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 current and long-term liabilities, stockholders' 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 (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 382 Intermediate Accounting II, 3 credits
Bemidji State University, ACCT 3202 Intermediate Accounting II, 3 credits
North Dakota State University, ACCT 312 Intermediate Accounting II, 4 credits

III. Course Purpose

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

Accountant A.A.S.

IV. Learning Outcomes

1. College-Wide Outcomes

College-Wide Outcomes/Competencies	Students will be able to:
Demonstrate interpersonal communication skills	Demonstrate interpersonal communication skills in a career readiness project.
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.
Work as a team member to achieve shared goals	Work collaboratively with classmates to apply accounting principles.

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

• Describe, analyze, classify, record, and present short-term and long-term debt in the financial statements;
• Discuss the accounting valuation for bonds at issuance and apply the effective interest method of bond discount and premium amortization; 
• Describe, analyze, classify, record, and present various components of stockholder’s equity in the financial statements;      
• Compute basic and diluted earnings per share for a simple and complex capital structure;              
• Identify the three categories of debt and equity securities held for investment and describe the accounting and reporting treatment for each category, including fair-value measurement;
• 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 differences between pretax financial income and taxable income;
• Distinguish among various types of pension plans and their characteristics;
• Account for both capital and operating leases from the standpoint of the lessee and the lessor;  
• Demonstrate how to account for the various types of accounting changes and the correction of errors;
• Prepare a statement of stockholders' equity and a statement of cash flows;
• Review the full disclosure principle and identify major disclosures in the notes to the financial statements;
• Organize a systematic financial ratio analysis recognizing the impact that different accounting methods can have on the financial ratios of otherwise identical companies; and                                                                
• Compare and contrast U.S. GAAP and International Financial Accounting Standards (IFRS) as they relate to the accounting issues covered in this course.

V. Topical Outline

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

1. Lecture Sessions

1. Current liabilities and contingencies
• Current liabilities
• Accounts, notes, dividends, sales taxes, and income taxes payable
• Current maturities of long-term debt and short-term obligations expected to be refinanced
• Customer advances, deposits, and unearned revenue
• Employment related liabilities
• Gain and loss contingencies
• Presentation and analysis of current liabilities and contingencies
2. Long-term liabilities
• Bonds payable
• Issuing and types bonds
• Valuation of bonds payable – discount, premium and at par
• Effective interest method
• Cost of issuing bonds
• Extinguishment of debt
• Long-term notes payable
• Reporting and analyzing long-term debt
• Off-balance sheet financing
• Fair-value of liabilities
• Troubled-debt restructurings
3. Stockholders’ equity
• Corporate form of organization
• Corporate capital
• Issuance of stock or preferred and common
• Treasury stock
• Dividends
• Presentation and analysis of stockholders’ equity
• Book value per share
4. Dilutive securities and earnings per share
• Dilutive securities
• Convertible debt and preferred stock
• Stock warrants
• Accounting for stock compensation
• Computation of earnings per share in a simple and complex capital structure
5. Investments
• Investment accounting approaches
• Classification, recording, and valuation of trading, available-for sale, and held-to maturity securities
• Unrealized holding gains and losses
• Accounting for derivative instruments
• Fair-value measurements and disclosures
6. Revenue recognition
• Overview and updates
• Guidelines for point of sale, before-delivery, and after-delivery methods of revenue recognition
• Franchises
7. Accounting for income taxes
• Fundamentals of accounting for income taxes
• Accounting for net operating losses
• Financial statement presentation
8. Accounting for pensions and postretirement benefits
• Nature and types of pension plans
• Accounting for pensions
• Reporting pension in the financial statements
• Disclosures in notes to the financial statements
9. Accounting for leases
• The leasing environment
• Accounting by the lessee
• Accounting by the lessor
• Special accounting problems including residual values and sales-type leases
10. Accounting for changes and error analysis
• Changes in accounting principles
• Changes in accounting estimates
• Change in reporting entity
• Correction and analysis of errors
11. Statement of cash flows
• Preparation of the statement of cash flows using direct and indirect methods
• Preparation of a worksheet and analysis of transactions
12. Full disclosure in financial reporting
• Full disclosure principle
• Notes to the financial statements
• Auditor’s and management’s reports
• Disclosure and current reporting issues
13. Financial statement analysis
• Perspective on financial statement analysis
• Ratio analysis
• Comparative analysis
• Percentage (common-size) analysis
14. Topics studied in conjunction with primary financial statement topics
• International financial accounting standards and convergence issues
• FASB Codification