Acctg301 Febry Syllabus Aut13

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University of Washington – Foster School of Business Accounting 301 – Intermediate Accounting I Autumn Quarter 2013 Instructor: Paul A. Febry, CPA Time & Room: Office: Mackenzie 204 Section A: TTh 8:30-10:20, DEM 104 Phone: 425-256-0072 Section B: TTh 10:30-12:20, DEM 104 E-mail: [email protected] Office Hours: MW 10-2 TTh 1-3 Fri By Appointment Required Text: Intermediate Accounting , Spiceland, Sepe, and Nelson, 7 th Edition (McGraw-Hill Irwin, 2013). Note: CONNECT software required (access code package with textbook if purchased at UW Bookstore; else purchased separately). Other Required Material: Case Packet (available at UW Bookstore), Lecture Notes (available on Canvas); FASB Codification database (available via RIA checkpoint through Foster Library or through link provided on Canvas). Course Objectives: This course is the first of a three-course series on financial accounting designed for students majoring in accounting. Financial accounting (or “financial reporting”) can be thought of as a mechanism for firms to communicate (hopefully without bias) the underlying economic events of an entity to a number of external constituents. As such, it plays a critical role in our capital markets. In this course, we will first examine the critical role of accounting as well as its conceptual foundation. We will then examine the application of these concepts to selected accounting issues. The following two courses in the series (Accounting 302 and 303) will examine additional specific accounting issues. Thus, this course lays the foundation for the following two courses. Although the primary emphasis is on U.S. accounting standards (i.e., GAAP), substantive differences between GAAP and international accounting standards are briefly discussed. The Intermediate Accounting series is designed for students majoring in accounting but it is not a course in bookkeeping. While there may be

Transcript of Acctg301 Febry Syllabus Aut13

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University of Washington – Foster School of BusinessAccounting 301 – Intermediate Accounting I

Autumn Quarter 2013

Instructor: Paul A. Febry, CPA Time & Room:Office: Mackenzie 204 Section A: TTh 8:30-10:20, DEM 104Phone: 425-256-0072 Section B: TTh 10:30-12:20, DEM 104E-mail: [email protected] Office Hours: MW 10-2

TTh 1-3Fri By Appointment

Required Text: Intermediate Accounting, Spiceland, Sepe, and Nelson, 7th Edition (McGraw-Hill Irwin, 2013). Note: CONNECT software required (access code package with textbook if purchased at UW Bookstore; else purchased separately).

Other Required Material: Case Packet (available at UW Bookstore), Lecture Notes (available on Canvas); FASB Codification database (available via RIA checkpoint through Foster Library or through link provided on Canvas).

Course Objectives: This course is the first of a three-course series on financial accounting designed for students majoring in accounting. Financial accounting (or “financial reporting”) can be thought of as a mechanism for firms to communicate (hopefully without bias) the underlying economic events of an entity to a number of external constituents. As such, it plays a critical role in our capital markets. In this course, we will first examine the critical role of accounting as well as its conceptual foundation. We will then examine the application of these concepts to selected accounting issues. The following two courses in the series (Accounting 302 and 303) will examine additional specific accounting issues. Thus, this course lays the foundation for the following two courses.

Although the primary emphasis is on U.S. accounting standards (i.e., GAAP), substantive differences between GAAP and international accounting standards are briefly discussed.

The Intermediate Accounting series is designed for students majoring in accounting but it is not a course in bookkeeping. While there may be some “number crunching” as well as discussions of the debits and credits of a transaction, it is important to remember that the goal is not for you to memorize the journal entries for a particular transaction. Adopting such a strategy will not likely lead to success in the course of your career as an accountant. Why? Because the “rules” (i.e., GAAP) are constantly evolving to reflect changes in the business environment. Thus, it is far better to focus on the conceptual foundation underlying accounting – that is, to understand the economic event that has occurred and how it is best reflected in the financial statements to provide the most useful information to the capital markets.

It is also important to remember that financial reporting does not occur in a vacuum. Numerous forces exist that shape the financial reporting “landscape.” To truly gain an appreciation of the richness of the business environment, we will be examining “real world” examples/cases periodically during the course.

Class Format: The majority of classes will be conducted in a lecture/discussion format. Lecture notes are available on Canvas. The lectures are designed to highlight the important issues discussed in the chapters and clarify problem areas. Not all material covered in the textbook will be discussed in class. Unless otherwise indicated, you are responsible for all textbook reading material assigned whether it is discussed in class or not. However, the emphasis (in terms of examinations) will be on material covered in class. Readings from the chapters should be done before the class date to which it is assigned. I also suggest that

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you attempt the homework problems before class. You may not be able to complete them perfectly, but a solid attempt will test your understanding of the material you have just read. After the related lecture, you should have the knowledge necessary to perform the homework problems.

There will be five classes in which we will depart from the traditional lecture/discussion format and instead conduct the class using a case method format. The case method format is HIGHLY interactive and will require significant preparation beforehand to ensure that you are able to contribute to the class discussion. Cold calling will be used extensively (and, as discussed below, participation is graded). The assigned cases are (for the most part) based on real companies, contain details about the company and industry, and often use business terminology with which you may not be familiar. I encourage you to become familiar with the industry/jargon as time permits but do not become bogged down in the details. Focus on the larger issues in the case. For each case, there are assigned case questions, which you will be required to submit at the beginning of class (see further discussion below).

For the most part, homework problems will not be covered in class. However, homework will be graded using CONNECT software (see further discussion below). It is your personal responsibility to do the reading and homework on a regular basis. Preparing the homework assignments on a consistent basis is the best way to learn the material. I highly recommend that you work through the problems without relying on the solutions and using the solutions for self-correction only.

Canvas: Course materials, announcements, etc. will be administered through a Canvas course website. You should’ve received an email that contains a link to the website. For those who have not used Canvas in the past, please see the student guide at <http://guides.instructure.com/s/2204/m/4212>. If you have any problems please contact Justin Grimm at [email protected] or at 206-543-8003. The Canvas link is https://canvas.uw.edu/courses/845781.

CONN ECT: CONNECT is an online software provided by the publisher of the textbook. The software provides access to homework problems, practice materials, and other interactive software. Many students have found the software helpful in preparing homework problems and using other features of the website. If you purchased your textbook at the bookstore, you should have a code that will allow you to register for this feature. If you purchased your textbook from another source, you will need to purchase the connect feature separately. To register (or purchase), go to the following address: http://connect.mcgraw-hill.com/class/p_febry_acctg301-aut2013-ab .

Grading: Your performance in this class will be assessed as follows:

% of course gradeMidterm Examination 25%Final Examination 35%Case Assignments 15%Writing Assignment 10%Professionalism/Participation 10%Homework (via CONNECT) 5%Total: 100%

Grades will be assigned based on your relative performance in the class (with the mean set at 3.1-3.2). There is one exception. Regardless of your intellectual ability, anyone who puts in a sufficient amount of effort should be able to receive at least 40% of the points. Therefore, anyone falling below 40% will receive a zero for the course. If you are having difficulty in the course, it is your responsibility to see me early in the course (not the day before the final!).

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Midterm and Final Examination: The date of the midterm and final are shown on the course schedule. Note that the final is a combined final for the two sections which I teach and is scheduled on the first Saturday of finals week. If you have a personal emergency such as a death in the family or a major illness, please see me with the appropriate documentation and we will discuss alternatives. If you do not have a legitimate reason for missing an exam, you will receive a zero on the missed exam.

Case Assignments: A packet with cases and assignment questions is available for purchase through the UW Bookstore. Written responses to the case questions will be collected at the beginning of the class (see schedule for dates on which the cases will be discussed). You may submit your case write-up over Canvas or bring a hardcopy to class. In either case, be sure to bring an extra copy of your answers to class so you will have your responses to look at during the class discussion. You may work in groups to discuss the case questions but each student should prepare their own answers to the questions. Obviously, this means that you many not turn in a response as a group, turn in a copy of someone else’s write-up, or copy portions of someone else’s write-up. Students should NOT share their written responses with classmates even if they previously verbally discussed the case in a group. Such actions will be considered a violation of the student code of conduct.

Answers to case questions should be complete, well-reasoned, and well-written. Assignments will be graded on a five-point scale based on the quality of answers and the quality of the writing. In my experience, time and effort spent on each assignment are critical determinants of a student’s resulting grade. There are often no right or wrong answers to the case questions and, in general, you will not be graded on getting the “correct” answer. A suggested grading rubric will be posted on Canvas that will help you differentiate between a “3” and a “5” write-up.

Homework: Assigned problems for each lecture are listed on the attached schedule (and will be automatically assigned in CONNECT). The deadline for homework will be Sunday night of every week (e.g.. homework assigned for Tuesday, 10/1, and Thursday, 10/3, can be submitted no later than Sunday night, 10/6). The week after the deadline, I will post solutions on Canvas to all the problems at the end of the chapter in the textbook. I encourage you to work as many of these problems as you feel necessary to master the material, including problems not assigned in the schedule below. For your convenience, I have added all homework exercise and problems on CONNECT for Ch. 1-9.

Grading details: You will get unlimited attempts for each problem. You will also be allowed to check if your answers are correct before submitting. Late submissions will be accepted, but, your score will drop by 15% for each day late.

Writing Assignment: The writing assignment should be done in groups of 3-4 students. If you prefer to work individually that is acceptable but you will be graded on the same basis as those working in groups. The assignment consists of a 5-8 page report, the details of which I will distribute at a later date. You may choose your group or I can assign you to a group provided that there is sufficient demand. The paper is due on December 3rd (note this is the first class after the Thanksgiving break so if you don’t want to ruin your holiday, plan accordingly!).

Professionalism/Participation: Part of preparing you for business careers entails developing certain skills that are necessary to be an effective employee/manager. Thus, a portion of your grade will depend on two skills I consider important to your development – professionalism and participation.

Conducting yourself in a professional manner means behaving in class the way you might in a business meeting. This includes (but is not limited to) arriving on time, informing me if you will not be in

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attendance of will be leaving early, respecting your colleagues, taking turns when speaking, not interrupting each other, turning off cell phones, limiting side conversations, etc.

Your active involvement in the class benefits not only yourself but also your fellow students. Effective participation can come in many forms, including providing analysis, asking questions, relating concepts to other issues, and providing real-world examples. In-class participation is not the only way to receive credit; attending office hours will also count in your favor. In evaluating your participation, I consider not just the quantity, but also the quality of your participation. Determination of your participation score will be based on my assessment of your contribution to the class as a whole.

I realize that for some students speaking in front of a large group is a challenge. However, the ability to clearly articulate arguments, raise pertinent questions, and debate issues are important skills for any business manager; thus, I encourage you to practice these skills in the classroom. In addition, to make participation easier, I suggest the following:

Be prepared: read the relevant chapters before the class and look over lecture notes Make a commitment: If you are feeling well-prepared for a particular class, e-mail me in advance

and I will be sure to call on you during class. Read the business press: Sign up for the WSJ or other business periodicals and read them

regularly. If you find any interesting and related articles, email me a link and I will try to tie it into the class discussion.

Missed ClassesAttendance in class is not required; however, professionalism would require you to let me know the reason for your absence. In addition, since participation accounts for a portion of your grade (and one cannot participate if one is not in class), frequent absences will affect your grade. That having said, you should NOT attend class if you are feeling ill. Such absences will not unduly affect your grade. However, it is your responsibility to “catch up” on the missed lecture. I highly encourage you to identify one or two classmates who are willing to share their notes with you in the case of missed classes.

Office Hours & Other HelpPlease feel free to drop by during office hours (or anytime my door is open – I am in the office on most days) for any reason – to work on course material you’re having trouble with, to discuss career options, or just to chat. You’re not bothering me; I’m here to be a resource for you. I have taken a leave of absence from EY to wholly concentrate on this class and ensure that you get the most out of it. If you have conflicts with the scheduled office hours, you can always make an appointment to see me at another time. You can also contact me via email or phone, although it is often easier for me to answer questions about homework problems in a face-to-face meeting. Beta Alpha Psi (BAP) also has available an Accounting Lab, which is staffed with students who have generally completed the Intermediate Accounting series. Please check the BAP website at blog.uwbap.org for the meeting times and location (generally located in Foster Library). I also highly recommend that you attend the Accounting Orientation to learn about your opportunities in the accounting program, which is scheduled for October 1 at 12:30pm in Boeing Auditorium BAEEC 110.

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COURSE SCHEDULE1

Accounting 301 – Fall 2013

Date Topic Reading Assigned Homework Problems2

Assignment Due3

9/26 Introduction; Role of Accounting in Financial Markets

Ch. 1 (pp. 1-19)

10/1 Standard Setting and the Conceptual Framework

Ch. 1 (pp. 19-36) E1-1, 6, 7, 8

10/3 WorldCom case;Review Accounting Process

Ch. 2 (pp. 50-66) E2-1, 2, 3 WorldCom case

10/8 Adjusting Entries and Financial Statement Presentation

Ch. 2 (pp. 66-83) E2-8, 11; P2-5, 7 Duchess Problem4

10/10

Accrual vs. Cash Flows; Inferring JE’s; Statement of Cash Flows

Ch. 2 (pp. 83-92);Ch. 4 (pp. 198-207)

E2-14, 17; P2-11, 12

10/15

Tech Mirror case; Start Income Statement Presentation

Tech Mirror case

10/17

Income Statement Presentation; Balance Sheet & Disclosures

Ch. 4 (pp. 170-197)Ch. 3 (pp. 112-143)

E4-4, 6; P4-1;E3-2, 5, 13; P3-2, 9

10/22

Balance Sheet & Disclosures (wrap-up); Financial Statement Analysis; Review

Ch. 5 (pp. 263-269) E3-17, 18, 20; E5-23, 24, 25

10/24

Midterm

10/29

Revenue Recognition Ch. 5 (pp. 230-258); SAB1045

E5-3, 5, 12, 13, 16;

10/31

Revenue Recognition Ch. 5 (pp.258-262, skim pp. 300-315)

P5-8, E5-1, 18, 19

11/5 Apple iPhone Case Apple iPhone case11/7 Receivables Ch. 7 (pp. 358-374) E7-6, 7, 10, 11, 13;

P7-1, 211/12

Review of Time Value of Money; Notes Receivable

Ch. 6; Ch. 7 (pp. 374-391)

E6-1, 3, 6;E7-14, 15, 17, 18; P7-6

11/14

Lehman Brothers Case Lehman case

11/19

Receivables (wrap-up); Inventory Ch. 8 (pp. 420-446) E8-13, 15, 19; P8-8, 9

11/21

Inventory Ch. 8 (pp. 446-450) E8-23, P8-15, 16

11/26

Inventory Ch. 9 (pp. 474-483, pp. 486-491)

E9-1, 2, 13

11/28

THANKSGIVING DAY HOLIDAY

12/3 Exxon Mobil case; Inventory (wrap- Exxon Mobil case;

1 With the exception of the midterm and final exam dates, I reserve the right to amend this schedule as needed to meet the needs of the class.2 As discussed in the syllabus, homework for the week is due by Sunday night (e.g. homework assigned for 10/1 and 10/3 is due 10/6). Solutions to all homework problems will be made available on Canvas the week following the deadline.3 Case assignments and the writing assignment should be turned in at the beginning of class. Be sure to bring an extra copy of your assignment to class to refer to during the discussion.4 This assignment is available on Canvas (see “Course Materials” folder). This assignment should be completed before class but will not be collected or graded.5 Link to this document is available on Canvas.

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up) Writing Assignment12/5 Catch-up and Review12/7 Joint Final Examination (Sat., Dec.

7, Location and time TBD