Course Syllabus - business.ju.edu.jobusiness.ju.edu.jo/Lists/Courses/Attachments/333... · Abu Nassar, Advanced Accounting , 2019, dar Wael, Amman -Jordan 24. References: (Make sure

QF-AQAC-03.02BS.1.2 Course Syllabus

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Course Syllabus

1. Department Name: Accounting 2. Program Name: Bachelor of Accounting 3. Program Code

4. Course Code and Title: Advanced Accounting 1602401 5. Course credits: 3 6. Pre-requisites: Intermediate accounting 1 7. Course Instructor/ Coordinator

Name, Email and Office hours Prof. Mohammad Abu Nassar

[email protected] 9 – 11 Sunday, Tuesday Thursday 9.30 – 11 Monday and Wednesday

8. Course web-page:

9. Academic year:

10. Semester: First Second Summer

11. College: School of Business

12. Department:

13. Program:

14. Course code:

15. Course title:

16. Course credits:

17. Pre-requisites: 18. Lectures Timing & Location: (10.30-11.45) Building 5 19. Course web-page:

20. Course coordinator:

21. Academic year: 2018-2019 22. Semester: First Second Summer

23. Textbook(s) (Make sure you have one textbook – resource materials online) Abu Nassar, Advanced Accounting , 2019, dar Wael, Amman -Jordan

24. References: (Make sure that the references are available in the Library and online)

Advanced Accounting, 6th Edition International Student Version, Debra C.

Jeter, Paul K. Chaney, 2019, John Wiley.

25. Other resources used (e.g. periodicals, software, eLearning, site visits, etc.):

http://sps.northwestern.edu/program-areas/post-baccalaureate/advanced-accounting

http://eu.wiley.com/WileyCDA/Section/id-302479.html?query=Debra+C.+Jeter

http://eu.wiley.com/WileyCDA/Section/id-302479.html?query=Debra+C.+Jeter

http://eu.wiley.com/WileyCDA/Section/id-302479.html?query=Paul+K.+Chaney


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26. Course description (from the catalog)

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.

27. 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.)

Mapping to PILOs

CILOs (Preferred not to exceed 12 CILOs)

a b c d e f g h i J k

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

28. Course evaluation: (Formative and summative assessment methods are expected)

Assessment Type

Details/ Explanation of Assessment in relation

to CILOs

Number Weight Date(s)

Quizzes %

Midterms 30 %

Assignments 5 %


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29. Description of Topics Covered (The description should be from the textbook used)

Topic Title (e.g. chapter title)

Description

Business Combinations 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. 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.

Stock Investments–Investor Accounting

and Reporting

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.

An Introduction to Consolidated Financial

Statements

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.

Projects/Case Studies

15%

Final 50%

Total 100%


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8 Prepare the consolidated workpapers and eliminating entries at the date of acquisition

Consolidation Techniques and

Procedures

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 work paper 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 work paper 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.

Intercompany Profit Transactions–

Inventories

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 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 work papers for firms with upstream and downstream sales using the cost, partial equity, and complete equity methods.

Intercompany Profit Transactions–Plant

Assets

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


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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

Intercompany Profit Transactions–Bond

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

Derivatives and

Foreign Currency:

Concepts and

Common

Transactions

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

Foreign Currency

Financial Statements

1 Understand the objectives of financial statement translation. 3 Identify 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.


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30. Course Weekly Breakdown:

Week Date Topics covered CILOs Teaching Method Assessment

1 Accounting for Business Combinations

Lecturing Exams and participation

2 Accounting for Business Combinations


3 Consolidated Financial Statements-Date of

Acquisition


4 Consolidated Financial Statements-Date of

Acquisition


5 Consolidated Financial Statements After Acquisition (1)








9 Midterm Exam

10 Elimination of Unrealized Profit on Intercompany

Sales of Inventory


11 Elimination of Unrealized Gains Or Losses on

Intercompany Sales of Property and Equipment


12 Elimination of Unrealized Gains Or Losses on

Intercompany Sales of Land


13 Accounting for Foreign Currency Transactions


14 Translation of Financial Statements of Foreign

Affiliates


15 Translation of Financial Statements of Foreign

Affiliates


16 Final examination week


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31. Others:

Description

Attendance policies:

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.

Absences from exams and handing in assignments on time:

Health and safety procedures:

Honesty policy regarding cheating, plagiarism, misbehavior:

Course Coordinator: Prof. Mohammad Abu Nassar Add your Signature

Head of Department: Dr Hamzah Al-Mawali Add your Signature

Head of curriculum committee/ School Level:

Type the Name Add your Signature

Dean: Prof. . Fayze hadad Add your Signature

Approved by the Program Coordinator/ Head of the Department on:

Type the date: DAY/MONTH/YEAR

Copy to:

Head of Department

Assistant dean for Development and Quality Assurance

Course Portfolio

Documents

Course Syllabus - business.ju.edu.jobusiness.ju.edu.jo/Lists/Courses/Attachments/333... · Abu Nassar, Advanced Accounting , 2019, dar Wael, Amman -Jordan 24. References: (Make sure