Saint Louis University
IB 505
Fall 2011
John Cook School of Business
Dr. Keithley
________________________________________________________________________________
COURSE NUMBER AND TITLE
IBS B505 - Financial & Managerial Accounting Topics
Credit Hours - 2
INSTRUCTOR
Dr. John P. Keithley
Office: DS 106
Phone: Office - 314-977-3856
Home - 314-918-5939
Fax - 314-977-1473
Email - keithley@slu.edu
Office Hours: Monday – 10:30 a.m. – 12:00 p.m.
Tuesday - 11:00 a.m. – 12:00 p.m.
1:30 - 5:00 p.m.
Thursday – 11: 00 a.m. – 12:00 p.m.
1:30 – 3:00 p.m.
.
OR BY APPOINTMENT
COURSE OBJECTIVES AND DESCRIPTION:
Part I of this course provides an overview of financial accounting, "the language of business," oriented
toward non-accountant and international managers. Concepts, current standards and problems related
to financial accounting and reporting by U.S. enterprises will be examined. A "user" rather than
"preparer" perspective will be assumed throughout the course.
Part II will focus on management accounting and the utilization of information within a strategic
management environment. Emphasis will be given to data analysis in today's highly competitive
international business world. This course will provide the foundation for a subsequent course which will
examine international accounting issues and problems related to multinational enterprises.
PROCEDURES:
An open lecture-discussion approach is used, with an emphasis on student participation. Topics will be
explored through exercises and case studies emphasizing the importance of professional judgments in
using accounting information. Active participation, either as an individual or part of a team, will be a
significant part of the final course evaluation. Makeup of student teams will attempt to provide a
diversity of academic and business experience, gender, and ethnic backgrounds.
A KEY ELEMENT TO UNDERSTANDING THE MATERIAL WILL BE HOW CONSCIENTIOUSLY THE
STUDENT STUDIES THE READING ASSIGNMENTS AND PREPARES ASSIGNMENTS BEFORE
CLASS.
STUDENTS ARE ENCOURAGED TO UTILIZE
STUDY GROUPS!
- 2 READING ASSIGNMENTS:
Specific reading assignments will be provided by the instructor. While some of these assignments
contain a significant amount of material, students should view these readings as
reference sources rather than material to be memorized.
WRITTEN ASSIGNMENTS:
Specific written assignments will be provided by the instructor. Written assignments are due on the
dates indicated in the syllabus or announced in class. Written assignments will be collected at the
beginning of class and will become a part of the final grade. NO LATE WORK WILL BE
ACCEPTED! If a student cannot attend class, arrangements should be made to submit the written
assignments, on time! Email and fax submissions of written assignments are acceptable (if
submitted prior to the class when they are due). Students should prepare a discussion copy of the
written assignments for their use during classroom sessions.
Students having difficulty with the material should contact the instructor IMMEDIATELY! Voice mail
and email will be checked regularly. In addition, the instructor's home phone number is included
on the syllabus, and students are encouraged to use this form of consultation if difficulty with an
assignment occurs. DO NOT SPEND HOURS "STUCK" ON A PROBLEM WHEN A
BRIEF CALL WILL ALMOST ALWAYS SOLVE THE DILEMMA!
TESTS AND EXAMINATIONS:
The number and format of examinations or quizzes to be given during the semester will be determined
by the instructor, but will include, at a minimum, a final examination.
EVALUATIONS AND GRADING SCALE:
Final grades will be based on the following evaluations:
Written assignments1
300
Class participation2
50
Examinations3
350
Total points
700
1
Several written assignments are due during the semester. The point values for these
assignments are given in the syllabus.
2
The evaluation of class participation will be based on a student's preparation for the discussion
of individual topics and a demonstration of this preparation through meaningful dialogue during
class sessions or active participation during in-class exercises. Attendance will also be
considered in this evaluation (you cannot participate if you are absent).
3
Point values for examinations will be distributed as follows:
Midterm exam
Final exam
175 points
175 points
- 3 Letter grades will be based on the following percentage scale:
Grading Scale
A = 93 and above
A- = 90 thru 92
B+ = 87 thru 89
B = 83 thru 86
B- = 80 thru 82
C+ = 77 thru 79
C = 70 thru 76
C- = 68 thru 69
D = 60 thru 69
F = 59 and below
Grade Point Equivalent
4.0
3.7
3.3
3.0
2.7
2.3
2.0
1.7
1.0
0.0
Textbooks and other materials:
Required:
Ferris, Kenneth R. and James S. Wallace, Financial Accounting for Executives,
Second edition, Cambridge Business Publishers, 2011.
(Assignment notation = (FERRIS)
Hartgraves, Al L. and Wayne J. Morse, Managerial Accounting, Sixth edition,
Cambridge Business Publishers, 2012.
(Assignment notation = HARTGRAVES)
Recommended:
Numerous texts covering both financial and managerial accounting are
available in the library. In many instances these books are written in
greater technical depth than the required text and will permit students to
research a specific topic in detail if they so desire. No direct assignments
will be made from these books, but they may be useful as supplementary
references in certain situations.
Instructor’s Web Page:
Course materials and other information will be available on the
instructor’s web page at
http://www.slu.edu/departments/accounting/keithleyj/
The course syllabus will be available at this site, along with PowerPoint lecture slides (indicated
within the detailed topical assignments), handout assignments, a message board and other
items. Students should print out the lecture slides and bring them to class! Use your own
judgment in printing slides. In most cases handouts of three to six per page would be most
appropriate, however in some instances, you may want to print only two per page. If you need
assistance printing slides from PowerPoint or accessing the web page, go to the CSB Computer
Lab located in DS 473.
This web page will be the primary method of group communication between the
instructor and students, and it should be checked on a regular basis.
- 4 -
ASSIGNMENT SCHEDULE
Fall 2011
Date
Topic
Aug. 13
The Financial Statement Package
Balance Sheet Fundamentals
Income Statement Fundamentals
Generally Accepted Accounting Concepts
Financial Statement Analysis
None – Accounting tutorial will run from
8:00 a.m. until approximately
12:00 p.m.
Statement of Cash Flows
Revenue Recognition and Matching
Operating Decisions
None
Investing Decisions
McDondell’s Farm Case – 40 pts
Sept. 23
Investing & Financing Decisions
Crumbling Cookie Case– 35 pts
Two Books Corporation Case - 15 pts
Oct. 7
Financing Decisions
Ralph Corp. Case - 30 pts
Cool Investments – 10 pts
Management Accounting Concepts
Costing Concepts and Determination
MIDTERM - Financial Accounting
Case – TBA
Aug. 26
Sept. 9
Oct. 21
Written Assignments Due
A tutorial on Excel may be presented in the
afternoon.
On-Line
Activity-Based Costing
Cost-Profit-Volume Analysis
No in-class meeting
Nov. 4
Relevant Analysis
Masters Company – 15 pts
Small Printing Company – 10 pts
Nov. 11
No in-class meeting
Superior Metal Mfg. Company – 45 pts
(submit by email)
Nov. 18
International Business Conference
Class Company – 50 pts
Long-term Investment Analysis
Dec. 2
Strategic Management Accounting in a
Competitive Environment
Dec. 16
FINAL EXAM DISCUSSION
Capital Spending Company – 50 pts
FINAL – Management Accounting
Case –TBA
Class will meet to discuss the
case (approximately one hour)
- 5 -
SPECIFIC TOPICAL ASSIGNMENTS
THE "FINANCIAL STATEMENT PACKAGE"
BALANCE SHEET FUNDAMENTALS
INCOME STATEMENT FUNDAMENTALS
GENERALLY ACCEPTED ACCOUNTING CONCEPTS
ANALYSIS OF FINANCIAL STATEMENTS
August 13, 2011
This tutorial session is intended to provide a “jump start” to the semester. We will discuss the meaning
and objectives of financial accounting and review the essential contents of the "financial statement
package" including the nature and purpose of each of the elements. The financial accounting model will
be discussed. Fundamental issues related to the balance sheet, income statement, and statement of
cash flow will be covered.
In addition, basic financial accounting concepts (GAAP) will be discussed. The primary emphasis will
be an understanding of the strengths and limitations of these concepts and their implications on
financial statements. Basic financial analysis will also be reviewed.
Reading assignments - For
Aug. 13:
FERRIS -
Chapters 1, 2, 3 (pp. 86-94), and 4
NOTE:
This course will NOT emphasize bookkeeping mechanics. Students interested
in this material should consult other basic accounting textbooks.
Lecture slides:
Fin. Acctg. Concepts; Statement Analysis
Discussion assignments - For
Handout Cases:
Aug. 13:
Baron Coburg (available on webpage)
Be prepared to present your answers to the class. Especially important is
your reasoning for Question 2.
Balance Sheets Tell a Story (distributed in class)
Shave-Close Woodworking (distributed in class)
FERRIS -
E3-19; E4-16
Written assignments – For Aug. 26:
NONE
(P2-30 could be reviewed as a self-study problem)
- 6 REVENUE RECOGNITION & MATCHING
CASH FLOW STATEMENTS
OPERATING DECISIONS
August 26, 2011
This session will provide coverage of accounting for normal operating events and decisions of an
organization. Special attention will be given to individual revenue recognition approaches and the
matching concept. In addition, the cash flow statement will be discussed in detail including its
relationship to other financial statements. Other areas will include accounting for receivables, inventory,
contingencies, operating expenses, and income taxes. Emphasis will be on interpreting results of
operations and using this information to predict future results.
Reading assignments - For
FERRIS:
Lecture slides:
Aug. 26:
Chapters 3, 5, 6 and 10 (pp. 317 – 322)
Oper. Decisions
Discussion assignments - For
FERRIS:
Aug. 26:
E3-13; P3-25; P3-26; P6-23; P6-28; E10-13; P10-24
Written assignment - Due
on Sept 9:
Handout case: McDonell’s Farm Case
NOTE:
ALL WRITTEN ASSIGNMENTS SHOULD BE SUBMITTED AT THE
BEGINNING OF CLASS ON THE DATE DUE.
IN COMPLETING WRITTEN ASSIGNMENTS, PRESENT
COMPUTATIONS IN A NEAT AND ORGANIZED FASHION. ALSO,
LIST CLEARLY ANY ASSUMPTIONS YOU MADE IN ANSWERING
THE QUESTIONS.
PREPARE A PERSONAL COPY OF THE WRITTEN ASSIGNMENTS
FOR USE DURING CLASS DISCUSSION.
- 7 INVESTING DECISIONS
September 9, 2011
The session will concentrate on investments in operating assets and securities. Accounting for
business combinations will be reviewed during this session.
Reading assignments - For
FERRIS:
Lecture slides:
Sept. 9:
Chapters 7 and 8
Investing Decisions
Discussion assignments - For
FERRIS:
Sept. 9:
E7-17; P7-27; P7-32;
P8-27; Handout – Gobble-It-Up
\
Written assignment - Due
on Sept. 23:
HANDOUT CASE: Crumbling Cookie Case
HANDOUT CASE: Two Books Corporation Case
- 8 INVESTING & FINANCING DECISIONS
September 23, 2011
This session will conclude the discussion of investing decisions. The second section will cover
financing of an entity’s activities focusing first on equity financing and then continuing with debt
financing in the following session.
Reading assignments - For
FERRIS:
Lecture slides:
Sept. 23:
Chapters 8 and 11
Financing Decisions
Discussion assignments - For
FERRIS:
Sept. 23:
E11-13; E11-15; E11-21; P11-26
Written assignments - Due
on Oct. 7:
Handout Case: Ralph Corp. Case
Handout Case: Cool Investments
- 9 FINANCING DECISIONS
October 7, 2011
This session will continue the discussion of financing of an entity’s activities with focus on debt
financing. In addition, a summary of financial accounting and reporting will be provided as preparation
for the midterm case.
Reading assignments - For
FERRIS:
Lecture slides:
Oct. 7:
Chapters 9 & 10
Financing Decisions
Discussion assignments - For
FERRIS:
Oct. 7:
Handout – Accounting for Bonds
P9-33
Written assignment - Due
on Oct. 21:
MIDTERM CASE (Financial Accounting) - TBA
- 10 MANAGEMENT ACCOUNTING CONCEPTS
COST CONCEPTS AND DETERMINATION
October 21, 2011
This session will discuss the nature of contemporary management accounting and its role in strategic
decision making. In addition coverage will include a review of basic cost terminology, costing of
products and services, and issues related to cost behavior. Activity-based costing will be introduced.
Reading assignments - For
Oct. 21:
HARTGRAVES: Chapters 1 – 2; 5 (pp. 132 – 152); 6 (pp. 180 – 194)
Lecture slides:
mgt acctg introd; Cost Concepts; Activity-Based Costing
Discussion assignments - For
Oct. 21:
HARTGRAVES: E2-21; M5-14; E5-23; M6-13
Written assignment - Due
on Nov. 4:
Handout case: Masters Company
Handout case: Small Printing Company
- 11 ACTIVITY-BASED COSTING
COST-PROFIT-VOLUME ANALYSIS
ON-LINE
This section will continue the discussion of an organization as a system of activities and how this
impacts the costing of products and services. Attention will also be given to cost-profit-volume analysis.
Reading assignments - For
On-Line material:
HARTGRAVES: Chapters 3 & 6 (pp. 180 – 194)
Lecture slides:
Activity-Based Costing; CVP
Handout articles:
Cooper, Robin, "Does Your Company Need a
New Cost System?" Journal of Cost
Management, Spring 1987.
Stewart, Thomas A., "Why Budgets Are Bad For
Business," Fortune, June 4, 1990.
Discussion assignments - For
On-Line:
HARTGRAVES: M6-15; E6-25
Written assignment -
Due on Nov. 11:
HANDOUT CASE: Superior Metal Mfg. Company
(submit by email)
- 12 -
COST-PROFIT-VOLUME ANALYSIS
RELEVANT ANALYSIS
November 4, 2011
The coverage of cost-profit-volume analysis will be continued, and the use of relevant analysis for
nonroutine decisions will be discussed.
Reading assignments - For
Nov. 4:
HARTGRAVES: Chapters 3 & 4
Lecture slides:
CVP; relevant analysis
Discussion assignments - For
Nov. 4:
HARTGRAVES: P3-30; M3-16; P3-36
M4-14; M4-15; M4-18; E4-19; E4-22
Written assignment - Due
on Nov. 18:
Handout case: Class Company
- 13 LONG-TERM INVESTMENT ANALYSIS
November 18, 2011
This topic will cover the area normally referred to as, capital budgeting. A main emphasis will be the
integration of this analysis with the strategic goals of the organization
Reading assignments - For
Nov. 18:
HARTGRAVES: Chapter 12
Handout articles:
Kaplan, Robert, "Must CIM Be Justified on Faith
Alone?," Harvard Business Review, MarchApril, 1986.
Shank, John K. and Vijay Govindarajan,
"Strategic Analysis of Technological
Investments," Sloan Management Review, Fall
1992.
Lecture slides:
Capital budgeting
Discussion assignments - For
Nov. 18:
HARTGRAVES: M12-15; E12-20; P12-30; P12-32; P12-23
Written assignment - Due
on Dec. 2:
Handout Case: Capital Spending Company
- 14 STRATEGIC MANAGEMENT ACCOUNTING
IN A COMPETITIVE ENVIRONMENT
December 2, 2011
The purpose of this topic is to look at strategic decision making, contemporary management
approaches, related information needs, appropriate data analysis, and implications for management
information systems. Among the areas discussed will be: just-in-time operations; target costing; lifecycle management; total quality management; environmental cost management; comprehensive valuechain analysis; and strategic market management.
Reading assignments - For
Dec. 2:
HARTGRAVES: Chapters 1; 6 (pp. 194-199); 7 (pp. 226-232);
8; 11 (pp. 364-369)
HANDOUT
ARTICLES:
Shank, John K. and Vijay Govindarajan, "Strategic Cost
Management and the Value Chain," Journal of Cost Management,
Winter 1992.
Cooper, Robin and W. Brice Chew, "Control Tomorrow's Costs
Through Today's Designs," Harvard Business Review, JanuaryFebruary, 1996.
Shank, John K. and Vijay Govindarajan, "Measuring the 'Cost of
Quality': A Strategic Cost Management Perspective," Journal of Cost
Management, Spring, 1994.
Lecture slides:
SMAC
Discussion assignments - For
Dec. 2:
TBA
Written assignment - Due
Dec. 16:
FINAL CASE (Management Accounting) - TO
BE ANNOUNCED
- 15 -
ACADEMIC INTEGRITY
The following is a statement of minimum standards for student academic integrity at Saint Louis
University:
The University is a community of learning, whose effectiveness requires an environment of mutual trust
and integrity, such as would be expected at a Jesuit, Catholic institution. As members of this
community, students, faculty, and staff members share the responsibility to maintain this environment.
Academic dishonesty violates it. Although not all forms of academic dishonesty can be listed here, it
can be said in general that soliciting, receiving, or providing any unauthorized assistance in the
completion of any work submitted toward academic credit is dishonest. It not only violates the mutual
trust necessary between faculty and students but also undermines the validity of the University=s
evaluation of students and takes unfair advantage of fellow students. Further, it is the responsibility of
any student who observes such dishonest conduct to call it to the attention of a faculty member or
administrator.
Examples of academic dishonesty would be copying from another student, copying from a book or class
notes during a closed-book exam, submitting materials authored by or editorially revised by another
person but presented as the student=s own work, copying a passage or text directly from a published
source without appropriately citing or recognizing that source, taking a test or doing an assignment or
other academic work for another student, tampering with another student=s work, securing or supplying
in advance a copy of an examination without the knowledge or consent of the instructor, and colluding
with another student or students to engage in an act of academic dishonesty.
Where there is clear indication of such dishonesty, a faculty member or administrator has the
responsibility to apply appropriate sanctions. Investigations of violations will be conducted in accord
with standards and procedures of the school or college through which the course or research is offered.
Recommendations of sanctions to be imposed will be made to the dean of the school or college in
which the student is enrolled. Possible sanctions for a violation of academic integrity include, but are
not limited to, disciplinary probation, suspension, and dismissal from the University.
Approved by the Council of Academic Deans and Directors, September 20, 2000.
Note: It is the policy of the School of Business and Administration
at Saint Louis University that the “Giving and Receiving of
unauthorized assistance on any graded exercise constitutes academic
dishonesty and may result in grade reductions and/or probation,
suspension, or dismissal.”
- 16 Saint Louis University – John Cook School of Business
THE LEARNING ENVIRONMENT: SHARED EXPECTATIONS
EXPECTATIONS FOR STUDENTS
Students will treat their classroom obligations as they would treat any serious professional engagement.
That includes:
1. PREPARING THOROUGHLY for each session in accordance with the instructor’s requests;
2. ARRIVING PROMPTLY AND REMAINING until the end of each class meeting, except in
unusual circumstances;
3. PARTICIPATING FULLY & CONSTRUCTIVELY in all classroom activities and discussions;
4. DISPLAYING APPROPRIATE COURTESY to all involved in the class sessions. Courteous
behavior specifically entails communicating in a manner that respects, and is sensitive to, the
cultural, racial, sexual and other individual differences in the Cook School of Business
community;
5. ADHERING TO DEADLINES AND TIMETABLES established by the instructor;
6. PROVIDING CONSTRUCTIVE FEEDBACK TO FACULTY MEMBERS regarding their
performance as an instructor. Students should be as objective in their comments about
instructors as they expect instructors to be in their evaluations of students.
EXPECTATIONS FOR FACULTY
1. PREPARING THOROUGHLY for class;
2. PUNCTUALITY in beginning class sessions, and except under unusual circumstances,
adherence to the established schedule for classes & exams;
3. PROVIDING SUFFICIENT INFORMATION and materials to enable students to prepare
adequately for class;
4. DISPLAYING APPROPRIATE COURTESY to all involved in the class sessions. Courteous
behavior specifically entails communicating in a manner that respects, and is sensitive to, the
cultural, racial, sexual and other individual differences in the Cook School of Business
community;
5. SUPPLYING TIMELY INFORMATION ABOUT STUDENT PERFORMANCE on projects,
assignments, and examinations;
6. PROVIDING CONSTRUCTIVE FEEDBACK TO STUDENTS concerning their performance.
Faculty should be as objective in their feedback to students as they expect students to be in their
evaluation of faculty.
- 17 -
Students who believe that, due to the impact of a disability, they may need
academic accommodations in order to meet the requirements of this, or any
other class at Saint Louis University are encouraged to contact the Disability
Services office at 977-8885 or should visit the Busch Student Center, Suite 331
(Student Success Center). Confidentiality will be observed in all inquiries.