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Revised by Jim Crowther
April 2003
1.0
Intermediate Accounting II
2.0
AO105T
3.0
4 Semester Hours
4.0
Emphasizes corporate financial accounting in the following subject areas-shareholders’ equity; the theoretical structure of financial accounting; advanced
inventory concepts; Investments; Leases; Earnings per share; and accounting for
pensions and employee benefit plans.
5.0
Prerequisite; Successful completion of Intermediate Accounting I
(AO104T)
6.0
Competencies that relate to this course:
1.01
1.02
4.03
5.01
Analyze transactions
Record transactions using a manual accounting system
Determine the lower-of-cost-or-market valuation of inventory
Journalize entries for short-term debt securities, including: the purchase, the
investment revenue, and the sale
5.02 Journalize entries for long-term debt securities, including: the purchase, the
investment revenue, and the sale
5.03 Journalize entries for short-term equity securities, including: the purchase, the
investment revenue, and the sale, and the adjustment to market of marketable equity
securities
5.04 Journalize entries for long-term equity securities to account for the cost method and
the equity method, including: the purchase, the investment revenue, the sale, and the
adjustment to market of marketable equity securities
6.01 Allocate the cost of lump-sum purchases to the separate assets being purchased
6.02 Calculate depreciation using the straight-line method
6.03 Calculate depreciation using the units-of-production method
6.04 Calculate depreciation using the Declining Balance method
6.05 Calculate depreciation using the Sum-of-the-Years Digits method
6.06 Calculate depreciation when there are revisions in depreciation rates
6.07 Calculate depreciation when there are revisions in depreciation rates
6.09 Journalize the entries to record the purchase or construction of plant assets and
subsequent expenditures
6.10 Journalize the entries to record depreciation
6.11 Account for the exchange of plant assets under financial accounting rules
7.01 Record the purchase of natural resources
7.02 Calculate and record the depletion of natural resources
7.03 Account for intangible assets, including the purchase and amortization
11.04 Record the corporation’s stock transactions, including: the issuance of stocks, stock
subscriptions, cash dividends, stock splits, treasury stock, retirement of stock, and
restrictions and appropriation of retained earnings
Revised by Jim Crowther
April 2003
11.06 Calculate earnings per share
7.0 and 8.0 Major Units of Instruction and Course Objectives
I. Theoretical structure and framework of financial accounting
A.
Objectives of financial reporting
B.
Qualitative characteristics of accounting information
C.
Accounting Principles
D.
Accounting Assumptions
E.
Accounting Constraints
II. Advanced inventory issues
A.
Lower of cost or market
B.
Adjusting to market values
C.
Gross profit method
D.
Retail method
E.
Dollar value LIFO retail method
F.
Inventory errors
III.
Investments in long-term Operating Assets
A.
B.
C.
D.
E.
IV.
Land
Depreciable Physical Assets including methods for calculation of the deferral and
changing the estimates
Intangibles
Basket Purchases
Acquisition and depletion of natural resources
Investments in Debt and Equity Securities
A.
Classification of Securities
B.
Reasons for investing in these different portfolios
C.
Accounting for the changes in valuation, both temporary and permanent
D.
Realized vs. unrealized gains, and their presentation on the financial statements
E.
Transferring securities between the different classifications
F.
The equity method of accounting for investments in securities
V.
Leases
A.
Operating leases
B.
Leasehold improvements
C.
Non-operating Leases—from lessor and lessee perspectives
D.
Sales type and direct financing leases
E.
Residual value—guaranteed and not guaranteed
Revised by Jim Crowther
April 2003
9.0
VI.
Shareholders’ Equity
A.
Basic aspects of the corporate form of business
B.
Advantages and disadvantages
C.
Types of corporations and hybrid organizations
D.
Various classes of ownership
E.
Stock sold on subscription
F.
Treasury stock
G.
Stock dividends and splits
H.
Retained earnings issues
VII.
Earnings per share
A.
Simple versus complex capital structure
B.
Calculating weighted average of shares outstanding, including stock dividends and
splits, and reacquired shares
C.
Options, warrants and rights
D.
Convertible securities
VIII.
Pensions and employee benefit plans
A.
Defined benefit versus defined contrtibution plans
B.
Pension obligations and plan assets
C.
Pension expense
D.
Other postretirement benefit plans
E.
Determine net cost of benefits
F.
Measuring the obligations
G.
Postretirement compensation plans
H.
Bonuses
I.
Vacations and sick days
IX.
Speaking engagement
Text: Intermediate Accounting; Spiceland, Sepe and Tomassini, 3rd Edition; Irwin/McGrawHill Publishing