ACT506: Advanced Accounting II Credit Hours: 3 Contact Hours: This is a 3-credit course, offered in accelerated format. This means that 16 weeks of material is covered in 8 weeks. The exact number of hours per week that you can expect to spend on each course will vary based upon the weekly coursework, as well as your study style and preferences. You should plan to spend 14-20 hours per week in each course reading material, interacting on the discussion boards, writing papers, completing projects, and doing research. Course Description and Outcomes Course Description: This course advances a student s knowledge of the principles of accounting. Students will gain a complex understanding of partnerships, mergers, acquisitions, and consolidations. Students will explore foreign currency concepts and reporting, derivatives and hedging accounting, and segment and interim financial reporting. Course Overview: This course continues the advanced accounting topics covered in previous courses. Along with a focus on international business interactions, business combinations are emphasized. Advanced accounting concepts reviewed include earnings per share, financial statements, and foreign subsidiary consolidation. Practice problems and cases allow students to apply advanced accounting principles and procedures to real world applications. Course Learning Outcomes: 1. Compare and contrast the accounting rules and business practices in a domestic environment with those of an international environment. 2. Analyze the valuation of assets and liabilities acquired in business combinations. 3. Evaluate the accounting implications related to foreign currency transactions. 4. Apply the appropriate accounting standard when accounting for derivatives and hedging activities. 5. Restate foreign entity statements using translation or re-measurement. 6. Prepare interim and segment reports. Participation & Attendance Prompt and consistent attendance in your online courses is essential for your success at CSU-Global Campus. Failure to verify your attendance within the first 7 days of this course may result in your withdrawal. If for some reason you would like to drop a course, please contact your advisor.
Online classes have deadlines, assignments, and participation requirements just like on-campus classes. Budget your time carefully and keep an open line of communication with your instructor. If you are having technical problems, problems with your assignments, or other problems that are impeding your progress, let your instructor know as soon as possible. Course Materials Textbook Information is located in the CSU-Global Booklist on the Student Portal. Course Schedule Due Dates The Academic Week at CSU-Global begins on Monday and ends the following Sunday. Discussion Boards: The original post must be completed by Thursday at 11:59 p.m. MT and Peer Responses posted by Sunday 11:59 p.m. MT. Late posts may not be awarded points. Critical Thinking: Assignments are due Sunday at 11:59 p.m. MT. Live Classroom: Although participation is not required, Live Classroom sessions are held during Weeks 1, 3, 5, and 7]. There are four] total sessions. Week # Readings Assignments 1 2 3 Chapter 2 in Advanced Financial Accounting Brochet, F., Jagolinzer, A., & Riedl, E. (2014). Mandatory IFRS adoption and financial statement comparability. Contemporary Accounting Research, 30(4), 1373-1400. FASB. (2016). FASB accounting standards update: Investments Equity method and joint ventures (Topic 323). Retrieved from http://www.fasb.org/jsp/fasb/document_c/documentpa ge?cid=1176167979908&accepteddisclaimer=true Reilly, R. F. (2015). Goodwill valuation approaches, methods, and procedures. American Journal of Family Law, 29(2), 89-104. Chapters 11 & 12 in Advanced Financial Accounting Cucui, G., & Oprea, S. (2014). Accounting for foreign exchange spot transactions. Valahian Journal of Economic Studies, 5(4), 93-100. Deloitte Global Services Limited. (2017). ASC 830 Foreign currency matters. Retrieved from https://www.iasplus.com/en-us/standards/fasb/broadtransactions/asc830 Chapters 10 & 12 in Advanced Financial Accounting Rashty, J. (2014). Foreign currency matters. CPA Journal, 84(3), 54-56. Critical Thinking (70 Live Classroom (0 Critical Thinking (70 Portfolio Milestone (25
4 5 6 7 8 Assignment Details Chapter 11 in Advanced Financial Accounting (pp. 560-582) Chapter 12 in Advanced Financial Accounting (pp. 628-638) Anton, S. G. (2016). Risk management with financial derivatives: Empirical evidence from Romanian nonfinancial firms. Annals of The University of Oradea, Economic Science Series, 25(2), 336-342. Chapter 12 in Advanced Financial Accounting Lange, C. D., & Fornaro, J. M. (2017). Consolidation of variable interest entities for private companies. CPA Journal, 87(2), 46-50. Mihaela, D. (2014). IAS 29 "Financial reporting in hyperinflationary economies" - Analysis and implications of accounting, tax and legal. Ovidius University Annals, Series Economic Sciences, 14(2), 483-488. Chapter 12 in Advanced Financial Accounting Lange, C. D., & Fornaro, J. M. (2017). Consolidation of variable interest entities for private companies. CPA Journal, 87(2), 46-50. Mihaela, D. (2014). IAS 29 "Financial reporting in hyperinflationary economies" - Analysis and implications of accounting, tax and legal. Ovidius University Annals, Series Economic Sciences, 14(2), 483-488. Chapter 13 in Advanced Financial Accounting Deloitte Global Services Limited. (2017). ASC 270 Interim reporting. Retrieved from https://www.iasplus.com/enus/standards/fasb/presentation/asc270 Chapters 13 & 14 in Advanced Financial Accounting Cazier, R. A., & Pfeiffer, R. J. (2016). Why are 10K filings so long? Accounting Horizons, 30(1), 1-21. Mancuso, A. (2014). LLC or corporation: How to choose the right form for your business (6th ed.). Berkley, CA: NOLO. This course includes the following assignments/projects: Module 1 CRITICAL THINKING ASSIGNMENT (70 Critical Thinking (70 Portfolio Milestone (25 Live Classroom (0 Critical Thinking (70 Critical Thinking (70 Portfolio Milestone (25 Live Classroom (0 Critical Thinking (70 Critical Thinking (30 Live Classroom (0 Portfolio (275
Module 2 Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1: Journal Entries for Consolidated Business Combination Using the Option 1 spreadsheet (linked in the Module 1 folder), review the journal entries, Peerless (P) company entries for 20x7, and the book value calculation for Peerless Company. Required information: 1). Required entry for investment equity using case 2a). Record of parent 100% share of subsidiary 20x7 income 2b). Record of parent 100% share of subsidiary s 20x7 dividend 3). Book value calculation for Investment value on December 30, 20x7 Excel Worksheet. instructor to the CT Assignment dropbox for Module 1. Option #2: Net Income Statement and Retained Earnings Statement Using the Option 2 spreadsheet (linked in the Module 1 folder), complete the following. Required information: 1). Prepare the consolidated income statement. 2). Prepare the consolidated retained earnings statement. Excel Worksheet. instructor to the CT Assignment dropbox for Module 1. CRITICAL THINKING ASSIGNMENT (70 Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1: Exchange Rate Fluctuation Accounting Search online to obtain and prepare charts of the monthly average direct exchange rates for the past ten years for the U.S. dollar versus one of the following currencies: the European euro, the rand, the pound, the yuan, the yen, or the ruble. Your charts should have the direct exchange rate on the vertical axis. The horizontal axis should have the monthly average direct exchange rates for the past ten years for the U.S. dollar versus the chosen currency. From your charts: Describe the trends that you notice in the U.S. dollar as compared with the other currencies. What major economic or political factors could have influenced the trends that you observed in Step 1?
Module 3 Select a factor from Step 2 and present an argument showing how a change in that factor could cause a change in the exchange rate. Requirements: Remember to maintain a formal tone and cite scholarly research to support your analysis. (Note: You may not use the course textbook to fulfill this requirement.) Your analysis should be two to three pages in length, not counting the required title and reference pages (citing at least two sources), and must be formatted according to the CSU-Global Guide to Writing & APA. Option #2: Calculation for EPS in Consolidated Business Combination Using the Assignment Option 2 spreadsheet (linked in the Module 2 folder), review the required information for Push (P) Corporation s earnings per share (EPS) and Summer (S) Corporation s EPS. Required Information: 1). Calculate the basic and diluted EPS for Summer Corporation (subsidiary). 2). Calculate the Push Corporation (parent) s consolidated EPS. Excel worksheet. instructor to the CT Assignment dropbox for Module 2. PORTFOLIO PROJECT MILESTONE (25 Option #1/2: Project Selection You have a choice between two Portfolio Project options in this course. Go to the Week 8 folder to read both descriptions. Select only one project; do not do both projects. This week, identify your Portfolio Project choice in the title of a Microsoft Word document and then briefly explain why you selected that project. Your description should be one page in length and formatted according to the CSU-Global Guide to Writing & APA. CRITICAL THINKING ASSIGNMENT (70 Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1: Journal Entries for Foreign Transactions Using the Assignment Option 1 spreadsheet (linked in the Module 3 folder), review the foreign transactions between Company X, Vendor A, and Customer B. Prepare the journal entries for each transaction on each date, if required, on the books of Company X, only.
Module 4 1). Prepare foreign transactions entries for Company X with Vendor A. 2). Prepare foreign transactions for Customer B. Excel worksheet. instructor to the CT Assignment dropbox for Module 3. Option #2: Consolidated Cash Flow Statement Using the Assignment Option 2 spreadsheet (linked in the Module 3 folder), review the income statement, balance sheet, and retained earnings information to prepare the consolidated cash flow statement. Prepare the consolidated cash flow statement for Push Corporation. Excel worksheet. instructor to the CT Assignment dropbox for Module 3. PORTFOLIO PROJECT MILESTONE (25 Option #1/2: Journal Entries Review the journal entries and transactions to prepare the financial statements for either Portfolio Project Option # 1 or Option #2 this week. Provide a written summary of the journal entries and transactions that will need to be prepared for the financial statements for Portfolio Project Option # 1 or 2 this week and why they are necessary to include. Your description should be one page in length and formatted according to the CSU-Global Guide to Writing & APA. CRITICAL THINKING ASSIGNMENT (70 Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1: Derivatives and Hedging Compare and contrast the differences in accounting treatment for derivatives using option contracts and derivatives using forward contracts in Anton s (2016) article.
Module 5 Requirements: Remember to maintain a formal tone and cite scholarly research to support your analysis. (Note: You may not use the course textbook to fulfill this requirement). Your analysis should be two to three pages in length, not counting the required title and reference pages (citing at least two to three sources), and must be formatted according to the CSU-Global Guide to Writing & APA. Reference Anton, S. G. (2016). Risk management with financial derivatives: Empirical evidence from Romanian non-financial firms. Annals of The University of Oradea, Economic Science Series, 25(2), 336-342. Option #2: Consolidation of Foreign Subsidiary with the U.S. Parent Using the Assignment Option 2 spreadsheet (linked in the Module 4 folder), review the financial statements for a translation of foreign subsidiary statements for consolidation with the parent company. Prepare the consolidation of foreign subsidiary to U.S. parent business combinations at its acquisition date. Excel worksheet. instructor to the CT Assignment dropbox for Module 4. CRITICAL THINKING ASSIGNMENT (70 Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1: Hedging Transaction: A Foreign Currency Fair Value Hedge Part 1: Using the Assignment Option 1 spreadsheet (linked in the Module 5 folder), complete the following hedging transaction. Complete journal entries to hedge an unrecognized foreign currency firm commitment as a foreign currency fair value hedge. Excel worksheet. instructor to the CT Assignment dropbox for Module 5.
Part 2: Research ASC 830. Describe the proper accounting and reporting for a foreign currency fair value hedge. What is the accounting treatment of changes in fair value on the balance sheet and the income statement? What is the accounting application of a gain or loss on the hedged instrument? Your analysis should be two pages in length, not counting the required title and reference pages (citing at least two to three sources), and must be formatted according to the CSU-Global Guide to Writing & APA. Option #2: Hedging Transaction: Cash Flow Hedge Part 1: Using the Assignment Option 2 spreadsheet (linked in the Module 5 folder), complete the following hedging transaction. Prepare the journal entries for a cash flow hedge. Excel worksheet. instructor to the CT Assignment dropbox for Module 5. Part 2: Research ASC 830. Describe the proper accounting and reporting for a cash flow hedge. What is the accounting treatment of the gain or loss on your hedging instrument and hedge item at the reporting date? Discuss the effective and ineffective portions of the gain or loss on the hedging instrument. Also, explain the effective and ineffective portion of the gain or loss on the hedging instrument in other comprehensive income (OCI). Your analysis should be two pages in length, not counting the required title and reference pages (citing at least two to three sources), and must be formatted according to the CSU-Global Guide to Writing & APA. PORTFOLIO PROJECT MILESTONE (25 Option #1/2: Concepts and Transactions Identify the concepts and types of transactions that will be used for your Portfolio Project selection. Explain why those particular transactions are needed and why the concepts are important. Remember to maintain a formal tone and cite scholarly research to support your analysis. (Note: You may not use the course textbook to fulfill this requirement.) Your analysis should be one to two pages in length, not counting the required title and reference pages (citing at least one source), and must be formatted according to the CSU-Global Guide to Writing & APA.
Module 6 Module 7 CRITICAL THINKING ASSIGNMENT (70 Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1: Variable Interest Entities ASC 810 describes the operation and reporting of a variable interest entity (VIE) in regards to consolidation, liability, and recognition. Research the accounting treatment and standards of a VIE in relation to U.S. standards and IFRS standards. Does a U.S. parent entity need to report and consolidate a VIE when the parent has very little control? How do the expected losses impact the reporting process? Requirements: Remember to maintain a formal tone and cite at least two scholarly sources to support your analysis. (Note: You may not use the course textbook to fulfill this requirement.) Your analysis should be two to three pages in length, not counting the required title and reference pages, and must be formatted according to the CSU-Global Guide to Writing & APA. Option #2: International Agreements for Business and Trade For this assignment, consider the effect of the creation or the elimination of trade agreements on a regional and/or global level. How would changes in existing agreements impact domestic companies and their decision of whether or not to expand their trade and marketing investments to other companies in North America, Europe, Asia, and beyond? How would country-specific agreements provide an advantage or disadvantage to investments for U.S. companies? Using NAFTA as an example, along with other current agreements in existence or in development, examine the effects of the United States attempts to increase and/or decrease the entries to international trade and investment. Evaluate both the pros and cons of this situation. Requirements: Remember to maintain a formal tone and to cite at least two sources to support your analysis. (Note: You may not use the course textbook to fulfill this requirement.) Your analysis should be two to three pages in length, not counting the required title and reference pages, and must be formatted according to the CSU-Global Guide to Writing & APA. CAREER DEVELOPMENT CRITERIA / CRITICAL THINKING ASSIGNMENT (30 Practitioner Experience For this assignment you will research internships, volunteer opportunities, and certifications in your chosen degree field of accounting. Develop a well-written paper that includes the following: Two internship positions in your chosen degree field. Include links to the descriptions for both internships and provide a summary of how these positions relate to your degree field. Two volunteer opportunities in your chosen degree field. Include links to the descriptions for both volunteer opportunities and provide a summary of how these opportunities relate to your degree field.
Module 8 At least one certification within your chosen degree field. Include a link to the description of this certification and summarize the qualifications required to obtain this certification, as well as the value provided by the certification. Description of your experience completing a personal and career evaluation through the career center website. Your paper should meet the following requirements: Be two to three pages in length Be formatted according to the CSU-Global Guide to Writing & APA. PORTFOLIO PROJECT (275 Choose one of the following two Portfolio Project options to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1: Hedging It is important for accountants to understand advanced accounting transactions. For this final project you will complete several advanced accounting transactions related to hedging. There are several requirements for this Portfolio Project which should be submitted during the weeks when there are Portfolio Project Milestones (in Modules 2, 3, and 5). Part 1: Journal Entries 1). Journal entries for hedging an unrecognized foreign currency firm commitment for two situations. Key component: Use the case information and financial data in the Option 1 template file (linked in the Module 8 folder). Complete the template, which will help you organize your responses. Also, address any instructor feedback provided in the milestone submissions using Excel s comments function. Any written comments must be formatted according to the CSU-Global Guide to Writing & APA. Part 2: Analysis Research hedging as an unrecognized foreign currency firm commitment. Describe the proper accounting and reporting for this type of hedge with U.S. GAAP and IFRS. What are the relevant U.S. GAAP and IFRS standards? Discuss how each standard is similar or different in handling hedging reporting with these situations. Your analysis should be two to three page in length, not counting the required title and reference pages (citing at least two to three sources), and must be formatted according to the CSU-Global Guide to Writing & APA. Final deliverables: Submit the final Excel template with all areas completed. Submit your written analysis. Review the grading rubric to understand how you will be graded on this Portfolio Project. Reach out to your instructor if Option #2: Business Combinations It is important for accountants to understand advanced accounting transactions. For this final project, you will complete several advanced accounting transactions related to business combinations.
There are several requirements for this project which should be submitted during the weeks when there are Portfolio Project Milestones (in Modules 2, 3, and 5). Part 1: Financial Statements 1). Prepare the consolidated balance sheet. 2). Prepare the indirect cash flow statement. Key component: Use the case information and financial data in the Option 2 template file (linked in the Module 8 folder). Complete the template, which will help you organize your responses. Also, address any instructor feedback provided in the milestone submissions using Excel s comments function. Any written comments must be formatted according to the CSU-Global Guide to Writing & APA. Part 2: Analysis Research cash flow statements. Describe the proper accounting and reporting for cash flow statement with U.S. GAAP and IFRS. What are the relevant U.S. GAAP and IFRS standards? Discuss how each standard is similar and different in handling the reporting of the cash flow financial statements. Your analysis should be two to three pages in length, not counting the required title and reference pages (citing at least two to three sources), and must be formatted according to the CSU-Global Guide to Writing & APA. Final deliverables: Submit the final Excel template with all areas completed. Submit your written analysis. Course Policies Course Grading 20% Discussion Participation 45% Critical Thinking Assignments 35% Portfolio Project 0% Live Classroom Grading Scale and Policies A 95.0 100 A- 90.0 94.9 B+ 86.7 89.9 B 83.3 86.6 B- 80.0 83.2 C+ 75.0 79.9 C 70.0 74.9 D 60.0 69.9 F 59.9 or below In-Classroom Policies For information on late work and incomplete grade policies, please refer to our In-Classroom Student Policies and Guidelines or the Academic Catalog for comprehensive documentation of CSU-Global institutional policies.
Academic Integrity Students must assume responsibility for maintaining honesty in all work submitted for credit and in any other work designated by the instructor of the course. Academic dishonesty includes cheating, fabrication, facilitating academic dishonesty, plagiarism, reusing /re-purposing your own work (see CSU-Global Guide to Writing and APA for percentage of repurposed work that can be used in an assignment), unauthorized possession of academic materials, and unauthorized collaboration. The CSU-Global Library provides information on how students can avoid plagiarism by understanding what it is and how to use the Library and Internet resources. Citing Sources with APA Style All students are expected to follow the CSU-Global Guide to Writing and APA when citing in APA (based on the APA Style Manual, 6th edition) for all assignments. For details on CSU-Global APA style, please review the APA resources within the CSU-Global Library under the APA Guide & Resources link. A link to this document should also be provided within most assignment descriptions in your course. Disability Services Statement CSU Global is committed to providing reasonable accommodations for all persons with disabilities. Any student with a documented disability requesting academic accommodations should contact the Disability Resource Coordinator at 720-279-0650 and/or email ada@csuglobal.edu for additional information to coordinate reasonable accommodations for students with documented disabilities. Netiquette Respect the diversity of opinions among the instructor and classmates and engage with them in a courteous, respectful, and professional manner. All posts and classroom communication must be conducted in accordance with the student code of conduct. Think before you push the Send button. Did you say just what you meant? How will the person on the other end read the words? Maintain an environment free of harassment, stalking, threats, abuse, insults or humiliation toward the instructor and classmates. This includes, but is not limited to, demeaning written or oral comments of an ethnic, religious, age, disability, sexist (or sexual orientation), or racist nature; and the unwanted sexual advances or intimidations by email, or on discussion boards and other postings within or connected to the online classroom. If you have concerns about something that has been said, please let your instructor know.