ACT505: Advanced Theory and Practice
Credit Hours:
3
Contact Hours:
This is a 3-credit course, offered in accelerated format. This means that 16 weeks of
material is covered in 8 weeks. The exact number of hours per week that you can
expect to spend on each course will vary based upon the weekly coursework, as
well as your study style and preferences. You should plan to spend 10-25 hours per
week in each course reading material, interacting on the discussion boards, writing
papers, completing projects, and doing research.
Faculty Information
Name:
Phone:
CSU-Global Email:
Virtual Office Hours:
Course Description and Outcomes
Course Description:
This course concentrates on three general areas of financial reporting: foreign currency translation,
consolidations and an introduction to governmental accounting practices.
You will first explore how income is calculated in multiple currencies. In currency conversions, issues arise
related to the functional currency, as well as how gains and losses relative to changing currency values are
reported on financial statements of the consolidated entity. An important element of the consolidation
procedure, is structuring of financial reporting when income is measured by different subsidiary entities in
currencies that differ from that of financial statement reporting.
Following discussion and presentation of currency transactions, once you know how to express financial results
in the functional currency, you will explore the process of consolidation. Consolidation is combining affiliated
entities into the financial statements of the parent entity for financial reporting as one entity. The main focus is
how intercompany transactions are eliminated from both entities as part of the consolidation process.
This course concludes with an introduction to governmental accounting, and a discussion of how and why
governmental accounting differs from traditional private industry. An introduction to typical government
general fund transactions is illustrated.
Course Learning Outcomes:
1.
2.
3.
4.
5.
Describe current accounting standards and regulations.
Apply standards learned to the preparation of financial statements in compliance with GAAP.
Apply accounting knowledge beyond the preparation of one-entity financial statements.
Explain and contrast current international accounting standards with U.S. standards.
Synthesize all areas of accounting knowledge into professionally prepared and GAAP compliant
accounting work papers.
Participation & Attendance
Prompt and consistent attendance in your online courses is essential for your success at CSU-Global Campus.
Failure to verify your attendance within the first 7 days of this course may result in your withdrawal. If for some
reason you would like to drop a course, please contact your advisor.
Online classes have deadlines, assignments, and participation requirements just like on-campus classes. Budget
your time carefully and keep an open line of communication with your instructor. If you are having technical
problems, problems with your assignments, or other problems that are impeding your progress, let your
instructor know as soon as possible.
Course Materials
Required:
Baker, R., Christensen, T., & Cottrell, D. (2013). Advanced financial accounting (10th ed). New York, NY: McGraw
Hill. ISBN13: 9780078025624
NOTE: All non-textbook required readings and materials necessary to complete assignments, discussions, and/or
supplemental or required exercises will be provided within the course itself. Please read through each course
module carefully.
Course Schedule
Due Dates
The Academic Week at CSU-Global begins on Monday and ends the following Sunday.
 Discussion Boards: The original post must be completed by Thursday at 11:59 p.m. MT and Peer
Responses posted by Sunday 11:59 p.m. MT. Late posts may not be awarded points.
 Mastery Exercises: Students may access and retake mastery exercises through the last day of class until
they achieve the scores they desire.
 Critical Thinking Activities: Assignments are due Sunday at 11:59 p.m. MT.
Week #
1
2
3
4
5
6
7
8
Readings
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Chapters 11 &13 in Advanced Financial Accounting

Chapter 1 in Advanced Financial Accounting
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Chapters 2 & 3 in Advanced Financial Accounting
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Chapters 4 & 5 in Advanced Financial Accounting

Chapter 12 in Advanced Financial Accounting

Chapters 6 & 7 in Advanced Financial Accounting

Chapter 17 in Advanced Financial Accounting

Chapter 17 in Advanced Financial Accounting
Assignments
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Discussion (25 points)
Critical Thinking (110 points)
Discussion (25 points)
Critical Thinking (120 points)
Discussion (25 points)
Portfolio Questions (0 points)
Discussion (25 points)
Portfolio Draft A (0 points)
Discussion (25 points)
Critical Thinking (110 points)
Discussion (25 points)
Portfolio Draft B (0 points)
Discussion (25 points)
Critical Thinking (110 points)
Discussion (25 points)
Portfolio (350 points)
Assignment Details
This course includes the following assignments/projects:
Module 1
Critical Thinking: Foreign Currency Recognition and Reporting (110 points)
This Critical Thinking exercise contains two problems. You must address both problems, following the instructions
for each. When you are finished with both problems, put your responses in a single Word document for
submission.
Problem 1 presents a scenario describing a transaction and you must calculate and explain a foreign exchange gain
or loss.
Problem 1
Marko Company sold spray paint equipment to Spain for 5,000,000 pesetas (P) on October 1, with payment due in
six months. The exchange rates were:
October 2, 20x6: 1 Peseta = .0068
December 31, 20x6: 1 Peseta = .0078
April 1, 20x7: 1 Peseta = .0076
Answer the following questions. Show all your calculations in a table in the Word document where appropriate.
Present all written responses in accord with CSU-Global APA guidelines.
A. Did the dollar strengthen or weaken relative to the peseta during the period from October 1 to December
31? Did it strengthen or weaken between January 1 and April 1 of the next year?
B. Prepare all required journal entries for Marko as a result of the sale and settlement of the foreign
transaction, assuming that its fiscal year ends on December 31. The journal entries should follow
appropriate journal entry format, as you studied in your foundational accounting course.
C. Did Marko have an overall net gain or net loss from its foreign currency exposure? Please explain how this
loss was generated, as well as the implication of this loss on the financial statements.
In Problem 2, you are presented with a segment reporting issue. In response, you will develop a one- or two-page
memo to a supervisor explaining how the issue should be reported, as well as challenges that need to be
considered.
Problem 2
Chemax Inc. manufactures a variety of pharmaceuticals, medical instruments, and related medical supplies.
Eighteen months ago the company developed, and began to market, a new product line of antihistamine drugs
under various trade names. Sales and profitability of this product line during the current fiscal year greatly
exceeded management's expectations. The new product line will account for 10 percent of the company's total
sales and 12 percent of the company's operating income for the fiscal year ending June 30, 20X0. Management
believes sales and profits will be significant for several years.
Chemax Inc. is concerned that its market share and competitive position may suffer if it discloses the volume and
profitability of its new product line in annual financial statements. Management is not sure how FASB 131 (ASC
280) applies in this case.
Write a one- or two-page paper, in the form of a memo to a supervisor, in CSU-Global APA format addressing the
following issues:
A. What is the purpose of requiring segment information in financial statements?
B. Identify and explain the factors to be considered when attempting to decide how products should be
grouped to determine a single business segment.
C. What options, if any, does Chemax Inc. have with the disclosure of its new antihistamine product line?
Ensure your responses for both problems are clearly marked so your instructor knows which response
goes with which problem. Combine all of your responses in a single Word document for submission.
Module 2
Critical Thinking: Intercorporate Acquisitions (120 points)
MCI WorldCom, Inc. (later MCI), was known as a high-flying company, having started as a small local company and
rising to one of the world's largest communications giants. The company's spectacular growth was accomplished
through a string of business combinations. However, not all went as planned.
Provide a brief history of, and describe subsequent events related to, MCI WorldCom. Include in your analysis the
following:
1. Trace the major acquisitions in the development of MCI WorldCom and discuss the considerations to be
made in the acquisitions.
2. Who is Bernard Ebbers and where is he now?
3. What happened to MCI WorldCom? Where and what is it now?
Your paper must be in a Word document two- to three-pages in length in CSU-Global APA style, citing at least
three resources other than the course textbook.
Module 3
Portfolio Project: Questions (0 points)
The Portfolio assignment is found on the Week 8 Assignments page, and the Portfolio Project grading rubric can
be accessed from the Course Information page. Spend some time considering your Portfolio in depth. Ask your
instructor any questions that you have regarding the assignment. Or, if you have no questions, acknowledge that
you have read the assignment and make a brief statement showing that you understand its scope and purpose.
Submit questions or acknowledgement to your instructor by email by the end of the week. Your instructor will
review these questions and provide answers to the class regarding the “most commonly asked” questions.
This submission is a required component of the Portfolio Project assignment, due this week. No points will be
assigned for this, but points will be deducted from your final grade on the Portfolio Project if you fail to submit this
assignment by week’s end.
Module 4
Portfolio Project: Comprehensive Consolidation and Analysis—Part A Draft (0 points)
This week, you will submit a draft of Part A of the Portfolio Project for review by the instructor. Your submission
must show all journal entries recorded in 20X5 related to the investment in Stanley. Review the Portfolio Project
Description on the Week 8 Assignments page, and Portfolio Project grading rubric, which can be accessed from
the Course Information page.
Your draft of Part A must be received by the end of Week 4. It will be reviewed for accuracy by your instructor and
feedback will be provided about your draft, which must be incorporated into your final Portfolio Project, due at the
end of Week 8.
This submission is a required component of the Portfolio Project assignment, due this week. Points toward the
final Portfolio Project will be assigned for this and thus, points will be deducted from your final grade on the
Portfolio Project if you fail to submit this assignment by week’s end. Review Portfolio Project: Module 4
Deliverable grading rubric, which can be accessed from the Course Information page, to see how you will be
graded for this submission.
Module 5
Critical Thinking: Consolidation of Less than Wholly Owned Subsidiaries (110 points)
Duff Company is a subsidiary of Rand Corporation and is located in Madrid, Spain, where the currency is the euro
(€). Data on Duff's inventory and purchases are as follows:
The beginning inventory was acquired during the fourth quarter of 20X6, and the ending inventory was acquired
during the fourth quarter of 20X7. Purchases were made evenly over the year. Exchange rates were as follows:
Problems:
A. Show the re-measurement of cost of goods sold for 20X7, assuming that the U.S. dollar is the functional
currency.
B. Show the translation of cost of goods sold for 20X7, assuming that the Spanish peseta is the functional
currency.
Apply principles of consolidating and translating foreign accounts by responding to problems A and B above, based
on the case study and the values provided. Your paper must be in a Word document, showing all calculations, and
any written remarks must be in accordance with CSU-Global APA-format.
Module 6
Portfolio Project: Comprehensive Consolidation and Analysis—Part B Draft (0 points)
During Week 6, you will submit a draft of Part B of the Portfolio Project for review by the instructor and approval.
Your submission must show all eliminating entries needed to prepare consolidated statements for 20X5. For a full
description of Part B requirements, see the Portfolio Project description on the Week 8 Assignments page, and
Portfolio Project grading rubric, which can be accessed from the Course Information page.
To receive feedback on your draft of Part B, the assignment must be submitted by the end of Week 6. Outlines
submitted late will not be reviewed. The feedback provided about your draft must be incorporated into your final
Portfolio Project, due at the end of Week 8.
This submission is a required component of the Portfolio Project assignment, due this week. Points toward the
final Portfolio Project will be assigned for this and thus, points will be deducted from your final grade on the
Portfolio Project if you fail to submit this assignment by week’s end. Review the Portfolio Project: Module 6
Deliverable grading rubric, which can be accessed from the Course Information page, to see how you will be
graded for this submission.
Module 7
Critical Thinking: Intercompany Transactions and Governmental Fund Accounting (110 points)
Wilma Bates is executive vice president of Mavis Industries Inc., a publicly held industrial corporation. She has just
been elected to the city council of Gotham City. Before assuming office, she asks you to explain the major
differences that exist in accounting and financial reporting for a large city when compared to accounting and
reporting for a large industrial corporation.
Problems:
A. Describe the major differences in the purpose of accounting, of financial reporting, and in the type of
financial reports of a large city when compared to a large industrial corporation.
B. Why are inventories often ignored in accounting for local governmental units? Explain.
Address Problems A and B above, based on information provided in the case study. If you wish to present
calculations to help make your responses more complete, show those calculations in a table in your paper. The
paper must be a Word document two-to three-pages in length, formatted per CSU-Global APA and writing
guidelines.
Module 8
Portfolio Project: Comprehensive Consolidation and Analysis (310 points)
Master Corporation acquired 80 percent ownership of Stanley Wood Products Company on January 1, 20X1, for
$160,000. On that date, the fair value of the non-controlling interest was $40,000, and Stanley reported retained
earnings of $50,000 and had $100,000 of common stock outstanding. Master has used the equity method in
accounting for its investment in Stanley.
Trial balance data for the two companies on December 31, 20X5, are as follows:
Additional Information:
1. On the date of combination, the fair value of Stanley’s depreciable assets was $50,000 more than book
value. The differential assigned to depreciable assets should be written off over the following 10-year
period.
2. There was $10,000 of intercorporate receivables and payables at the end of 20X5.
Your Portfolio Project paper should be 8 to 10 pages in length, and address thoroughly Parts A, B and C below. Be
sure to incorporate instructor feedback and suggestions into your final submission, in terms of any changes or
additions to Parts A and B that you received during the course. Be sure to examine the Portfolio Project rubric to
guide your project writing and presentation.
A. Give all journal entries that Master recorded during 20X5 related to its investment in Stanley.
B. Give all eliminating entries needed to prepare consolidated statements for 20X5.
C. Prepare a three-part worksheet as of December 31, 20X5. Include this in table format in the Word
document. Following your worksheet, in two or three pages, analyze the process, specifically addressing
how the transactions impact the financial statements, and how an outside user of the financial
statements would use the information provided.
Use of outside sources, other than the course textbook, is not a requirement of this assignment. If outside sources
are used to inform your response, include all citations and an appropriate reference page. In completing your
paper, spend time to assure that the formatting complies with CSU-Global APA guidelines, and thoroughly
proofread and grammar-check your final product.
Portfolio Project Deliverables - Comprehensive Consolidation and Analysis (40 points)
The Portfolio deliverables for this course, and the modules in which they are due, are:
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Module 3: Submit Portfolio questions to instructor (0 points)
Module 4: Submit a draft of your response to Part A of the Portfolio assignment to instructor (0 points)
Module 6: Submit a draft of your response to Part B of the Portfolio assignment to instructor (0 points)
Course Policies
Late Work
Students are permitted a 7 day grace period during which they may submit a Critical Thinking assignment after
the original due date without penalty. Papers submitted between 8 and 14 days after the original due date will
be accepted with a potential 10 percent reduction in grade for late submission. Papers submitted 15 or more
days beyond the original due date may not be accepted unless prior arrangements have been made with the
instructor. No Portfolios will be accepted late and no assignments will be accepted after the last day of class
unless a student has requested an incomplete grade in accordance with the Incomplete Policy.
Course Grading
20% Discussion Participation
45% Critical Thinking Activities
35% Final Portfolio Paper
Grading Scale and Policies
A
95.0 – 100
A-
90.0 – 94.9
B+
86.7 – 89.9
B
83.3 – 86.6
B-
80.0 – 83.2
C+
75.0 – 79.9
C
70.0 – 74.9
D
60.0 – 69.9
F
59.9 or below
FN*
Failure for Nonparticipation
I**
Incomplete
FN* Students who have completed less than 60% of the graded assignments will be issued a grade of FN. Grades of FN may impact
financial aid or military benefits.
I** Students must request an Incomplete through their course instructor. The faculty member will provide the student with the Request
for Incomplete Grade form, which must be signed by the student and approved by the faculty member prior to the faculty member
submitting to the Office of the Registrar. Incompletes cannot include unsubmitted assignments from the first six (6) weeks of the class as
defined by the late policy and may only be awarded to students that have completed 60% of the graded coursework with a passing
grade. Incomplete forms must be on file with the Office of the Registrar no later than Thursday of the final week of class.
Academic Integrity
Students must assume responsibility for maintaining honesty in all work submitted for credit and in any other
work designated by the instructor of the course. Academic dishonesty includes cheating, fabrication, facilitating
academic dishonesty, plagiarism, reusing your own work, re-purposing your own work, unauthorized possession
of academic materials, or unauthorized collaboration. The Library provides information on how students can
avoid plagiarism by understanding what it is and how to use Library and internet resources.
Citing Sources with APA Style
All students are expected to follow the CSU-Global Guide to Writing and APA Requirements when citing in APA
(based on the APA Style Manual, 6th edition). For details on CSU-Global APA style, please review the APA
resources within the CSU-Global Library under the “APA Guide & Resources” link. A link to this document should
also be provided within most assignment descriptions on your course’s Assignments page.
Netiquette
Respect the diversity of options among the instructor and classmates and engage with them in a courteous,
respectful and professional inner. All posts and classroom communication must be conducted in a professional
and respectful manner in accordance with the student code of conduct. Think before you push the Send button.
Did you say just what you meant? How will the person on the other end read the words?
Maintain an environment free of harassment, stalking, threats, abuse, insults or humiliation toward the
instructor and classmates. This includes, but is not limited to demeaning written or oral comments of an ethnic,
religious, age, disability, sexist (or sexual orientation), or racist nature; and the unwanted sexual advances or
intimidations by email, or on discussion boards and other postings within or connected to the online classroom.
If you have concerns about something that has been said, please let your instructor know.
Institutional Policies
Refer to the Academic Catalog for comprehensive documentation of CSU-Global institutional policies.