Syllabus for ACC-603

ACCOUNTING THEORY


COURSE DESCRIPTION

This course studies the Generally Accepted Accounting Principles (GAAP) as they affect today's practitioners.  The course emphasizes is on accounting conceptual framework and philosophy which includes income, liability, and asset valuation based on inductive, deductive, and capital market approaches. The course also surveys price level changes, monetary and non-monetary factors, problems of ownership equities, and the disclosure of relevant information to investors and creditors.

COURSE TOPICS

  1. Accounting in US since 1930
  2. The role of the American Institute of Certified Public Accountants (AICPA)
  3. The role of the Accounting Principles Board (APB)
  4. The role of the Financial Accounting Standards Board (FASB)
  5. The role of ethics in accounting
  6. The development of the International Financial Reporting Standards (IFRS)
  7. Early developed accounting theory
  8. The American Accounting Association’s (AAA) conceptual framework
  9. FASB’s conceptual framework project
  10. the International Accounting Standards Board’s (IASB) – FASB joint financial statement presentation project
  11. The role of the International Accounting Standards Committee (IASC)
  12. The role of the IFRS Foundation
  13. The IASB-FASB convergence project
  14. The Securities and Exchange Commission (SEC) roadmap to convergence
  15. The deductive and inductive approaches
  16. Fundamental analysis
  17. The Capital Asset Pricing Model (CAPM)
  18. Normative and positive accounting theory
  19. The agency theory
  20. The nature of income
  21. Historical-cost and current-value accounting models
  22. Accounting for inflation
  23. Revenue recognition and realization
  24. Quality of earnings and earnings management
  25. Fraudulent financial reporting
  26. Income statement elements

  1. The APB Opinion No. 9
  2. Discontinued operations
  3. Extraordinary items
  4. Cumulative effect of change in accounting principle
  5. Basic and diluted earnings per share
  6. Comprehensive income statement
  7. Correction of errors
  8. Balance sheet elements
  9. Fair value measurement
  10. Elements of the statement of cash flow
  11. FASB Standard No. 95
  12. Evaluating an entity’s financial health
  1. Components of working capital
  2. Uses of working capital
  3. Financial analysis of an entity’s working capital position
  4. Self-constructed assets
  5. Fixed asset group purchases
  6. The depreciation process
  7. Impairment of fixed assets
  8. Accounting for asset retirement obligations
  9. International Accounting Standards No. 16, 23, and 36
  10. FASB Standard No. 115
  11. The cost and equity methods
  12. The fair value option
  13. Accounting for investments in debt securities
  14. Transfer of financial assets
  15. FASB Standard No. 142
  16. Accounting for research and development costs
  17. The International Accounting Standards No. 28, 32, and 36
  18. Accounting Fair Value Measurement
  19. The Recent Financial Crisis

COURSE OBJECTIVES

After completing this course, students will be able to:

  1. Explain the sources of the Generally Accepted Accounting Principles (GAAP).
  2. Evaluate various accounting conceptual framework projects.
  3. Explain the objectives and the uses of the International Accounting Standards.
  4. Assess various research methodologies to develop accounting theory.
  5. Assess the quality of earnings.
  6. Explain the elements of the income statement and the comprehensive income statement.
  7. Explain the elements of the balance sheet and the statement of cash flow.
  8. Explain the components of working capital.
  9. Explain the proper accounting treatment for property, plant, and equipment.
  10. Explain the proper accounting treatment for long-term investments and intangible assets.
  11. Analyze the relationship between the accounting fair value measurement and the recent financial crisis.

COURSE MATERIALS

You will need the following materials to do the work of the course. The required textbook is available from the College’s textbook supplier, MBS Direct.


Required Textbook

  1. Financial Accounting Theory and Analysis: Text and Cases, 10th Edition

by Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey.





ISBN-13: 978-0-470-64628-1

COURSE STRUCTURE

Accounting Theory is a three-credit online course, consisting of ten (10) modules. Modules include an overview, topics, study materials, and activities. Module titles are listed below.

  1. Module 1: Accounting History
    Course objectives covered in this module: 1
  2. Module 2: Accounting Conceptual Framework
    Course objectives covered in this module: 2
  3. Module 3: International Accounting Standards
    Course objectives covered in this module: 3
  4. Module 4: Developing Accounting Theory
    Course objectives covered in this module: 4
  5. Module 5: Income Measurement
    Course objectives covered in this module: 5
  6. Module 6: Income Statement
    Course objectives covered in this module: 6
  7. Module 7: Balance Sheet and Statement of Cash Flow
    Course objectives covered in this module: 7
  8. Module 8: Working Capital Concept
    Course objectives covered in this module: 8

  1. Module 9: Property, Plant, and Equipment
    Course objectives covered in this module: 9
  2. Module 10: Long-Term Investments and Intangible Assets
    Course objectives covered in this module: 10

Consult the course Calendar for assignment due dates.

ASSESSMENT METHODS

For your formal work in the course, you are required to participate in online discussion forums, complete written assignments and complete a final project. See below for details.

Consult the course Calendar for assignment due dates.

Discussion Forums

You are required to participate in ten (10) graded discussion forums.  Discussion forums are on a variety of topics associated with the courses modules. There is also an ungraded but required introduction forum in Module 1.

Written Assignments

You are required to complete ten (10) written assignments. The written assignments are on a variety of topics associated with the course modules.

Final Project

The Final Project requires 10-12 pages of academic research paper written in APA Style. The paper should include: title page, abstract, keywords, introduction, discussion and analysis, conclusion, and references.

GRADING AND EVALUATION

Your grade in the course will be determined as follows:

  1. Online discussions (10)20 percent
  2. Written assignments (10)50 percent
  3. Final project30 percent

All activities will receive a numerical grade of 0–100. You will receive a score of 0 for any work not submitted. Your final grade in the course will be a letter grade. Letter grade equivalents for numerical grades are as follows:

A

=

93–100

B–

=

80–82

A–

=

90–92

C+

=

78–79

B+

=

88–89

C

=

73–77

B

=

83–87

F

=

Below 73

To receive credit for the course, you must earn a letter grade of C or higher on the weighted average of all assigned course work (e.g., assignments, discussion postings, projects, etc.). Graduate students must maintain a B average overall to remain in good academic standing.

STRATEGIES FOR SUCCESS

First Steps to Success

To succeed in this course, take the following first steps:

  1. Read carefully the entire Syllabus, making sure that all aspects of the course are clear to you and that you have all the materials required for the course.
  2. Take time to read the entire Online Student Handbook. The Handbook answers many questions about how to proceed through the course and how to get the most from your educational experience at Thomas Edison State College.
  3. Familiarize yourself with the learning management systems environment—how to navigate it and what the various course areas contain. If you know what to expect as you navigate the course, you can better pace yourself and complete the work on time.
  4. If you are not familiar with Web-based learning be sure to review the processes for posting responses online and submitting assignments before class begins.

Study Tips

Consider the following study tips for success:

  1. To stay on track throughout the course, begin each week by consulting the course Calendar. The Calendar provides an overview of the course and indicates due dates for submitting assignments, posting discussions, and scheduling and taking examinations.
  2. Check Announcements regularly for new course information.

ACADEMIC INTEGRITY

Students at Thomas Edison State College are expected to exhibit the highest level of academic citizenship. In particular, students are expected to read and follow all policies, procedures, and program information guidelines contained in publications; pursue their learning goals with honesty and integrity; demonstrate that they are progressing satisfactorily and in a timely fashion by meeting course deadlines and following outlined procedures; observe a code of mutual respect in dealing with mentors, staff, and other students; behave in a manner consistent with the standards and codes of the profession in which they are practicing; keep official records updated regarding changes in name, address, telephone number, or e-mail address;

and meet financial obligations in a timely manner. Students not practicing good academic citizenship may be subject to disciplinary action including suspension, dismissal, or financial holds on records.

Academic Dishonesty

Thomas Edison State College expects all of its students to approach their education with academic integrity—the pursuit of scholarly activity free from fraud and deception. All mentors and administrative staff members at the College insist on strict standards of academic honesty in all courses. Academic dishonesty undermines this objective. Academic dishonesty takes the following forms:

  1. Cheating
  2. Plagiarizing (including copying and pasting from the Internet without using quotation marks and without acknowledging sources)
  3. Fabricating information or citations
  4. Facilitating acts of dishonesty by others
  5. Unauthorized access to examinations or the use of unauthorized materials during exam administration
  6. Submitting the work of another person or work previously used without informing the mentor
  7. Tampering with the academic work of other students

Academic dishonesty will result in disciplinary action and possible dismissal from the College. Students who submit papers that are found to be plagiarized will receive an F on the plagiarized assignment, may receive a grade of F for the course, and may face dismissal from the College.

A student who is charged with academic dishonesty will be given oral or written notice of the charge. If a mentor or the College official believes the infraction is serious enough to warrant referral of the case to the academic dean, or if the mentor awards a final grade of F in the course because of the infraction, the student and the mentor will be afforded formal due process.

If a student is found cheating or using unauthorized materials on an examination, he or she will automatically receive a grade of F on that examination. Students who believe they have been falsely accused of academic dishonesty should seek redress through informal discussions with the mentor, through the office of the dean, or through an executive officer of Thomas Edison State College.

Plagiarism

Using someone else’s work as your own is plagiarism. Although it may seem like simple dishonesty, plagiarism is against the law. Thomas Edison State College takes a strong stance against plagiarism, and students found to be plagiarizing will be severely penalized. If you copy phrases, sentences, paragraphs, or whole documents word-for-word—or if you paraphrase by changing a word here and there—without identifying the author, then you are plagiarizing. Please keep in mind that this type of identification applies to Internet sources as well as to print-based sources. Copying and pasting from the Internet, without using quotation marks and without acknowledging sources, constitutes plagiarism. (For information about how to cite Internet sources, see Online Student Handbook > Academic Standards > “Citing Sources.”)

Accidentally copying the words and ideas of another writer does not excuse the charge of plagiarism. It is easy to jot down notes and ideas from many sources and then write your own paper without knowing which words are your own and which are someone else’s. It is more difficult to keep track of each and every


source. However, the conscientious writer who wishes to avoid plagiarizing never fails to keep careful track of sources.

Always be aware that if you write without acknowledging the sources of your ideas, you run the risk of being charged with plagiarism.

Clearly, plagiarism, no matter the degree of the intent to deceive, defeats the purpose of education. If you plagiarize deliberately, you are not educating yourself, and you are wasting your time on courses meant to improve your skills. If you plagiarize through carelessness, you are deceiving yourself.

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