquaints the student with the content of the chapter.

¨       Step 2.  The next step is to read the chapter, once, all the way through, reading every sentence but without trying to understand everything.  This step will acquaint the student with more information about the topics in the chapter.

¨       Step 3.  Read the chapter again.  This time, read with the intent of understanding the material.  You may reread certain parts but do not reread anything more than once.  If you cannot understand a certain paragraph or section of the chapter, make a note in the margin and go on.  Do not worry about what you did not understand and be sure to listen to the instructor as he/she explains that point in class.

¨       Step 4.  After the lecture, you may want to read certain parts of the chapter again, if you need additional clarity.

q  Print out the Power-point presentation before class to make notes on.

q  Rewrite your notes after class while they are still fresh in your mind.

q  Outline the chapter. 

¨       Do it in bullet points.

¨       Restate key points in your own words.  This is a very good learning step.

q  Develop a notebook binder organized by chapter for all homework done in class for review for exams, and for the CPA Exam later. 

q  Use note cards for formulas.

q  Use cumulative study (review old material along with the new).

q  Make sure you understand the “why” not just the “how”.

q  See if you can explain what you are doing to someone else.  If so, then you probably understand it.

q  Use a buddy or study group, if it fits your learning style (see below).

q  Over-shoot your target.  If you want a ‘B’ in the class, try for an ‘A’.

Assignments/Exams:

q  For writing projects, proofread your work. 

¨       Have someone else proofread your writing. This is the best approach.  The writing lab in the academic support center is a good resource for this.

¨       Put it away for a day or so and then proof it.  You will find more mistakes than if you proofed it immediately after writing.

q  Understand what the question, writing assignment, etc requires you to do.  If you don’t know, ask your professor to clarify before the project is due.

Practice, Practice: 

q  Do problems, problems, and more problems until you can solve them without referring to examples in the chapter or the solution.  If you can’t do it without the book open or the solution in front of you, you do not yet understand it.

q  Take on-line quizzes from the text’s website.

q  Attempt the assigned problems early so you are prepared with questions.

q  Know vocabulary.  To do this, you may have to memorize.

Time Management:

q  Set aside enough time to study – do not over commit.

q  Start studying for the exam in advance.  Do not delay and attempt to cram.  You will run out of time.

Study Environment:

q  Study in an environment where you can focus totally on your work.

q  Study at a time of day when you are most alert.  Your mind will absorb much more than if you try to study when you are tired.

q  Set up special time and place to do homework.

Learning Styles:

q  Know your learning style.

q  Visual (V). The student who learns best by seeing will benefit from visual learning aides: 

¨       handouts,

¨       flash cards or note cards,

¨       hard copy of the Power-point presentation for the chapter, and

¨       illustrations written on the board.

q  Reading (R).  The student who learns best by reading will benefit from-

¨       Reading the chapter,

¨       Taking notes, and

¨       Outlining the chapter.

q  Listening (A).  The student who learns best by hearing instruction will benefit from –

¨       Class discussion and lecture,

¨       A buddy or study groups where the student can get together with another student(s)from the class and discuss topics covered by the professor. 

q  Doing (K).  The student who learns best by doing will benefit by –

¨       Participating in class,

¨       Repeat homework exercises or work additional problems (practice, practice),

¨       Taking on-lines quizzes pertaining to the chapters of the text,

¨       Using tutorials to work problems similar to those in the text.

REQUIREMENTS FOR SUCCESS

Final Grade Breakdown:  Keeping up with the reading and assignments according to the schedule outlined below will help you achieve success in this course. The following are the learning activities on which your grade will be based.

Writing assignments:  Your written assignments will be graded on organization, clarity and readability, spelling and grammar, content, and proper documentation.  These assignments will help you develop research skills, critical thinking, and ethical analysis.