Regis University
Regis College Division of Business
AC410B – Intermediate Accounting II
Spring Term 2010
Instructor:
Phone:
E-Mail:
Web page:
J. Daniel Daly, S.J.
(303) 964-5113
jddaly@regis.edu
academic.regis.edu/ddaly
Office: Main Hall 341
Hours: M
2:30 p.m. – 4:00
T
11:00 a.m. – 12:00
W
10:00 a.m. – 11:00
W
1:30 p.m. – 3:00
p.m.
p.m.
a.m.
p.m.
Intermediate Accounting II provides an in-depth study of financial accounting including theory
and problems. Topics in the course include accounting for intangible assets, liabilities,
stockholders’ equity, and investments.
The textbook used in this course is:
Intermediate Accounting, Thirteenth Edition. Donald E. Kieso, Jerry J. Weygandt, and
Terry D. Warfield. (New York: John Wiley & Sons, Inc., 2010.)
Daily Assignments and Class Participation
A schedule of classes and assignments is provided on the following pages. Direct links to
assigned articles can be found on the SharePoint page for this class. In preparation for class,
students should read the assigned material and complete the written work by the date indicated.
During class students will be asked to contribute to discussions, raise questions and explain their
answers to the assigned questions.
Class Notes
PowerPoint slides used in class presentations are available on the web page listed above. These
slides are provided as an optional study aid; students are not required to have copies of the
slides for class. When printing the slides, it works best to request “Handouts” with 2 or 3 slides
per page. To save color ink, print using “Grayscale.”
Quizzes
Five quizzes will be given during the semester as indicated on the schedule of assignments.
Quizzes are given at the beginning of class. Quiz questions will be based on the material covered
in class or assigned for reading since the last quiz or exam. For example, the quiz on February
3rd will be based on the material covered in classes January 22nd through 29th inclusive.
Students who are unable to take a quiz at the scheduled time due to a pre-excused absence
should arrange to take the quiz at another time. Absences are generally pre-excused for schoolsponsored activities, serious illnesses, and personal / family emergencies provided the student
contacts the instructor before the class begins. Students who miss the quiz without being
excused beforehand will not be able to make-up the quiz.
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Exams
Two midterm examinations will be held during class time. The final exam will be held at the
time scheduled by the university. The exams will consist of multiple choice questions, problems,
and short essays based on assignments, lectures, and class discussions. The final exam will be
cumulative and will emphasize the last portion of the class. Students unable to take an exam at
the designated time must talk with the instructor before the exam and make alternative
arrangements.
Accommodations for Students with Disabilities
A student with a documented disability requiring accommodations for this class should meet
with the director of Disability Services (303-458-4941). Following the meeting the student
should make an appointment with me to discuss the accommodation request. Students are
encouraged to self-disclose and request special arrangements as soon as possible because
accommodations are not provided retroactively and adequate lead-time is required.
Grades
In the determination of grades, the following weighting will be used (the chapter weightings for
exams are approximate):
First midterm examination
Second midterm examination
Final examination
Quizzes
Homework
Attendance and participation
Ch11 Ch12 Ch13 Ch14 Ch15 Ch16 Ch17 Total
5%
5%
8%
18%
7%
9%
8%
24%
2%
2%
4%
3%
4%
4%
9% 28%
10%
10%
10%
In determining the quiz average, the lowest quiz grade will be dropped. A missed quiz, for
which no prior arrangements have been made, counts as a zero.
Homework assignments will be collected on a random basis. Late assignments will not be
accepted. If a student fails to submit an assignment due to a pre-excused absence, that
assignment will be dropped in the determination of the homework grade. Otherwise, missed
assignments count as a zero.
Attendance will be taken at the beginning of each class. Students who arrive to class after
attendance is taken will be marked absent.
Academic Integrity
Students are expected to maintain high standards of academic integrity in this class. Cheating on
a quiz or an exam is a serious violation of these standards. Cheating includes providing or
obtaining confidential information about a quiz or an exam to/from another student in
Intermediate Accounting. Students who violate integrity standards are likely to lose credit for the
quiz or exam and may be prohibited from completing the course.
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Consistent with the College's Academic Integrity Policy, I will report all violations of this
course’s academic integrity policy to the Dean’s office. Students who have committed multiple
instances of academic dishonesty can be subject to institutional penalties like probation,
suspension, or expulsion, in addition to the penalties for this course. The Academic Integrity
policy is described in the Bulletin; detailed information about the policy and the appeals process
can be found in the Dean's office.
Schedule of Assignments
Tuesday
1/19/10
Introduction
Thursday
1/21/10
Chapter 11: Depreciation Methods
Reading
pp. 538-551
Articles
Greenberg, Herb. “Alphabet Dupe: Why EBITDA Falls Short.” Fortune (July 10, 2000): 240241. (ON-LINE DATABASE: BUSINESS SOURCE PREMIER.)
Shook, David. “EBITDA’s Foggy Bottom Line.” Business Week Online (January 14, 2003).
(ON-LINE DATABASE: BUSINESS SOURCE PREMIER.)
Written
E11-6, E11-9, E11-13 (Estimated time to complete exercises: 30+20+20)
Article Question: For each of the following companies, indicate why EBITDA was an
inadequate measure of performance and what measure of performance might have been
better: Premier Parks, Service Corp., AOL Time Warner.
Last day to add or drop a class is Tuesday, January 26.
Tuesday
1/26/10
Chapter 11: Impairments and Depletion
Reading
pp. 551-563
Articles
Bernasek, Anna. “What big profits you have!” Fortune (September 15, 2003): 38. (ON-LINE
DATABASE: BUSINESS SOURCE PREMIER.)
Written
E11-11, E11-17, E11-21, E11-22, E11-24 (15+20+20 +20+20)
Article Question: According to the author, how do accounting principles reward companies for
postponing capital investment?
Thursday
1/28/10
Chapter 12: Intangible Assets
Reading
pp. 588-601
Articles
Kenton, Christopher. “Value Beyond the Balance Sheet.” Business Week Online (February 3,
2005.) (ON-LINE DATABASE: BUSINESS SOURCE PREMIER.)
Written
E12-2, E12-4, E2-10, E12-13 (15+20+20+15)
Quiz #1
Article Question: What is the main recommendation that Christopher Kenton makes to
marketers?
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Tuesday
2/2/10
Chapter 12: Impairment of Intangible Assets
Reading
pp. 601-614
Articles
Rosen, Al. “Goodwill Games.” Canadian Business (January 31, 2005): 19. (ON-LINE
DATABASE: BUSINESS SOURCE PREMIER.)
Written
Question 12-27, E12-12, E12-16, E12-17, P12-5 (15+25+20+10+30)
Article Question: In the past, firms were required to amortize goodwill over a 30 or 40 year
life. Why does the author think that this system was better than the current procedures for
handling goodwill?
Thursday
2/4/10
Chapter 13: Current Liabilities
Reading
pp. 636-646
Written
Chpt 12: E12-14, P12-2; Chpt 13: BE13-5, E13-2, E13-3, E13-7 (20+30+10+20+15+10)
Tuesday
2/9/10
Chapter 13: Employee-Related Liabilities
Reading
pp. 646-655
Written
E13-5, E13-6, E13-8, P13-1 (30+30+15+30)
Thursday
2/11/10
Chapter 13: Contingencies
Reading
pp. 655-662
Articles
Berner, Robert. “The Warranty Windfall.” Business Week (December 20, 2004): 84-86.
Quiz #2
Smith, Fred L “Guess Your Liability!” Forbes (July 26, 2004): 46. (ON-LINE DATABASE:
BUSINESS SOURCE PREMIER.)
Written
E13-11, E13-12, E13-13, E13-14 (20+20+30+30)
Article Questions: (1) Explain two key accounting issues related to warranties discussed in
“The Warranty Windfall.” (2) Why is Fred L. Smith opposed to reporting potential
environmental liabilities on the balance sheet?
Tuesday
2/16/10
Chapter 13: Presentation and Analysis of Liabilities
Reading
pp. 662-667
Written
E13-16, E13-18, P13-11 (35+25+45)
Thursday
2/18/10
Review for Midterm Exam
Tuesday
2/23/10
Midterm Exam #1
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Thursday
2/25/10
Chapter 14: Bonds Payable
Reading
pp. 688-700
Written
E14-2, E14-3, E14-4, E14-5, E14-7 (20+20+20+20+20)
Tuesday
3/2/10
Chapter 14: Long-Term Notes Payable
Reading
pp. 700-709
Articles
Greenberg, Herb. “The Hidden Dangers of Debt.” Fortune (July 21, 2003): 153. (ON-LINE
DATABASE: BUSINESS SOURCE PREMIER.)
Written
E14-13, P14-5, P14-8 (20+65+25)
Article Question: Why is it particularly risky for a company like Goodyear Tire and Rubber to
carry high levels of both debt and equipment?
Thursday
3/4/10
Chapter 14: Reporting and Analysis of Long-Term Debt
Reading
pp. 709-716
Articles
Feldman, Amy. “Off Balance.” Money (April 2002): 46. (ON-LINE DATABASE: BUSINESS
SOURCE PREMIER.)
Written
Q14-25, E14-18, E14-19, P14-1, P14-10, CA14-4 (Part 1 only) (15+20+15+20+25+15)
Quiz #3
Article Question: Explain how the use of special purpose entities can improve a firm’s return on
assets and debt to capital ratio?
Tuesday
3/16/10
Chapter 15: The Corporate Form and the Issuance of Stock
Reading
pp. 740-749
Articles
Gorham, John. “Chicken Little Stocks.” Forbes 164 (12/27/99): 200-204. (ON-LINE
DATABASE: BUSINESS SOURCE PREMIER.)
Birger, Jon. “Be Like Buffett? The Case for Preferred Stock.” Fortune 158 (10/27/2008): 36.
(ON-LINE DATABASE: BUSINESS SOURCE PREMIER.)
Written
E15-1, E15-3, E15-extra, CA 15-1 (20+15+15+20)
E15-extra: Evans Corporation issues 10,000 shares of $5 par value common stock and 500
$1,000, 6% bonds for a total of $686,000. (a) Prepare the journal entry to record this
transaction using the incremental method, assuming that the market value of the common
stock is $22 per share. (b) Prepare the journal entry to record this transaction using the
proportional method, assuming that the market value of the common stock is $22 and the
market value of each bond is $960.
Article Question: Briefly compare the risks and returns of common stock, preferred stock,
bonds, and convertible bonds.
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Thursday
3/18/10
Chapter 15: Treasury Stock and Preferred Stock
Reading
pp. 749-756
Written
E15-5, E15-7, E15-10, P15-1 (15+20++25+60)
Tuesday
3/23/10
Chapter 15: Dividends and Stock Splits
Reading
pp. 756-765, 771-774
Articles
“The Dividend Puzzle.” Economist (January 11, 2003): 53-54. (ON-LINE DATABASE: BUSINESS
SOURCE PREMIER.)
Written
E15-8, E15-11, E15-12, E15-14 (20+20+15+15)
Quiz #4
Article Question: Why have some companies been hesitant to declare dividends even when they
have the earnings to do so?
Last day to withdraw from a class is Friday, March 26.
Thursday
3/25/10
Chapter 15: Presentation and Analysis of Stockholders’ Equity
Reading
pp. 765-771
Written
Q15-30, E15-16, E15-17, E15-19, E15-22, E15-23, P15-8 (15+10+25+25+15+15+25)
Tuesday
3/30/10
Chapter 16: Dilutive Securities
Reading
pp. 794-803
Written
E16-1, E16-5, E16-8, E16-9, CA16-3 (Parts a & b only) (20+20+15+15+20)
Thursday
4/1/10
Chapter 16: Stock Compensation Plans
Reading
pp. 803-811
Written
Q16-11, E16-11, E16-13, P16-2, P16-3 (10+25+15+50+35)
Tuesday
4/6/10
Chapter 16: Computing Earnings per Share
Reading
pp. 811-827
Articles
Reingold, Jennifer. “Accounting Changes that Keep Investors in the Dark.” Business Week
(February 9, 1998): 44. (ON-LINE DATABASE: BUSINESS SOURCE PREMIER.)
Written
E16-16, E16-20, E16-25 (15+30+15)
Quiz #5
Article Question: According to the author, what are the advantages and limitations to the 1997
FASB directives for reporting earnings per share?
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Thursday
4/8/10
Chapter 16: Other Stock-Based Compensation Plans
Reading
pp. 827-829
Articles
“Now for Plan B.” Economist (March 15, 2003): 62. (ON-LINE DATABASE: BUSINESS SOURCE
PREMIER.)
Written
E16-23, E16-26, E16-27, E16-28, E16-29 (20+25+15+20+25)
Article Question: What are the arguments for and against expensing stock options?
Tuesday
4/13/10
Review for Midterm Exam
Thursday
4/15/10
Midterm Exam #2
Tuesday
4/20/10
Chapter 17: Investments in Debt Securities
Reading
pp. 857-866
Written
E17-3, E17-4, P17-1 (20+15+40)
Thursday
4/22/10
Chapter 17: Investments in Equity Securities
Reading
pp. 866-874
Articles
“Bearing It All.” Economist (July 21, 2007): 74. (ON-LINE DATABASE: BUSINESS SOURCE
PREMIER.)
Written
E17-7, E17-11, E17-12, E17-19, P17-4 (15+25+20+20+35)
Article Question: What is “mark-to-model” accounting? Why would a firm use mark-to-model
rather than mark-to-market in valuing its investments?
Tuesday
4/27/10
Chapter 17: Other Reporting Issues
Reading
pp. 874-883
Written
E17-9, E17-10, E17-16, E17-18, P17-8 (15+25+20+20+30)
Thursday
4/29/10
Review for Final Exam
Tuesday, 5/4/10
10:10 am – 12:10 pm
Final Exam
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