ACCOUNTING 460: International and Managerial Accounting Spring 2015 Section 4 – Tuesday, 6:00 – 8:45 p.m. (BusAd E202) Instructor: Office: Email: Office Phone: Office Hours: Jenny Teruya, Ph.D. Shidler College of Business D309 jteruya@hawaii.edu (please put “ACC 460” in subject line) 956-7118 Tuesday, 4:45 – 5:45 p.m., and by appointment Course Description and Objectives Course Catalog Description: Integration of numerous elements of the accounting program from an international perspective. Examines information for managerial decision-making, planning and control. Current accounting issues discussed. This course covers two subjects: Management Accounting and International Accounting. Management Accounting: This course covers methods used to report information for decision-making within manufacturing and service firms. Coverage includes cost-based managerial decision techniques; activity based costing; preparing and analyzing budgets; analysis of variances for performance evaluation, performance measurement, etc. The most important components of management accounting are: (a) costing, (b) planning and budgeting, and (c) control and performance measurements. International Accounting: International Accounting Standards are gaining worldwide acceptance and it is expected that the U.S. companies will eventually adopt some amount of International Financial Reporting Standards (IFRS). This has been spurred by such developments as the explosion of multinational firms and the international diversification of securities investments. The understanding of international accounting practices and reporting is crucial to any American business expecting to succeed in the international market. This course is designated an oral focus course. Therefore, discussions, student projects, and oral presentations in addition to traditional homework assignments and exams, will be used to reinforce course concepts as well as to evaluate the student's understanding of the material. This is the “capstone” course for accounting majors. This means that material from your previous accounting courses will be integrated into this course. You will also be asked to become more of an independent learner by taking on more of the responsibility of learning new material; a skill you will need to keep current on accounting throughout your career. Prerequisites: 418 (or concurrent), no waiver. 1 Course Materials 1. Atkinson, Kaplan, Matsumura, Young, Management Accounting: Information for Decision Making and Strategic Execution, 6th Edition, Pearson/Prentice-Hall, 2012 (required either in hard copy or e-book). 2. MyAccountingLab access (this will be used for homework submissions) Course ID: teruya95415 3. Laulima: various course materials will be made available on Laulima including required readings, homework assignments, project assignments, etc. Class Preparation Students are expected to come to class prepared. Preparation includes reading the chapter text, completing remedial exercises, completing homework assignments, etc., as indicated on the syllabus (students are responsible for obtaining information about any changes to the syllabus from their classmates). This will ensure that you are able to participate in class discussions. Check announcements on Laulima after 5:00 p.m. on the day prior to classes to download and/or print materials that will be required in class the following day. Expect to spend an average of 3 hours outside of class for every hour spent in class. Computers in the classroom Use of computers in the classroom is encouraged, but should be used solely for course work. Unauthorized use of your computer during class time will result in a 1% deduction from your final grade for each offense. These deductions are made solely at the discretion of the instructor. Grades The following grading weights will apply to the course: Homework (MyAccountingLab and written homework) Business plan project (various assignments and presentations) Financial Statement project IFRS vs. GAAP (handout and presentation) In-class group work Participation/evaluations/pop quizzes Mid-term Exam Final Exam (non-cumulative) Total 10% 25% 10% 15% 10% 5% 10% 15% 100% In fairness to other students, late work will not be accepted even for excused absences. For written assignments, if you think you will be late to class, you may email the assignment to me. You will still need to submit a hard copy of the assignment, but the time stamp on the email will be used to determine whether the assignment was submitted in a timely manner. The final grades will employ plus and minuses, within the A, B, C, D, and F framework (or I for incomplete). 2 Homework on MyAccountingLab: The majority of homework for the managerial accounting portion of the course will be submitted via MyAccountingLab (abbreviated as “MAL” on the tentative schedule). Each individual exercise/problem (there are multiple exercises/problems for each chapter) will be worth 1 point. A score of 75% or higher on each exercise will earn you the full point; no points will be earned for scores less than 75%. You may try each exercise up to 3 times (each attempt may provide a different set of numbers). On multi-part questions, you may “Check Answer” once for each part. Although the submissions are electronic, you should keep a written record of your supporting calculations. The assignments must be submitted by noon on the due date. Remedial exercises. These exercises cover topics that you should have learned in ACC 201 and 202. In most cases, we will not cover these topics in class, but you will need to understand them as this course will expand on them. Scores on these exercises will not be included in your course grade, however they must be satisfactorily completed (score of 75% or higher on each individual exercise) by 6:00 p.m. on the due date. A 1% reduction in your course grade will result for every calendar day late (starting at 6:01 p.m. on the due date). MyAccountingLab course ID (for remedial assignments only): teruya03605 Access Code: HSCOAE-GIGLI-FOUND-FAUNA-HIGHS-TUNES Written homework: You will be required to complete all of the homework for the international accounting portion of the class and some of the managerial accounting homework in written form. These assignments should be typed, with your name and assignment due date in the top right corner. A properly completed assignment should show supporting calculations and be formatted appropriately. Some of these assignments will be the basis of class discussions so will be useful in allowing you to participate in these discussions. These will be randomly collected and graded based on completeness as well as correctness (1 point for each problem collected). Handwritten assignments will not be accepted. Business plan project (group): Throughout the semester, in groups of 3 or 4, you will be putting together a business plan that will require you to utilize the concepts we will be learning. There will be numerous written assignments and at least one presentation required. Additional details to follow. Financial statement project: At the beginning of the semester, you will select a company’s financial statements that you and one other person will analyze. Additional details to follow. 3 IFRS vs. GAAP: In groups of 3 or 4, you will identify an area where U.S. GAAP differs from IFRS. A written summary of the differences (which will be shared with the rest of the class) as well as a presentation will be required. Additional details to follow. In-class group work: For many of the group assignments, class time will be provided to work in your groups. The groups will be evaluated on their group communication skills. Participation in class discussion/preparedness and quality of evaluations/pop quizzes: Throughout the semester, your participation in class discussions will be monitored. In order to participate, you have to be in class and be prepared. Therefore, while attendance is not required, absences will affect this portion of your grade severely. You will also be asked to evaluate the oral presentations of your classmates and the performance of group members on various assignments. The usefulness of your evaluations to the student (for purposes of improving their oral communication skills) and to the instructor (for evaluating the contributions of different group members) will be assessed. Finally, pop quizzes may be given (rarely) on material covered. Exams: There will be two exams for this course. They may contain multiple choice, short answer, computational problems and/or essays. Calculators will be provided for all exams. Make-up exams will be given only under very rare circumstances. In all cases, the instructor must be notified prior to the exam date and time. If the instructor is not available prior to the exam, leave a message on her voice mail (prior to the examination time). Failure to notify the instructor on a timely basis will result in a “0” for the exam. All excuses for illness must be supported by a doctor’s note. The final exam date is indicated on the attached assignment schedule so please make any travel plans accordingly. General comments on group assignments: Group submissions imply that all members of the group have participated in the preparation of and are responsible for and knowledgeable of the entire submission, not just the part he/she may have worked the most on. Unprofessional behavior: Students should be respectful of others in the class. Behavior that is disruptive and persistent will result in a 1% deduction from your final grade for each offense. These deductions are made solely at the discretion of the instructor. 4 Withdrawal/Drop Policy: The student has the responsibility to withdraw from the course by the appropriate deadline. If a student stops attending class and does not drop the course, a grade of "F" will be assigned at the end of the semester. Last day to drop without a “W”: Last day to drop with a “W”: January 20 Please check with OSAS in B101 for College deadline to drop classes Disability access: Students with disabilities are encouraged to contact the KOKUA program for information and services. Services are confidential and students are not charged for them. Contact KOKUA at 956-7511 (voice/text), kokua@hawaii.edu, or Student Services Center, Room 13. Important note: In the case of bomb threat, please meet at the corner of Maile Way and University Ave. I will then give you instructions regarding where the class will meet. Academic honesty (READ VERY CAREFULLY) Students are expected to behave with integrity in all academic endeavors. Cheating, plagiarism, as well as any other form of academic dishonesty, will not be tolerated. All incidents will be handled in accordance with the UH Student Code of Conduct. The UH Student Code of Conduct, is available at:http://www.studentaffairs.manoa.hawaii.edu/policies/conduct_code/. Please become very familiar with the University Student Conduct Code so you can make conscience and informed choices about your behavior. Some relevant portions of the code are included below for your convenience. Acts of dishonesty, types of behavior that conflict with the community standards that the UH values and expects of students, include but are not limited to the following: a. cheating, plagiarism, and other forms of academic dishonesty, b. furnishing false information to any UH official, faculty member, or office, c. forgery, alteration, or misuse of any UH document, record, or form of identification. The term "cheating" includes, but is not limited to: (1) use of any unauthorized assistance in taking quizzes, tests, or examinations; (2) use of sources beyond those authorized by the instructor in writing papers, preparing reports, solving problems, or carrying out other assignments; (3) the acquisition, without permission, of tests or other academic material belonging to a member of the UH faculty, staff or student (4) engaging in any behavior specifically prohibited by a faculty member in the course syllabus or class discussion. The term "plagiarism" includes, but is not limited to, the use, by paraphrase or direct 5 quotation, of the published or unpublished work of another person without full and clear acknowledgement. It also includes the unacknowledged use of materials prepared by another person or agency engaged in the selling of term papers or other academic materials. In addition to the above, the instructor specifically prohibits the following behaviors, and includes them within the definition of academic dishonesty: (1) providing another student with any form of direct or indirect, unauthorized assistance on any assignment, quiz, test or exam; and (2) copying, or recording in any manner, test or exam questions or answers. Please NOTE: UH disciplinary proceedings may be instituted against a student charged with conduct that potentially violates both the criminal law and this Student Conduct Code (that is, if both possible violations result from the same factual situation) without regard to the pendency of civil or criminal litigation in court or criminal arrest and prosecution. Engaging in any of the above activities AND/OR assisting others in the engagement of the above activities is not allowed. If you have a question about whether you may use a specific source to complete an assignment, please ASK before using it. Students caught cheating or plagiarizing will fail this course. 6 TENTATIVE SCHEDULE (This is meant to be a general guide for the course and changes are highly likely. Changes will be announced in class; students missing class should check with their classmates for such announcements.) Date January 13 Due January 20 Read Chapters 1-2 HW: Case, 1-17, E2-33 BP Individual: Identify key objectives for strategy January 27 Remedial HW: Costing due BP Group: Balanced Scorecards/Company overview/Description of processes write-up Read Ch. 3 (p. 62-78) Read Ch. 4 (p. 121-127, 146-150) MAL: Cost Classifications February 3 BP Individual: Identifying cost items and estimated costs MAL: Overhead cost allocation BP Group: Completed cost worksheets MAL: Allocating Service Department Costs Read Ch. 5 Remedial HW: Accounting Cycle Select Company for Financial Statement Project February 10 Coverage Course overview Communication skills Lecture: Strategy BP Groups: Discuss strategy Lecture: Balanced Scorecard BP Groups: Preparing Balanced Scorecard Financial Accounting Review: Accounting Cycle, Financial Statements, Conceptual Framework Presentations: “Sell your Company” Lecture: Cost categories and behavior Financial Accounting Review: Assets, Liabilities BP Group: Cost worksheets Lecture: Assigning costs to products Financial Accounting Review: Equity, Revenue Recognition, Leases Lecture: Activity Based Costing and Time-Driven Activity Based Costing FS Group: Begin Financial Statement project 7 Date February 17 February 24 March 3 Due MAL: Time-Driven Activity Based Costing Read Ch. 3 (p. 78-95) MAL: Using Cost Information BP Group: CVP and Decision-making Assignment MAL: Using cost information II Remedial HW: Budgeting Read Ch. 10 (p. 393-416, 431-435) 3 questions to review for exam FS Group: Met w/Jenny Coverage Lecture: Using cost information BP Group: CVP and Decision-making Assignment Lecture: Budgeting Exam Review Mid-term 1: Chapters 1-5, financial accounting review Brief review of mid-term BP Group: Begin Budget assignment Discussion: Should accounting standards be harmonized? March 10 MAL: Master Budget Arguments for/against harmonization March 17 Read Ch. 7 MAL: Facility Layout FS Group: Financial Statement Projects due Spring Break Lecture: Process Performance; Cost of Quality IFRS Group: IFRS Introduction BP Group: Budget MAL: Quality improvement Read Ch. 6 MAL: Customer profitability Read Foreign Currency transactions Lecture: Measuring Customer Relationships Lecture: Foreign Currency Transactions and hedging March 24 March 31 8 Date April 7 April 14 April 21 April 28 May 5 May 12 Due Coverage MAL: Customer Lecture: Production Variances Profitability-TDABC Lecture: Foreign Currency Translations HW: Foreign currency transactions and forward contracts Read Ch. 10 (p. 417-428) Read Foreign Currency Translations IFRS Group: Handout due IFRS Group: Have met IFRS Presentations with Jenny HW: Foreign Currency Translation BP Individual: Calculate IFRS Presentations variances BP Group: Variance Analysis BP Group: Variance Lecture: Sales Variances Analysis Lecture: Transfer Pricing Read Ch. 10 (p. 428-430) MAL: Sales Variances Lecture: Evaluating divisional performance Read Ch. 11 Review for Exam MAL: Responsibility Accounting 3 questions to review for exam MAL: Responsibility Final Exam Accounting II 9