Department of Business Administration
BBA Program
Course Catalog Series
Semester : Spring 2014
Course Code : ACT 421, Section: 2
Course Title : Intermediate Accounting II
Class Timing : MW 1:30 pm -3:00 pm [M – Monday, W - Wednesday], Venue: 305
Instructor : Nikhil Chandra Shil, MBA, ACMA
Office
Email
: 340
:
Office Hours : nikhil@ewubd.edu
Day
Sunday
Monday
Tuesday
Time
12:00 pm – 6:30 pm
9:30 am – 1:30 pm
9:30 am – 10:00 am
Wednesday 9:30 am – 1:30 pm
Thursday By appointment
Course Objectives:
This is the second of two Intermediate Accounting courses, which cover the traditional financial accounting topics as well as recent developments within the public accounting industry. The first course’s focus was on the asset side of the balance sheet and the income statement. This course focuses on the concepts underlying the measurement and presentation of liabilities and equities with an emphasis on reporting under the current
International Financial Reporting Standards (IFRS). This course’s main focus will be on the liabilities and shareholders’ equity side of the balance sheet as well as any related income statement items. Topics covered include current liabilities, long-term liabilities, shareholders equity, diluted securities, earnings per share, investment in bonds and stocks, accounting for lease and pension and future benefits, accounting changes and accounting errors, statement of cash flows and financial statement analysis. Examples will be taken from practice and pronouncements in order to support and illustrate discussions of financial accounting theory.
Course Materials
Text Book : Intermediate Accounting, Donald E. Kieso, Jerry J. Weygandt, & Terry D.
Warfield, 12 th Edition, 2013-14, John Wiley & Sons Inc. Web Ref - http://www.wiley.com/college/kieso
Reference Books:
1.
Intermediate Accounting, Spiceland, Sepe, Nelson, 6 th edition; 2011
McGraw-Hill Higher Education.
2.
Intermediate Accounting, Volume 2, Beechy, Conrod, Farrell, 5th Canadian
Edition, McGraw-Hill, Toronto 2011
3.
Intermediate Accounting, Stice, James; Stice, Earl K.; & Skousen, Fred, 15th
Edition, South-Western College Publication.

4.
International Accounting Standards-IASB, UK
5.
Bangladesh Accounting Standards-ICAB
Research Papers:
1.
Harmonization of Accounting Standards through Internationalization,
International Business Research (IBR), Vol. 2, No. 2, 2009, pp. 194-201.
2.
Accounting for Good Corporate Governance, Journal of Administration and
Governance (JOAAG), Vol. 3, No 1, pp. 22-31, July 2008.
Exam absences
A missed exam will count as zero (0) unless in the opinion of the instructor the reason for missing the exam resulted from a critical set of circumstances beyond the student’s control.
All examination absences must be documented in writing. If at all possible, you must notify the instructor before the exam about your absence. If you miss an exam with an excused absence, the exam may be made up or your grade on the final exam could serve as the grade on the missed exam at the discretion of the instructor.
Attendance (including late arrival and leaving early)
Because of the complexity of the material, it is essential that you attend class. If you are late to class for any reason beyond your control please join the class as soon as possible and as quietly as possible. Habitual tardiness, however, is unprofessional.
When students enter and exit while class is in session, it is very disruptive to everyone. If an emergency situation occurs such as rapid onset of illness, you should exit the classroom without explanation. I may inquire of you as to the problem. Otherwise, please do not leave the classroom during a class except for breaks if I provide.
Classroom
Learning: A variety of assignments and learning approaches are utilized to help you develop an understanding of basic accounting information and its uses. Classes will include lectures, examples, question and answer sessions, demonstration problems, and practice sessions by individuals and in groups. In-class lectures, discussion and practice are prepared with the assumption that you have read the information about the subject for the day and are ready to work on the material. We will cover as much information in class as we can. Students are responsible for all data in the chapters.
Talking: Talking to fellow students when class is in session is not appropriate, except when participating in designated group activities. Please direct any questions to the instructor.
Cell Phones: Cell phone usage in class is not permitted, including phone calls, texting, email, internet, camera, recording, or as a calculator. Phones should be turned off or on silent (not on vibrate).
Student Responsibility
Your responsibilities are to come to class each day prepared, read all assigned materials and complete the required homework assignments by their assigned due dates. Always be ready to discuss the assigned materials and ask questions to clarify any parts of the material that you do not understand.
You are expected to take the exams on the dates scheduled and abide by academic honesty when you take exams.

Study Time
Undergraduate classes are designed to require three hours of learning and study time outside of the classroom. For most students this is a class that requires significant outside time. Keeping up with the material covered is critical and will vastly improve your grade.
Group Studying/Missed Classes
You are strongly encouraged to use group study techniques. Consider working with various members of your class when covering material and preparing for exams. If you have to miss class for any reason, you are responsible to get any missed information from a classmate.
Because of the short time for the class and the tenets of fairness, the instructor is unable to give private sessions to individual students.
How to do well in this course
Come to class, review class notes and practice, practice, practice….
We recommend the following study approach:
1.
Go over your class notes and all problems done in class. Re-do the problems on your own to see if you can arrive at the same solution as was derived in class.
2.
Use the textbook as a reference source for topics you are having difficulty with.
3.
Do as many extra problems as you need to feel you have a good comprehension of the material.
ACADEMIC INTEGRITY – YOUR RESPONSIBILITY!
Using, summarizing or copying directly from another person’s work, without identifying the name of the original thinker, is considered a form of cheating called “plagiarism”. Plagiarism has serious consequences and can result in course / assignment failure and /or academic suspension.
When using, and/or summarizing the ideas and words of another, be it from a web site, a written text, lecture or discussion group, you must identify the source. Should you choose to use the exact words of another, you must acknowledge these words as such by enclosing them within quotation marks. However, be aware that it is not acceptable to copy large chunks from a source, even if you reference it correctly.
Grading Scale and Marks distribution:
GRADING POLICY
A+ 97 & above
MARKS DISTRIBUTION
Midterm examination 1
A 90- below 97 Midterm examination 2
A- 87- below 90 Final examination
B+
B
83- below 87
80- below 83
20%
25%
30%
Class quizzes 15%
Attendance and Participation 05%
B- 77-below 80 Home assignments 05%
C+
C
C-
D+
D
F
73-below77
70-below 73
67-below 70
63-below 67
60-below63
Below 60
Total 100%
Note: Respective weightage of marks may be modified by the instructor to make the assessment more competitive and participative.

Lecture
Course contents
Details
1 & 2 Concepts and Reporting Issues of Intangible Assets
Characteristics, Valuation & Amortization of Intangible
Assets; Types of Intangible Assets - Marketing related,
Customer related, Artistic related, Contract related,
Technology related and Goodwill; Impairment of intangible assets, Research and Development cost,
Presentation of Intangible Assets.
IAS 38: Intangible Assets
3 & 4 Accounting and Reporting of Current and Contingent
Liabilities
Current Liabilities; Types of Current Liabilities; Gain
Contingencies and Loss Contingencies; Presentation of
Current Liabilities and Contingencies- Analysis of
Current Liabilities: Current ratio and Acid test ratio.
IAS 37: Provisions, Contingent Liabilities and
Contingent Assets
5 & 6 Accounting and Reporting of Long term Liabilities
Bonds Payable: Types and Ratings of Bonds, Valuation of Bonds Payable - Discount and Premium, Effective
Interest Method, Cost of issuing bonds; Treasury
Bonds; Extinguishment of Debt; Long Term Notes
Payable; Mortgage Notes Payable; Reporting and analysis of Long term debt: Off-balance sheet financing; Presentation and Analysis of Long Term
Debt: Debt to total Assets, Times interest earned.
Mid Term Examination- 1
7 & 8 Accounting and Reporting of Stockholders’ Equity
Corporate form of Organization; Issuance of stock at par; at premium and at discount and accounting entries relating to them; Treasury Stock, Objectives behind reacquisition of shares; purchase and sale of treasury stock as well as accounting entries relating to them; Preferred stock, Types of preferred stock;
Dividend policy; Preparation of Stockholder’s equity section of balance sheet, Presentation and analysis of
Stockholders’ Equity.
Reference
Chapter: 12
Text: pp. 571-594
Chapter-13
Text: pp. 617-646
Chapter-14
Text: pp. 671-696
Chapter-15
Text: pp. 725-753

9, 10,
11 & 12
13 & 14 Debt and Equity Investments
Investment in debt securities - Held to maturity,
Available for sale and Trading securities as well as accounting treatment for these securities.
Investment in Equity Securities – Holdings of less than
20%, Available for sale and trading; Holdings between
20% and 50%, Equity Method; Holdings of more than
50%; Accounting treatment; Presentation of
Investments.
Mid Term Examination- 2
15, 16,
17 & 18
Accounting for Potential Equity Securities & EPS
Reporting
Dilutive securities and compensation plans; Earnings per share - Simple capital structure and Complex capital structure; Basic EPS and Diluted EPS; EPS presentation and disclosure; Appendix 16B-
Comprehensive EPS Illustration.
IAS 33: Earning Per Share
19, 20,
21 & 22
Leasing: Accounting Issues
Leasing - Advantages of leasing- Capital lease and
Operating lease from the point of view of lessee-
Operating lease, Direct financial lease, and Sales-type lease from the point of view of lessor- Accounting entries under different methods in the books of the lessee and lessor- Accounting for residual value-
Guaranteed and Unguaranteed residual value-
Disclosures required by the Lessor and Lessee.
IAS-17: Leases
Cash Flow Reporting
Usefulness of SCF, Classification of Cash Flows, Format of SCF, Preparation of SCF, Direct Method and Indirect
23, 24,
25 & 26
Method, Sources of information for SCF.
IAS-7: Cash Flow Statements
Full Disclosure: Concepts and Practices
Full Disclosure Principle: Financial Statements, Notes to Financial Statements, Supplementary Information,
Accounting Policies, Disclosure Issues, Post Balance sheet Events, Segment Reporting, Interim Financial
Chapter-16
Text: pp. 777-816
Chapter-17
Text: pp 837-859
Chapter-21
Text: pp. 1087-1122
Chapter: 23
Text: pp 1204-1242
Chapter-24
Text: pp 1281-1321

Reporting, Reporting on Financial Forecasts and
Projections, Internet Financial Reporting, Appendix
24A: Basic Financial Statement Analysis.
IAS-1: Presentation of Financial Statements
IAS-10: Events after the Balance sheet Date
IFRS-8: Operating Segments
IAS-34: Interim Financial Reporting
Final Examination
FINAL THOUGHTS
This is not a course to register in if you are seeking easy credit. For many students, this course is a difficult one. Part of this difficulty stems from challenging subject matter, but the biggest difficulty comes from failing to devote enough effort to working with the material.
Like calculus and other courses where no two problems look alike, accounting requires that you practice working with it—over and over and over. You must understand the underlying concepts.