Intermediate Accounting I

The Handbook will be used to illustrate the evolving nature of accounting standards versus the static nature of the textbook.  In preparation for each academic year the instructor will update the text material to match current Accounting Recommendations contained in the CICA Handbook.  A minimum of 5 Accounting Recommendations and a selection of EIC Abstracts will be explored in-depth.

1.1     A general overview of the environment of accounting including the relationship of managerial versus financial accounting and GAAP versus CICA Handbook.

1.2     An in-depth examination of the conceptual framework of accounting, its objectives, as well as environmental assumptions and implementation principles and constraints.

2.1     An in-depth examination of the issues, valuation, entries, and statement presentation surrounding current assets.

2.2     The factoring, assigning and pledging of receivables under notification/non-notification and with/without recourse.

2.3     The determination of notes receivable using present value techniques under simple and compound rate assumptions and when market and stated rates differ.

2.4      Valuation of inventories under the perpetual system using Moving Average, LIFO and FIFO assumptions.

2.5      Application of lower of cost or market (LCM) rules to inventories using the direct and allowance methods.

2.6      Application of alternative inventory valuation methods including replacement cost value, selling price value, and relative sales value.

2.7      Recognition, valuation, entries, and statement presentation of capital assets and other issues such as, but not limited to, capitalization costs versus non-capitalization costs, similar and dissimilar exchanges, self-constructed plant assets, interest during construction, and amortization.

2.8      Application of special amortization methods such as inventory appraisal system, group and composite systems, and retirement and replacement systems.

2.9      Recognition, valuation, amortization, and entries surrounding the accounting for intangible assets and natural resources.

2.10    Valuation and entries related to temporary and long-term investments under direct and allowance LCM methods.

2.11    Cost versus equity bases in accounting for long-term equity investments including basic elimination entries for consolidation purposes at date of acquisition.

2.12     Recording stock splits, stock dividends, convertibles, and stock rights as they relate to temporary and long-term investments.

3.1      Expense recognition and an in-depth analysis of the timing of revenue recognition; namely, before delivery, at delivery, and after delivery.

3.2      Deferral of revenue recognition under installment sales and cost recovery methods.

4.1      Entries and financial statement presentation for the following: extraordinary gains and losses, unusual gains and losses, discontinued operations, accounting errors and changes in accounting policies and estimates.

5.1      Throughout the course, the selected Accounting Recommendations and EIC Abstracts will be integrated with the appropriate text material.

6.1      To prepare for the major project the importance, structure, and nature of Notes to the Financial Statements will be discussed.

6.2      Prepare a comparative Balance Sheet and Income Statement including Notes to the Financial Statements which are in accordance with the CICA Handbook and which utilize the Financial Report Writer option within the AccPac G/L accounting software program.

6.3      The major project will require the student to:

   6.3.1  create a chart of accounts;

   6.3.2  record opening balances;

   6.3.3  record routine transactions and adjusting entries, which relate to Acct 2310 course content.