AMIS 522 Intermediate Accounting
Winter 2009
John Fellingham
Fisher 406a
General Description
The course deals with theory and practice in the academic discipline of accounting.
Although the course has an academic focus, it is not divorced from practical issues. The
topics can be generally described as a partial list of items on the balance sheet, including
accounting for investments, bonds, leases, and shareholders’ equity, as well as share
based compensation issues. But, in a larger sense, it is not possible to partition in a crisp
fashion. For example, consideration of stock options for executive compensation leads
naturally to a discussion of the pricing of derivative securities: an important topic in the
current financial environment. Derivative security valuation, in turn, is illuminated by a
close look at the foundations of the double entry system. An academic approach to our
study of accounting will suggest other useful connections across topics.
Text and Reading Materials
Spiceland, Sepe, Nelson, and Tomassini (SSNT). Intermediate Accounting. McGraw-Hill
Irwin, ISBN-10: 0-07-352687-4, ISBN-13: 978-0-07-352687-4, Fifth Edition.
Class notes are available on the course website.
http://fisher.osu.edu/~fellingham_1/522/index.html
There are eight chapters along with some additional reading notes. The relevant sections
are noted on the class schedule.
Recommended (optional):
Demski, J., Managerial Uses of Accounting Information, revised edition, Springer, ISBN
978-0387-77450-3.
Much of our discussion will treat accounting as an information system. The Demski text
offers valuable perspective and rigor. In addition, the treatment of multi-period cost
functions is particularly helpful for economic income.
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Course Requirements and Grading
Grades will be assigned based on cumulative performance in the course, using the
following weights for the components:
Making a positive contribution
to the learning environment
Midterm exam
Comprehensive final exam
15%
40%
45%
No makeup midterm exams are offered. Students must provide a valid reason in advance
or will receive zero credit for the exam.
Examinations
The exams are cumulative, closed-book, closed-note, in-class examinations. Make-ups
for the final exam will be given only for reasons acceptable according to University
guidelines. The midterm date is noted on the course schedule; the final will be given at
the time determined by the University.
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Preliminary schedule for AMIS 522 Winter 2009:
Topics
Readings
Investments
Ch. 12 in SSNT, particularly Illustration 12-1.
Economic Income
Ch. 6 in class notes (Long-lived assets and
liabilities)
Bonds and Leases
Ch. 14 and ch. 15 in SSNT, note illustration
14-2
Linear Algebra and
Accounting
Reading entitled “a little matrix algebra” and
ch. 1 in class notes, the section on linear
algebra
Regression and Accounting
Reading entitled “projections” and ch. 3 in
class notes, methods one, two, and three.
Midterm Exam
2/10/09
Uncertainty and
Amortization
Ch. 7 in class notes
Amortization rates and
Eigenvalues
Ch. 8 in class notes
Share based compensation
Ch. 19 in SSNT, particularly Illustrations 19-1
and 19-2
Pricing of derivative
securities
Second half of ch. 4 in class notes (the theorem
of the separating hyperplane)
and ch. 5 in class notes (accounting and
equilibrium)
Shareholders’ Equity
Ch. 18 in SSNT
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