AIS 406/706
ACCOUNTING AND ANALYSIS FOR
REPORTING ENTITIES
Spring 2023
Class times: Section 001
Section 002
11:00am - 12:15pm
1:00pm - 2:15pm
Tuesday/Thursday, Grainger 2280
Tuesday/Thursday, Grainger 2280
Course URL: https://canvas.wisc.edu/courses/330758
Instructor:
Professor Daniel Wangerin, PhD, CPA
Office: 4133 Grainger Hall
Email: daniel.wangerin@wisc.edu
Office hours: Tuesday/Thursday 2:30 – 3:30pm.
I will also be available for office hours by appointment and/or online.
Instructional mode: Face to face with online homework.
How credits are earned: This three-credit class meets for two, 75-minute class periods each week over
the fall semester and carries the expectation that students will work on course learning activities
(reading, writing, problem sets, studying, etc.) for about 12 hours out of the classroom each week.
Official course description: Theoretical, procedural, and practical issues associated with the
preparation of financial statements of alternative reporting entities, including the accounting for mergers
and acquisitions, consolidations, foreign operations, and complex financial instruments.
Prerequisite: Financial Reporting II (AIS 302/702)
Institutional Statement on Diversity:
“Diversity is a source of strength, creativity, and innovation for UW-Madison. We value the
contributions of each person and respect the profound ways their identity, culture, background,
experience, status, abilities, and opinion enrich the university community. We commit ourselves to the
pursuit of excellence in teaching, research, outreach, and diversity as inextricably linked goals.
The University of Wisconsin-Madison fulfills its public mission by creating a welcoming and inclusive
community for people from every background – people who as students, faculty, and staff serve
Wisconsin and the world.” https://diversity.wisc.edu/
Course text and class materials:
• Advanced Accounting 5th Edition, 2022, Halsey and Hopkins, Cambridge Business Publishers
(ISBN 978-1-61853-432-3). You will need a subscription to myBusinessCourse to access
required homework problems. The subscription is included with eBooks and new print copies of
the text. Additional detailed instructions are included on the Canvas home page.
AIS 406/706 – Wangerin –Syllabus Spring 2023 – Page 1
Electronic communication: Communications outside of class and office hours will rely on email and
Canvas announcements. It is expected that you will maintain a current email address account registration
with the university and that you will check your email daily.
Course objectives:
We will be covering three areas: (1) business combinations and consolidations, (2) noncontrolling
interests, variable interest entities, and foreign currency transactions, and translations, and (3) reporting
for state governments, local governments, and not-for-profits. The class is taught in three discrete units
that correspond roughly to these three categories: business combinations and consolidations flows over
into the second unit. The course covers current standards and new developments in both US GAAP and
IFRS; many standards have been newly revised in recent years with more changes proposed.
Learning outcomes:
1. Identify the types of business combinations and the accounting for each.
2. Explain the mechanics of the accounting for investments using the equity method of accounting.
3. Explain when to use the equity method.
4. Explain the amortization of excess assets and the process for deferral of unrealized income using
the equity method of accounting.
5. Explain the accounting for changes to and from the equity method.
6. Explain the measurement of identifiable assets acquired, liabilities assumed and goodwill in
business combinations.
7. Explain when deferred taxes are recorded in business combinations.
8. Describe the consolidation process for wholly owned subsidiaries.
9. Describe the accounting for goodwill, bargain purchase gains, and goodwill impairment.
10. Describe the accounting for the intercompany sale of assets.
11. Describe the consolidation process for non-wholly owned subsidiaries.
12. Explain intercompany profit elimination and the allocation of profit to controlling and
noncontrolling interests for a non-wholly owned subsidiary.
13. Explain the effects on consolidated financial statements of changes in ownership percentage of a
subsidiary while maintaining control.
14. Describe the comprehensive consolidation model, including the concepts of variable interests
and voting interests, and the issues related to consolidation of variable interest entities.
15. Describe the consolidation process when affiliated companies acquire each other’s debt and
preferred stock.
16. Describe the accounting for foreign currency transactions gains and losses.
17. Describe the accounting for derivative financial instruments.
18. Describe the functional currency and the translation process.
19. Describe the remeasurement of foreign-currency-denominated financial statements.
20. Describe the types of funds employed in fund accounting for governmental entities.
21. Describe the measurement focus and basis of accounting.
22. Describe the preparation of fund financial statements.
23. Describe the appropriation and budgetary process for governmental entities.
24. Describe the Annual Comprehensive Financial Report used in governmental accounting.
25. Describe the preparation of government-wide financial statements.
26. Describe the preparation of not-for-profit organization financial statements.
AIS 406/706 – Wangerin –Syllabus Spring 2023 – Page 2
Learning activities:
Class is structured with a mix of lecture, class discussion and chapter exercises. You should read the
assigned material at least once before the class meets and go through the material again after class to
fully grasp the material.
Grading:
Engagement and participation
Group cases (2 at 50 points each)
Midterm exams (2 at 100 points each)
Final exam
TOTAL:
100 points 20%
100 points 20%
200 points 40%
100 points 20%
500 points 100%
In the unlikely event of a major campus emergency or instructor emergency, course requirements,
deadlines and grading percentages are subject to change that may be necessitated by a revised semester
calendar or other circumstances. Any changes would be announced in class and on the Canvas page.
Engagement and participation:
Active engagement and participation is required in this course and will be assessed on three dimensions
including (1) assigned pre-homework, (2) assigned post-homework, (3) preparation for and
contributions to classroom learning activities.
Pre-homework (35 points)
All pre-homework assignments are listed on the course schedule, are due at 10:30am on the day of
class, will be the basis of classroom discussion, and are designed to help you master the material. Any
assignments denoted with an * asterisk must be submitted electronically using MyBusinessCourse. Prior
to completing assigned pre-homework, you are expected to complete all assigned background readings.
Assignments will be scored as complete or incomplete. Solutions will be made available after the
chapter is covered in class. You should attempt these assignments as merely reading the solutions will
be of little use to you. By completing pre-homework prior to class, you are expected to discuss your
solutions with your peers. The goal is not necessarily to always know the correct answer prior to class,
but obtain a better understanding of the solution after class.
Post-homework (30 points)
Following classroom discussion, I have assigned exercises as post-homework to help you cement your
knowledge. Post-homework assignments will be due at 11:59pm various dates indicated in the
schedule. These assignments will be scored based on the percentage correct after three attempts. All
post-homework assignments must be submitted electronically using MyBusinessCourse. Solutions will
be made available after the due dates.
Preparation for and contributions to classroom learning activities (35 points)
We will utilize an active learning environment in many classroom activities. All students must engage in
appropriate professional conduct and actively participate in all class sessions. Professional conduct is an
important aspect of your professional being, and to the extent that you participate professionally, it
inspires others in the class, and reflects well on the program. Professional conduct in the classroom is
characterized by the following attributes: diligent preparation for class, regular attendance, punctual
AIS 406/706 – Wangerin –Syllabus Spring 2023 – Page 3
arrival, and courteous behavior in class, which includes being attentive while others are speaking, and
dedicating your attention to this class while the class is in session. To prepare for class professionally,
you must read all assigned materials prior to class, complete assigned pre-homework, and be ready to
discuss your solutions with your peers. Your success, and the success of others in this course, will
depend on your active class participation. You will be assessed on this dimension by me and
periodically by your peers through the use of anonymous peer evaluations. Each student will be assigned
to a small group where breakout activities and group cases will be completed jointly.
Working in groups requires individual members to participate in different ways and sometimes in
different amounts. In addition, group work requires cooperation, coordination, and ultimately,
evaluation of each other’s contribution to the group effort. Peer evaluations should be taken seriously.
Since each person is unique, you must consider all dimensions on which they contribute and honestly
reflect that in your evaluation. The scores you assign to your peers will not be disclosed to them.
Instead, they will be informed privately if I observe that they did not contribute equally to the group’s
activities and/or if substantial disagreement exists among group members. I reserve the right to ask each
of you to privately explain your scores to me. Failure to submit your evaluations by posted deadlines
will result in the assumption that you awarded yourself zero points for group work. Links to complete
peer evaluation forms will be posted on Canvas.
Group cases:
In addition to homework, students will prepare two group case exercises. The assignments have also
been developed assuming students are proficient in preparing Excel spreadsheets and the use of its
financial functions. Additional detail will be distributed in separate memorandums.
Exams:
The exams are designed to extend your thinking through analysis and applications of these concepts in
new or unique situations. The exam format may include multiple choice, problems, and short answer.
Exams will be administered electronically in a computer lab and may require submission of Excel files.
The exams are "closed book/notes". Note that the examinations will be demanding of both your
efficiency and effectiveness in addressing corporate accounting measurement and reporting issues.
The first two exams are administered in Thursday sessions as indicated on the course schedule. The final
exam will be administered as scheduled by the University on May 8th 12:25 - 2:25 p.m. There is no
early or late final -- it will only be given at the scheduled time. Since performance on exams comprises
the major portion of your grade (60%), you are expected to be present at the scheduled times for the
exams. Please make arrangements now so that you can fulfill these requirements.
Make-up work:
Academic requirements is generally not accepted, but may be rescheduled on an individual student basis
only for university-approved (documented) absences, religious observances, and other documented
emergencies. In general students should notify me ASAP to inquire about rescheduling an activity.
Academic integrity policies:
Academic integrity is critical to the mission of the University of Wisconsin-Madison, an institution with
high academic standards and rigor. All members of the University community play a role in fostering an
environment in which student learning is achieved in a fair, just and honest way. The value of a
AIS 406/706 – Wangerin –Syllabus Spring 2023 – Page 4
University of Wisconsin-Madison degree depends on the commitment of our academic community to
promote high levels of personal honesty and respect for the intellectual property of others.
As a UW-Madison student, it is your responsibility to be informed about what constitutes academic
misconduct, how to avoid it and what happens if you decide to engage in it. Examples of academic
misconduct include (but are not limited to):
▪ plagiarism (turning in work of another person and not giving them credit),
▪ stealing an exam or course materials,
▪ copying another student’s homework, paper, exam
▪ cheating on an exam (copying from another student, turning in an exam for re-grading after
making changes, working on an exam after the designated time allowance)
Charges of academic misconduct are taken seriously and actions that can be taken against a student
include failure in the course and permanent record in the student’s file. Please review the UW
Academic Misconduct Policy and ask me if you have any questions.
https://conduct.students.wisc.edu/academic-misconduct/
The Department of Accounting has endorsed a statement of values developed by students and candidates
for the Masters of Accountancy Programs. Additional information on the statement of values and the
student-developed Ethics and Professionalism Program is available at the following link:
https://wsb.wisc.edu/faculty-research/academic-departments/accounting-information-systems/ethicsprofessionalism-program
Additional Requirement for Graduate Students:
In addition to the course requirements listed above on the syllabus, AIS 706 students will also be
required to complete an additional assignment. Details will be distributed in a separate memorandum.
AIS 406/706 – Wangerin –Syllabus Spring 2023 – Page 5
AIS 406/706 Course outline and assignments
I will attempt to stay as close as possible to the course schedule that follows, but reserve the right to
change the schedule as necessary. I may on occasion be slightly behind or ahead. If necessary, I would
announce schedule modifications in class and post on Canvas. I will hold the exams on the dates listed.
* Exercise/problem available in MBC. For credit, you must attempt and submit the exercises/problems.
DATE
Reading
Topic
Pre HW Assignment Post HW Assignment
(due 10:30am)
(due 11:59pm)
1/24
1/26
Chapter 1 LO 1-5
p.1- 19
Chapter 1 LO 6-9
p. 19- 27
1/31
Chapter 2 LO 1-4
p. 46- 70
2/2
Chapter 2 LO 5
p. 70- 91
2/7
Chapter 2 LO 6
p. 91- 95
2/9
Chapter 3 LO 1-2, 4
p. 124- 141, 149- 159
2/14
2/16
2/21
2/23
3/7
3/9
E1-34*, E1-37*, E1-42*
More Equity Method
E1-39, E1-44
Business Combinations /
Consolidations at
Acquisition Date
Measuring Identifiable
Assets and Liabilities
More Consolidations at
Acquisition Date /
DTAs and DTLs
Consolidations Subsequent
to Acquisition Date and
Accounting for Goodwill
E1-35*, E1-38*, E1-43*
Deadline 1/29
E2-45*, E2-53*
E2-57, P2-65
P2-61*, P2-63*
E3-42, P3-48, E3-33*, P354
E2-46*, E2-50*, P2-62*
Deadline 2/12
E3-36*, E3-41*
Deadline 2/19
Group Case 1 Classroom Discussion
Chapter 4 LO 1
p. 196- 211
Chapter 4 LO 3
p. 216- 222
Chapter 4 LO 4
p. 223- 233
2/28
3/2
Equity Method
Chapter 5 LO 1-2
p. 286- 299
Chapter 5 LO 3
p. 299- 318, 323- 340
Chapter 5 LO 7
p. 347- 354
Consolidations with IC
Inventory Sales
Consolidations with IC
Nondepreciable Asset Sales
Consolidations with IC
Depreciable Asset Sales
E4-29*
E4-32*, E4-33*
E4-35*
EXAM 1 (Chapters 1-4)
7:30 – 9:30pm, 2294 GH
Consolidations with NCIs
E5-34*, P5-49*
Consolidations with NCIs
and I/C Sales
Accounting for Changes in
Ownership Interest
P4-39*, P4-50*
Deadline 2/26
E5-35*, E5-36*
E5-42*, E5-43*, E5-44,
E5-45
P5-52*
Deadline 3/12
Spring Break
3/21
3/23
3/28
3/30
4/4
4/6
Chapter 6 LO 1-2
p. 392- 412
Chapter 6 LO 3-4
p. 412- 428
Chapter 7 LO 1
p. 458- 475
Chapter 7 LO 2
p. 475- 495
Chapter 8 LO 1
p. 526- 541, 556- 557
Chapter 8 LO 2
p.541- 548, 557- 558
4/11
4/13
Chapter 9 LO 1-4
p. 584- 603
Variable Interest Entities
Consolidations with IC
Debt and Preferred Stock
Foreign Currency Txns /
Fair Value Hedges
More Fair Value Hedges /
Cash Flow Hedges
Foreign Currency
Translation
Foreign Currency
Remeasurement
E6-46, E6-48, E6-49,
E6-50
E6-53*, E6-60*, P6-63
E6-45*, E6-59*, P6-64*
Deadline 3/26
E7-30*, E7-37*
E7-41*, E7-45*, E7-49*
E7-32*, E7-34*, E7-43*
Deadline 4/2
E8-32*
E8-38*
EXAM 2 (Chapters 5-8)
7:30 – 9:30pm, 2294 GH
Governmental Accounting/
Journal Entries
E9-44*, E9-46*, E9-53*,
E9-54*
AIS 406/706 – Wangerin –Syllabus Spring 2023 – Page 6
E8-33*, E8-39*
Deadline 4/9
4/18
4/20
4/25
Chapter 9 LO 5
p. 604- 609
Chapter 10 LO 1-2
p.634- 649
Chapter 10 LO 2
p. 650- 659
4/27
5/2
5/4
5/8
Fund Financial Statements
E9-45, E9-55, P9-60
Government-Wide
Financial Statements
More Government-Wide
Financial Statements
E10-34*, E10-35*,
E10-37*, E10-38
P10-41*, P10-44
P9-56*
Deadline 4/23
P10-39*
Deadline 4/30
Group Case 2 Classroom Discussion
Chapter 11 LO 1-2
p. 672- 677
Chapter 11 LO 2-3
p. 678- 686
Not-For-Profit Accounting
More Not-For-Profit
Accounting
FINAL EXAM
(Chapters 9-11)
E11-29*, E11-31*
P11-33*
12:25 – 2:25, location
TBD
AIS 406/706 – Wangerin –Syllabus Spring 2023 – Page 7
P11-34*
Deadline 5/7