MGMT E-1100 (23893) Intermediate Accounting Number of credit hours: 4 Spring 2014 Professor Vijay Sampath Section Meeting

Time: Wednesday, 7:40 pm 9:40 pm Telephone: (646) 479-7517 Web Conference Email: vsampath@fas.harvard.edu Prerequisites: MGMT E-1000 with grades of C or better TA: Professor Jamal Ahmad Email: jahmad003@gmail.com Course Objectives This course builds on the fundamentals of financial accounting and reporting that you learned in the introductory Financial Accounting course (MGMT E-1000). By the end of the course you should have a good understanding of the (a) preparation and interpretation of an entitys financial statements in accordance with generally accepted accounting principles, (b) accounting for complex business transactions, and (c) techniques to evaluate firm performance. Topics include income statement, individual components of assets and liabilities, stockholders equity, statement of cash flows, revenue recognition and accounting changes. Real-life case studies will be used to evaluate firm performance. Required Textbook: Intermediate Accounting by Spiceland, Sepe, and Nelson. McGraw-Hill Irwin Seventh Edition (ISBN: 978-0-07-802532-7).

An access code for McGraw Hill comes automatically with the purchase of a new text. Supplementary cases, notes, solutions to in-class exercises and other handouts will be given posted on Blackboard. http://connect.mcgraw-hill.com/class/v_sampath_spring_2014 Grading Letter grades will be assigned for the course based on the following scale: 96-100% 91-95 86-90 A AB+ 1

80-85 75-79 70-74 60-69 59 or less Grading will be weighted as follows: Homework Assignments Midterm Exam Final Exam

B BC+ C F

30% 30% 40%

Homework Assignments The website for the assignments will be provided on the first day of class. You must log in and register as a student user. This is the website from which homework assignments are completed. All homework assignments must be submitted electronically. McGraw Hill will grade the problems for correctness; multiple attempts per question are permitted. The questions assigned and their due dates are contained in the Course Calendar below. For many of the questions, the numbers will be generated algorithmically, so the numbers WILL NOT be the same as those in your text or of other students. The homework assignment is due at 10 PM on the due date. Late submissions will not be permitted except under extraneous circumstances. Each assignment is worth the same percentage of the overall assignment grade weight, and the problems are equally weighted. The score from McGraw Hill will be converted into a percentage grade. The answers will be posted on Blackboard within 24-48 hours of the due date. You can work together on your homework assignments; however, each student must submit his/her own answer. Professor Ahmad will conduct sessions lasting 90 minutes every other week to go through problems at the back of the chapters. For this purpose, he will set up optional homework assignments. While attending these classes is not mandatory, it is highly recommended for those students who believe they need more practice with accounting.

Exams There will be two exams a midterm and a final exam. Arrangements will be made with the School to have the exam proctored. Only calculators are allowed, not PDAs, cellphones, etc. The final exam will be held during finals week. The exams will be closed book; it will be in your best interests to study and work through problems prior to the exams. In case you are not able to take the exams on the scheduled dates, you will need to the Extension School offices approval to take a late exam. Optional Paper (5%) 2

For extra credit purposes, you can write a paper performing an analysis of the latest annual financial statements for one of the public companies mentioned below. The paper should be 3-5 pages (double-spaced and Times Roman 12 font) in length and is due at the time of the final exam. Walmart Apple General Electric United Airlines Exxon Mobil Johnson & Johnson JP Morgan Chase

Attendance and Class Participation Attendance in class is expected. The course and students also benefit from active participation. Students are expected to contribute throughout the course. While there is no formal assessment of participation, students on the borderline between two grades will get the benefit of the doubt if they have actively participated. Tentative Class Schedule (BE: Brief Exercises; E: Exercises; P: Problems) DATE January 29 February 5 TOPIC Chapter 01: Introduction Chapter 02: Accounting Process Chapter 03: Balance Sheet ASSIGNMENTS No assignment due BE: 1-3, 1-5, 2-4, 2-5, 2-6 E: 1-6, 1-9, 2-4, 2-6, 2-17 DUE: 2/14 at 10 PM BE: 3-2, 3-5 E: 3-2, 3-7, 3-9 P: 3-5, 3-10 DUE: 2/21 at 10PM No assignment due

February 11 February 12

Optional class: Chapter 2 Chapter 04: The Income Statement

February 19 February 25 February 26

Chapter 04: Statement of Cash Flows Optional class: Chapters 3 and 4 Chapter 07: Cash and Receivables

March 5

Chapter 08: Inventories: Measurement

BE: 4-1, 4-2 E: 4-2 P: 4-3, 4-7 DUE: 3/7 at 10PM BE: 7-3, 7-6, 7-7 E: 7-21 P: 7-4, 7-5 3

DUE: 3/14 at 10PM March 11 March 12 March 19 March 25 March 26 Optional class: Chapter 7 Midterm Exam (Chapters 1-4, 6-7) Spring Break Optional class: Chapter 8 Chapter 10: Plant, Property and Equipment

April 2

Chapter 11: Depreciation, Impairments, and Depletion

BE: 8-4, 8-5 E: 8-8, 8-13 P:8-13 DUE: 4/4 at 10PM BE: 10-1, 10-2 E: 10-5, 10-6, 10-8 P: 10-3, 10-12 DUE: 4/11 at 10PM BE: 11-2, 11-7, 11-11 E: 11-1, 11-3 P: 11-3, 11-6 DUE: 4/18 at 10 PM BE: 13-6, 13-11, 13-13 E: 13-5, 13-14 P: 13-2 DUE: 4/25 at 10 PM BE: 14-4, 14-6 E: 14-5, 14-7 P: 14-22 DUE: 4/30 at 10 PM BE: 18-8, 18-11 E: 18-3, 18-15 P: 18-15 DUE: 5/9 at 10 PM BE: 19-10, 19-13 E: 19-11, 19-18 P: 19-12 DUE: 5/16 at 10 PM

April 8 April 9

Optional class: Chapters 10 and 11 Chapter 13: Current Liabilities and Contingencies

April 16

Chapter 14: Bonds and Long-Term Debt

April 22 April 23

Optional class: Chapters 13 and 14 Chapter 18: Shareholders Equity

April 30

Chapter 19: Share-Based Compensation and Earnings Per Share

May 6 May 7

Optional class: Chapters 18 and 19 Chapter 20: Accounting Changes and Error Corrections Final Exam Review Final Exam

May 14

Based on my experience, I would suggest that spending six hours every week should allow you to do well in this course. The six hours include the two hours of class time and doing the assigned homework (does not include the time if you choose to attend Professor Ahmads sessions). In addition to asking questions about the materials covered in class, I encourage you to reach out to me with other academic issues such as writing recommendations or advice regarding career 4

options and/or graduate work. I wish you all the best and look forward to a productive and fun semester!

Vijay Sampath