ACCOUNTING 592Financial Accounting & Reporting Seminar

Spring 2010

Instructor: Office Hours (subject to adjustment):Teresa Gordon Office Hours: W 8:30–11:00 AMAlbertsons Bldg. 118 and T,W,Th 1:15 - 3:00 PM885-8960 or by appointmentE-mail: tgordon@uidaho.eduCourse web page: http://www.cbe.uidaho.edu/Acct592

MASTER OF ACCOUNTANCY – LEARNING GOALS

Goal #1. Professional Accounting Knowledge - The MACCT students will acquire advanced accounting knowledge to prepare them for the accounting profession or further graduate work.

Goal #2a Critical Thinking and Ethical Problem Solving. MACCT students will demonstrate critical thinking skills necessary for identifying and addressing complex situations in accounting-related areas including ethical dilemmas.

Goal #2b Research Skills. MACCT students will be able to locate appropriate information, apply the rules or standards to a set of facts, and make an appropriate recommendation regarding a course of action.

Goal #3. Communication – MACCT students will enhance their ability to effectively communicate through oral presentations and professional writing assignments.

Goal #4. Clarify purpose and perspective – MACCT students will have opportunities for experiential learning, relationship development and appreciation of global perspectives.

Goal #5 Teamwork and Collaboration –MACCT students will have opportunities to enhance their ability to interact in teams.

COURSE OBJECTIVESFinancial and management accounting are more closely linked in practice than one might expect from reading traditional textbooks and the problems to be resolved often have income tax and auditing consequences as well. This seminar is designed to provide you with opportunities to apply general concepts and principles learned in intermediate and advanced financial accounting courses to new economic transactions and business decisions. Cases will be used to permit you to practice the skills you will need as a professional accountant whether in public accounting or private industry. In particular, this course is intended to refine your skills in researching the professional accounting literature to solve particular accounting problems, to arrive at defensible solutions where GAAP is vague or nonexistent, and to present your research conclusions in a professional manner. You will have opportunities to present your work orally and in writing.

REQUIRED MATERIALS:

A recent Intermediate Accounting text (Kieso used in Acct 315 & 414 would be fine)

A recent Advanced Accounting text (whatever was used in for Acct 415-515 would be fine)

On-line access to FASB’s ASC (accounting standards codification). The Department has purchase academic license so you can use the $850 “professional” version rather than the free version which has fewer bells and whistles. You can log on from fasb.org but it will take you to http://aaahq.org/ascLogin.cfm where you enter User ID and Password:

User ID _____________________Password _____________________

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Other Course Materials are provided on the course webpage and you will probably want to print some or all of those files but the cost will just be paper or your UI student print allowance. More pages can be purchased when you run out. See the Help Desk.

RECOMMENDED MATERIALS

Miller's Comprehensive GAAP Guide (or similar GAAP guide) may be helpful and easier to interpret (e.g., more examples).

Financial Accounting Objective Questions and Explanations, by Irvin N. Gleim and William A. Collins (Accounting Publications, Inc.) is a low cost means of reviewing and learning financial accounting in preparation for professional exams

HOW THE COURSE WILL BE TAUGHTThis course will be taught as a seminar. A seminar is a group of advanced students, each doing original research, and all exchanging results through reports and discussions. To make seminar and case courses successful, each student must be committed to the "4 Ps" of student involvement:

1. Preparation. If the student does not read the cases and associated materials and does not analyze the case, and formulate an action plan, the case discussion will mean little.

2. Presence. If the student is not present, she or he cannot learn and, more important, cannot add her or his unique thoughts and insights to the group discussion.

3. Promptness. Students who enter the classroom late disrupt the discussion and deprecate the decorum of the process.

4. Participation. Each student's learning is best facilitated by regular participation. More important, the case student has the responsibility to share his or her understanding and judgment with the class to advance the group's collective skills and knowledge.

CASE PREPARATIONProblem solving techniques, rules and facts related to the practice of accounting, and a familiarity with pervasive concepts are just the background for graduate study in accounting. The cases in this course will ask you to apply knowledge and skills to unfamiliar topics and situations. Some cases will be quantitative in nature and may require preparation of spreadsheets or other analysis tools. Other cases will require research of accounting standards but little number crunching. You will prepare most cases for classroom discussion rather than formal submission. This means you should come to class with computations in hand, notes on key points, and notes that will help you respond to the discussion questions provided in the case. If I find that students are not adequately prepared for class discussion, written solutions to the cases will be required.

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This semester you will study numerous cases that examine recent accounting standards and at least one case with international dimensions (for example, the impact of IFRS ), and you will prepare financial statement disclosures. Cases will cover, among other issues, many of the following recent accounting topics (I haven’t translated the older material to the ASC topics yet – it is on my to-do-list!):

ASC Updates 2009-14 (Software); 2009-13 (revenue recognition – multiple deliverables); 2009-04 (redeemable equity instruments); 2009-06 (income taxes); 2009-12 (fair value disclosures); etc,FASB No. 162 The Hierarchy of Generally Accepted Accounting PrinciplesFASB No. 123 (revised 2004) - Share-Based PaymentFASB No. 129 - Disclosure of Information about Capital StructureFASB No. 128 - Earnings per ShareFASB No. 160 - Noncontrolling Interests in Consolidated Financial Statements— amends ARB No. 51FIN 46(R) - Consolidation of Variable Interest Entities (revised Dec 2003)—an interpretation of ARB No. 51FASB No. 141 (revised 2007) - Business CombinationsFASB No. 142 - Goodwill and Other Intangible AssetsFASB No. 158 - Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans—an amendment of FASB Statements No. 87, 88, 106, and 132(R) FASB No. 132 (revised 2003) - Employers' Disclosures about Pensions and Other Postretirement Benefits—an amendment of FASB Statements No. 87, 88, and 106FIN 48 - Accounting for Uncertainty in Income Taxes—an interpretation of FAS 109FASB No. 159 - The Fair Value Option for Financial Assets and Financial LiabilitiesFASB No. 157 - Fair Value MeasurementsFASB No. 163 Accounting for Financial Guarantee Insurance ContractsFIN 45 - Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of OthersFASB No. 156 - Accounting for Servicing of Financial Assets—an amendment of FAS 140FASB No. 140 - Accounting for Transfers and Servicing of Financial Assets and Extinguishments of LiabilitiesFASB No. 161 Disclosures about Derivative Instruments and Hedging ActivitiesFASB No. 155 - Accounting for Certain Hybrid Financial Instruments— amends FASB 133 and 140FASB No. 138 - Accounting for Certain Derivative Instruments and Certain Hedging ActivitiesFASB No. 149 - Amendment of Statement 133 on Derivative Instruments and Hedging ActivitiesFASB No. 133 - Accounting for Derivative Instruments and Hedging ActivitiesFASB No. 154 - Accounting Changes and Error Corrections—replaces APB Opinion No. 20 and FASB No. 3FASB No. 153 - Exchanges of Nonmonetary Assets—an amendment of APB Opinion No. 29 FASB No. 151 - Inventory Costs—an amendment of ARB No. 43, Chapter 4 FASB No. 150 - Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity FASB No. 146 - Accounting for Costs Associated with Exit or Disposal ActivitiesFASB No. 144 - Accounting for the Impairment or Disposal of Long-Lived AssetsFASB No. 143 - Accounting for Asset Retirement ObligationsFIN 47 - Accounting for Conditional Asset Retirement Obligations—an interpretation of FAS 143FASB No. 131 - Disclosures about Segments of an Enterprise and Related InformationFASB No. 130 - Reporting Comprehensive Income

GRADINGA letter grade will be determined based on the following: Points %Contribution to class learning (attendance , participation and presentations) 150 15%Homework and other minor assignments 100 10%Financial statement disclosure project 350 35%Other projects, cases and major assignments (may include an in-class simulation of comprehensive exam question) and other exams

400 40%

  1000 100%

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How to Write-up a Case for Acct 592

How to start: Cases generally have questions at the end. Use these as GUIDES to the issues presented in the case. For example, you may not answer each question in the exact order presented if they are related and one paragraph would do for several answers. Or maybe the alternative you choose makes one or more issues irrelevant. Your task is to understand the FACTS of the case and then do your research. But the goal isn’t to find citations – the goal is to APPLY the accounting standards to the facts of the particular case. I don’t want long quotations – especially when all or part is not relevant to the case at hand. Your letter or memo is not an academic report intended to cover all issues. You want to concisely identify the most important issues and reach a well-supported decision. It is also important that you practice “business communications.” Pretend you are writing to a client or supervisor – not a professor. This is not like homework which is simply numbered answers. You need to describe the relevant issues as well as “the answer” and all answers/decisions must be justified based on facts and on accounting standards. In some cases, a decision may not be possible without additional information. In that case, spell out the additional information that will be required to reach a definitive conclusion. In the real world, your letter or memo is likely to become important EVIDENCE in the audit working papers, a court trial, etc. Therefore, you want to strive for a balance between brevity and breadth!

Format: Generally, when we correspond with the client, we would write a LETTER. If we are corresponding internally (junior to senior on the audit team), we would use a MEMO format. The third common style is a MEMO TO FILE which is intended to document research findings and conclusions reached as part of the audit working papers.

A letter is used to write to clients, their attorneys, audit committees, etc. and examples include engagement letters, opinion letters, etc. A letter generally has introduction, body and conclusion. Most business letters are one page and rarely more than 3 or 4 pages. Various styles exist but there would be (1) an “inside address” or letterhead, (2) date, (3) the external address that might be followed by a subject line, (4) the salutation (Dear Sam, etc.), (5) the body of the letter with single spaced paragraphs with a blank line between each paragraph, (6) the closing line (Sincerely, etc.) followed by a few blank lines for the signature, and then the typed name, often with his or her title on the row immediately below the name.

o The opening paragraph will often refer to earlier correspondence should encompass the main idea of the letter.

o Some authorities suggest putting good news in the first paragraph and bad news later in the letter after some buffer material.

o The letter should answer all your correspondent’s questions fully and clearly at the appropriate level of detail. Remember, you can attach some details or computations in a separate document, spreadsheet, etc. Make the letter as concise as possible.

o Always end with a courteous closing – create goodwill for yourself or your firm!o

The memorandum (memo) format is used for internal communications.o The word “Memo” is generally centered at the top of the page. o The heading has “fields” for to, from, subject and date. There is no closing/signature

section at the bottom of a memo.o There should generally be an introduction, body and conclusion.o Memos like letters should be as concise as possible, avoiding unnecessary repetition,

multiple citations that say the same thing, etc.o Headings and bullet lists can make communication more effective by adding clarity and

coherence.o Some memos are “for the record” and may not be addressed to a particular person. In

this case, it would be “To: File” and the subject line would need to clearly indicate name of client. In some cases, this type of memo might simply be a list of concerns,

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observations, etc. but generally there should be some documentation of the DECISION reached and the basis for the conclusion (for example, description and analysis of evidence collected). This is NOT the style I would view as appropriate for our Acct 592 case write-ups. Instead, address a memo to your supervisor with the assumption that you have been asked to research an issue and make a recommendation.

Style and Tone Issues: Whether it is a letter or a memo, consider the audience – your reader: Readers’ attitudes and biases – how much convincing will they need? Readers’ interests and needs – be sure you are address their needs, how they will benefit, etc. What is the level of their accounting knowledge? For example, the controller of a client may be

quite knowledgeable but the audit committee members may not be as well informed about accounting and auditing standards. For a small business client, you would probably expect a very low level of knowledge and therefore take more care to explain things carefully – but not at so basic a level as to seem insulting. In other words, a letter on the same topic to different clients might be written quite differently.

For a memo to file, one book suggests the use of third person (no “I” or “you”) because it sounds more objective and keeps the focus on the subject rather than the players.

What is the appropriate tone and style? Will this reader welcome a folksy, informal voice? Or should the document be couched in formal terms and style to communicate the professionalism of the writer? In whatever case, always be courteous and respectful!

Length: Be concise but clear. Business people are busy – don’t bury the conclusions at the end of several pages of narrative.

A letter is often one page. If you require more than one page, there needs to be a heading on the later pages that identifies recipient, date and page number. If you have a long letter, think about whether some of the detail might be better placed as an appendix (for example, key citations with highlighted or underlined phrases and sentences).

Memos can be any length but the second and later pages probably need some sort of heading so that the pages won’t be accidentally mixed up later. For example, a one line reminder about the “to,” “subject” and “date” lines. Again, consider whether an exhibit (flowchart, graph, table, etc.) might be helpful as an appendix referred to in the body of the memo.

For my class assignments – I NEED YOUR REAL NAME on every assignment, even when you are pretending to be Sam Smith or another person mentioned in a case! It is helpful to have your name in the heading on every page.

Quality of writing: Your goal is to be error free! This is particularly important in writing letters to clients and others outside the firm. But if your memos are full of errors, you may be fired before you are ever entrusted with the task of writing letters to clients!

The first time you use an abbreviation, spell it out. For example, the Securities and Exchange Commission (SEC) rules say ….” From then on, you’ll know that the reader knows what the abbreviation stands for. This rule can be relaxed to some extent in a memo but it never hurts to spell it out because we can forget our own abbreviations pretty quickly!

I’ve attached an example “rubric” or checklist that I’ve used in the past. I will count typos and grammatical errors and they will reduce the portion of the grade related to “writing.”

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EVALUATION OF WRITTEN ESSAYS AND CASES

Format and Organization (20%)

___ Appropriate format for assignment (cases are generally memo or letter)

___ Well-organized with introduction/executive summary, body, conclusions/summary

___ Headings and subheadings to aid reader

___ Summarizes options, recommendations, etc. (often found in condensed version in introduction/executive summary as well as a lengthier explanation in conclusions section)

Quality of writing (20%)

Errors noted:

___ Spelling errors

___ Run-on sentences or sentence fragments

___ Missing or extra words that hinder understanding

___ Improper word choice (affect/effect, there/their, to/too, etc.)

___ Improper use of possessives and contractions (its/it's, company's/companies, etc.)

___ Acronyms and abbreviations not explained

___ Improper use of punctuation

___ Subject does not agree with verb

___ Proper and consistent reference style to literature quoted

___ Correct use of technical accounting/business terminology (as appropriate)

Content (60%) (Some items will be more relevant than others to a specific assignment)

___ Evidence that student was able to identify the key issues of the case or readings

___ Does not unnecessarily repeat background and facts of case but refers to specific facts as evidence for recommendations made. Does not make excessive use of direct quotations.

___ Discusses issues relevant to facts provided in the case or readings

___ Takes a position, clearly states an opinion

___ Makes logical arguments to defend position taken

___ Considers other possible opinions/solutions and explains why your position is superior

___ Recommendations are specific, sufficiently detailed, and to the point

___ Position taken is well supported with deductive and inductive evidence and seems consistent with available facts from case or readings

___ Authoritative literature identified and properly cited (20% for Lucent)

___ Authoritative literature interpreted and applied properly to facts (20% for Lucent)

___ Demonstrates understanding of important concepts and principles of accounting

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Tentative Schedule for Spring 2010 – Acct 592The official syllabus is maintained on the course web site – be sure to check regularly for changes!

Date 2010 Topic Assignments

Thurs14-Jan

Class 1

Course Introduction

Introduction: Research using the ASC (pptx)

Quick FASB Codification Guide - McGladry Pullen.pdf

Discuss: 98-9 Sour Grapes & Interest Costs

FASB up-date: Lecture: Accounting Changes (ppt)

“Warm-up” research case: 98-9 Sour Grapes & Interest Costs Please prepare BEFORE today's class - so that my lecture will make a bit more sense - see email sent last week to all registered students.

For next class, prepare to discuss: 99-4 The Eye of the Potato 02-5 Sick of Debt - note additional question for 02-5: Would your solution differ if Sick of Debt had transferred US Treasuries instead of cash?

Tues19-Jan

 

 

Class 2 

Discuss the following cases:99-4 The Eye of the Potato 02-5 Sick of Debt

07-2 Western Aluminum This case is on a change in accounting principle. Do some research but don't worry about the completing the work papers on pages 4-6 yet)

More "warm-up" research cases:

I want you to write up the solution to 07-2 Western Aluminum to be turned in Th. Jan. 28 - You will attach the completed work papers to a memo (I should have said LETTER) to the Controller explaining your decision regarding the last 3 bullet points under the requirements on page 3 of the case.

The write-up of Case 07-2 will be due Thurs Jan 28 - we'll discuss requirements. I want to be able to give you feedback on how to write up cases before you turn in the Lucent case solution.

ThursJan 21

We will discuss the ASC research parts of Western Aluminum briefly (not the numeric part)

Bring journal entries written up for Part 1 of the Lucent case and also attempt to create the Statement of

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Class 3

Read and prepare to discuss:

Lucent Loses Its Luster (question 1 & 3)

Here are the "term project" files:

JEM Inc. - Financial Stmt Disclosure Project (with Options & EPS assignments) (docx)

JEM Inc. Data for Project (xlsx)

Comprehensive Income (part 3) in writing. This may be the first time you have ever tried to prepare one! We will check numbers during class and you will a chance to make corrections before submission.

Tues26-Jan

Class 4

Professor out-of-town

Work on the completion ofCases: Lucent Loses Its Luster 07-2 Western Aluminum

GROUP WORK DAY: I suggest you get together in groups to check your Parts 1 through 3 of Lucent and discuss "research findings" from ASC. In addition, you may need to help each other out on making the LIFO to FIFO restatement of the financial statements for Western Aluminum

Turn in at least TWO versions of Selden's Stmt of Comprehensive Income (Lucent Case) on Thursday Groups of 2-4 students acceptable for this part of the case work.

You will be turning in individual solutions to items 4-6 in the Lucent case, in the form of a professional memorandum (6) with supporting attachments (4, 5, research notes) DUE DATE TUES Feb 9 (individual work)

Thurs28-Jan

Class 5

Review: Accounting for Income Taxes including FIN48 and IFRS (ppt)

Accounting for Income Taxes (doc)– Notes & Examples – bring copy of EXAMPLE to class with you even if you bring laptop

Blank work paper for deferred tax problems, Starr One Inc. - Deferred Tax Example (xls)

07-6 Graphic Inc.(read so you can ask questions about how to prep for discussion next class)

Western Aluminum case (7-02) is due no later than Friday Jan 29.

Turn in at least two versions of variation of Lucent's statement of comprehensive income for me to check (minor HW grade)

Slides from KWW13th Ch19 Deferred Taxes (pptx) If you haven't previously studied deferred taxes, I suggest you work several homework problems in an intermediate accounting textbook and check answers in the solution manual (KWW 12th & 13th editions available)

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Lifting the Fog - Acctg for Uncertainty in Income Taxes (PriceWaterhouseCoopers) - on FIN 48. This new standard MAY be applicable to the AxCess Unlimited case or the 07-6 Graphic Inc case. Here is a comparable newsletter from Deloitte & Touche: KPMG Defining Issues 2006 on FIN48

Read case 07-06 which we will discuss on next class so you can ask me questions regarding requirement for class discussion on Thursday.

Date Topic Assignments

Tues2 Feb

Class 6

Deferred Income Taxes – continued

We'll grade Starr One quickly at the beginning of class (last 3 years) (We did 3 yrs during class and I did NOT record grade for the remainder in S10)

Cases to research for class discussion:07-6 Graphic Inc.Case: 09-9 Bricks & Mortar

Read both cases and do some ASC research on the answers.

For Case 07-6 Graphic Inc. You will need to create a MATRIX that provides the positive and negative evidence regarding the decision. This needs to be in writing BEFORE you come to class.

For Case 09-9, make an attempt to fill in the numbers on the working paper included on page 5.

Thurs4-Feb

Class 7

Read and prepare for class discussion Questions 1-6 from Restricted Stock versus Stock Options: The Case of Jones Apparel Group Inc.

Click here for an article by Mintzberg that says we should get rid of executive bonuses & options

Introduction to Stock Based compensation: ASC 718 Stock-based Compensation (pptx) including IFRS comparison

Stock-based Employee Compensation - Examples(MSWord file) - BRING PRINTOUT OF EXAMPLES WITH YOU TO CLASS– includes HW assignments A, B & C (we will start with these examples if we have time)

Turn in completed worksheet for Case 09-9 - I wanted to see your "correct" answers! This is a minor HW grade. Doesn't need to be fancy!

Read about stock-based compensation in an intermediate textbook. There's usually only a few pages of very superficial coverage.

Prepare to discuss questions 1-6 in the Restricted Stock versus Stock Options: The Case of Jones Apparel Group Inc. - this will be brief

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Tues9-Feb

Class 8

Stock-based Employee Compensation - Examples(MSWord file) - BRING PRINTOUT OF EXAMPLES WITH YOU TO CLASS– includes HW assignments A, B & C - to be continued

We completed the 3 variations of Example 1 as well as Example 2 These files have to solutions in case you wrote down something wrong

Turn in Lucent Case Solution Today (see row for Jan 26 - this will be a memo answering questions 4-6. Take into account any feedback I provided on your Western Aluminum case write-up.

Thurs11-Feb

Class 9

Stock based compensation (con’t)

Prepare to discuss questions 7-10 in Restricted Stock versus Stock Options: The Case of Jones Apparel Group Inc.

We will working through examples (Examples 3 & Example 4 graded vesting) so bring printouts (from Feb 9 line)

ASC 178 Stock-based Employee Compensation NOTES (doc) (MSWord notes - might be useful for you)

http:/www.cbe.uidaho.edu/tgordon

Homework A (SFAS No. 123R) – "major" assignment due by next Tuesday (Feb 16)

You should also be working on Homework B assignments in Stock Based Compensation Examples must be can turned in no later than 3 PM on Feb 19 (Friday).

Note case assignments for next Thursday.

Tues16-Feb

Class 10

Stock based compensation - Option Pricing Models

Issues in Implementing BSOP by M. Reyes with Data/model in Excel (try it out for Jones Apparel)

Bring the Jones Apparel Group case – we’ll be looking at question #11 today and any other unfinished questions

Black Scholes Model with Boeing & JNY data (JNY=Jones Apparel Group) You can add the monthly, weekly and daily stock price information for JEM to the file from: JEM Inc. Data for Project (xlsx)

Read something about the Black Scholes model – In addition to the case at left, there is helpful material within SFAS No. 123 – esp. the original version and there is plenty of good stuff on the internet, for example: http://bradley.bradley.edu/~arr/bsm/model.html

The Black Scholes assignment is item #1 in the JEM Corporation stock compensation homework and it is due Thurs Feb 25 (along with the journal entries - item #2). You can also use the excel file to do the Jones Apparel estimate of the fair value of their options.

Thurs18-Feb

"Practice" Presentations - related to stock based compensation

Read all 4 cases so you'll follow the presentations!

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Class 11

07-4 Murray CorporationDeng, Yunfei; Scott, Nichole; Myers, Ryan; Sycks, Adam; Benson, Zach

Case 07-5 Springboc CorporationBoizelle, Jon; Yang, Fan; Mitchell, Joshua; Scott, Kimber; Lively, Nicole

Case 05-9 Spend-MoreChen, Fang Fang; Juratovac, Adam; Shown, Heather; Taylor, Michelle;Weber, Michaela

Case 08-2 Sooner or LaterHurlbert, Scott; Isbell, LandonLin, Fangxin; Meine, Russ; Wynn, Chris; Xie, Dan

Each group will prepare a 10-15 minute presentation. At least 2 people from the team should "speak." Provide a handout for the rest of the class. One page would be fine (saves paper) but some groups prefer to distribute ppt slides. Your object is to teach the rest of the class how to research the question and what you believe to be the best answer.

Reminder: HW #B (FAS 123R) due no later than end of this week (minor assignment)

Stock-based compensation homework HW C due Tues Mar 2. This one is a major assignment and will take quite a bit of time to complete so don’t leave it to the last minute! Remember, individual work only and I want to see T-accounts!

Tues23-Feb

Class 12

Finish any stock option material

A quick review of earnings per share Earnings per share for Acct 592 (ppt) including IFRS comparison

Earnings per share – bring copy of examples EPS Notes and Examples (docx)

Reminder: HW-C (revised 2009) (major assignment - individual work only) is due in one week on Tuesday Mar 2. Parts 1 & 2 of the JEM Corporation Incentive Stock Option Plan is due Thursday.

Review earnings per share in an intermediate accounting textbook.

Thurs25-Feb

Class 13

Complete EPS Example #3 if necessary.

Earnings management and multiple deliverables (a change of topic for variety's sake!)

Case for discussion: 07-3 Columbia On-Line Networks (Part 1) and (Part 2) You'll be discussing Part 3 as part of your auditing class. There are two handouts related to the case (HO 1) (HO2). Marla Kraut will let you know when the auditing

Read, research and prepare to discuss assigned case.

JEM Corporation Incentive Stock Option Plan (parts 1 & 2) is due today.  (Counts as 2 minor assignments, individual work).

EPS - HW (basic algorithm) (Example 4 is homework in an excel file with suggested supporting working papers). Due

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part will be discussed.

Thurs Mar 4 ("minor" homework problem).

TuesMar 2

Class 14

It looks like we need to talk about FAIR VALUE (FAS157) before doing pensions: Fair value measurements (FAS157) pptx

A quick review of pension accounting: FASB Update - SFAS No. 158 Postretirement Benefits (ppt) Includes New FSP FAS137(R)-1 (I haven't updated this file yet for changes in 2009 and early 2010)

Due today: SFAS123R HW C (major assignment – individual work only) Turn in your T-Accounts with the journal entries-- prove to yourself and to me that your journal entries "worked out" and arrived at the correct ending amounts!

Date Topic Assignments

Thurs Mar 4

Class 15

WE WILL GRADE EPS HW (#4) TODAY DURING CLASS

We'll finish reviewing pension accounting (as needed) and work through at least one year of Pension Plan 1 from JEM Corporation

Due Today: EPS - HW (basic algorithm) (The link is an excel file with suggested supporting working papers). (This is a "minor" homework problem - individual work only). BRING TO CLASS ON PAPER TODAY!

The JEM EPS project will be due AFTER spring break but you are now ready to work the first couple of problems

Pension Example & HW - under SFAS No. 158 (xls) bring printout of Pen1 problem and two copies of work paper OR problem on your laptop to class today.

Tues Mar 9

Class 16

Back to Earnings Per Share: Dealing with Stock Based Compensation.

This will be from Earnings per share Examples (#5 EPS with share-based compensation)

Note from S09: This took all period - make the FS Disclosure project EPS research project due SOONER next time since students had forgotten how to do this in

JEM - Example & HW on Pension & OPEB (xlsx) This assignment has two pension plans for 2 years each plus an other post-retirement pension plan for 2 years, with Excel worksheets. We will have completed part of it during class as an example. You are to turn in all 6 worksheets no later than Th. March 11

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S09 before they turned that assignment in.

Thurs Mar 11

Class 17

Ethics Discussion

Caravan International: stock repurchase plan with impact on EPS – (don't print last 4 pages of file) Caravan International: stock repurchase plan with impact on EPS (a partially completed excel file we'll use)

New GAAP – lecture (need to cover FAS150 and FIN45 in preparation for cases on Thursday) FASB Update - FIN45, FAS150 (not updated for ASC yet)

Turn in solution for JEM - Example & HW on Pension & OPEB (xlsx) (minor assignment)

You may have until AFTER spring break to turn in the complete Earnings per Share Research assignment due Due MAR 23

Tues16-Mar Spring Break

Work on PROJECT assignments! For example, you could draft the pension footnote based on the pension assignment. Obviously, the most crucial one is the EPS assignment which is due Tuesday after spring break

Thurs18-Mar Spring Break

Tues23-Mar

Class 18

Read, research and prepare to discuss the following cases.

05-5 Guarantees-R-Us (FIN45)05-2 Minority Inc (FAS150)

It wouldn't hurt to BRING LAPTOP to do additional research on the cases as we do group discussions/presentations

JEM - Earnings Per Share assignment (docx) is due today, accepted through Thursday without a late penalty. I may provide some check figures today.

If you are not prepared to discuss these cases, I will have to make them a written assignment - so please do your research and bring NOTES!

Date Topic Assignments

Thurs25-Mar

Class 19

Consolidation Issues

Case: 06-4 Fast Car Inc .

Supporting materials: Variable Interest Entities (FIN46R) FASB Up-Date – FIN 46R - VIEs (doc)

Variable Interest Entities (FIN46) ppt (content similar to doc file - probably no need to print both)

Read, research and prepare to discuss assigned case.

Read about FIN46: for example, here are some reading materials on VIEs that might be helpful:KPMG Defining Issues on Fin 46R (pdf); http://www.tscpa.com/hotwire/articles/FIN46R_081006.htm

A CPA firm "working paper" on VIEs that might be useful FIN 46R template

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PWC: Substance of control (IFRS SIC12 vs FIN46R) Pdf file has useful flow chart plus comparison to IFRS

http:/www.cbe.uidaho.edu/tgordon

- documentation of decision (Excel)

Tues30-Mar

Class 20

Statement of Cash Flow – Review- I'll bring handouts (very elementary example)

Procedures for Direct Method SCF.docx Students who took Acct 414 at UI should be familiar with my working paper format but others may find this helpful.

Notes-SCF

Review chapter on Statement of Cash Flows in intermediate accounting text (if necessary)

Assignment: SCF HW (minor) - Driskoll - due at beginning of next class (Th April 1)

If the example we did in class seems insufficient, I strongly recommend that you work Wenatchee Whirlpool World problem which has the most detailed solution - before attempting the "Orofino Outfitters." takehome quiz

Thurs1-Apr

Class 21

 

Group Presentations (Set 2 - Day 1)

07-7 Porky's RevengeMyers, RyanWeber, Michaela

04-6 Power StationTaylor, MichelleWynn, ChrisMitchell, Joshua

Absence counts double today

Everyone should read all cases to be presented. A handout for the audience should be distributed. I also need copy of ppt presentation slides (electronic)

Plan for 15 to 20 minute presentations

About half the class will be turning in the formal write-ups of these cases. Remember, the cases will not be accepted after the beginning of class!

JEM Stock Options Assignment, Part 3 (earnings per shared for 2008) is due today, individual work, accepted through Friday at 3 PM

Tues6-Apr

Statement of Cash Flows – more advanced examples

Grade SCF HW (minor) - Driskoll during class so bring copy with you

SCF - Storage Options Corp. (we'll actually use the "partially completed" version during class but file includes blank working paper. I will bring printout of partially completed. Bring the file if you want to use your laptop instead. This example will teach you

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Class 22

 

how to handle share-based employee compensation on the SCF (CHECK FIGURE CFO=$440,000)

Thurs8-Apr

Class 23

 

Group Presentations (Set 2 - Day 2)

08-6 The Rump OrganizationDeng, Yunfei Hurlbert, Scott

09-4 Needs SpaceJuratovac, Adam Chen, Fang Fang

Absence counts double today

Everyone should read all cases to be presented. A handout for the audience should be distributed. I also need copy of ppt presentation slides (electronic)

Plan for 15 to 20 minute presentations

About half the class will be turning in the formal write-ups of these cases. Remember, the cases will not be accepted after the beginning of class!

Tues13-Apr

Class 24

 

Stmt of Cash Flows - dealing with AOCI - Portland Pens - SCF with after-tax AOCI & FAS158 pension (doc) Print this facts file even if you plan to use laptop in class. Working Paper for Portland Pens SCF Example (xls) CK FIGURE CFO=2,282,000

Take-home SCF Quiz: Due April 20 (Tuesday by 5 pm) Orofino Oufitters Inc. - SCF - Take home Quiz (doc file has the additional information facts). Orofino Outfitters Inc. - blank xls SCF working paper CHECK FIGURE: CFO=$555,000 Getting help from other students is NOT ACCEPTABLE for this take-home exam

Date Topic Assignments

Thurs15-Apr

Class 25

 

Group Presentations (Set 2 - Day 3)

09-2 Pharmgen PharmaceuticalsMeine, RussBenson, ZachYang, Fan

09-3 Venturing Into ConsolidationsIsbell, LandonLin, Fangxin Shown, Heather

Absence counts double today

Everyone should read all cases to be presented. A handout for the audience should be distributed. I also need copy of ppt presentation slides (electronic)

Plan for 15 to 20 minute presentations

About half the class will be turning in the formal write-ups of these cases. Remember, the cases will not be accepted after the beginning of class!

Continue work on take-home and/or WFF statement of cash flows

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Tues20-Apr

Class 26

 

Read, research, and prepare to discuss the following case on statement of cash flow

08-1 Go with the Flow

First Motors Corporation: A Class room case on Impairments & fair value measurement

Take-home SCF exam is due no later than 5 PM Tuesday, April 20 Orofino Oufitters Inc. - SCF - Take home Quiz - be sure to have the "I didn't cheat" signed statement attached to assignment.

Thurs22-Apr

Class 27

Case Presentations (Set 2, Day 4)

09-5 Pit Stop ClosedBoizelle, Jon Scott, NicholeSycks, Adam

09-5(a) Pit Stop SoldLively, Nicole Xie, Dan Scott, Kimber

Absence counts double today

Reminder: Financial Statements Disclosure Project due by Friday 4:00 PM April 30

Everyone should read all cases to be presented. A handout for the audience should be distributed. I also need copy of ppt presentation slides (electronic)

Plan for 15 to 20 minute presentations

About half the class will be turning in the formal write-ups of these cases. Remember, the cases will not be accepted after the beginning of class!

 Tues27-Apr

Class 28

Debt vs Equity Issue:

Preferred Stock Dilemma of Appllo Technology

 

Read case and prepare for discussion. We reviewed the related standards on March 23

Thurs29-Apr

Class 29

 

International Issues For Financial Reporting

Case: Making the Right Comparisons: Novartis AG (IFRS case)

Read the case and prepare to discuss the first question and maybe the 2nd question - we'll do some of the work in groups during class.

Friday April 30

Official Due Date for JEM Project Please remember to bring me an UNBOUND copy for grading plus the "official" version to be saved for

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posterity. No late penalty if received by noon Monday May 3

Tues4-May

Class 30

Case Presentations (Set 3)

Case presentations about 15-20 minutes each

08-5 Sell-It Products S3 C1Taylor, Michelle TheresaWeber, Michaela Vankova 04-10 Cashless Inc. S3 C2Boizelle, Jon P.Sycks, Adam Dean 06-12 Outsourcing Services Inc. S3 C3Chen, Fang Fang Mitchell, Joshua Dylan Absence counts double today

Everyone should read all cases to be presented.

Case presentations about 18-20 minutes each

A handout for the audience should be distributed (including professor).

Copy of ppt file should be sent electronically to professor

Thurs6-May

Class 31

Case Presentations (Set 3)

05-1 It's Close Enough Inc. S3 C4Scott, Nichole DeloresMeyers, Ryan 09-8 Classified Information S3 C5Neagoy, DanWynn, Christopher ReedYang, Fan

Absence counts double today

Everyone should read all cases to be presented.

Case presentations about 20-25 minutes each

A handout for the audience should be distributed (including professor).

Copy of ppt file should be sent electronically to professor

 

TuesMay 11Final Exam Period – note change in start time- we begin at 10 AM

Case presentations (Set 3)

08-3 Hedge Documentation S3 C6Isbell, Landon DMeine, Russell AXie, Dan

05-3 CherryPop S3 C7Benson, Lloyd ZacharyHurlbert, Edward Scott

Final exam period – regular classroom – 10:00 AM to 12:00 PM

Everyone should read all cases to be presented. 

Case presentations about 20-25 minutes each

A handout for the audience should be distributed (including professor).

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06-2 Convertme Inc. S3 C8Lively, Nicole JeanJuratovac, Adam StanislausLin, Fangxin 05-7 Ace Company S3 C9Exhibit for 05-7Scott, Kimberly JanelleDeng, Yunfei Shown, Heather Danelle

Absence counts double today

Copy of ppt file should be sent electronically to professor

 

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