Page 1 of 10
State University of New York at Buffalo
School of Management
MGA 302: Intermediate Financial Accounting II
Spring 2015
Professor Alex Ampadu
340 Jacobs Management Center
E-mail: ampadu@buffalo.edu
Voice: 716-645-3265
Class Times: S1A Jacobs 112; T R 9:30-10:50 am
S2A Jacobs 110; T R 11 am-12: 20 pm
S3A Alfiero 104; T R 2-3:20 pm
S4A Alfiero 103; T R 3:30-4:50 pm
S5A Alfiero 102; T R 5-6:20 pm
Office Hours: Mondays
1-3 pm
Wednesdays 11 am-Noon &
5-6 pm
or by appointment
1. Objectives
As a continuation of MGA 301, this course provides a rigorous exposure to the theory
and application of generally accepted accounting principles, particularly in the areas of
long-term liabilities, equity accounts and financial reporting. Material in this course is
relevant to careers in various areas of accounting. We seek to master an appropriate
degree of technical skills as well as conceptual understanding of the issues and possible
future direction of financial accounting. We will cover IFRS in all aspects of this course.
MGA 302 covers some of the most difficult areas in financial accounting, moves at a fast
pace, and is substantially more demanding than the prerequisite courses. Students need to
invest many hours per week in this course than in their prior accounting courses to
perform at an acceptance level. A high level of independence is also required. Working at a
steady pace and not falling behind is absolutely essential for acceptable performance. It is
your responsibility to stay up to date with all announcements made in class, and all
postings on the UBLearns course site.
IFRS Kicker (It’s a debate this time)
IFRS standards and updates are available at the IFRS website. Teams will compare and
contrast GAAP rules with IFRS in any area of financial accounting. Selected teams must
provide a maximum two-paged typed summary as well as make an oral presentation on the
differences in the standards, clearly defending the merits of one standard over the other.
The crust of the presentation must be an analysis (with examples) on which standards are
better for the area and substantive reasons to support the team’s conclusion. An opposing
team will rebut with appropriate substantive reasons. Teams will make their presentations
(maximum six minutes) prior to the beginning of class lectures.
Using the FASB Codification:
See attached sheet for the instructions on the tutorials for the new FASB codification
online. References for all assignments should be related to the codification e.g., FASB ASC
840-20-50.
Page 2 of 10
2. Prerequisite
Students enrolled in MGA 302 must have successfully completed MGA 301 (with a
grade of “C” or better) and concurrently taking MGA 311, and are at junior standing in the
Accounting Program. School policy is that students lacking prerequisites will be dropped
from the course.
3. Important Dates
February 2 -- last day to register for the course.
April 17 -- the last day to resign from the course with an "R" grade.
4. Course Materials
Required Textbook
Kieso, Weygandt, and Warfield, Intermediate Accounting, 15th Edition
(ISBN: 978-1-118-14729-0)
Binder version is available (ISBN: 978-1-118-70090-7)
Class notes (Lecture slides) and other related material are available on-line at:
https://ublearns.buffalo.edu/index.html
If you do not regularly check your UBlearns and UB e-mail account, you could miss some
important course announcements. It is your responsibility to regularly check your UBlearns
and UB e-mail account.
Recommended:
Problem-Solving Survival Guide - Intermediate Accounting, by Hunt, 15th Ed. (Volumes I
and II cover Chapters 1-14 and 15-24, respectively)
The above items are available at the bookstore, and you used them in your MGA 301
course.
5. Grades
Your grade in this course will be determined as follows:
I am in class and I am prepared
2 interim exams, higher of the two – 50 points
lower of the two – 40 points
Quizzes
Final exam
Group Work (Research and IFRS presentation)
TOTAL
10 points
90 points
20 points (2/3 quizzes)
60 points
20 points
200 points
All students are evaluated on the same basis. Supplemental assignments will not be
provided for additional credit, under any circumstances.
Anticipated cut-offs for grades are:
166 to 200 A range (A, A-)
146 to 166 B range (B+, B, B-)
116 to 146 C range (C+, C, C-)
86 to 116
D range (D+, D)
I reserve the right to adjust the above cut-offs.
Page 3 of 10
VERY IMPORTANT: The grade you earn is the grade that will be awarded to you. I do not
negotiate for grade changes under any circumstances.
6. Examinations
Two noncumulative exams will be given outside of class during the semester as
indicated on the schedule. Please make note of these dates and arrange your schedule
accordingly. The final exam is also technically noncumulative, except a specific area may be
tested again on the final exam if, on the average, results from the interim exam is deemed
to be unsatisfactory for the entire class. You must take all exams to achieve a passing
grade. No makeups are anticipated, so arrange your schedule and other commitments to
avoid any conflicts.
7. In class and prepared!
Two ways to “motivate” you to learn and pass this course are to ensure that you attend
classes and that you are prepared for every class.
I will record class attendance frequently and the results will be tallied and included in
your grade. In addition, you will be given short quizzes on certain days during the
semester (at any time during the class-time – beginning, in the middle, or at the end). Since
you are expected to be in every class, there will not be any makeups. If unusual
circumstances cause you to miss a quiz, you will be awarded a zero and that would be
counted as your lowest quiz score. Your best two out of the three quizzes will count as 20
points.
8. Assignments and Course Procedure
Reading assignments are expected to be completed and assigned written problems
attempted prior to the class session. The class time will consist of combined
lecture/discussion of chapter material, and review of problems. You are expected to
contribute to the review of written problems. Note that class participation and homework
significantly influence your grade. This means that you cannot do well unless you attend
class regularly, contribute to class discussion, and complete and hand in your homework, if
asked to do so. Chapter assignments include all appendices, unless indicated otherwise.
Homework problems may be collected on the date the chapter is completed.
Solutions will be posted on the course website for your review.
Note: Frequent absences from class and unwillingness to make oral presentations, or
disruption of class will reduce the chances of scoring the full 10 points of class
participation.
9. Team Projects
Projects focusing on IFRS analysis and disclosure are required. The papers will be
graded on content, organization, and on grammatical presentation. Each group will have
Page 4 of 10
four members. Peer evaluations must be completed. Any partner who does not
contribute in a significant and productive manner will receive a zero or negative
adjustment to the group case grade. Details will be provided in class.
10. Incompletes
In accordance with University policy, an incomplete will only be provided if a
significant portion of the course requirements has been completed with a passing grade
and a situation beyond the student's control (e.g. severe illness or family emergency)
prevents completion. Documentation should be substantive, verifiable and should come
from an authentic source. I do not accept generic forms initialed by a receptionist or
assistants from a Doctor’s office. Dissatisfaction with a grade does not constitute grounds
for an incomplete, and any grade earned up to the point of being granted incomplete will be
included in the course grade when you complete the course. If you “vanish” during the
semester without appropriately resigning from the course, you will receive an “F” grade.
11. Academic Integrity
Students who are suspected of academic dishonesty will be dealt with in accordance
with School of Management and University policy. Academic dishonesty includes
plagiarism, unauthorized procurement, distribution or acceptance of examinations, or
giving or receiving assistance from an unauthorized source while completing an
examination or other individual assignment. Possible University sanctions range from
admonishment to expulsion from the University. Academic dishonesty in any form
(regardless of its magnitude in determining final grades) of this course will be met
with an F-grade for the entire course. Variations from this penalty due to the
circumstances of the case are solely at the instructor's discretion.
Relating the above to the requirements of this course, it would be dishonest to obtain or
attempt to obtain information from another student or from written sources during
examinations, or to knowingly give information. You are also expected to do all written
assignments individually, although it is reasonable to expect some verbal interaction with
others. It is dishonest to copy someone else's homework and hand it in as your own. The
written work you hand in should be the result of your own thinking, not someone else's.
You are expected to fully participate with your group members in all team assigned
projects.
NOTE: Use of cell phones, laptops, I-pads or other electronic devices of any kind is NOT
allowed during classes or exams. All electronic devices are to be turned off and stored in a
backpack, purse or other bags, which are zipped shut or otherwise securely closed. If you have
an electronic device that is visible or which can be touched or otherwise manipulated and
accessed by you during an exam you will receive a grade of zero. There will be no exceptions to
this rule. Electronic devices or any instruments or materials to which students have access during
tests or examinations in violation of this rule or which raise concerns regarding academic
integrity may be inspected by the University Police Department, followed by the filing of
violation report.
Page 5 of 10
PLEASE NOTE: Time, tide and this course, wait for no one
12. Course Schedule:
PERIOD
READING ASSIGNMENTS
CHAPTER (S)
Week 1
13
Week 2
Week 3
Week 4
Week 5
Saturday,
2/28/2015
Week 6
Week 7
Week 8
Week 9
Week 10
Week 11
Saturday,
4/11/2015
Week 12
Week 13
Week 14
Week 15
14
14
15
15
16
16
17
17, 21
21
19
19
19
20
MAIN TOPIC
Short Term Obligation
Introduction, Debt Financing
Debt Financing
IFRS and FASB, Chapter 14 complete
Equity Financing
Equity Financing
EXAM #1 (8:30-10:50 am) Knox 110
Dilutive securities
Earnings Per Share (EPS)
SPRING BREAK
Investments
Investments, Leases
Leases
EXAM #2 (8:30-10:50 am) Knox 110
Deferred Taxes
Deferred Taxes
Deferred Taxes (complete project and review)
Pensions
Post-retirement benefits
NOTE: This is a tentative schedule and subject to change by the instructor. You are responsible for any
changes announced in class. Material from Chapter 24, Full Disclosure in Financial Reporting, will be covered
throughout the course/semester. We will refer to the Proctor & Gamble specimen financial statements in
Chapter 5 of your textbook for appropriate presentation and disclosure for Financial Statements.
You can access Kieso’s student’s companion site through the link on the UB Learns website.
Page 6 of 10
HOMEWORK
Current liabilities and
contingencies
13
Ch. 13:, E11, E18, E3, E4 use both GAAP &
IFRS, E13, E17, E18,P5, P6
Bonds & Off-Balance Sheet
Financing
14
Ch. 14: E4, E9, IFRS 14-3, E12, E14, E16, E19,
E21, E20; E22 (a&b), E23, E24, IFRS 14-7
P1, 2,6,7
Equity
15
Ch. 15: C5, E3, E5, E8, E12, E14, E15, E22,
E23, P9, P2, P6, CA2, IFRS 15-2, IFRS 15-10
Dilutive Securities &
Earnings Per Share
16
(parts I & II)
Ch. 16: E3, E7, E10, E11, E12, E18, E22, E23,
E28, E29
P4, P7, P2, P8, IFRS 16-2, IFRS 16-3,
IFRS 16-7, IFRS 16-9, IFRS 16-14
Investments
17
Ch. 17: E3, E11, E12, E8, E16, P12
IFRS 17-2, IFRS 17-18, IFRS 17-12
Income Taxes
19
Ch. 19: E2, E4, E7, E11, E12, C4; E14, E17,
P4, P5, IFRS 19-2, IFRS 19-3
Leases
21
Ch. 21: E2, E4, E6, E13, E14; P3 (a-d), P10
IFRS 21-2, 3, 4, 5, 6 IFRS 21-9
Pensions
20
Ch. 20: E1, E2, E6, E11, E13, IFRS 20-1,
IFRS 20-7
NOTE: More assignments may be added
Page 7 of 10
Using the FASB Codification
Learning Generally Accepted Accounting Principles (GAAP) used to be a daunting task, as the
documents that comprise it vary in format, completeness, and structure. In some cases, these
documents are inconsistent and difficult to interpret. As a result, financial statement prepares
sometimes are unsure whether they have the right GAAP, which makes determining what is
authoritative, and what is not, difficult. In response to these concerns, the FASB developed the
Financial Standards Accounting Board Board Accounting Standards Codification (or simply, the
Codification). The Codification provides in one place all the authoritative literature related to a
given topic. It explains what GAAP is and eliminates nonessential information, such as
redundant document summaries, basis for conclusions sections, and historical content. This
greatly simplifies user access to GAAP.
The Codification – accessible at http://asc.fasb.org/home -- is available as an online, real-time
database.
In order to use the Codification effectively, you need to understand its structure. Four categories
of topics are used to structure all of the topics:




Presentation – topics related to financial statement presentation, such as the
Balance Sheet and Earnings Per Share
Financial Statement Accounts – topics related to specific Assets, Liabilities,
Equity, Revenue and Expenses
Broad Transactions – topics related to multiple financial statement accounts, such
as Leasing
Industries – all industry-specific guidance
For example, suppose you had a question related to the proper accounting for the intangible asset
Goodwill. You could directly access this information by drilling down into the Codification as
follows: Assets > Intangible Assets > Goodwill. To navigate in this manner, go to the area
marked “A” on the screenshot.
However, understanding the overall structure of the Codification is only one of three methods
used for accessing its contents. A second method is to use the Codification search tool, which
works much like common internet search engines. As with most search engines, the more often
you use it, the more efficient and effective you will be at locating the information. The area to
input your search terms is marked “B” in the Codification screenshot.
The third method to access specific material in the Codification is through the Codification’s
numbering system. If you know specific Topic, Subtopic, and Section numbers, you can access
them directly. For example, if you wanted to review all of the Codification material related to
disclosures for operating leases, you could go directly to Topic 840 (Leases), Subtopic 320
(Operating Leases), and Section 50 (Disclosure). This numbering system also provides a way to
efficiently reference material in the Codification. For example, FASB ASC 840-20-50 would be
the reference for the operating lease disclosure material. To use this method, enter the
information in the boxed area marked “C” in the screenshot.
Source: Kieso, Weygandt, Warfield
FASB Codification: The New View of GAAP
Page 8 of 10
Obtaining access:
http://aaahq.org/asclogin.cfm
6Student Access:
Username - AAA51360
Password - 8hM4ZRm
Page 9 of 10
A MEMO TO YOU
The purpose of professional education goes beyond the teaching of the body of specialized
knowledge. It also must instill the values and the norms of the profession in order that students
may quickly learn to act professionally on the job. Thus professional education places more
emphasis on professional needs than on student needs. In essence, professional education is
designed to prepare a student for a career: a way of life in addition to employment. It is NOT a
memorization exercise!
The specific implications of professional education are:
1.
Absolute rather than relative standards are used to evaluate performance. Outputs are
considered, rather than student work inputs.
2.
Real world professional pressures are placed on students e.g., time constraints.
3.
Violations of professional norms in the student’s conduct or performance are severely
penalized. In particular, for an accountant this means that illegible and unorganized
work papers; unconventional journal entries, etc. will be devalued even though the
arithmetic is correct.
4.
The workload of each course is designed to insure minimum competence rather than
considering the time it takes to do it.
5.
The instructors’ attitudes and performance are primarily governed by professional
requirements rather than student desires.
6.
Emphasis is placed on adherence to a high level of verbal and written communication
skills.
In sum, professional education places significantly different demands on students than does a
liberal education.
Page 10 of 10
Student Information Form
Course: __________________________
Student Name: ________________________________________
Student ID No.: _________________
Local Address: ________________________________________
Local Phone: ___________________
Home Address:________________________________________________________________
E-mail: ______________________________
Level (please circle): Senior
Junior
Status: (please circle): Full-time
Part-time
Employment: (please circle): Working
Major: _____________________
Not Working
Or area of interest: _____________________
Previous courses in this field? __________________________________________
Why are you taking this course?
List two things you want from this course:
(1) ___________________________________________________________________
(2) ___________________________________________________________________
Type of instruction you learn best from: _____________________________________
Type of assignment you learn best from: _____________________________________
Type of tests you take best: ________________________________________________
Prerequisites Completed:
Course
Instructor
Date Completed
1.
__________
_____________
______________
2.
__________
_____________
______________
3.
__________
_____________
______________