This course is a requirement for those enrolled in the MPA program and can be taken, with special permission by the MPA office, by those in the MBA program (although most MBAs will take ACC 380D, described above).
This course covers many of the same topics dealt with in BA 384T, but we tackle them on a more in-depth basis. Specifically, we discuss how companies actually do their financial reporting as prescribed by the Financial Accounting Standards Board (FASB). To illustrate, consider the topic of leases. In BA 384T, you discuss the distinction between an operating and capital lease, as well as other related, relatively high-level issues. In ACC 380K.1 (intermediate), we tackle this issue in more depth by discussing how companies calculate the lease liability number that appears on their balance sheet; how companies deal with leases that have bargain-purchase provisions; how companies handle leases where the leased asset has a guaranteed residual value; strategies that companies use to avoid showing a lease liability on their balance sheets, etc.
Topics covered in ACC 380K.1
*Articulation of balance sheet, income statement and cash flow statement
*Revenue recognition (long-term construction contracts, installment sales)
*Effects of accounting changes, restatements, discontinued operations, and extraordinary items
*Financial instruments (investments in debt instruments, equities, and derivatives; cash flow versus fair value hedges; securitizing receivables; outstanding debt, equity, hybrids)
*Fixed assets (impairments, restructurings, and interest capitalization)
*Deferred taxes (reconciliation of taxes paid with tax expense)
*Leases (off-balance-sheet financing)
*Pensions (effects of changes in interest rates and actuarial assumptions)
*Earnings per share (basic and diluted)