I. General Information

1. Course Title:
Intermediate Accounting I

2. Course Prefix & Number:
ACCT 2121

3. Course Credits and Contact Hours:

Credits: 4

Lecture Hours: 4

Lab Hours: 0

4. Course Description:

This course is an in-depth study of financial accounting theories, concepts, and practices. It provides a review of the accounting process, the conceptual framework of accounting, and the financial statements. Topics covered in detail include cash and receivables, inventories, property, plant and equipment, and intangible assets.

5. Placement Tests Required:

6. Prerequisite Courses:

8. Prerequisite (Entry) Skills:
Application of basic foundational knowledge of generally accepted accounting principles (GAAP).

9. Co-requisite Courses:

There are no corequisites for this course.

II. Transfer and Articulation

1. Course Equivalency - similar course from other regional institutions:

St. Cloud State University, ACCT 381 Intermediate Accounting I, 3 credits
Bemidji State University, ACCT 3201 Intermediate Accounting I, 3 credits
North Dakota State University, ACCT 311 Intermediate Accounting I, 4 credits

III. Course Purpose

1. Program-Applicable Courses – This course is required for the following program(s):

Accountant A.A.S. Degree

IV. Learning Outcomes

1. College-Wide Outcomes

College-Wide Outcomes/Competencies	Students will be able to:
Demonstrate reading and listening skills	Demonstrate an understanding of the significance of the FASB’s conceptual framework in the development of more useful, consistent, and coherent accounting standards.
Analyze and follow a sequence of operations	Analyze, classify, record, and report business assets, liabilities, and stockholders' equity according to GAAP.
Discuss/compare characteristics of diverse cultures and environments	Compare and contrast the basics of U.S. GAAP with International Financial Accounting Standards (IFRS).

2. Course Specific Outcomes - Students will be able to achieve the following measurable goals upon completion of the course:

• Demonstrate an understanding of the significance of the FASB’s conceptual framework in the development of more useful, consistent, and coherent accounting standards;
• Identify and explain the basic steps in the accounting process including analyze transactions, record journal entries, and complete the year-end adjusting and closing processes;
• Describe the specific elements of the balance sheet, prepare a balance sheet with assets and liabilities properly classified, and understand the major limitations of the balance sheet;
• Explain how income is measured using the revenue recognition and expense recognition principles and describe the specific components of an income statement; 
• Outline the structure of, and the information reported in, the three main categories of the cash flow statement using both the direct and the indirect methods and prepare a complete statement of cash flows;
• Apply time value of money concepts;
• Recognize the importance of the notes to the financial statements and distinguish among various techniques of disclosure;
• Measure amounts for transactions, record transactions, and describe disclosure under GAAP for the following financial statement topics: a) cash and receivables, b) inventory, c) property, plant, and equipment, and d) intangible assets; 
• Understand, prepare, and use financial information by linking accounting education with the “real-world” accounting environment; 
• Use accounting facts and procedures in various business contexts; 
• Locate the Financial Accounting Standards Board Codification Research System online and develop an awareness of how it is used to research various accounting issues; 
• Compare and contrast the basics of U.S. GAAP with International Financial Accounting Standards (IFRS); 
• Identify career opportunities related to accounting and financial reporting and understand the importance of personal ethics in the practice of accounting;
• Analyze a company’s performance and financial position using financial ratios; and
• Define fair-value measurement, describe the valuation concepts used in determining fair value, and identify where fair values are used in the financial statements.

V. Topical Outline

Listed below are major areas of content typically covered in this course.

1. Lecture Sessions

1. Financial accounting and accounting standards
• Financial statements and financial reporting
• Parties involved in standard setting
• Generally accepted accounting principles and FASB codification
• Issues in financial reporting
• International Financial Reporting Standards (IFRS)
2. Conceptual framework underlying financial accounting
• The need for and development of a conceptual framework
• Basic objectives
• Fundamental concepts (qualitative characteristics and elements)
• Recognition and measurement concepts
• Development of common conceptual framework
3. The accounting information system
• Basic terminology, debits and credits, accounting equation, and ownership structure
• The accounting cycle
• Basic financial statements
• Cash basis versus accrual basis accounting
• Reversing entries (optional)
• Using a worksheet for the accounting cycle
• Compare and contrast U.S. and international accounting information systems
4. Income statement and related information
• Income statement usefulness and limitations
• Format of the income statement
• Reporting irregular items
• Basic earnings per share
• Special reporting issues
• IFRS – reporting income statement and related information
5. Balance sheet and statement of cash flows
• Usefulness, limitations, format, and classification of the balance sheet
• Purpose, content, format, preparation, and usefulness of the statement of cash flows
• Techniques of disclosure
• Ratio analysis
• IFRS – reporting statement of financial position and statement of cash flow information
6. Accounting and the time value of money
• Basic time value concepts
• Present value and future value of single sum problems
• Present value and future value of ordinary annuities and annuities due
• Deferred annuities, valuation of long-term bonds, and effective interest method
7. Cash and receivables
• Management and control of cash
• Restricted cash, bank overdrafts, and cash equivalents
• Recognition and valuation of accounts and notes receivables
• Special issues - fair value option and disposition of accounts and notes receivable
• Presentation and analysis of receivables
• Cash controls and reconciliation of bank balances
8. Valuation of inventories – a cost-basis approach
• Inventory classification and control
• Physical goods included in inventory
• Product and period costs included in inventory
• Cost flow assumptions (FIFO, LIFO, Average, Specific identification, and Dollar-value LIFO)
9. Inventories: additional valuation issues
• Lower-of-cost-or-market
• Valuation bases
• Gross profit method of estimating inventory
• Retail inventory method
• Presentation and analysis of inventory
10. Acquisition and disposition of property, plant, and equipment
• Cost of land, buildings, equipment, and self-constructed assets
• Valuation of deferred payment contracts, lump-sum purchases, and exchanges
• Costs subsequent to acquisition – repairs and betterments
• Disposition of plant assets by sale, trade, and involuntary conversion
11. Depreciation, impairments and depletion
• Factors involved in the depreciation process and methods of depreciation
• Recognizing, measuring, restoration, and impairment of assets
• Establishing a depletion base and write off of resource cost
• Presentation and analysis of property, plant and equipment, and natural resources
• Income tax depreciation methods (optional)
12. Intangible assets
• Characteristics, valuation, amortization, and impairment of intangibles
• Research and development costs
• Presentation of intangible assets