University of Jordan Jordan University Business School (JUBS)

Transcription

1 University of Jordan Jordan University Business School (JUBS) Course Syllabus Form 1. College: School of Business 2. Department: Accounting 3. Program: Bachelor of Accounting 4. Course code: Course title: Advanced Accounting 6. Course credits: 3 7. Pre-requisites: Intermediate accounting 1 8. Lectures Timing & Location: (8-9) Building 5 9. Course web-page: 10. Course coordinator: Prof. Mohammad Abu Nassar 11. Academic year: Semester: First Second Summer 13. Textbook(s)(Make sure you have one textbook resource materials online) Abu Nassar, Advanced Accounting, 2016, dar Wael, Amman -Jordan 14. References:(Make sure that the references are available in the Library and online) Advanced Accounting, 5th Edition International Student Version, Debra C. Jeter, Paul K. Chaney, 2016, John Wiley Other resources used (e.g. periodicals, software, elearning, site visits, etc.): 53F35A?opendocument 16. Course description The course explains the accounting concepts and practices underlying business combinations. The course covers the following issues; the legal forms of business combinations, the use of purchase and pooling accounting, the different methods available as accounting treatment for the investment account; these include, the equity method, the cost method and the incomplete equity method, the basic consolidation procedures for the financial statements of the parent and its subsidiary, intercompany transactions such as land, inventory, depreciable assets and bonds, and intercompany leasing. Other issues include the impact of changes in the percentage of ownership on the consolidation procedures, the existence of preferred stocks, complex affiliation, and foreign currency translation. After a successful completion of this course, Students should achieve the following outcomes: 1

2 17. Course Intended Learning Outcomes: (All CILOs must start with an action verb, please use ANNEX I for getting a better understanding of the Action Verbs and Blooms Taxonomy. The mapping of the CILOs with relevance to the PILOs of the program.) Mappingto PILOs CILOs a b c d e f g h i j k 18. Course evaluation:(formative and summative assessment methods are expected) Assessment Type Details/ Explanation of Assessment in relation to CILOs Number Weight Date(s) Quizzes 10 % Midterms 30 % Assignments 10 % Projects/Case Studies Final 50% Total 100% % 19. Description of Topics Covered(The description should be from the textbook used) Topic Title (e.g. chapter title) Business Combinations Description 1. Describe historical trends in types of business combinations. 2 Identify the major reasons firms combine. 3 Identify the factors that managers should consider in exercising due diligence in business combinations. 4 Identify defensive tactics used to attempt to block business combinations. 5 Distinguish between an asset and a stock acquisition. 6 Indicate the factors used to determine the price and the method of payment for a business combination. 2

3 Stock Investments Investor Accounting and Reporting An Introduction to Consolidated Financial Consolidation Techniques and Procedures Intercompany Profit Transactions Inventories 7 Calculate an estimate of the value of goodwill to be included in an offering price by discounting expected future excess earnings over some period of years. 8 Describe the two alternative views of consolidated financial statements: the economic entity and the parent company concepts. 1. Explain how acquisition expenses are reported. 2. Describe the use of pro forma statements in business combinations. 3. Describe the valuation of assets, including goodwill, and liabilities acquired in a business combination accounted for by the acquisition method. 4 Explain how contingent consideration affects the valuation of assets acquired in a business combination accounted for by the acquisition method. 1 Understand the concept of control as used in reference to consolidations. 2 Explain the role of a noncontrolling interest in business combinations. 3 Describe the reasons why a company acquires a subsidiary rather than its net assets. 4 Describe the valuation and classification of accounts in consolidated financial statements. 5 List the requirements for inclusion of a subsidiary in consolidated financial statements. 6 Discuss the limitations of consolidated financial statements. 7 Record the investment in the subsidiary on the parent s books at the date of acquisition. 8 Prepare the consolidated workpapers and eliminating entries at the date of acquisition 1.Describe the accounting treatment for varying levels of influence or control by investors. 2 Prepare journal entries on the parent s books to account for an investment using the cost method, the partial equity method, and the complete equity method. 3 Understand the use of the workpaper in preparing consolidated financial statements. 4 Prepare a schedule for the computation and allocation of the difference between implied and book values. 5 Prepare the workpaper eliminating entries for the year of acquisition ( and subsequent years) for the cost and equity methods. 6 Describe two alternative methods to account for interim acquisitions of subsidiary stock at the end of the first year. 7 Explain how the consolidated statement of cash flows differs from a single firm s statement of cash flows. 8 Understand how the reporting of an acquisition on the consolidated statement of cash flows differs when stock is issued rather than cash. 1.Describe the financial reporting objectives for intercompany sales of inventory. 2 Determine the amount of intercompany profit, if any, to be eliminated from the consolidated statements. 3 Understand the concept of eliminating 100% of intercompany profit not realized in transactions with outsiders, and know the authoritative 3

4 Intercompany Profit Transactions Plant Assets Intercompany Profit Transactions Bond Derivatives and Foreign Currency: Concepts and Common Transactions Foreign Currency 4 position. 4 Distinguish between upstream and downstream sales of inventory. 5 Compute the noncontrolling interest in consolidated net income for upstream and downstream sales, when not all the inventory has been sold to outsiders. 6 Prepare consolidated workpapers for firms with upstream and downstream sales using the cost, partial equity, and complete equity methods. 1 Understand the financial reporting objectives in accounting for intercompany sales of nondepreciable assets on the consolidated financial statements 2 State the additional financial reporting objectives in accounting for intercompany sales of depreciable assets on the consolidated financial statements 3 Explain when gains or losses on intercompany sales of depreciable assets should be recognized on a consolidated basis 4 Explain the term realized through usage 5 Describe the differences between upstream and downstream sales in determining consolidated net income and the controlling and noncontrolling interests in consolidated income 6 Compare the eliminating entries when the selling affiliate is a subsidiary (less than wholly owned) versus when the selling affiliate is the parent company 7 Compute the noncontrolling interest in consolidated net income when the selling affiliate is a subsidiary 8 Compute consolidated net income considering the effects of intercompany sales of depreciable assets 1 Understand the financial reporting objectives in accounting for intercompany sales of Bond on the consolidated financial statements 2 State the additional financial reporting objectives in accounting for intercompany sales of Bond on the consolidated financial statements 3 Explain when gains or losses on intercompany sales of Bond should be recognized on a consolidated basis 4. Describe the differences between upstream and downstream sales in determining consolidated net income and the controlling and Bond interests in consolidated income 5 Compare the eliminating entries when the selling affiliate is a subsidiary (less than wholly owned) versus when the selling affiliate is the parent company 6 Compute the noncontrolling interest in consolidated net income when the selling affiliate is a subsidiary 7 Compute consolidated net income considering the effects of intercompany sales of Bond 1 Distinguish between the current exchange rate and the historical exchange rate. 2 Explain the factors involved in translating the statements of a foreign entity operating in a highly inflationary economy. 3. Identify the disclosure requirements for firms with foreign entities 1 Understand the objectives of financial statement translation. 3 Identify

5 Financial the functional currency of a foreign entity. 2. Compare the two methods used to convert the financial statements of a foreign entity into U. S. dollars. 3. Distinguish between the circumstances under which each of the two methods is appropriate 4. Explain the factors involved in translating the statements of a foreign entity operating in a highly inflationary economy. 5. Translate the statements of a foreign entity when the functional currency is the local currency. 6. Translate the statements of a foreign entity when the functional currency is thejd. 7. Understand the concept of comprehensive income in the context of foreign currency translation. 1. Course Weekly Breakdown: Week Date Topics covered CILOs Teaching Method Assessment 1 Jan. 29 th Business Combinations 2 Feb. 5 th Stock Investments Investor Accounting and Reporting 3 Feb. 12 th An Introduction to Consolidated Financial 4 Feb. 19 th An Introduction to Consolidated Financial 5 Feb. 26 th Consolidation Techniques and Procedures 6 Mar. 5 th Consolidation Techniques and Procedures 7 Mar. 12 th Intercompany Profit Transactions Inventories 8 Mar. 19 th Intercompany Profit Transactions Plant Assets 9 Mar. 26 th Intercompany Profit Transactions Plant Assets 10 Apr. 2 nd Intercompany Profit Transactions Bond 11 Apr. 9 th Intercompany Profit Transactions Bond 12 Apr. 16 th Derivatives and Foreign Currency: Concepts and Common Transactions 13 Apr. 23 rd Derivatives and Foreign Currency: Concepts and Common Transactions 14 Apr. 30 Foreign Currency Financial 15 May 7 th Foreign Currency Financial 5

6 16 May 14 th Final Exam 2. Others: Attendance policies: Absences from exams and handing inassignmentson time: Description Students are not allowed to miss more than 15% of the classes during the semester. Failing to meet this requirement will be dealt with according to the university disciplinary rules. Health and safety procedures: Honesty policy regarding cheating, plagiarism, misbehavior: Course Coordinator: Prof. Mohammad Abu Nassar Add your Signature Head of Department: Dr. Ghaleb Aburumman Add your Signature Dean: Prof. Rifat Shannak Add your Signature Approved by the Quality officer of the department on: Type the date: DY/MO/Year Copy to: Chair of Department Assistant dean for Development and Quality Assurance Course Portfolio 6