Escolar Documentos
Profissional Documentos
Cultura Documentos
SCHOOL OF MANAGEMENT
Course: AIM 6332
Issues in Financial Reporting
Summer 2005
COMMENTS:
AIM 6332 Issues in Financial Reporting is a challenging and difficult course that can vastly add to your
financial knowledge.
• To be successful in this course, you must devote adequate preparation time.
• The course text chapter reading assignments and homework problems are indicated on the attached
schedule.
• Chapter reading assignments should be completed in a timely manner.
• The assignment schedule may be modified during the semester if necessary.
• All efforts will be made to cover each chapter in a detailed manner. Because of the quantity of the material
to be covered however, an in depth study of each chapter cannot be realistically achieved. It is therefore the
responsibility of each student to study any portions not covered in class.
COURSE REQUIREMENTS
Two closed-book examinations
3 Problems
4 Internet Analysis Cases
Research / Term paper
EXAMINATIONS:
There will be three regular closed book examinations, each covering the chapters as indicated on the assignment
sheet. Exam dates are firm and No make up tests are allowed . Each test is a combination of problems
and multiple choices. Assume there will be at least one problem and 5-6 multiple choice questions per chapter.
Partial credit is given for well- labeled steps and computations, even if the conclusion reached is incorrect.
However, you must leave a clear paper trail of your thought processes and understanding for me to follow.
Please bring a Scantron form 882-E at each examination. No scratch paper is allowed in the examination.
COURSE GRADING:
Total scores to achieve the following grades: A =270, B=240, C=210
Research/Term Paper:
A double-spaced typewritten paper (5-7 pages of written material plus whatever else you want to include such
as graphs, charts) is due on 7-14-2005 by e-mail and hard copy. Below is the topic based on the initial of your
last name: Include the financial statements and notes with your term paper.
A,D,G,J,M,P,S,V,Y Cash Flows. Your roommate is puzzled. During last year a company reported a net loss
yet its cash increased during the same period of time. Answer your roommate question and use the statement of
cash flows from the financial statements of a company of your choice to derive information about profitability,
liquidity, solvency and other important conclusions to further explain the importance of this statement.
B,E,H,K,N,Q,T, W,Z Liabilities. Choose a company of your choice and analyze their notes disclosures related
to their debt position. Would you recommend that the company refinance their short-term debt to long term-
debt? In addition, explain why a company would wish to reduce its bond indebtness before its bonds reach
maturity. What are the reasons, the benefits or the risk of retiring the debt early? Two methods are available for
amortization of premium or discount. Discuss the advantages or disadvantages of the effective- interest method
of amortization and the impact on the financial statements.
C,F,I,L,O,R,U,X Leases The accounting fo r operating leases is a controversial issue. Many contend that firms
employing operating leases are utilizing significantly more assets and are more highly leveraged than indicated
by the balance sheet alone. As a result, analysts often use footnote disclosures to “constructively capitalize”
operating lease obligations. Obtain the most recent annual report for a firm that relies heavily on operating
leases. (Firms in airlines or retail industries .are good candidates). The schedule of future rental payments is
usually included in the “Commitments and Contingencies” footnote. Write a report about your findings,
assessments and conclusions.
2
The “Ten Criteria” (10 points each) that will be used as a “Scoring Guide” to evaluate your work are:
1. Mastery of Accounting Concepts
Demonstration of thorough understanding of the Accounting Principles learned and their applications.
2. Responsiveness to the Assignment
Assignment directly and completely accomplished in an exceptional manner.
3. Appropriateness for the Audience
Effective point of view, tone, and attitude toward content.
4. Coherent Organization
Clear transitions and logical progression of ideas, major points, and conclusions.
5. Critical Supporting Analysis
The main points of the paper are supported by relevant and specific details.
6. Clarity and Conciseness
Clear, efficient well constructed sentences with specific appropriate vocabulary.
7. Correct Use of Mechanics
English is characterized by correct adherence to conventions of grammar, capitalization, and spelling.
8. Citation and Documentation
Clearly incorporates material into the paper, documents sources accurately.
9. Visual Presentation
Graphics, charts, and visual aids are effectively used to enhance contexts.
10. Overall Evaluation
The paper accomplishes the purpose of the assignment. The writer keeps a narrow focus on the topic while
providing the reader a broad exposition on the subject.
METHOD OF PRESENTATION:
The theory and philosophy of accounting will be presented through lectures supplemented with handouts and
overhead transparencies as needed. Your participation is essential.
COURSE OBJECTIVES:
The course continues the emphasis on accounting concepts and theory; analysis of liabilities and equities;
alternative accounting methods for special topics such as leases, pensions, deferred income taxes; changes and
error analysis and, more advanced aspects of accounting theory. At the conclusion of the course, you should
have a thorough knowledge of the appropriate financial statement presentation of these topics, including the
rationale behind the relevant standards. If you are planning to sit for the CPA exam, Issues in Financial
Accounting as a whole, is highly tested and roughly comprises 55-60% of the Financial Accounting and
Reporting section.
3
READING ASSIGNMENTS:
Text chapter reading assignments and homework problems are indicated on the attached schedule. Work as
much of the homework as you can. Although many of the assigned exercises/problems will be used to illustrate
class lectures, the ultimate responsibility for understanding is yours. Your homework will not be graded;
however, to receive maximum benefit from the class, homework assignments should be completed soon after
the class.
ACADEMIC ETHICS:
All students are expected to behave in accordance with the academic integrity policy of The University of Texas
at Dallas. A student's personal integrity will be essential to successfully completing this course.
LEARNING OUTCOMES:
After successful completion of this course, the student should be able to perform Accounting:
• for long-term liabilities and interest components
• for current and contingent liabilities
• for debt securities, premiums, discounts, effective interest method
• for derivatives, risk analysis and their various applications
• for troubled debt restructuring and extinguishment of debt transactions
• for operating leases, capital leases, and lease-purchase transactions
• for pension costs, plan assets, and pension funding requirements
• for dividend transactions
• for alternative methods of revenue recognition.
• for long-term investments
• for changes in principles, in estimates
4
AND
• Demonstrate knowledge of the corporate form of organization and categories of corporate equity
transactions, including treasury stock, stock rights, and stock options
• Analyze accounting changes and error corrections
• Apply interim reporting requirements
• Prepare and interpret a statement of cash flows
• Identify capital structures and calculate primary and fully diluted earnings per share
• Demonstrate knowledge of proper financial presentation and disclosure requirements for all topics
covered in the course
• Apply the skills of critical thinking (knowledge, comprehension, application, analysis, synthesis, and
evaluation) to solve problems and to support statements of beliefs and opinions. Link and synthesize
information learned in this course to the greater body of knowledge related to the discipline
• Any others deemed important by the instructor
5
Class Schedule AIM 6332
Summer 2005
Modifications of dates and material will be made if necessary at the instructor’s discretion
7/28 Final Exam chapters 17,18,19,20,22 Problems/OOFs and Multiple Choices questions