I. General Information

1. Course Title:
Intermediate Accounting II

2. Course Prefix & Number:
ACCT 2123

3. Course Credits and Contact Hours:

Credits: 4

Lecture Hours: 4

Lab Hours: 0

4. Course Description:

This course is a continuation of the comprehensive study of financial accounting theory, concepts and practices, with particular emphasis on long-term liabilities, stockholder's equity, earnings per share, income taxes, pensions, leases, and the statement of cash flows. Additional related topics will also be presented.

5. Placement Tests Required:

6. Prerequisite Courses:

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

9. Co-requisite Courses:

There are no corequisites for this course.

II. Transfer and Articulation

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

Name of Institution	Course Number and Title	Credits
St. Cloud State University	ACCT 382 – Intermediate Accounting II	3
Bemidji State University	ACCT 3202 – Intermediate Accounting II	3
North Dakota State University	ACCT 312 – Intermediate Accounting II	4

III. Course Purpose

1. Program-Applicable Courses – This course fulfills a requirement for the following program(s):

Name of Program(s)	Program Type
Accounting	AAS

IV. Learning Outcomes

1. College-Wide Outcomes

College-Wide Outcomes/Competencies	Students will be able to:
Demonstrate interpersonal communication skills	Demonstrate interpersonal communication skills by utilizing InterviewStream on GPS LifePlan website.
Apply abstract ideas to concrete situations	Identify and apply generally accepted accounting principles and concepts to analyze financial transactions and complete the accounting cycle to produce a set of classified financial statements in proper form.
Discuss/compare characteristics of diverse cultures and environments	Understand International Financial Standards and convergence issues by linking accounting education with the “real-world” accounting environment.

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

Expected Outcome	MnTC Goal Area
Describe accounting valuation and apply effective interest method to various bond issues.
Describe, analyze, classify, record and presentation of long-term debt instruments in the financial statements.
Describe, analyze, classify, record and presentation of various components of stockholder’s equity in the financial statements.
Describe, analyze, classify, record and presentation of dilutive or convertible securities in the financial statements including calculation of earnings per share in a simple and complex capital structure.
Identify categories of debt and equity securities and describe the accounting and reporting treatment for each category, including fair-value measurements
Prepare a statement of stockholders' equity and a statement of cash flows
Describe accounting issues for revenue recognition and apply percentage-of-completion and completed contract methods.
Apply accounting procedures for determination of income tax expense and identify difference between pretax financial income and taxable income.
Identify types of pension plans and their characteristics. Account for both capital and operating leases from the standpoint of the lessee and the lessor.
Organize a systematic financial ratio analysis recognizing the impact that different accounting methods can have on the financial ratios of otherwise identical companies.
Understand how to account for accounting changes and errors, the full disclosure principle and identify major disclosures in the notes to the financial statements.
Development of e-portfolio demonstrating job seeking skills using GPS LifePlan website tools.
Understand International Accounting Standards, Codification of FASB and convergence issues.

V. Topical Outline

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

1. Lecture Sessions

1.  Long-Term Liabilities
   a. Valuation of Bonds Payable – Discount, Premium and at Par
   b. Effective Interest method
   c. Cost of Issuing Bonds
   d. Extinguishment of Debt
   e. Long-Term Notes Payable
   f. Presentation, Reporting and Analyzing Long-term Debt
   g. Off-balance sheet financing
   h. Troubled-Debt Restructurings
   i. FASB Codification
2. Stockholders’ Equity
   a. The corporate form of organization
   b. Corporate capital, Issuance of stock, Treasury stock, preferred stock and common stock
   c. Dividends
   d. Presentation and analysis of Stockholders’ equity
   e. Book value per share
3. Dilutive Securities and Earnings per share
   a. Dilutive securities and compensation plans
   b. Stock warrants and convertible debt
   c. Accounting for Stock Compensation
   d. Computation of earnings per share in a simple and complex capital structure
4. Investments
   a. Investment accounting approaches
   b. Classification, recording and valuation of trading, available-for sale, and held-to maturity securities
   c. Unrealized holding gains and losses
   d. Accounting for derivative instruments
   e. Fair-value measurements and disclosures
5. Revenue Recognition
   a. Percentage of Completion, completed contract methods and other revenue recognition guidelines
   b. Consignments
   c. Franchises
6. Accounting for Income Taxes
   a. Fundamentals of accounting for income taxes
   b. Accounting for net operating losses
   c. Financial statement presentations
7. Accounting for Pensions and Postretirement benefits
   a. Nature and types of pension plans
   b. Accounting for pensions
   c. Reporting pension in the financial statements and disclosures in notes to the financial statements
8. Accounting for Leases
   a. The leasing environment
   b. Accounting by the Lessee
   c. Accounting by the Lessor
   d. Special accounting problems including residual values, sales-type leases
9. Accounting for Changes and Error Analysis
   a. Changes in accounting principles
   b. Changes in accounting estimates
   c. Change in reporting entity
   d. Correction of errors
10. Statement of Cash Flows
    a. Preparation of the statement of cash flows using direct and indirect methods
    b. Preparation, use and analysis  of a worksheet
11. Full Disclosure in Financial Reporting
    a. Full Disclosure principles
    b. Preparation of Notes to the financial statements
    c. Auditors and Management reports
    d. Current reporting issues
12. Financial statement analysis
    a. Perspective on Financial statement analysis
    b. Ratio analysis
    c. Comparative analysis
    d. Percentage (common-size) analysis
13. Other
    a. International accounting standards
    b. Codification of FASB
    c. Convergence Issues
    d. Development of e-folio & job seeking skills