ACCT 495 � Accounting Capstone Course - DOC by HG2isAon


									ACCT 595 – Case Studies in Accounting

Class: Spring 2012
Instructor: Dr. NJ Kim, CPA
Office Hours: M 4:00-6:00 p.m., TR 10:20 – 11:20a.m.
Office: STF 612 Telephone: (323) 343- 2840

         Required:      1. Intermediate accounting textbook
                        2. Deloitte and Touche (D&T): The Robert M. Trueblood
                           Accounting and Auditing Case Study Series.*
                        3. Harvard Business School (HBS) Cases*
                        4. AICPA Professor/Practitioner Cases*

         Note:   * Cases and reading materials are available at the Student
                   Bookmart on Eastern Ave.

Class Objectives:
       Through the use of high quality real-world cases involving current topics in
       financial accounting, students are expected to be trained to identify issues, weigh
        relevant factors, make informed decisions, and defend their positions.

                  Group Term Paper                                 25%
                  Mid-Term Exam                                    40
                  Group Case Project                               10
                  Class Participation                              15
                  Case assignments                                 10
                        Total                                      100%

Term Paper:
      A group term paper related with the quality of earnings and red flag is required
      for the class. Each group will pick up two companies in a same industry and
      analyze their financial statements to draw a conclusion whether the quality of a
      company’s earning is high or low compared to a comparable company in the same
                                Tentative Schedule
Week 1: Introduction
      Class objectives, structure, organization and assessment.
      Class members introduce each other.
      Accounting for Lease

Week 2 - 3:
      Read Staff Accounting Bulletin No. 101.
      (SAB 101 available at WWW.SEC.GOV)
      Read Accounting Minefields
      AICPA Case # 96-07
      AICPA Case 15
      D&T Case 22
      D&T Case # 97-2
      D&T Case # 97-3

Week 4-5:
      Read Quality of Earnings
      D&T Case # 99-7
      D&T Case # 96-1
      AICPA Case #96-01 Troubled Computer Co.
      D&T Case # 19
      D&T Case # 95-1
      D&T Case # 95-8

      Reporting Income for Dot-coms
Assignment: 1. Read HBS Case: Reporting Income for Dot-coms.
            2. Answer all the questions at the end of the three cases.

Week 6:        Midterm Exam

Week 7: Quality of Earnings
Assignment: 1. Read HBS Case: Harnishfeger Corporation: Quality of
                 Earnings Analysis.
              2. Write a 2-4 page report on the followings:
         i. Identify all accounting policy changes and accounting estimates that
            Harnischfeger made during 1984. Estimate, as accurately as possible, the
            effect of these changes on the company’s 1984 reported profits.
        ii. What do you think are the motives of Harnischfeger’s management in making
            the changes in its financial reporting policies? Do you think investors will
           ‘see through’ these changes?
       iii. Assess the company’s future prospects given your insights from questions
           1 and 2, and the information in the case on the company’s turn around strategy.
Week 7: Fraudulent Financial Reporting
Assignment: 1. Read HBS Case: Graves Industries, Inc. A, B &C
            2. Write a 2-3 page report on what went wrong with the
               financial reporting of Graves Industries, Inc.? What
               could be done to prevent similar occurrences in the future

Week 8: Revenue Recognition
Assignment: 1. Read HBS Case : Baush & Lomb, Inc. (A) (B) and (C).
            2. Write a 2-3 page response to the following questions:
                 i.      Do you think the product shipments associated with B&L’s
                         new sales strategy satisfied the FASB criteria for recognizing
                         revenues? Why or why not?
                 ii.     If the SEC did not have the power to investigate accounting
                         choices of publicly held companies, how do you think the
                         financial reporting process would be affected?

Week 8: Financial Statements Analysis
Assignments: 1. Read Sears, Roebuck and Co. vs. Wal-Mart Stores, Inc.
             2. Compare the financial condition of two companies.

Week 9 - 10: Presentation of Term Papers

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