IBEAR GSBA 510 Syllabus



[pic] UNIVERSITY OF SOUTHERN CALIFORNIA

MARSHALL SCHOOL OF BUSINESS

IBEAR 36 - TERM 1 (08/19/13-10/08/13)

GSBA 510 – ACCOUNTING CONCEPTS AND FINANCIAL REPORTING (15580)

INSTRUCTOR: Thomas W. Lin, Professor of Accounting

OFFICE: ACC 109

PHONE: (213) 740-4851 E-MAIL: wtlin@marshall.usc.edu

CLASS HOURS: MW 9:00 a.m. - 11:30 a.m.; JKP 204

OFFICE HOURS: MW 11:50 a.m. – 1:00 p.m.

REQUIRED MATERIALS:

1. DMP: Financial Accounting, 4th Edition Textbook, Thomas R. Dyckman, Robert P. Magee, and Glenn M. Pfeiffer, Cambridge Business Publishers, 2014

(ISBN 978-1-61853-044-8).

2. HBS: Harvard Business School Cases in IBEAR 36, GSBA 510 Course Reader

(USC Bookstore, 2013).

COURSE DESCRIPTION:

Accounting concepts and financial reporting with focuses on financial statements, accrual accounting, cash flow approach, quality of earnings, and an international perspective.

COURSE OBJECTIVES:

Accounting has often been called "the language of business." The objective of this course is not to turn the IBEAR MBA Program participants into professional accountants, although by the end of the course participants will understand accounting terminology and will be able to use many financial accounting concepts and techniques in the analysis of business problems. The overall objective of the course is to provide participants with a solid grounding in the critical evaluation of current business financial reporting practices. This course should help you begin to understand and communicate in this language from both a preparers and a users' perspective. Specifically, GSBA 510 participants will have:

1. A solid understanding of the objectives of financial accounting together with its basic underlying assumptions, concepts, and principles and how they apply to a wide variety of business transactions. You should also have a basic understanding of the accounting cycle and how business transactions and events are captured in the accounting records and are presented in financial statements. This includes developing a strong conceptual understanding of generally accepted accounting principles (GAAP) and the methods used to apply them to a variety of business situations.

2. A global mindset. This class will also discuss major differences between US GAAP and IFRS as well as IFRS vs. China GAAP, Japan GAAP, Korea GAAP, and Taiwan GAAP.

3. Good critical thinking skills, decision-making, problem-solving abilities as well as leadership skills through textbook and case readings, homework turn-ins, class participations, and group case analyses. Course coverage of financial accounting practices in specific areas including: revenue recognition, expense recognition, and issues associated with accounting for receivables, inventory, fixed assets, debt, equity, and earnings management. This coverage will include alternative accounting methods and their implications along with valuation and reporting issues as well as the analysis and interpretation of financial statement information and earnings quality.

4. Learning the importance of ethics and values and communications skills in dealing with accounting issues and begin to develop skills in these areas.

PEDAGOGY AND LEARNING METHODS:

To meet these objectives, the course requirements are:

Class Preparation:

The course is intellectually demanding and rigorous. I expect that every participant will read the DMP assigned chapters and HBS cases, and attempt to solve the exercises, problems and cases before the scheduled class. Additionally, if you wish to test your grasp of the material as you read it, attempt to solve the "Mid-Chapter and End-Chapter Review Problems" at the various pages of each chapter in DMP textbook. I also expect you to contribute actively to the class discussion during regular sessions related to DMP topics & HWs and HBS cases discussions.

Course Grade Determination:

Your final grade is determined on the basis of your performance in the following categories:

12% Class Performance (Attendance and Participation)

7% Homework

30% Mid-Term Examination

35% Final Examination (comprehensive)

16% Two Group Case Reports

100% TOTAL

Following the Marshall School of Business IBEAR MBA Program grading policy, the distribution of grades will be curved with the approximated class grade point average of 3.4.

Class Performance (Attendance and Participation) (12%):

I expect you to attend class each and every session. Only documented illness or unexpected & uncontrollable emergency is accepted as excused absence. Job interviews and other appointments are NOT. Managing your time and calendar is an important responsibility now and in your future career.

I plan to collect homework seven times. For uncollected homework problems, I may call you to give us an answer in class. These called homework problems are part of your class performance.

Class performance also include the participation in three debates on (1) LIFO vs. FIFO Method; (2) Percentage of Net Sales vs. Aging of Accounts Receivable Method; and (3) FASB vs. IFRS by IASB)

You are expected to contribute actively to the class discussion during regular sessions and case discussions. You are encouraged to ask questions to enhance your understanding of the topic, and you are welcome to bring relevant examples from your own work experience. You can also expect that I will call on you for participation occasionally.

The key advantage of class participation is that it forces each participant to be well prepared and thus become an active learner. Participation also provides the participant with the opportunity to gain from the experiences and talents of everyone in the class.

Poor participation grades are assigned to participants who rarely talk, make irrelevant, shallow comments, and are unprepared when they are called on.

Effective class participation will have characteristics such as the following:

1. Is the comment especially pertinent to the discussion? Does it increase the understanding of the class, or is it simply regurgitation of the problem or case facts?

2. Is the comment in sync with the flow of the discussion or is it totally disjoints and isolated from the class discussion? The best class contributions are those that reflect excellent preparation, interpretive and integrative skills.

3. Does the comment reflect a willingness to put forth new, challenging ideas?

4. Is the participant able and willing to interact with others by asking questions and providing constructive comments?

Sometimes one may feel frustrated for not being called upon to participate in class. If you feel that you are being passed over regularly, please see me so the situation is rectified.

A good grasp of the concepts and the mechanics of accounting, unlike some other business subjects, cannot be obtained merely by reading. Real understanding is developed through working with accounting problems. Homework problems (HW) are assigned to enhance your understanding of accounting concepts, rules and techniques, and to understand how accounting information is being used in business settings.

If you miss four classes / have not answered the homework assignments that I call upon you four times you lose 20% of the class performance grade; five to six classes / not answering homework calls 50%; seven classes / not answering homework calls 80%; and eight or more classes / not answering homework calls 100%. Hence, you get three freebies to miss class or be unprepared. I will not accept any excuses to miss class other than documented illness or emergency. Three times late count the same as one absence.

Homework (7%)

I plan to collect and grade homework seven times (P3-40 b (2) & d (2), P5-41, E7-26, E4-42, E8-28, E9-41 a & b, and P11-56a). Each collected homework will have 1% of the course grade. Assignments must be turned in at the beginning of the due date class. Any assignment turned in late, even if by only a few minutes, will receive a grade deduction

Examinations (Midterm 30%, Final 35%):

There will be one mid-term and one final examination. Midterm exam will cover DMP chapters while final exam will cover both DMP chapters and HBS cases. The final exam is comprehensive and will cover the material for the entire term (with emphasis on the second half, naturally). All examinations (closed book) must be taken during the time scheduled. A make-up exam may be given within two days of the scheduled exam only if a participant is authorized by the instructor to miss an exam due to unforeseen circumstances with a doctor’s statement. Unauthorized absence from an exam will result in a score of zero (0) assigned to that portion of the final grade.

Group Cases (16%):

The five case studies are longer and more complicated than the exercises or problems, and often may not have a "correct" solution. While they do not contain all the information to be found in real-world decisions, the cases are useful in developing skills to analyze common accounting-related business problems, and will serve as a basis for class discussions.

Each student is required to read one individual case and all four-group cases and be ready for case discussions in class, and to get some of your class participation points. These cases may also be included in the final exam. In addition, you must prepare two group case reports in Word (8% each case; send the file to the instructor before the due day class or give one hardcopy at the beginning of the class) and present one half of a case in class (15-minute PowerPoint presentation.) Each group will have five or six participants from different countries assigned by the IBEAR Program Office. (See p. 8: Group composition and choice of case studies form).

You can only discuss group cases among your group members. You should not discuss any questions to non-group members. The USC/IBEAR ethics rules and sanctions apply to group cases. For every group case assignment due day, each team member is required to turn in a peer evaluation for each of his/her group mates. (See p. 9: Peer evaluation form for group members). You should evaluate your peers on a scale from 0-100, with 100 indicating that your peer group member contributed to the group case assignment to the best of his/her abilities. If you do not submit a peer evaluation form on time, I will assign a score of 80 for each of your peer. If the average score for a particular group member is below 80, I will reduce his/her case grade accordingly.

ADD/DROP PROCESS:

Follow the IBEAR MBA Program policy to add or drop this course.

RETENTION OF GRADED PAPERS:

Following the Leventhal School of Accounting Policy, the instructor will retain final examination papers. All other papers will be returned after grading; returned paperwork, unclaimed by a participant, will be discarded after 4 weeks.

USC EMERGENCY INFORMATION LINES:

USC Emergencies (213) 740-4321; USC Emergency Information Line (213) 740-9233. USC Information Line (213) 740-2311; 91.5 FM KUSC Radio.

ACADEMIC INTEGRITY:

USC seeks to maintain an optimal learning environment. General principles of academic honesty include the concept of respect for the intellectual property of others, the expectation that individual work will be submitted unless otherwise allowed by an instructor, and the obligations both to protect one’s own academic work from misuse by others as well as to avoid using another’s work as one’s own. All students are expected to understand and abide by these principles. SCampus, the Student Guidebook, (usc.edu/scampus or ) contains the University Student Conduct Code (see University Governance, Section 11.00), while the recommended sanctions are located in Appendix A.

Students will be referred to the Office of Student Judicial Affairs and Community Standards for further review, should there be any suspicion of academic dishonesty. The Review process can be found at: . Failure to adhere to the academic conduct standards set forth by these guidelines and our programs will not be tolerated by the USC Marshall community and can lead to dismissal.

STUDENTS WITH DISABILITIES:

Any student requesting academic accommodations based on a disability is required to register with Disability Services and Programs (DSP) each semester. A letter of verification for approved accommodations can be obtained from DSP. Please be sure the letter is delivered to the instructor at the first meeting of this course. DSP is located in STU 301 and is open 8:30am – 5:00 pm, Monday through Friday. The phone number for DSP is (213) 740-0776.

CLASS NOTES POLICY:

Notes or recordings made by students based on a university class or lecture may only be made for purposes of individual or group study, or for other non-commercial purposes that reasonably arise from the student’s membership in the class or attendance at the university. This restriction also applies to any information distributed, disseminated or in any way displayed for use in relationship to the class, whether obtained in class, via email or otherwise on the Internet, or via any other medium. Actions in violation of this policy constitute a violation of the Student Conduct Code, and may subject an individual or entity to university discipline and/or legal proceedings.

No recording and copyright notice.  No student may record any lecture, class discussion or meeting with me without my prior express written permission.  The word “record” or the act of recording includes, but is not limited to, any and all means by which sound or visual images can be stored, duplicated or retransmitted whether by an electro-mechanical, analog, digital, wire, electronic or other device or any other means of signal encoding.  I reserve all rights, including copyright, to my lectures, course syllabi and related materials, including summaries, PowerPoints, prior exams, answer keys, and all supplementary course materials available to the students enrolled in my class whether posted on Blackboard or otherwise.  They may not be reproduced, distributed, copied, or disseminated in any media or in any form, including but not limited to all course note-sharing websites.  Exceptions are made for students who have made prior arrangements with DSP and me.  

EMERGENCY PREPAREDNESS/COURCE CONTINUITY:

In case of a declared emergency if travel to campus is not feasible, USC executive leadership will announce an electronic way for instructors to teach students in their residence halls or homes using a combination of Blackboard, teleconferencing, and other technologies.

Please activate your course in Blackboard with access to the course syllabus. Whether or not you use Blackboard regularly, these preparations will be crucial in an emergency. USC's Blackboard learning management system and support information is available at blackboard.usc.edu.

CLASS SCHEDULE AND ASSIGNMENTS:

1. Monday, 08/19

Course Overview

DMP Ch. 2 Constructing Financial Statements

Blackboard: Course Syllabus, Overview PPT, Ch. 2 PPT, Example Accounts, Case

Questions, China Haier Case, and Major Sources of Industry & Firm Information

2. Wednesday, 08/21:

DMP Ch. 3 Adjusting Accounts for Financial Statements

HW: DMP Ch. 2: E2-46a, P2-47, And P2-55a

Blackboard: Ch. 2 Exercise Solution, Ch. 3 PPT and American SEC Reporting

3. Monday, 08/26:

Hand-in Choice of Case Studies Form

DMP Ch. 5 Analyzing and Interpreting Financial Statements

HW: DMP Ch. 3: P3-40 b (2) & d (2), E3-32b, C3-57 (Ethics)

Blackboard: Ch. 2 HW Solution, Ch. 3 exercise Solution, Ch. 5 PPT and Useful

Accounting Websites

4. Wednesday, 08/28:

DMP Ch. 7 Reporting and Analyzing Inventories

HW: DMP Ch. 5: P5-41, P5-42, And E5-25

Blackboard: Ch. 3 HW Solution, Ch. 5 Exercise Solution, and Ch. 7 PPT

Monday, September 2 – Labor Day Holiday

5. Wednesday, 09/04:

DMP Ch. 6 Earnings Management Strategies, Reporting and Analyzing Revenues and Receivables

HW: DMP Ch. 7: E7-26, E7-28, And E7-30

Midterm Exam Scope Sheet

Blackboard: Ch. 5 HW Solution, Ch. 7 Exercise Solution, and Ch. 6 PPT

6. Friday, 09/06:

HBS Group Case 1: Financial Statement Analysis of China Haier Home Appliance First Class Debate: LIFO vs. FIFO Method

Sample Midterm Exam Problems

HW: DMP Ch. 6: E6-33, E6-35, M6-23a, b, c

Blackboard: Ch. 7 HW Solution, Ch. 6 Exercise Solution

7. Monday, 09/09:

HBS Group Case 2: Merrimack Tractors and Mowers, Inc.: LIFO or FIFO?

Second Class Debate: Percentage of Net Sales vs. Aging of Accounts Receivable Method HBS Individual Case: Thumbs-Up Video Journal Entries and Adjusting Entries

Blackboard: Ch. 6 HW Solution

8. Wednesday, 09/11:

Midterm Exam, 9:00 a.m. -11:30 a.m. (Chs. 2, 3, 5, 6, 7)

9. Monday, 09/16:

Discussion of Midterm Exam Questions

DMP Ch. 8 Reporting and Analyzing Long-term Operating Assets

Blackboard: Ch. 8 PPT and Steps in Evaluating Earnings Quality

10. Wednesday, 09/18:

DMP Ch. 4 Reporting and Analyzing Cash Flows

Wal-Mart Annual Report

HW: DMP Ch. 8: E8-28, M8-11, E8-24, And M8-16

Blackboard: Ch. 8 Exercise Solution, and Ch. 4 PPT

11. Monday, 09/23:

Third Class Debate: FASB vs. IFRS

DMP Ch. 9 Reporting and Analyzing Current Liabilities and Long-Term Bonds

HW: DMP Ch. 4: E4-42, M4-29, E4-39, And M4-30

Blackboard: Ch. 8 HW Solution, Ch. 9 PPT and IFRS vs. US GAAP

12. Wednesday, 09/25:

HBS Group Case 3: Depreciation at Delta and Pan Am

DMP Ch. 11 Reporting and Analyzing Stockholders’ Equity

HW: DMP Ch. 9: E9-41a & b, E9-45a & b, C9-61 (Ethics)

Final Exam Scope Sheet

Blackboard: Ch. 9 Exercise Solution, Ch. 11 PPT, IFRS in Your Pocket, and Use of IFRS

by Countries

13. Monday, 09/30:

DMP Ch. 12 Reporting and Analyzing Marketable Securities and Investments

HW: DMP Ch. 11: P11-56a, E11-49a, And E11-43

Sample Final Exam Problems

Blackboard: Ch. 9 HW Solution, Ch. 11 Exercise Solution, Ch. 12 PPT, China GAAP vs.

IFRS, and Japan GAAP vs. IFRS

14. Wednesday, 10/02:

HBS Group Case 4: Accounting Fraud at WorldCom

HW: DMP Ch. 12: E12-25 a (i) & b (i), E12-30a, C12-52 (Ethics)

Course Take Away Summary

Blackboard: Ch. 11 HW Solution, Ch. 12 Exercise Solution, Ch. 12 HW Solution, Take

Away PPT, Korea GAAP vs. IFRS, and Taiwan GAAP vs. IFRS

15. Tuesday, 10/08: Final Exam, 9 a.m. – 11:30 a.m. (Chs. 4, 6, 7, 8, 9, 11, 12 + cases)

IBEAR GSBA 510 Accounting Concepts and Financial Reporting

Group Composition and Choice of Case Studies Form (Due Day: Monday, 08/26)

1. Group Composition (Assigned by the IBEAR Office)

Group members:

Member #1 _____________________________

Member #2 _____________________________

Member #3 _____________________________

Member #4 _____________________________

Member #5 _____________________________

Member #6 _____________________________

2. Selection of Case Studies

Each group must turn in two written case analyses that will be graded. For the first assigned case, please list the following two case studies in the order of your preference.

1. (Ch. 5) Financial Statement Analysis of China Haier Home Appliance (9/06 F)

2. (Ch. 7) Merrimack Tractors and Mowers, Inc.: LIFO or FIFO? (9/09 M)

1st Preference Case _________________________________________

2nd Preference Case _________________________________________

For the second assigned case, please list the following two case studies in the order of your preference.

3. (Ch. 8) Depreciation at Delta and Pan Am (9/25 W)

4. (Various chapters) Accounting Fraud at WorldCom (10/02 W)

1st Preference Case _________________________________________

2nd Preference Case _________________________________________

IBEAR GSBA 510 – ACCOUNTING CONCEPTS

AND FINANCIAL REPORTING

Peer Evaluation Form for Group Members

For every group case assignment, each team member is required to turn in a peer evaluation for each of his/her group mates. You should evaluate your peers on a scale from 0-100, with 100 indicating that your peer group member contributed equally to the group case assignment and to the best of his/her abilities. If you do not turn in your individual peer evaluation on time, I will assume that you assign an evaluation of 80 to each of your group members. If the average score for a particular group member is below 80, I will reduce his/her case grade accordingly.

Please make a sheet of paper similar to this one, or take a copy of this sample sheet, and turn it in for each of the four written cases. I expect one peer evaluation sheet per group member. Please fold your sheet and staple it at the top.

Case Name ______________________________

Evaluator Name ______________________________ Team No. _________

My Peer Members (Other than me) Evaluation (0 – 100)

Member #1

Comments:

Member #2

Comments:

Member #3

Comments:

Member #4

Comments:

Member #5

Comments:

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