Faculty Guide



ACC/290 Faculty Guide

Programmatic Overview

The Bachelor of Science in Accounting (BSACC) promotes identification with and orientation to the accounting profession, and is designed to provide knowledge and skills necessary to an accounting career. In addition to the key accounting course work at the introductory and intermediate levels, critical areas of study including auditing and taxation are required in the program. The importance of ethics and international issues are emphasized throughout the curriculum, along with core competencies in technology and communication. The program uses specific accounting problem-solving software to provide students with practical knowledge of the accounting field. The program also addresses the goals of professional values, communications and leadership skills, strategic and critical thinking skills, and technology skills of the professional accounting environment. It also provides additional coverage on the International Financial Reporting Standards (IFRS). Students are also exposed to varied business disciplines including economics, statistics, business law, corporate finance, and marketing to provide the general business overview and context necessary for accounting studies. This program is consistent with generally accepted accounting principles, including the accounting processes and knowledge areas that lead to professional certification.

Course Overview

Course Description

This course covers the fundamentals of financial accounting as well as the identification, measurement, and reporting of the financial effects of economic events on an enterprise. Students will learn to examine financial information from the perspective of management. Other topics include decision making, planning, and controlling from the perspective of a practicing manager.

Course Approach

Students use WileyPLUS throughout the course to work on their skills. ORION is an interactive study and practice tool introduced by WileyPLUS that has been added to asses the student’s aptitude and builds a study course adaptive to each individual’s aptitude. Students study and practice daily and submit their results at the end of each week. Faculty must monitor the student’s progress and guide him or her in areas showing weaknesses. Faculty have the ability to run their own reports, verifying the students’ submissions. Faculty are also able to drill down to chapter and learning objective levels to focus their messages regarding the weaknesses that appear on the ORION reports. Evaluating the ORION reports give faculty a clear picture regarding students’ understanding of the concepts and replaces the need for the weekly team reflections.

QuickBooks® Online has also been included as an interface to give students a hands-on experience using accounting software prevalent in the workplace. Faculty can assign tasks to be performed in QuickBooks® Online so students can learn how accounting works in the real world.

Grading Guides

WileyPLUS automatically grades the WileyPLUS exercises; however, because the WileyPLUS grade book is not tied to the faculty grade book, you must manually enter the grade. Full points should be awarded if the student attempts all the WileyPLUS problems assigned that particular week. The student must show their work in a Microsoft® Excel® spreadsheet containing the calculations used to derive the answer in order to be eligible to receive full points.

Learning Team Weekly Collaboration

The Learning Teams do not have deliverables in this course. Instead, team members collaborate in learning activity discussions by comparing the learned generally accepted accounting principles (GAAP) to the International Financial Reporting Standards (IFRS). Each individual team member must take notes in Weeks 2–4 and submit an individual paper summarizing these notes in Week 5.

First Messages

Faculty will need to add at least two First Messages to any learning activity each week participation is required. To add a First Message, identify which learning activity the First Message will be added to. It could be an existing learning activity or one you added to your course. To add a First Message, follow these instructions:

1. Select Enable discussion for this learning activity.

2. Select Class Discussion.

3. Click on the arrow next to “Add first message”.

Week 1

Basic Accounting Principles and Concepts

• Identify the four basic financial statements.

• Post transactions from journals to ledgers.

• Compare the Generally Accepted Accounting Principles (GAAP) to the International Financial Reporting Standards (IFRS).

Weekly Overview

This week, students learn that accounting is a valuable service function designed to provide accurate and timely information to internal and external stakeholders. Those stakeholders rely on four primary financial statements: the income statement, the capital statement, the balance sheet, and the statement of cash flows. Naturally, students begin by studying those four financial statements and the accounting processes that lead to their creation. Those processes include recording financial transactions in journals and then posting to the general ledger.

In addition, students learn why the general ledger is critical to the accounting process and how transactions are posted to the general ledger.

Week 2

Starting the Accounting Cycle

• Differentiate between accrual basis and cash basis accounting.

• Create adjusting entries.

• Prepare an adjusted trial balance.

Weekly Overview

It is critical that students understand why generally accepted accounting principles (GAAP) require the accrual basis of accounting. Furthermore, they must understand the corresponding concepts of revenue recognition, expense recognition, and the matching concept. Said simply, for financial reports and accounting information to be meaningful, they must be prepared on a consistent and meaningful basis. The business world revolves around revenues (inflow of resources) and expenses (outflow of resources). Net income is essentially the difference between revenues and expenses for a definite time period, such as a fiscal year.

This week, students explore the cash basis and the accrual basis of accounting and learn why commercial concerns and GAAP rely on the accrual method. They learn about revenue and expense recognition. They also learn the matching concept fundamental to accrual accounting and financial reporting. In addition, they learn how, why, and when they must prepare adjusting entries.

Learning Team Collaborative Discussion Learning Activity: Prepare for Week 5 IFRS Essay

To prepare for their essay, due in Week 5, students must compare GAAP to the IFRS on the concepts discussed in the following exercises and write notes to use in their essay.

• IFRS 2-1 (p. 98): In what ways does the format of a statement of financial or position under IFRS often differ from a balance sheet presented under GAAP?

• IFRS 2-2 (p. 98): Do the IFRS and GAAP conceptual frameworks differ in terms of the objective of financial reporting? Explain.

• IFRS 2-3(p. 98): What terms commonly used under IFRS are synonymous with common stock and balance sheet?

Week 3

Completing the Accounting Cycle

• Prepare closing entries, reversing entries, and a post-closing trial balance.

• Prepare a classified income statement, retained earnings statement, and balance sheet.

• Explain how operations differ between service and merchandising companies.

• Calculate cost of goods sold.

Weekly Overview

Now that the students have completed the accounting cycle up to the adjusted trial balance, they are ready to prepare the financial statements. This week, students complete the accounting cycle by preparing the financial statements using the adjusted trial balance, and then closing the books to prepare for a new accounting cycle (fiscal year).

Note. The statement of cash flows is left for later discussion. Students learn how to use the adjusted trial balance and a worksheet to prepare the income statement, the statement of retained earnings, and the balance sheet. Once done, the accounting cycle is complete except for the process of closing the books and preparing to start a new accounting cycle. Students learn the four essential journal entries to close the books: closing revenues, closing expenses, closing the income summary, and closing the dividends account.

In previous weeks, students used service-oriented businesses to illustrate the accounting process. Now, they must shift to the more complicated businesses that deal with retail merchandising and learn how to account for merchandising entities. Although there are many similarities between merchandisers and the service entities that were journalized in previous weeks, accounting for merchandise inventory and cost of goods sold is new and must be understood. Inventory is an asset until it is used (or sold). Then, it becomes an expense. Accounting and valuing these assets is profoundly important to accurate financial reporting. Because the cost of goods sold calculation can be confusing, you should be prepared for questions about the calculation. Be prepared to present flow of costs, recording purchases of merchandise, recording sales of merchandise, income statement presentation, determining cost of goods sold under a periodic and a perpetual system, as well as evaluating profitability. The week should include a comparison between the accounting procedures for merchandising under GAAP and IFRS.

Learning Team Collaborative Discussion Learning Activity: Prepare for Week 5 IFRS Essay

Students continue to prepare for their essay, due in Week 5, by comparing GAAP to the IFRS on the concepts discussed in the following exercises and add to their notes.

• IFRS 3-1 (p. 160): Describe some of the issues the SEC must consider in deciding whether the United States should adopt IFRS.

• IFRS 4-1 (p. 227): Compare and contrast the rules regarding revenue recognition under IFRS versus GAAP.

• IFRS 4-2 (p. 227): Under IFRS, do the definitions of revenues and expenses include gains and losses? Explain.

Week 4

Inventory

• Calculate ending inventory value using LIFO, FIFO, LCM, and average cost methods.

• Analyze the impact of inventory methods on net income or loss.

• Calculate inventory cost flow methods in Perpetual Inventory Systems.

Weekly Overview

This week, students continue to learn about the inventory systems. They determine how to classify inventory and inventory quantities. By the end of the week, students should know the basis of accounting for inventories and apply the inventory cost flow methods under a periodic inventory system and explain the financial statement and tax effects of each of the inventory cost flow assumptions. In addition, students should understand the lower-of-cost-or-market basis of accounting for inventories, and be able to describe the LIFO reserve and its importance for comparing results of different companies. To effectively analyze a company’s performance in managing their inventories, students compute and interpret the inventory turnover. Students also compare the accounting procedures for inventories under GAAP and IFRS, and recognize the similarities and the differences between the two standards this week.

Learning Team Collaborative Discussion Learning Activity: Prepare for Week 5 IFRS Essay

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Students continue to compare GAAP to the IFRS on the concepts discussed in the following exercises, and they add to their notes for their Week 5 essay.

• IFRS 7-1 (p. 395): Some people argue that the internal control requirements of the Sarbanes-Oxley Act (SOX) of 2002 put U.S. companies at a competitive disadvantage to companies outside the United States. Discuss the competitive implications (both pros and cons) of SOX.

Week 5

Internal Controls

• Summarize strengths and weaknesses of an internal control system.

• Recommend improvements to internal control systems.

• Explain the effects of the Sarbanes-Oxley Act of 2002 on internal controls.

Weekly Overview

In this final week, students deal with the reality of commerce, accounting, and financial reporting. Because of the profound temptations to cheat—greed, profits, money, and power—there has been and will always be the threat of fraud in financial accounting and reporting. The current economic recession and the financial disasters of Enron and WorldCom are simply recent history that has been recurring. The motivations for management fraud are obvious and the harm to stakeholders is profound. Internal controls are essential to ensuring that financial statements are accurately prepared to protect stakeholders and the economy. Because of Enron, WorldCom, the collapse of one of the big five CPA firms (Arthur Anderson), and other concerns, the federal government established a comprehensive law dealing with financial oversight: the Sarbanes-Oxley Act of 2002.

This week, you help students learn about internal controls, how they work, their strengths, their weaknesses, and how they can be improved to better protect people who rely on the accuracy of the financial statements. You also introduce students to the Sarbanes-Oxley Act (2002) through an article from the Journal of Accountancy.

Learning Team Collaborative Discussion Learning Activity: Prepare for Week 5 IFRS Essay

Students continue to discuss this week's objectives and the previous concepts comparing the GAAP to the IFRS in preparation to complete their Week 5 individual assignment: Comparing IFRS to GAAP Paper.

• IFRS2-1 (p. 98): In what ways does the format of a statement of financial or position under IFRS often differ from a balance sheet presented under GAAP?

• IFRS2-2 (p. 98): Do the IFRS and GAAP conceptual frameworks differ in terms of the objective of financial reporting? Explain.

• IFRS2-3 (p. 98): What terms commonly used under IFRS are synonymous with common stock and balance sheet?

• IFRS3-1 (p. 160): Describe some of the issues the SEC must consider in deciding whether the United States should adopt IFRS.

• IFRS4-1(p. 227): Compare and contrast the rules regarding revenue recognition under IFRS versus GAAP.

• IFRS4-2 (p. 227): Under IFRS, do the definitions of revenues and expenses include gains and losses? Explain.

• IFRS7-1 (p. 395): Some people argue that the internal control requirements of the Sarbanes-Oxley Act (SOX) of 2002 put U.S. companies at a competitive disadvantage to companies outside the United States. Discuss the competitive implications (both pros and cons) of SOX 2002.

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