ACCT101 Financial Accounting G1, G2, G3, G14 Course Outline 2013/2014 Term 1

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1 ACCT101 Financial Accounting G1, G2, G3, G14 Course Outline 2013/2014 Term 1 A. Instructor and Contact Information Sung Gon CHUNG Level 4 Room 4021, School of Accountancy Singapore Management University Singapore Tel: (65) Fax: (65) sgchung@smu.edu.sg Consultation times: Friday 8:30 AM 11:30 AM Teaching Assistant: G1 and G2: CHIA Wei Qi weiqi.chia.2011@economics.smu.edu.sg G3 and G14: Edmund TAN Kaien edmund.tan.2012@business.smu.edu.sg B. Course Prerequisites: None C. Course Description This course provides students with a basic understanding of accounting as the language of business. It introduces students to the basic concepts, principles, procedures and approaches underlying the accounting process. This basic understanding facilitates the interpretation of financial information, which is necessary for making business decisions. D. Learning Goals, Course Objectives and Skill Developments This course contributes to the development of the following learning goals: o LO1.1 Our students can recognize, develop, measure, record, validate and communicate financial and other related information. o LO1.2 Our students can analyze, synthesize and evaluate financial and other related information for decision making in a management context. o LO2.3 Our students can communicate effectively in a business context. o LO3.1 Our students understand and can apply the ethical principles relevant to accounting professionals. E. Learning Approach (optional) The pedagogical approach to this course consists of three interlocking elements: Instructor-facilitated Learning: Facilitation, Clarification, Synthesis Individual Learning: Preparation, Analysis, Action Collaborative Learning: Teamwork, Discussion, Sharing The role of the instructor is to facilitate, provide clarification of critical concepts, not to read out pages of the textbook to you. Often, it is important to be able to see the trees from the forests and synthesise on why certain things matters are just as important as how specific processes/procedures are performed. ACCT101 Financial Accounting AY2013/2014 G1, G2, G3, G14 Term 1 Page 1

2 Students are reminded that their individual contribution to learning starts before class. Students should prepare by pre-reading, analysing the materials/tasks/cases to be covered before coming to class and actively participate in class discussions. Preparation is the prerequisite for analysis which will allow you to take action in your individual learning. Collaborative learning elements are developed through your contribution to your classmates learning experiences, either through teamwork in your group project or other assigned tasks, and being willing to contribute to class discussions and share your findings and work so others will benefit. Naturally, your individual preparation, analysis and action will determine how much you are able to contribute to collaborative learning. F. Textbook and Other Resources Primary Text: Harrison, Horngren, Thomas and Suwardy (2014), Financial Accounting: International Financial Reporting Standards, 9 th edition, Pearson Case Book: Suwardy (2010), Understanding Financial Statements: A Case-Based Approach, Pearson Prentice-Hall FA Learning Objects: Suwardy (2006), numerous e-learning resources is available in SMU e-learn There are numerous basic financial accounting books in the library that you can further consult for additional references. You may require access to for selected insights into applicable accounting standards. In addition, a good summary of accounting standards ( IFRS in Your Pocket 2009 ) is available from IASPLUS Whilst you will not be expected to know all accounting standards in any great detail in your first financial accounting course, you should have an appreciation of the relevant accounting standards covered in this course (see Detailed Course Work Plan in Annex 2). Advice on Using Your Textbook Read the chapters to learn rather than just to get through them Do not get discouraged if you initially find some material challenging to learn Think of reading as the initial stage of studying G. Lesson Plan Please include a generic lesson plan (either a topic list like below, or a week-by-week plan), which you can subsequently elaborate in later parts of your document, either in this section or as an appendix. The example below uses an abridged lesson plan, with detailed course plan in the Annex. Class sessions are of 3-hour duration and will include a review of study materials, class discussions and other learning activities. Course materials will be published in SMU e-learn ( A brief outline of course schedule is provided below. A detailed course work plan is available in Annex 2. Financial Statements and Annual Reports Cash and Receivables Recording Business Transactions PPE (Property, Plant and Equipment) and Processing Accounting Information Intangibles Completing Accounting Cycle Liabilities Financial Statement Analysis Owners Equity and Income Statement Merchandising Operations and Inventory Cash Flow Statement ACCT101 Financial Accounting AY2013/2014 G1, G2, G3, G14 Term 1 Page 2

3 H. Assessment To pass the course, students are required to obtain a TOTAL mark of 50% or better. The assessment components are listed below: Components Weight A+ >=86 % 1. Class Activities: 17% A 83-85% Homework, Case write-up, Pop Quizzes, and A % Participation B % B 74-76% 2. Progress Assessment 18% B % Formal quizzes C % C 63-65% 3. Assignments - Group Project 15% C % D % 4. Final Exam 50% D 50-52% Sum 100% F <=49% Additional explanation: Class activities (17%) - Homework and case write-up (for the cases you do not present) (10%) - Pop Quizzes and Class Participation (7%) Progress Assessment (18%) - Quizzes (formal): 3 formal quizzes in class. Assignments (15%): - Group Project: A typed report and an oral presentation. Final exam (50%) - The final examination is a closed-book, of 3 (three) hours duration and covers the entire course. More details to be announced in class and SMU e-learn. No make-up exam or quiz will be given except for medical reasons supported by proper documentation. If a student cannot take a formal quiz for a medical reason, the final exam score will be applied to the missing quiz. For example, a student cannot take the second mid-term for a medical reason, and get 80 in the final exam, then 80 will be recorded as the second mid-term score. I. Course Policy 1. The general approach of this course is lecture, problem-solving, and discussion of cases relevant to the topic. Students who read the chapter ahead of attending class will benefit most from the class presentation. 2. Homework Assignment: When a reasonable amount of efforts are thought to be exerted, two points per problem will be given. One point per problem will be given to the homework which shows obviously minimal efforts (jotting down several lines). Zero point for not solving the problem. Due dates for the homework are given in the Annex 1. All the homework should be submitted before the start of the class. For example, week 2 assignments should be submitted before I start the week 2 lecture. All the homework submitted after the start of the class will be considered late homework. Late homework will be accepted up until the day of the relevant quiz, but will only receive half- ACCT101 Financial Accounting AY2013/2014 G1, G2, G3, G14 Term 1 Page 3

4 credit. Assigned homework must be hand-written. Any printed copy will not be accepted. (Assignment changes and announcements may be made in class or SMU e-learn and it is the sole responsibility of the students to find out what has been announced during their absence from class). 3. Classroom Behavior and Participation: Maintaining proper discipline and conducting yourself in a responsible manner are of utmost importance for not only this course but also for your own personal development. At the same time, students are encouraged to raise questions and to participate in the class as well as in the tutorials. A part of the course grade would be allocated to class participation and discipline. You will get participation points by providing constructive feedbacks. There are several specific behavioral codes for this class: 1) Absolutely NO CELLPHONE (including SMS), 2) Prudent use of notebook computer (you may use notebook computer only for class related purpose), 3) Obtain permission from the professor for absence of the class in advance. PUT YOUR NAME CARD IN THE TABLE so that I can cold-call you easily. If you don t put your name card, I will not ask a question. If you don t get any question, your participation score will be low. 4. Pop Quizzes: Whenever I feel necessary and time allows, a few exercise problems will be given in the class. Students are supposed to solve and submit them in the class. DON T BE LATE FOR THE CLASS. A pop quiz can be given at the start of the class. Late students will not be given an opportunity to solve the quiz. As in homework problems grading, the pop quizzes are not graded on the correctness of the answers but on effort. Grades will be 0 or 1 or 2. If you don t solve some part of the quiz, you will get 1. If you don t submit them on time, no credit will be given. 5. Quizzes (formal): Three formal quizzes for progress assessment will be given in class. Only two quizzes will be counted. One quiz with the lowest score will not be counted.the evaluation of the formal quizzes will be based on the correctness of the answers. 6. Group Project: You are to form a group of 5 or 6 members for the group project. If you have a specific group of students you want to work with for these assignments, please let your TA know by the end of the 4th week. Otherwise, students will be randomly assigned into groups. Cases will be randomly assigned to groups. The details of the group case work are presented in the Annex. Report (10%) - Both hardcopy and electronic copy of the report (in.doc file format) should be submitted/ ed to the instructor before the presentation. It should be typed double-spaced on A4 size papers, with 1 inch margin and minimum font size of 12. The pages should strictly utilized as follows. (a) Page 1 Cover sheet: contain the title of your report, your section number, the names of the team members, and the name of your instructor. Title of your report is the title of the case with case number (b) Page 2-9 Main body. Pages for this part can be less. (c) Pages 10+ References and Appendices. There is no page limit for the references and appendices - In the main body of the report you need to address all of the questions for the case. However, you can decide the format and the order of answers. - You can provide a quick overview (up to one page) of the company and industry at the beginning of the main body of your report. If there are more than two companies in your case, skip the overview part. - You are welcomed to use other sources of information (e.g. company s website, press releases, newspaper clippings, etc) but they must be clearly cited, referenced and noted. Indicate where ACCT101 Financial Accounting AY2013/2014 G1, G2, G3, G14 Term 1 Page 4

5 possible the section(s) of the annual report or other source(s) which provide(s) the information. - I am looking for Sufficient level and depth of analysis. Use of appropriate benchmarks to make judgement. Appropriate use of summary tables, charts, figures, appendices, etc to illustrate your points. Good, clean, and consistent formatting, appropriate spacing, consistency of styles, and good English expressions, adherence to grammar and sentence structure. Properly-cited references that demonstrate an attempt to learn beyond the course materials. Grades are based on the following criterion (out of 20 points): marks: truly exceptional report exceeding expectation of having only done a first course in financial accounting, marks: excellent report, meeting significant majority of the above requirements, marks: good effort, meeting most of the above requirements, marks: commendable attempt, but lacking in some areas, 0-10 marks: extremely poor effort. Presentation (5%) - The electronic copy of the presentation (in.ppt file format) should be ed to the instructor before the presentation. You will have 30 minutes of time. However, the presentation itself should aim at 20 minutes to accommodate 10 minutes Q&A. Your fellow audiences are encouraged to ask questions during the presentation. - Not everyone in the group needs to present. Actually, it is best to keep it under three people. Also, you need not cover all of the questions in your presentation. - If some case questions include some Accounting jargons which are not covered in the class, the presenting group should explain them in the class. If you do not explain those jargons properly, I will ask you to explain them when you present. - Presentation will be graded by students. Grades of 0-5 will be given by your peers after the presentation based on time control, presentation skills, content, and interaction with audiences. Any individual grade lower than 3 needs to be justified by a statement and are subject to my adjustment. It is important to participate in the group works equally. To prevent free-riders, the scores will be adjusted based on peer evaluation within each group. Students who do not present are also to answer one or two case questions which are provided in the Annex 2 (Maximum length a half page for each case). This individual case write-up will be graded on the basis of effort as in homework problems grading (0, 1, or 2 points). The questions you have to answer are in the annex 3. Students will be given a chance to ask a few questions at the end of the presentation to make sure the presenting group clearly understands what they are presenting. 7. Policy: You should understand that the material in this course does not lend itself to being explained very well via . A visit during my office hours would prove more beneficial to you. 8. Course Schedule: The tentative course schedule is given on the last page of this course outline and also on SMU e-learn. All contents covered in the textbook will be taught and tested in the exam unless the very specific exclusions are declared. 9. Course Homepage: Make sure you are familiar with SMU e-learn where our course homepage parks, and check the course homepage regularly in order not to miss important announcements. 10. General comments: I strongly encourage you to discuss with me any problems that you may have with this course as soon as they arise. Please do not allow problems to accumulate because it will be ACCT101 Financial Accounting AY2013/2014 G1, G2, G3, G14 Term 1 Page 5

6 more difficult to solve them later. In this course, each chapter builds on the previous chapters. It is like constructing a building the foundation first, then the ground floor, then the first floor so on. If you have problems in the earlier parts, you will not be able to understand the later parts. Moreover, the level of difficulty increases as we progress. It is much easier to get high marks in the earlier quizzes, but it would be difficult to get even a decent grade in the final exam. Hence, it is very important to be serious with your studies right from the beginning. Academic Integrity All acts of academic dishonesty (including, but not limited to, plagiarism, cheating, fabrication, facilitation of acts of academic dishonesty by others, unauthorized possession of exam questions, or tampering with the academic work of other students) are serious offences. All work (whether oral or written) submitted for purposes of assessment must be the student s own work. Penalties for violation of the policy range from zero marks for the component assessment to expulsion, depending on the nature of the offense. When in doubt, students should consult the instructors of the course. Details on the SMU Code of Academic Integrity may be accessed at Prepared by: Sung Gon Chung, 19/07/2013 Approved by: Associate Dean, Seow Poh Sun, 5 August 2013 ACCT101 Financial Accounting AY2013/2014 G1, G2, G3, G14 Term 1 Page 6

7 Annex 1: Detailed Course Work Plan [The following schedule is tentative. It WILL change depending on the pace of the class] Week Topic Homework Assignments 1 Introduction and Ch.1 Conceptual Framework and Financial Statement Ch.2 Recording Business Transactions 2 Ch.2 Recording Business Transactions (Remainder) Ch.3 Accrual Accounting 3 Ch.3. Accrual Accounting (Remainder) Ch.7 PPE & Intangibles 4 Ch.5 Internal Control, Cash, and Receivables (Receivables only) S1-14, E1-17A, E1-18A, E1-20A, E1-21A, E1-22A, E1-24A, E1-25A S2-3, S2-6, S2-7, S2-9, S2-12, E2-15A, E2-20A, E2-21A, S3-1, S3-5, S3-8, S3-10,S3-11, S3-14, S3-16,, E3-18A, E3-26A, E3-29A, E3-43A, 1 st Quiz (formal) 5 Ch.6 Inventory & Inventory and Merchandising operations 6 Ch.9 Liabilities (including Appendix B; excluding Leases) 7 Ch.9 Liabilities (Remainder) S7-4, S7-5, S7-6, S7-8, S7-10, S7-12, E7-22A, S5-11, P5-67A S6-4, S6-5, S6-7, S6-11, S6-12, E6-19A, Pre: PC-3, PC-5 (P. 834), S9-3, S9-6, S9-7, S nd Quiz (formal) Recession Week, No Class Have a good vacation 9 Ch.10 Shareholders Equity E9-21A, E9-24A, E9-30A, P9-73A 10 Ch.11 The Statement of Cash Flow S10-5, S10-6, S10-8, S10-10, S10-13, S10-16, S10-17, E10-27A, E10-55, 11 Ch.12 Financial Statement Analysis (Excluding EVA) Ch.4 Presentation of Financial Statement S11-5, S11-6, S11-7, S11-8, S11-9, S11-11, S11-12, E11-22A, E11-26A, 3 rd Quiz (formal) 12 Ch.5 Internal Control & Cash (Bank Reconciliation only) S12-12, S12-13, Case write-up Group 1 Case Presentation Group 2 Case Presentation Group 3 Case Presentation Group 4 Case Presentation 13 Group 5 Case Presentation Group 6 Case Presentation Group 7 Case Presentation S5-6, S5-11, Case write-up 14 Self-review of the course and preparation for the final exam, No class N.A. Final Exam Details to be announced ACCT101 Financial Accounting AY2013/2014 G1, G2, G3, G14 Term 1 Page 7

8 Annex 2: Case questions Week Cases& topics Case presenting groups 12 1st Case Presentation (Case 01; Reading an annual report) Q 1, 4, 8, 9 Q 9 Students who do not present Group 1 Group 2 Group 3 12 Case 10 Receivables and cash conversion cycle Q 1, 2, 3, 4, 5 (Explain "average resident period" and "average payment period") Q 3 12 Case 06 Capitalization decisions Q 1, 2, 4, 5, 6 Q 6 12 Case 12 Property, plant and equipment Q 1, 2, 3, 5 (Explain why Malaysia Airline's PPE percentage is so low compared to those of other companies) Q 3 13 Case 09; Balance sheet compositions Q 1, 2, 3, 4 (Explain "the balance sheet presentation requirements of FRS1") Q 1 13 Case 14 Loans and Borrowings (SingTel, CapitaLand, and Keppel) Q 2,3,4,5 Q 4 13 Case 16; Share capital and equity transactions Q 1, 2, 3, 4, 5 (Explain "cancelation of shares" and "right issue") Q 2 13 Case 17; Cash flows Q 1, 2, 3, 4 (Explain each ratio in the question 4) Q 2 Annex 3: Suggested problems P1-58A, P1-59A, P1-61A, P2-61A, P2-62A, P2-64A, P3-62A, P3-63A, P3-64A, P3-66A, P5-69A, P7-62A, P7-64A, P7-67A, P6-61A, P6-64A, P9-75A, P10-76A, P10-77A, P10-78A, P10-80A, P11-60A, P11-61A, P12-53A, P12-55A ACCT101 Financial Accounting AY2013/2014 G1, G2, G3, G14 Term 1 Page 8