University of Puerto Rico in Bayamón
Business Administration
Bachelor in Accounting
SYLLABUS
Course Title : Intermediate Accounting III
Codification : Accounting 3010
Credits : Four (4)
Prerequisites : Accounting 3008
Intermediate Accounting II
Contact Hours : Four Hours
Course Description : This course is the conclusion of the deep study
of topics of financial accounting begun in
Intermediate Accounting I and II. The areas
emphasized are: dilutive securities and earnings per
share, accounting for income taxes, leases, pensions and
postretirement benefits. Other areas discussed are
accounting changes and error analysis, and full
disclosure in financial reporting. In this course are
combined the concepts and the solution of problems.
Text Book : Kieso, Weydgandt, and Warfield (2007)
Intermediate Accounting, 12th Edition,
John Wiley & Sons
General Objectives : As a result of the participation in the course, the
student will:
1. develop analysis skills, critic thinking,
data interpretation, and solution of problems.
2. work in group to realize an investigation
project about accounting topics discussed in
the three intermediate accountings.
3. take decisions through the solution of
problems, to be discussed in the course and
that will be assigned.
Syllabus-Intermediate Accounting III -2-
General Objectives : 4. develop techniques of investigation
through the searching of information using
different ways, including Internet.
Specific Objectives : Through the realized activities, the student will
discuss and analyze in a critical manner:
1. dilutive securities and earnings per share.
2. accounting for income taxes, including:
temporary and permanent differences,
future taxable and deductible amounts,
income tax expense, and tax rates.
3. accounting for pensions and postretirement
benefits, including the types of pension plans,
and the components that affect the accounting
procedures.
4. accounting for leases, including the type of
leases for the lessor and lessee, and special
accounting problems.
5. changes in accounting principles, and
correction of errors reported in the statement
of retained earnings, and other changes in
accounting that do not affect the financial
statements.
6. full disclosure principle and its issues.
Syllabus-Intermediate Accounting III -3-
OUTLINE
|
Topic |
Chapter |
Hours |
|
I. Dilutive Securities and Earnings per Share: Accounting for the issuance, conversion, and retirement of convertible debt. Accounting for convertible preferred stock. Accounting for stock warrants. Earnings per share in a single capital structure. Earnings per share in a complex capital structure. |
16 |
8
|
|
II. Accounting for Income Taxes: Differences between pretax financial income and taxable income. Temporary differences that result in future taxable and deductible amounts. Purpose of a deferred tax asset valuation allowance. Presentation of income tax expense in the income statement. Various temporary and permanent differences. Effect of various tax rates and tax rate changes on deferred income taxes. Accounting procedures for a loss carryback and a loss carryforward. Presentation of deferred income taxes in financial statements. Basic principles of the asset-liability method. |
19 |
10 |
|
Examination I – Chapters 16 and 19 |
|
2 |
|
III. Accounting for Pensions and Postretirement Benefit Difference between the accounting for the employer’s pension plan and the accounting for the pension fund. Types of pension plans and their characteristics. Alternative measures for valuing the pension obligation. Components of pension cost or expense. Work sheet for employer’s pension plan entries. Amortization of unrecognized prior service costs. Accounting procedure for recognizing unexpected gains and losses. Corridor approach to amortize unrecognized gains and losses. Recognition of a minimum liability. Reporting requirements for pension plan in financial statements. |
20 |
10 |
|
Syllabus-Intermediate Accounting III OUTLINE |
|
-4-
|
|
Topic |
Chapter |
Hours |
|
III. Accounting for Leases: Nature, economic substance, and advantages of lease transactions. Accounting criteria and procedures for capitalization leases by the lessee. Differences between operating and capitalization methods of recording leases by the lessee. Classifications of leases for the lessor. Lessor’s accounting for direct-financing leases. Special features of lease arrangements that cause unique accounting problems. Effect of residual values, guaranteed and unguaranteed, on lease accounting. Lessor’s accounting for sales-type leases. Accounting for sales-leaseback leases. Disclosure requirements for leases. |
21 |
10 |
|
Examination II-Chapters 20 and 21 |
|
2 |
|
IV. Accounting Changes and Error Analysis: Types of accounting changes. Accounting for changes in accounting principles. Accounting for retrospective accounting changes. Accounting for prospective accounting changes for impracticable changes. Accounting for changes in estimates. Accounting for changes in a reporting entity. Accounting for correction of errors. Economic motives for changing accounting methods. Analysis of the effect of errors. |
22 |
10 |
|
V. Full Disclosure in Financial Reporting: Full disclosure principle and problems of implementation. Use of notes in financial statement preparation. Disclosure requirements for major segments of a business. Management’s responsibilities for financials. Issues related to financial forecasts and projections. Profession’s response to fraudulent financial reporting. |
24 |
6 |
|
Examination III-Chapters 22 and 24 |
|
2 |
|
Total |
|
60 |
Educational Strategies : Conferences
Discussion of Problems
Group Research Project
Use of Laboratory for the Solution of
Exercises and Problems
Syllabus-Intermediate Accounting III -5-
Evaluation Strategies : Three partial examinations. No Make-up
examinations will be given.
(100 pts. each)
Group research project, oral and written,
of topics discussed in the three intermediate
accountings. Due date will be strictly
followed, No late work will be accepted.
(100 points)
Exercises and problems to be done individually,
using computer programs. No late work will be
accepted. (30 points)
Class attendance, based in perfect attendance.
(20 points)
Class participation. It involves making positive
contributions in the classroom. Participation grade
will be assigned based on the professor assessment
of how consistently and effectively the student
contributes to the learning experiences of the class.
(20 points)
Grading Structure : Examinations (3 @ 100 points each) 300
Group Research Project 100
Exercises and Problems 30
Class Attendance 20
Class Participation 20
Total 470
Grading Scale : 100 - 90 A
89 - 80 B
79 - 70 C
69 - 60 D
59 - F
Rules of Conduct : Scholastic dishonesty will not be tolerated. Students
are expected to conduct themselves in a manner that
is above reproach in their own course-related actions
The following dishonesty acts are prohibited: copying
and cheating in examinations, projects, and assignments.
Syllabus-Intermediate Accounting III -6-
BIBLIOGRAPHY
Reference Books : Stice, Stice, and Skousen, (2007)
Intermediate Accounting, 16e
Thompson South-Western
Epstein, Nach and Bragg, (2005)
GAAP 2006, Wiley and Sons, Inc.
Journals/Magazines : Accountant-USA, Lafferty Publications
Accounting Horizons, American Accounting Assoc.
Accounting Issues, Bear Stearns & Co.
Accounting Review, American Accounting Assoc.
Advances in Accounting, JAI Press
CPA Journal, New York State Society of CPA
Journal of Accountancy, AICPA
The CPA Letter, AICPA
Practical Accountant, Warren, Gorham, Lamont
Websites : CPA News
Accountancy on Line
Accounting Web
http://www.accountingweb.co.uk
Journal on Line
http://www.ingenta.com/journals
AICPA
Financial Accounting Standard Board
United States SEC
Prepared by: Lydia M. Ubarri
Associate Professor
March, 2006
UPR at Bayamón complies with the provisions of the Americans with Disabilities Act and Law 51 on Integrated Educational Services for People with Impediments. Students with impediments should report to the professor in order to design reasonable accommodations to those effects. Confidentiality will be maintained.