Course AIM 6332 501 Intermediate Financial Accounting II

Professor Liliana Hickman-Riggs, CPA CITP CFF CMA CIA CFE FCPA DABFA MS
Term Fall 2010
Meets Thursday 7:00-9:45 pm SOM 2.903

Professor’s Contact Information

Office Phone 214 378-5400 (# to call for a timely answer)
UTD office Phone 972 883-5903
Office Location SOM 4.228
Email Address liliana.hickman-riggs@utdallas.edu
Tuesday 4:30 - 5:30 PM
Office Hours Thursday 4:30 – 6:45 PM
Friday 4:30 - 6:15 PM or by appointment
Other Information TA: Kevin Crawford kbc053000@utdallas.edu
T/TH/F 3:30-6:30PM

General Course Information

Course AIM 6332 Issues in Financial Reporting is a challenging and difficult course that can
Description vastly add to your financial knowledge. You must devote adequate preparation time in order to
complete the course successfully. If you are having difficulty with the topics presented, please
see me or the TA at the earliest opportunity. All efforts will be made to cover each chapter in a
detailed manner. Because of the quantity of the material to be covered, 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.

6332 has a value of 45-50 points at the CPA exam.

Learning The course continues the emphasis on accounting concepts and theory; analysis of liabilities
Outcomes and equities; alternative accounting methods for special topics such as leases, pensions, and
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.
(1) Apply US GAAP/IFRS as it pertains to accounting principles for liability accounts.
(2) Apply US GAAP/IFRS as it pertains to accounting principles for stockholder’s equity
accounts.
(3) Develop the skills to prepare statement of cash flows in accordance with US GAAP/IFRS.
Required Spiceland, Sepe, Nelson Intermediate Accounting 6th Edition, Irwin McGraw-Hill
Texts & ISBN # 978-0-07-739581-0 www.mhhe.com/spiceland6e
Materials
Resources The textbook for this course provides a wealth of material. However, the universe of
accounting information is much greater than what you will find in the text. Much of it is
available through UTD’s online library database, as well as through the rest of the Internet.
The publisher also has excellent tools and information available at http://highered.mcgraw-
hill.com/sites/0078110831/student_view0/index.html which should be part of your academic
experience.
On E-Learning I have posted power point presentations for each chapter available for your
use. I do not use PP during the class but if you find them useful they are there for you. I have
also posted solutions for the exercises for each chapter so that you can check the correctness of
your work and practice answering questions.

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Assignments & Academic Calendar Fall 2010
Chapters and timelines are subject to change at the discretion of the Professor. Stay informed! Be Prepared
Month Day Subject Matter Suggested Homework
(not graded)
Aug 19 Introduction of the course

26 Chapter 13 Current Liabilities MC page 731

ex. 13-1, 7, 8, 10, 11, 17,18,20
Quiz on syllabus
Sept 02 Chapter 14 Bonds MC page 792
ex. 14-6,10,15,20,21,22,23,25
Quiz on chapter 13
09 Chapter 15 Leases MC page 857
ex. 15-2,3, 7, 10,11,24,27,29
Quiz chapter 14
16 Chapter 16 Deferred Taxes MC page 918
ex. 16-3,4,5,8,13,18,19,22,26
Quiz chapter 15
23 FASB Codification Research System

30 Test 1: Chapters 13, 14, 15, & 16

Please bring SCANTRON Form 882-E
Oct 7 Chapter 17 Pensions MC page 989
ex. 17-3, 5, 8, 9, 18, 19,22, 26

Quiz chapter on codification and chapter 16

14 Chapter 18 Stockholder Equity MC page 1053
ex. 18-3, 4, 7, 8, 13, 14, 17, 25
Quiz chapter 17
21 Chapter 19 Earnings per Share MC page 1119
ex. 19-5, 9, 11, 12, 13 18, 22
Quiz chapter 18
28 Chapter 20 Accounting Changes MC page 1168
ex. 20-1,3, 4, 5, 8, 10,12,17,22
Quiz chapter 19
Nov 4 Catch up

11 Chapter 21 Cash Flow MC page 1242

ex. 21-2,11,14,17, 20,23,24
Quiz chapter 20
18 Chapter 21 Cash Flow MC page 1242
ex. 21-2,11,14,17, 20,23,24
Quiz chapter 21
Dec 2 Reading Week

Dec 9 Test 2: Chapters 17, 18, 19, 20, & 21

Please bring SCANTRON Form 882-E

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Course Policies
Grading (credit) A = 520, B = 480, C = 420
Criteria
Two closed book, closed note examinations:
Examination 1 200
Examination 2 200
Quizzes 10 @ 10 100
Compilations of Individual Projects due 11-11 100
Total points from requirements 600
Examinations There will be two examinations in this course. The format is a combination of multiple
choices, matching questions, and problems.
You will have the class time available or 3 hours to complete the examinations.

Make-up Exams No make-up exam. If there documented emergencies, please contact me ASAP.
Extra Credit No extra credit beyond what is stated
Class Required at all classes.
Attendance
Electronic The use of electronic devices in class (except for calculators) is strictly prohibited in
Devices class.
Compilations of Research Case 13-01: Page 738
Individual Research Case 14-34: Page 792
Projects Research Case 15-30: Page 857
Research Case 16-12: Page 913
Research Case 17-33: Page 989
Research Case 18-22: Page 1051
Research Case 19-26: Page 1118
Research Case 19-17: Page 1134
Research Case 20-06: Page 1163
Research Case 21-30: Page 1241
Due Date: November 11, 2010

You will submit a report containing a summary page or so for each case listed above,
and must be submitted on a due date via turnit.com.

Instructions How to use effectively Turnit.com

1) You can submit a preliminary submission multiple times to make sure that the
similarity index is less than 30%
2) If during the first submission you get a similarity of more than 30%, you can print
the report and go over it to see where the similarity lies and fix it.
3) Final submission on or before the due date can be done only ONCE.
4) A user guide has been uploaded and made it available through e-learning. Please
read the document and make sure that you understand the functionality before
you start using Turnit.com

WebCT No matter what your experience with WebCT is, UTD’s Information Resources
department has a wonderful site. The site includes short video tutorials for nearly all
functions in WebCT, as well as solutions to many issues. The website can be found at
http://www.utdallas.edu/elearninghelp
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 Certain features such as the discussion boards have been disabled in this course.
Only e-mail is available.
Classroom I will prepare diligently. I will introduce the concepts and mechanics with examples and
Citizenship lectures. I will also go over selected problems to help you become comfortable with the
topics. I will use a mixture of lecture and problem solving, analysis and common sense.
The TA and I will make time to answer your questions.
I will hold you responsible for a thorough understanding of all material presented in class
as well as all text material, any additional handouts that I may provide, and any assigned
material. The knowledge you will need in this class will not accrue only from your
textbook. I expect you to perform research and acquire knowledge or information to
supplement the issues presented or discussed in class. I expect you to participate.

Student The University of Texas System and The University of Texas at Dallas have rules and
Conduct and regulations for the orderly and efficient conduct of their business. It is the responsibility of
Discipline each student and each student organization to be knowledgeable about the rules and
regulations which govern student conduct and activities. General information on student
conduct and discipline is contained in the UTD printed publication, A to Z Guide, which is
provided to all registered students each academic year.

The University of Texas at Dallas administers student discipline within the procedures of
recognized and established due process. Procedures are defined and described in the Rules
and Regulations, Series 50000, Board of Regents, The University of Texas System, and in
Title V, Rules on Student Services and Activities of the university’s Handbook of Operating
Procedures. Copies of these rules and regulations are available to students in the Office of
the Dean of Students, where staff members are available to assist students in interpreting the
rules and regulations (SU 1.602, 972/883-6391) and online at
http://www.utdallas.edu/judicialaffairs/UTDJudicialAffairs-HOPV.html

A student at the university neither loses the rights nor escapes the responsibilities of
citizenship. He or she is expected to obey federal, state, and local laws as well as the
Regents’ Rules, university regulations, and administrative rules. Students are subject to
discipline for violating the standards of conduct whether such conduct takes place on or off
campus, or whether civil or criminal penalties are also imposed for such conduct.

Academic The faculty expects from its students a high level of responsibility and academic honesty.
Integrity Because the value of an academic degree depends upon the absolute integrity of the work
done by the student for that degree, it is imperative that a student demonstrate a high
standard of individual honor in his or her scholastic work.

Scholastic Dishonesty, any student who commits an act of scholastic dishonesty is subject to
discipline. Scholastic dishonesty includes but is not limited to cheating, plagiarism,
collusion, and the submission for credit of any work or materials that are attributable in
whole or in part to another person, taking an examination for another person, any act
designed to give unfair advantage to a student or the attempt to commit such acts.

Plagiarism, especially from the web, from portions of papers for other classes, and from any
other source is unacceptable and will be dealt with under the university’s policy on
plagiarism (see general catalog for details). This course will use the resources of
turnitin.com, which searches the web for possible plagiarism and is over 90% effective.

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Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted materials, including music and software.
Copying, displaying, reproducing, or distributing copyrighted works may infringe the
copyright owner’s rights and such infringement is subject to appropriate disciplinary action
as well as criminal penalties provided by federal law. Usage of such material is only
appropriate when that usage constitutes “fair use” under the Copyright Act. As a UT Dallas
student, you are required to follow the institution’s copyright policy (Policy Memorandum
84-I.3-46). For more information about the fair use exemption, see
http://www.utsystem.edu/ogc/intellectualproperty/copypol2.htm

Email Use The University of Texas at Dallas recognizes the value and efficiency of communication
between faculty/staff and students through electronic mail. At the same time, email raises
some issues concerning security and the identity of each individual in an email exchange.
The university encourages all official student email correspondence be sent only to a
student’s U.T. Dallas email address and that faculty and staff consider email from students
official only if it originates from a UTD student account. This allows the university to
maintain a high degree of confidence in the identity of all individual corresponding and the
security of the transmitted information. UTD furnishes each student with a free email
account that is to be used in all communication with university personnel. The Department of
Information Resources at U.T. Dallas provides a method for students to have their U.T.
Dallas mail forwarded to other accounts.

Withdrawal The administration of this institution has set deadlines for withdrawal of any college-
from Class level courses. These dates and times are published in that semester's course catalog.
Administration procedures must be followed. It is the student's responsibility to
handle withdrawal requirements from any class. I cannot drop or withdraw any
student. You must do the proper paperwork to ensure that you will not receive a final
grade of "F" in a course if you choose not to attend the class once you are enrolled. I am
available for counseling, if you need me before you reach the decision.
Last day to drop the course with a "W": Monday December, 6 2010

Student Procedures for student grievances are found in Title V, Rules on Student Services and
Grievance Activities, of the university’s Handbook of Operating Procedures.
Procedures
In attempting to resolve any student grievance regarding grades, evaluations, or other
fulfillments of academic responsibility, it is the obligation of the student first to make a
serious effort to resolve the matter with the instructor, supervisor, administrator, or committee
with whom the grievance originates (hereafter called “the respondent”). Individual faculty
members retain primary responsibility for assigning grades and evaluations. If the matter
cannot be resolved at that level, the grievance must be submitted in writing to the respondent
with a copy of the respondent’s School Dean. If the matter is not resolved by the written
response provided by the respondent, the student may submit a written appeal to the School
Dean. If the grievance is not resolved by the School Dean’s decision, the student may make a
written appeal to the Dean of Graduate or Undergraduate Education, and the deal will appoint
and convene an Academic Appeals Panel. The decision of the Academic Appeals Panel is
final. The results of the academic appeals process will be distributed to all involved parties.

Copies of these rules and regulations are available to students in the Office of the Dean of
Students, where staff members are available to assist students in interpreting the rules and
regulations.

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Incomplete As per university policy, incomplete grades will be granted only for work unavoidably
Grades missed at the semester’s end and only if 70% of the course work has been completed.
An incomplete grade must be resolved within eight (8) weeks from the first day of the
subsequent long semester. If the required work to complete the course and to remove the
incomplete grade is not submitted by the specified deadline, the incomplete grade is
changed automatically to a grade of F. You must do the proper paperwork and
submit timely for my approval to ensure that you will not receive a final grade of
"F" in the course.

Off-Campus Off-campus, out-of-state, and foreign instruction and activities are subject to state law
Instruction and and University policies and procedures regarding travel and risk-related activities.
Course Information regarding these rules and regulations may be found at
Activities http://www.utdallas.edu/BusinessAffairs/Travel_Risk_Activities.htm. Additional
information is available from the office of the school dean.
Religious
Holy Days The University of Texas at Dallas will excuse a student from class or other required activities
for the travel to and observance of a religious holy day for a religion whose places of
worship are exempt from property tax under Section 11.20, Tax Code, Texas Code
Annotated. .The student is encouraged to notify the instructor or activity sponsor as soon as
possible regarding the absence, preferably in advance of the assignment. The student, so
excused, will be allowed to take the exam or complete the assignment within a reasonable
time after the absence: a period equal to the length of the absence, up to a maximum of one
week. A student who notifies the instructor and completes any missed exam or assignment
may not be penalized for the absence. A student who fails to complete the exam or
assignment within the prescribed period may receive a failing grade for that exam or
assignment.

If a student or an instructor disagrees about the nature of the absence [i.e., for the purpose of
observing a religious holy day] or if there is similar disagreement about whether the student
has been given a reasonable time to complete any missed assignments or examinations,
either the student or the instructor may request a ruling from the chief executive officer of the
institution, or his or her designee. The chief executive officer or designee must take into
account the legislative intent of TEC 51.911(b), and the student and instructor will abide by
the decision of the chief executive officer or designee.

The course continues the emphasis on accounting concepts and theory; analysis of
Course liabilities and equities; alternative accounting methods for special topics such as leases,
Objectives pensions, and 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.
(1) Apply US GAAP and IFRS as it pertains to accounting principles for current and
long-term liability accounts.
(2) Apply US GAAP and IFRS as it pertains to accounting principles for stockholder’s
equity accounts.
(3) Continue to develop the skills to prepare financial statements in accordance with US
GAAP and IFRS. Any others deemed important by the instructor.

6
 To further ensure your success, I suggest you follow these strategies:
There is no special secret to succeeding in this course. Most students who are committed
to the “5 Ps” have little trouble:

Strategies For 1. Preparation. Do the assigned readings so that the class explanation will mean more.
Success: Apply your knowledge to problem solving, the more you solve, the better you learn.
Preparation is success.
2. Presence. If you are not present, then you cannot learn and you cannot add your
expertise to the group explanation. Exchange contact data with a classmate so that if
you miss a class you stay informed.
3. Promptness.
4. Participation. Each student’s learning is best facilitated by regular participation. Each
student is responsible for sharing his or her understanding and judgment with the class
to advance the group’s collective skills and knowledge.
5. Practice. Do enough exercises to turn the “theoretical information” into “practical
skills”
6. Re-do homework, to become proficient. Copying solutions≠ working problems.
Analyze and learn from your mistakes. Failure is a great way to learn.
7. “Read the English!” If you understand the question you will solve the problem.

The amount you learn depends on how carefully you read and analyze everything in this
course. Read and come to class ready to contribute just as though you were preparing
for a (worthwhile) meeting at work. At the completion of the chapter you should possess
a good amount of knowledge of the material covered. To retain as much as possible, this
is the best time to prepare the “one-sheet”. Here is what to do:
1) Use only one sheet of paper—
2) Give it a title: Bonds (example)
3) Divide the sheet into 3 parts (do not have to be equal)
--Content: describe the bonds in theory—their essence quick and to the point
-- Major issues: sales, present value, contra accounts, amortization, issue costs,
conversion, retirement, issue with warrants, exchange
-- Impact on the financial statements
Bondholders (not stockholders) interest (not dividends), leverage (not capitalization)
creditors (not partners). You must be able to say it in one sheet: revise until all
superfluous material has been eliminated.

Method of The theory and philosophy of accounting for Intermediate will be presented through
Presentation: lectures and handouts. The student’s participation is essential.

Be very prepared for class. Preparation requires that you read the assigned materials and
work through the examples in the readings.

I HEAR AND I FORGET, I SEE AND I REMEMBER, I DO AND I UNDERSTAND

I am looking forward to meeting you and to get to know each of you during the upcoming semester.
I know you have alternatives: thank you for choosing my class.