Accounting 501/701

                                                      International Accounting and Combinations

                                                                                Spring, 2007

 

 

INSTRUCTOR:          Dr. Daniel Thorne

BTC 023, 622-1092/1087

e-mail: dan.thorne@eku.edu

URL: http://www.people.eku.edu/thorned/

 

PREREQUISITE:      ACC 302 with a minimum grade of "C"

 

TEXT:                         Fishcher, Taylor and Cheng, Advanced Accounting, ninth edition.

Worksheets or accounting paper.

 

OBJECTIVES:           (1) Students will have a conceptual and technical understanding of business combinations including how to account for the combination at the date of the acquisition and subsequent to the acquisition, and how to account for parent company and subsidiary company transactions in subsidiary stock.

 

(2) Students will understand accounting in an international setting along with being able to demonstrate the knowledge necessary to account for foreign currency transactions and the translation of foreign currency financial statements.

 

(3) Additional objective for graduate students:  students will be able to apply critical thinking skills related to the international accounting environment including the ability to discuss differences in culture, society and history in relation to accounting standards differences among countries.  They will understand not just what the differences are, but why the differences exist and what some solutions to the problem are.

 

(The professor reserves the right to retain for pedagogical reasons either the original, or a copy, of any student=s test, written assignment, paper, video, or similar work submitted by the student, either individually or as a group project, for this class.  Student=s names will be deleted from any retained items.)

 

If there is any student in this class who is in need of academic accommodations and who is registered with the Office of Services for Students with Disabilities, please make an individual appointment with the course instructor to discuss accommodations.  Upon individual request, this syllabus can be made available in alternative forms.  If any student who is not registered with the Office of Services for Students with Disabilities has need of academic accommodations, please contact the Office directly either in person on the first floor of the Turley House or by telephone at 622-1500.

 

GRADING:                1.        Semester Exams (2)                             200                

Homework (5 ea*12)                            60                

Computer Problem                                 30

Country Report                                      30

Readings (Graduate students)                           10    

Final Exam                                          100                

Total points                             410 or 420      

 

 

 

2.  Undergraduate: Your grade will be based upon 90%, 80%, 70%, and 60% of the total 410 points for an A, B, C or D respectively.

Graduate: Your grade will be based upon 93%, 83% and 73% of the total 420 points respectively.  Plus and minus grades will be given when your point total falls within two percentage points of a cut-off.

 

3.   There will be no make-up exams and no late homework accepted unless you have made arrangements with me PRIOR to the exam or assignment date.

 

4.  The assignments in brackets [  ] will be turned in on the last day of that chapter's coverage.  These problems will be graded for pre-class effort and will be counted as the 50 homework points. They must be turned in at the beginning of the class period.  You will need to make yourself a copy of these problems if you want to make corrections in class.  These assignments should be of a finished copy format.

 

5. The computer problem requires an intermediate understanding of Excel spreadsheet skills.  You will be required to build a template for a combination of two companies and produce a balance sheet and income statement from your template.  If you are weak on working with spreadsheets, then you should start reviewing now!

 

6.  The country report will involve gathering information about an assigned country from library and internet sources.  You will need to find financial statements for a firm in the country that uses domestic accounting standards and discuss cultural, societal and accounting differences between your country and the United States.  More on this later.

 

7.  College of Business attendance policy is in effect.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSIGNMENT SCHEDULE

 

Hours                          Chapter                                                           Assignment

ACCOUNTING FOR BUSINESS COMBINATIONS:

January

16,23                           INTRO & 1                                         EA1, E2, E3, P2, E7, P4,[P3], P5, E9, P1

Date of Acquisition

23,30                           2                                                          E2, P1, P4, P6, [P13], (P14)

February

Subsequent to Acquisition

30,6                             3                                                          E3, E4, [P6], P18, P5, P8, P1

 

13                                EXAM (1-3)

Intercompany Transactions

6,20                             4                                                          E3, [P2], P5, E4, E5, E11, P11

page 141 and 227                                P4A1  

Unconsolidated Investments

27

March                          6 (351 to 357)                                     E8, E10, E11, [P13]

Parent Transactions in Subsidiary Stock                             

27,6                             7 (389 to 404)                        

   (413 to 414)                                     E2, E4, P3, [E7], E6, PA1

 

Subsidiary Equity Transactions

6,20                             8 (457 to 467)                                     E1, E7-1, E2, E3, [P1], (P3)

Segment Reporting

20,27                           12 (744 to 752)                                   [E12], P10, E10, P9, (P8)

 

ACCOUNTING FOR INTERNATIONAL BUSINESS:

The International Accounting Environment

27,10                           9                                                          Hand-outs, IASB, IAS v GAAP, China                               

April

3                                  EXAM (4,6,7,8,12)

 

Foreign Currency Transactions

10,17                           10                                                        E1, E3, E7, [P6], P1, E4, (P2)

Translation of Foreign Financial Statements

17,24                           11                                                        E2, P2, [P3], P4, Handout: E2, E4

Country Tours                                                                       

24,1                                                                                         Readings, Country Reports

 

 

FINAL EXAM (9,10,11): Tuesday, May 8, 6:00 pm.