ACT505: Advanced Theory and Practice Credit Hours: 3

Contact Hours: This is a 3-credit course, offered in accelerated format. This means that 16 weeks of material is covered in 8 weeks. The exact number of hours per week that you can expect to spend on each course will vary based upon the weekly coursework, as well as your study style and preferences. You should plan to spend 10-25 hours per week in each course reading material, interacting on the discussion boards, writing papers, completing projects, and doing research.

Course Description and Outcomes

Course Description: This course concentrates on three general areas of financial reporting: foreign currency translation, consolidations and an introduction to governmental accounting practices. You will first explore how income is calculated in multiple currencies. In currency conversions, issues arise related to the functional currency, as well as how gains and losses relative to changing currency values are reported on financial statements of the consolidated entity. An important element of the consolidation procedure, is structuring of financial reporting when income is measured by different subsidiary entities in currencies that differ from that of financial statement reporting. Following discussion and presentation of currency transactions, once you know how to express financial results in the functional currency, you will explore the process of consolidation. Consolidation is combining affiliated entities into the financial statements of the parent entity for financial reporting as one entity. The main focus is how intercompany transactions are eliminated from both entities as part of the consolidation process. This course concludes with an introduction to governmental accounting, and a discussion of how and why governmental accounting differs from traditional private industry. An introduction to typical government general fund transactions is illustrated. Course Learning Outcomes:

1. Describe current accounting standards and regulations. 2. Apply standards learned to the preparation of financial statements in compliance with GAAP. 3. Apply accounting knowledge beyond the preparation of one-entity financial statements. 4. Explain and contrast current international accounting standards with U.S. standards. 5. Synthesize all areas of accounting knowledge into professionally prepared and GAAP compliant

accounting work papers. SAMPLE

Participation & Attendance

Prompt and consistent attendance in your online courses is essential for your success at CSU-Global Campus. Failure to verify your attendance within the first 7 days of this course may result in your withdrawal. If for some reason you would like to drop a course, please contact your advisor. Online classes have deadlines, assignments, and participation requirements just like on-campus classes. Budget your time carefully and keep an open line of communication with your instructor. If you are having technical problems, problems with your assignments, or other problems that are impeding your progress, let your instructor know as soon as possible.

Course Materials

Textbook Information is located in the CSU-Global Booklist on the Student Portal.

Course Schedule

Due Dates The Academic Week at CSU-Global begins on Monday and ends the following Sunday.

Discussion Boards: The original post must be completed by Thursday at 11:59 p.m. MT and Peer Responses posted by Sunday 11:59 p.m. MT. Late posts may not be awarded points.

Mastery Exercises: Students may access and retake mastery exercises through the last day of class until they achieve the scores they desire.

Critical Thinking Activities: Assignments are due Sunday at 11:59 p.m. MT.

Week # Readings Assignments

1 Chapters 11 &13 in Advanced Financial Accounting Discussion (25 points)

Critical Thinking (110 points)

2 Chapter 1 in Advanced Financial Accounting Discussion (25 points)

Critical Thinking (120 points)

3 Chapters 2 & 3 in Advanced Financial Accounting Discussion (25 points)

Portfolio Questions (0 points)

4 Chapters 4 & 5 in Advanced Financial Accounting

Discussion (25 points)

Portfolio Draft A (0 points)

5 Chapter 12 in Advanced Financial Accounting

Discussion (25 points)

Critical Thinking (110 points)

6 Chapters 6 & 7 in Advanced Financial Accounting

Discussion (25 points)

Portfolio Draft B (0 points)

7 Chapter 17 in Advanced Financial Accounting

Discussion (25 points)

Critical Thinking (110 points) SAMPLE

8 Chapter 17 in Advanced Financial Accounting

Discussion (25 points)

Portfolio (350 points)

Assignment Details

This course includes the following assignments/projects: Module 1

Critical Thinking: Foreign Currency Recognition and Reporting (110 points) This Critical Thinking exercise contains two problems. You must address both problems, following the instructions for each. When you are finished with both problems, put your responses in a single Word document for submission. Problem 1 presents a scenario describing a transaction and you must calculate and explain a foreign exchange gain or loss. Problem 1 Marko Company sold spray paint equipment to Spain for 5,000,000 pesetas (P) on October 1, with payment due in six months. The exchange rates were: October 2, 20x6: 1 Peseta = .0068 December 31, 20x6: 1 Peseta = .0078 April 1, 20x7: 1 Peseta = .0076 Answer the following questions. Show all your calculations in a table in the Word document where appropriate. Present all written responses in accord with CSU-Global APA guidelines.

A. Did the dollar strengthen or weaken relative to the peseta during the period from October 1 to December 31? Did it strengthen or weaken between January 1 and April 1 of the next year?

B. Prepare all required journal entries for Marko as a result of the sale and settlement of the foreign transaction, assuming that its fiscal year ends on December 31. The journal entries should follow appropriate journal entry format, as you studied in your foundational accounting course.

C. Did Marko have an overall net gain or net loss from its foreign currency exposure? Please explain how this loss was generated, as well as the implication of this loss on the financial statements.

In Problem 2, you are presented with a segment reporting issue. In response, you will develop a one- or two-page memo to a supervisor explaining how the issue should be reported, as well as challenges that need to be considered. Problem 2 Chemax Inc. manufactures a variety of pharmaceuticals, medical instruments, and related medical supplies. Eighteen months ago the company developed, and began to market, a new product line of antihistamine drugs under various trade names. Sales and profitability of this product line during the current fiscal year greatly exceeded management's expectations. The new product line will account for 10 percent of the company's total sales and 12 percent of the company's operating income for the fiscal year ending June 30, 20X0. Management believes sales and profits will be significant for several years. Chemax Inc. is concerned that its market share and competitive position may suffer if it discloses the volume and profitability of its new product line in annual financial statements. Management is not sure how FASB 131 (ASC 280) applies in this case. SAMPLE

Write a one- or two-page paper, in the form of a memo to a supervisor, in CSU-Global APA format addressing the following issues:

A. What is the purpose of requiring segment information in financial statements?

B. Identify and explain the factors to be considered when attempting to decide how products should be grouped to determine a single business segment.

C. What options, if any, does Chemax Inc. have with the disclosure of its new antihistamine product line? Ensure your responses for both problems are clearly marked so your instructor knows which response goes with which problem. Combine all of your responses in a single Word document for submission.

Module 2

Critical Thinking: Intercorporate Acquisitions (120 points) MCI WorldCom, Inc. (later MCI), was known as a high-flying company, having started as a small local company and rising to one of the world's largest communications giants. The company's spectacular growth was accomplished through a string of business combinations. However, not all went as planned. Provide a brief history of, and describe subsequent events related to, MCI WorldCom. Include in your analysis the following:

1. Trace the major acquisitions in the development of MCI WorldCom and discuss the considerations to be made in the acquisitions.

2. Who is Bernard Ebbers and where is he now?

3. What happened to MCI WorldCom? Where and what is it now? Your paper must be in a Word document two- to three-pages in length in CSU-Global APA style, citing at least three resources other than the course textbook.

Module 3

Portfolio Project: Questions (0 points) The Portfolio assignment is found on the Week 8 Assignments page, and the Portfolio Project grading rubric can be accessed from the Course Information page. Spend some time considering your Portfolio in depth. Ask your instructor any questions that you have regarding the assignment. Or, if you have no questions, acknowledge that you have read the assignment and make a brief statement showing that you understand its scope and purpose. Submit questions or acknowledgement to your instructor by email by the end of the week. Your instructor will review these questions and provide answers to the class regarding the “most commonly asked” questions. This submission is a required component of the Portfolio Project assignment, due this week. No points will be assigned for this, but points will be deducted from your final grade on the Portfolio Project if you fail to submit this assignment by week’s end.

Module 4

Portfolio Project: Comprehensive Consolidation and Analysis—Part A Draft (0 points) SAMPLE

This week, you will submit a draft of Part A of the Portfolio Project for review by the instructor. Your submission must show all journal entries recorded in 20X5 related to the investment in Stanley. Review the Portfolio Project Description on the Week 8 Assignments page, and Portfolio Project grading rubric, which can be accessed from the Course Information page. Your draft of Part A must be received by the end of Week 4. It will be reviewed for accuracy by your instructor and feedback will be provided about your draft, which must be incorporated into your final Portfolio Project, due at the end of Week 8. This submission is a required component of the Portfolio Project assignment, due this week. Points toward the final Portfolio Project will be assigned for this and thus, points will be deducted from your final grade on the Portfolio Project if you fail to submit this assignment by week’s end. Review Portfolio Project: Module 4 Deliverable grading rubric, which can be accessed from the Course Information page, to see how you will be graded for this submission.

Module 5

Critical Thinking: Consolidation of Less than Wholly Owned Subsidiaries (110 points) Duff Company is a subsidiary of Rand Corporation and is located in Madrid, Spain, where the currency is the euro (€). Data on Duff's inventory and purchases are as follows:

The beginning inventory was acquired during the fourth quarter of 20X6, and the ending inventory was acquired during the fourth quarter of 20X7. Purchases were made evenly over the year. Exchange rates were as follows:

Problems:

A. Show the re-measurement of cost of goods sold for 20X7, assuming that the U.S. dollar is the functional currency.

B. Show the translation of cost of goods sold for 20X7, assuming that the Spanish peseta is the functional currency.

Apply principles of consolidating and translating foreign accounts by responding to problems A and B above, based on the case study and the values provided. Your paper must be in a Word document, showing all calculations, and any written remarks must be in accordance with CSU-Global APA-format.

Module 6

Portfolio Project: Comprehensive Consolidation and Analysis—Part B Draft (0 points) SAMPLE

During Week 6, you will submit a draft of Part B of the Portfolio Project for review by the instructor and approval. Your submission must show all eliminating entries needed to prepare consolidated statements for 20X5. For a full description of Part B requirements, see the Portfolio Project description on the Week 8 Assignments page, and Portfolio Project grading rubric, which can be accessed from the Course Information page. To receive feedback on your draft of Part B, the assignment must be submitted by the end of Week 6. Outlines submitted late will not be reviewed. The feedback provided about your draft must be incorporated into your final Portfolio Project, due at the end of Week 8. This submission is a required component of the Portfolio Project assignment, due this week. Points toward the final Portfolio Project will be assigned for this and thus, points will be deducted from your final grade on the Portfolio Project if you fail to submit this assignment by week’s end. Review the Portfolio Project: Module 6 Deliverable grading rubric, which can be accessed from the Course Information page, to see how you will be graded for this submission.

Module 7

Critical Thinking: Intercompany Transactions and Governmental Fund Accounting (110 points) Wilma Bates is executive vice president of Mavis Industries Inc., a publicly held industrial corporation. She has just been elected to the city council of Gotham City. Before assuming office, she asks you to explain the major differences that exist in accounting and financial reporting for a large city when compared to accounting and reporting for a large industrial corporation. Problems:

A. Describe the major differences in the purpose of accounting, of financial reporting, and in the type of financial reports of a large city when compared to a large industrial corporation.

B. Why are inventories often ignored in accounting for local governmental units? Explain. Address Problems A and B above, based on information provided in the case study. If you wish to present calculations to help make your responses more complete, show those calculations in a table in your paper. The paper must be a Word document two-to three-pages in length, formatted per CSU-Global APA and writing guidelines.

Module 8

Portfolio Project: Comprehensive Consolidation and Analysis (310 points) Master Corporation acquired 80 percent ownership of Stanley Wood Products Company on January 1, 20X1, for $160,000. On that date, the fair value of the non-controlling interest was $40,000, and Stanley reported retained earnings of $50,000 and had $100,000 of common stock outstanding. Master has used the equity method in accounting for its investment in Stanley. Trial balance data for the two companies on December 31, 20X5, are as follows: SAMPLE

Additional Information:

1. On the date of combination, the fair value of Stanley’s depreciable assets was $50,000 more than book value. The differential assigned to depreciable assets should be written off over the following 10-year period.

2. There was $10,000 of intercorporate receivables and payables at the end of 20X5.

Your Portfolio Project paper should be 8 to 10 pages in length, and address thoroughly Parts A, B and C below. Be sure to incorporate instructor feedback and suggestions into your final submission, in terms of any changes or additions to Parts A and B that you received during the course. Be sure to examine the Portfolio Project rubric to guide your project writing and presentation.

A. Give all journal entries that Master recorded during 20X5 related to its investment in Stanley.

B. Give all eliminating entries needed to prepare consolidated statements for 20X5.

C. Prepare a three-part worksheet as of December 31, 20X5. Include this in table format in the Word document. Following your worksheet, in two or three pages, analyze the process, specifically addressing how the transactions impact the financial statements, and how an outside user of the financial statements would use the information provided.

Use of outside sources, other than the course textbook, is not a requirement of this assignment. If outside sources are used to inform your response, include all citations and an appropriate reference page. In completing your paper, spend time to assure that the formatting complies with CSU-Global APA guidelines, and thoroughly proofread and grammar-check your final product. Portfolio Project Deliverables - Comprehensive Consolidation and Analysis (40 points) The Portfolio deliverables for this course, and the modules in which they are due, are:

Module 3: Submit Portfolio questions to instructor (0 points)

Module 4: Submit a draft of your response to Part A of the Portfolio assignment to instructor (0 points) SAMPLE

Module 6: Submit a draft of your response to Part B of the Portfolio assignment to instructor (0 points)

Course Policies

Course Grading

20% Discussion Participation 45% Critical Thinking Activities 35% Final Portfolio Paper

Grading Scale and Policies

A 95.0 – 100

A- 90.0 – 94.9

B+ 86.7 – 89.9

B 83.3 – 86.6

B- 80.0 – 83.2

C+ 75.0 – 79.9

C 70.0 – 74.9

D 60.0 – 69.9

F 59.9 or below

In-Classroom Policies For information on late work and Incomplete grade policies, please refer to our In-Classroom Student Policies and Guidelines or the Academic Catalog for comprehensive documentation of CSU-Global institutional policies.

Academic Integrity Students must assume responsibility for maintaining honesty in all work submitted for credit and in any other work designated by the instructor of the course. Academic dishonesty includes cheating, fabrication, facilitating academic dishonesty, plagiarism, reusing /re-purposing your own work (see CSU-Global Guide to Writing and APA Requirements for percentage of repurposed work that can be used in an assignment), unauthorized possession of academic materials, and unauthorized collaboration. The CSU-Global Library provides information on how students can avoid plagiarism by understanding what it is and how to use the Library and Internet resources. Citing Sources with APA Style All students are expected to follow the CSU-Global Guide to Writing and APA Requirements when citing in APA (based on the APA Style Manual, 6th edition) for all assignments. For details on CSU-Global APA style, please review the APA resources within the CSU-Global Library under the “APA Guide & Resources” link. A link to this document should also be provided within most assignment descriptions on your course’s Assignments page. Netiquette SAMPLE

Respect the diversity of opinions among the instructor and classmates and engage with them in a courteous,

respectful, and professional manner. All posts and classroom communication must be conducted in accordance

with the student code of conduct. Think before you push the Send button. Did you say just what you meant?

How will the person on the other end read the words?

Maintain an environment free of harassment, stalking, threats, abuse, insults or humiliation toward the

instructor and classmates. This includes, but is not limited to, demeaning written or oral comments of an ethnic,

religious, age, disability, sexist (or sexual orientation), or racist nature; and the unwanted sexual advances or

intimidations by email, or on discussion boards and other postings within or connected to the online classroom.

If you have concerns about something that has been said, please let your instructor know.

SAMPLE