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					                                             Accounting 381
                        Intermediate Financial Accounting and Reporting I Syllabus
                                               Winter 2011

Professor: Kathleen Rupley, PhD, CPA                                     Office: SBA 536
Phone: 503-725-3133                                                      Fax: 503-725-5850
Email:                                                   Office hours: T/TH 12:00 – 1:00
Course website:

Class Times and Locations:
       T TH 10:00 – 11:50 in SBA 160                Final: Tuesday, 3/15/11, 10:15 – 12:05
       T TH 5:30 – 7:20 in NH 341                   Final: Tuesday, 3/15/11, 5:30 – 7:20

Course Materials:
   1. Intermediate Accounting, 13th edition by Kieso, Weygandt, and Warfield, Wiley, 2009

   2. Accounting 381 Course Packet, PSU Bookstore

   3. Additional class materials and problem solutions are available through my faculty homepage

   4. Optional Kieso Student Companion Site:

Course Catalog Description:
Comprehensive study of the principles, conventions, and postulates of accounting. Appropriate preparation of
GAAP financial statements and financial disclosures, including exposure to the judgment inherent in financial
reporting. Considers information requirements and expectations of users of financial statements. International
financial accounting standards will be considered where appropriate. Specific focus on the responsibility of
accountants for maintaining professional accountability to the public interest in the face of institutional
pressures. BA 213 is a prerequisite for this course. ACTG 199 is highly recommended.

Course Objectives:
1. To understand how professional accountants have a responsibility to maintain the public interest.
2. To understand how real events that take place as a firm conducts business are reflected in the balance sheet,
   income statement, and the statement of cash flows.
3. To understand how the balance sheet, income statement, and statement of cash flows are interrelated.
4. To understand the economic substance of the real events that take place as a firm conducts business, the
   generally accepted accounting principles (GAAP) that need to be applied, and the Conceptual Framework
   behind GAAP.
5. To learn the criteria for the valuation, measurement, and disclosure of revenues and assets in accordance
   with GAAP.
6. To acquire an understanding of not only “how” accounting procedures are applied but the underlying
   reasons “why” these practices are adopted.

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Class structure:
Class sessions will be a combination of lecture, discussions, and problem-solving. I will assign homework for
each chapter. Though I will not collect it, a word of caution is in order here. Successful accounting students
will tell you that the only way to learn accounting at this level is to practice, practice, practice, and to
understand what you are doing rather than going through the motions. I will approach homework in class by
asking if there are any questions on the assigned problems.

Grades will be based on an accumulation of total points allocated as follows:

               Introductory Quiz (Take-home)                   20       5%
               Quizzes                                         45      12%
               Projects                                        30       8%
               Professionalism                                 20       5%
               Reading Assignments                             20       5%
               Midterm                                        115      30%
               Final Exam                                     135      35%
               Total                                          385     100%

I will apply a curve to the final grade. Class participation will be used to resolve borderline grades. There will
not be any extra credit. If you drop the course or change your grading option, please review the PSU academic
calendar for the relevant deadlines at:

Introductory Take Home Quiz:
The introductory take home quiz will cover the material from Fundamentals of Financial Accounting and
Accounting Mechanics. Students should examine Chapter 3 as a review. The introductory quiz is to be
completed on an individual basis. Students receiving less than 70% on this quiz are STRONGLY encouraged to
concurrently take ACTG 199 or to drop the course to take ACTG 199.

Chapter Quizzes:
You will have 4 chapter quizzes throughout the quarter. All quizzes will be given in class. I will drop your
lowest quiz score, and your final quiz score is the sum of your best 3 quiz scores and constitutes 12% of your
final grade. If you miss a quiz, you will receive a zero on that quiz. No make up quizzes will be given.

Reading Assignments:
You will have 6 reading assignments throughout the quarter. These will be due at the beginning of the class on
the date specified due. If you will not be in class the day a reading assignment is due, it is your responsibility to
email your assignment to me prior to the start of class. No make up assignments will be given and no late
assignments will be accepted. You may drop one of the reading assignments. Readings can be accessed from
the URL link, the library’s electronic journals or the class web-site.

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Part of preparing you for business careers entails developing certain skills that are necessary to be an effective
employee/manager. Thus, a portion of your grade will depend on two skills I consider important to your
development – professionalism and participation.

Conducting yourself in a professional manner means behaving in class the way you might in a business
meeting. This includes (but is not limited to) arriving on time, informing your boss (i.e., me) if you will not be
in attendance or will be leaving early, respecting your colleagues, taking turns when speaking, not interrupting
each other, turning off cell phones, limiting side conversations, etc.

The attached course schedule shows the materials to be covered in each class meeting. Students are expected to
prepare for class by reading the assignments indicated and working the problems before coming to class. Since
classes will not be “straight lecture,” but will include your active participation in discussions and in-class
activities, your preparation is critical to success in this course.

Your active involvement in the class benefits not only yourself but also your fellow students. Effective
participation can come in many forms, including providing analysis, asking questions, relating concepts to other
issues, and providing real-world examples. In evaluating your participation, I consider not just the quantity but
also the quality of your participation. Determination of your professionalism/participation score will be based
on my assessment of your contribution to the class as a whole.

I realize that for some students speaking in front of a large group is a challenge. However, the ability to clearly
articulate arguments, raise pertinent questions, and debate issues are important skills for any business manager;
thus, I encourage you to practice these skills in the classroom. In addition, there are other ways in which you
can participate in the class. For example, if you come across a relevant news article that you would like to share
with the class, e-mail me the article and your comments and I will share the article with the class.

In general, professionalism/participation scores range from 75-100%.

There will be two exams: one midterm and one final. The format of the exams will be mostly problems, with a
few short answer or multiple choice questions. Problems on the exam will resemble the problems in the course
packet and those that were assigned for homework, and any short answer questions will mirror discussions we
had in class. All exams are closed-book. You may use one 4 x 6 index card with notes on the exam. You may
use a calculator on the exam. No cell phone calculators may be used and sharing calculators on the exam is
strictly prohibited. The final exam will not be cumulative. No alternate exam times or due dates will be
available. No make up exams will be given. If necessary, more weight will be placed on the final exam.

Academic Honesty:
The Student Conduct Code (SCC), which applies to all students, prohibits all forms of academic cheating, fraud,
and dishonesty. These acts include, but are not limited to: plagiarism, buying and selling of course assignments
and research papers, performing academic assignments (including examinations) for other persons,
unauthorized disclosure and receipt of academic information and other practices commonly understood to be
academically dishonorable. The code of conduct also describes standards of behavior for all student members
of the campus community. Violation of the SCC may lead to disciplinary action. Students may obtain copies
of the SCC by contacting the campus judicial officer at 503-725-4422, or by visiting the office in Room 433,
Smith Memorial Student Union.

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You will be assigned 2 class projects. The first project will entail an examination of the Nike 2010 10-K report
and an application of relevant information covered in this course to the 10-K. The 10-K pdf file is included on the
course web-page. The last project is designed to give you the opportunity to work in groups without guidance
from the instructor, and to communicate your knowledge and beliefs about accounting issues in written form. All
projects should be typed, well reasoned, and grammatically correct. For the last project, each group member is
responsible for having completed the project readings and understanding the answer their group is turning in. On
the first page of the project, include the names of all group members. Projects turned in later than the scheduled
date will receive a maximum of 60% credit, regardless of the reason.

Teamwork is an important aspect of professionalism. You will evaluate your peer students based on your work
experience with them. For each case, you are to evaluate each member of your group (excluding yourself) by
assigning each group member a score from 1 – 10, with 1 being the lowest score and 10 being the highest score.
Your own peer evaluation score is the average of the scores given to you by your peers. These evaluations will be
used in my overall assessment of your professionalism/participation grade.

FASB Codification Access:
You may access the FASB Codification database through the American Accounting Association by logging in
at using the following:

       User ID: AAA51686
       Password: SLb736y

Re-grading Policy:
On occasion you may disagree with the scoring of your work, and indeed we do occasionally make mistakes.
But remember that fairness is created above all by consistency; if the grader is equally harsh to all, then there is
not a fairness problem. Should there be a specific grading issue that you wish to have re-examined, use the
following process:
    1. You must request the re-grade within one week of the day on which the work was returned.
    2. You must submit the re-grade request in writing; re-grading requests will not be processed “live.”

Office Hours:
I encourage you to make full use of my office hours. Understand that office hours are not intended as make-up
lectures for those who fail to attend lecture but rather are intended to help you with any questions you have after
you have attended the lectures, reviewed the materials, and attempted the homework assignments.

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SBA Undergraduate Programs Office Services:
The SBA provides academic advisors as well as career and internship advisors to assist students in making the
most of their collegiate experience. Academic advisors are trained to provide counsel in a wide range of issues.
From selecting a business major to evaluating transferred transcripts, academic advisors are here to help
students with all of their degree related questions. The following is a brief summary of the type of issues with
which academic advisors can offer assistance:
       DARS reports
       SBA admissions requirements
       Major selection and requirements
       Transcript evaluation
       Course overrides
       Transfer credit petitions
       Career planning
       Portland State University rules and policies
In addition to academic advising, the SBA provides career and internship advisors to assist students in landing a
job upon graduation or a summer internship while students are still in pursuit of their degree. Career and
internship advisors can also provide resume and interview guidance.

All SBA advisors are available by appointment, which must be scheduled in advance. Drop-in hours are
available as well. Drop-in hours are held regularly throughout the week and are designed to help answer routine
or simple questions. For more information about SBA advising and drop-in hours please visit the School of
Business website at and click on student resources. For more information and a schedule of
upcoming events, visit SBA 230 or go to the web at and click on “Career Services.”
Undergraduates may select “Undergrad Listserve” to sign up to receive emails on current internships and job

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Tentative Schedule:                                                 K & W Chapter
1/4          The accounting information system                           3, 3A

1/6          Financial accounting and accounting standards               1
             Introduction Questionnaire Due
             Intro Quiz Due

1/11         Conceptual framework underlying financial accounting        2
             Reading Assignment #1 Due

1/13         NO CLASS

1/18         Ethical frameworks; valuation
             Reading Assignment #2 Due

1/20         Comprehensive income                                        4, 17(p. 866-870);
             Quiz #1 (Ch. 1 and 2)                                       22 (informational)
             Reading Assignment #3 Due

1/25         Comprehensive income and earnings management
             Reading Assignment #4 Due

1/27         Balance Sheet                                               5
             Quiz #2 (Ch. 4)

2/1          Statement of Cash Flows                                     5, 23(p. 1244 - 1265)

2/3          Sample 10-K; Midterm review
             Reading Assignment #5 Due

2/8          Midterm #1

2/10         Revenue recognition                                         18

2/15         Revenue recognition                                         18
             Reading Assignment #6 Due

2/17         Revenue, Cash, and Accounts Receivable                      7, Appendices 7A and 18A
             Quiz #3 (Ch. 18)

2/22         Time value of money and receivables                         6, 7, Appendix 7B

2/24         Receivables                                                 7
             Nike 10-K Project Due

3/1          Inventory                                                    8
             Quiz #4 (Ch. 7)

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Tentative Schedule (cntd.):                              K & W Chapter

3/3           Advanced inventory cost flow assumptions   8

3/8           Inventory valuation                        9

3/10          Inventory valuation and Final review
              Final Project Due

3/15          Final Exam

                                                             Page 7
Week Date     Topic                                       Assignment      Readings
Week TU       The accounting information system                           Textbook: Ch. 3
1    1/4          Course Introduction
                  Review of accounting mechanics,
                     debits and credits
       TH     Accounting standards                        E3-6, E3-10,    Textbook: Ch. 1
       1/6                                                E3-13, E3-15,
              Introduction Questionnaire Due              E3-20
              Introductory Quiz Due
Week   TU     The role of accounting in the public        CA1-4,          Textbook: Ch. 2
2      1/11   interest.                                   CA1-6,
                   Review of the financial               CA1-8,          Reading Assignment 1:
                        environment and the public        CA1-10              Harvey Kapnick. 1974. “In the Public Interest.” Accounting
                        interest role of accountants.     CA1-12,                and Financial Reporting. Arthur Andersen, Chicago: 1 – 11.
                                                          CA1-17              Arthur Wyatt. 2004. “Accounting professionalism – they just
              FASB’s Conceptual Framework                                        don’t get it!” Accounting Horizons 18 (1): 45-53.
                  Principles versus rules
                  US GAAP and IFRS convergence
                  Sources of US GAAP

              Reading Assignment #1 Due
       1/13   NO CLASS
Week   TU         Ethical frameworks                     CE2-2, CE2-     Reading Assignment 2:
3      1/18       Valuation: historical costs, present   3,                  “Why does the FASB have a Conceptual Framework?”
                   values / market values and future      E2-2, E2-3,  
                   values                                 E2-4, CA2-4            uti_aug_2001.pdf
                                                                              “Relevance and Reliability”
                                                                              Santa Clara University Framework for Ethical Decision
              Reading Assignment #2 Due                                
                                                                              Ethics Case: “Reporting Inflated Numbers”

                                                                                     Page 8
Week Date     Topic                                        Assignment Readings
     TH       Topic: Comprehensive Income                  (In class:  Textbook: Ch. 4; Ch. 17 (p. 866-870); Ch. 22 (informational)
     1/20         Comprehensive Income and the            P4-1),
                      Accounting Equation                  E17-6,      Reading Assignment 3:
                  The Statement of Operations -           BE22-8,         SEC release number 33-8982 (Roadmap for the potential use
                      usefulness, limitations and format   E22-2,             of financial statements prepared in accordance with IFRS by
                  Investments in equity securities        E22-8,             U.S. Issuers) Pages 1 to 48 (Sections I and II) only:
                      without significant influence        E22-11   
                      (AFS and Trading Securities)                         "The Capital Markets' Needs will be Served," Paul W. B.
                  Accounting Irregularities                                  Miller, Journal of Accountancy, May 2008.
                                                                           "The Need for Reliability in Accounting," Eugene H. Flegm,
                                                                              Journal of Accountancy, May 2008.
              Quiz 1 (Ch. 1 & 2)                                           "A Litigator's Perspective," Antonio Yanez, Journal of
              Reading Assignment #3 Due                                       Accountancy, June 2008.
Week   TU     Comprehensive Income and Earnings            P4-3, P4-5, Reading Assignment 4:
4      1/25   Management                                   P4-7            Arthur Levitt, “The Numbers Game,” NYU Center for Law
                  Common Earnings Management                                 and Business, September 28, 1998.
                      Strategies                                           John J. Brennan (Chairman and CEO, The Vanguard Group),
                  The Statement of Comprehensive                             “The Market Value of Integrity, Dealing with Corporate
                      Income, format and transparency                         Scandals”

              Reading Assignment #4 Due
       TH     Balance Sheet                                P5-4, P5-2   Textbook: Ch. 5
       1/27        Statement of Financial Position –
                      usefulness, limitations and

              Quiz #2 (Ch. 4)
Week   TU     Cash Flow                                    (In class:   Textbook: Ch. 5; Ch. 23 (p. 1244 - 1265)
5      2/1         The algebraic relationship             E23-11)
                      between cash flow and balance
                      sheet variables                      E23-13,
                   Statement of Cash Flows Format         E23-15

                                                                                      Page 9
Week Date     Topic                                 Assignment Readings
     TH       Sample 10-K                                      Reading Assignment #5:
     2/3          Introduce Nike 10-K report                      “Guide to Public Company Auditing,” Center for Audit
                     project.                                         Quality.
                  Introduction to GAAP research            
                     techniques                                    FASB Codification Tutorial:
                  Midterm review                           
              Reading Assignment #5 Due
Week   TU
6      2/8    Midterm
              (Chapters 1 – 5, 22, and 23)
       TH     Revenue                                             Textbook: Ch. 18
       2/10       Review the revenue recognition
                  Product revenue
                  Right of return
Week   TU     Revenue                               P18-1,        Textbook: Ch. 18
7      2/15       Long-term contracts              P18-4,
                  Installment sales                P18-6,        Reading Assignment # 6
                                                    P18-7,             D. Paul Regan, “Revenue Recognition: Now, Later or Never?”
              Reading Assignment #6 Due             P18-8                California CPA, September 2003.
       TH     Revenue, Cash, and Receivables        E18-20,       Textbook: Ch. 7, Appendix 7A, Appendix 18A
       2/17       Franchise revenue and            E18-21
                    consignments                    E7-25,
                  Bank reconciliations             P7-2, P7-4
                  Sales discounts
                  Accounts receivable and the
                    reserve for bad debt

              Quiz 3 (Ch. 18)
Week   TU     Time Value of Money and Notes         E6-3, E6-6,   Textbook: Ch. 6 and 7, Appendix 7B
8      2/22   Receivable                            P7-9,
                  Notes receivable                 E7-26
                  Impairment on notes receivable

                                                                              Page 10
 Week Date     Topic                                   Assignment Readings
      TH       Receivables                             P7-11      Textbook: Ch. 7
      2/24         Factoring trade receivables
                   Securitizing receivables

               Nike 10-K Report Project Due
 Week   TU     Inventory basics                                      Textbook: Ch. 8
 9      3/1         Costs are included in inventory
                    When goods become part of
                    Basic cost flow assumptions

               Quiz 4 (Ch. 7)
        TH     Advanced inventory cost flow            E8-23, E8-    Textbook: Ch. 8
        3/3    assumptions                             25,
                    LIFO Inventory                    P8-5, P8-11
 Week   TU     Inventory valuation                     P9-1, E9-7,   Textbook: Ch. 9
 10     3/8         Lower of Cost or Market           E9-9, P9-4,
                    Retail Inventory Method           P9-6
        TH     Inventory valuation and Final Review
               Final Project Due
        3/15   Final Exam
               (Chapters 6 – 9, 18)
Appendices are omitted unless specified

                                                                                Page 11
                     Accounting 381: Intermediate Accounting
                           Introduction Questionnaire
                       Due Date: Thursday, January 6, 2011


Email address:

1.   Major:      Undergraduates: ______________________

                 Post-Baccalaureates: ______________________
                 (undergraduate major: ___________________________) from
                 __________________________ (undergraduate university)

2. Briefly describe any work experience that might be relevant to this course.

3. Please list any extra-curricular activities in which you participate (i.e. work, athletics,
   volunteer groups).

4. How many hours per week do you dedicate to the above activities? __________

5. What are your career goals?

6. Please tell me anything else that you think I should know that may affect your performance in
   this class.

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