ACCOUNTING 414
SEMINAR IN FINANCIAL REPORTING
TENTATIVE SPRING 2000 SYLLABUS
PROFESSOR: Dr. Jon Duchac Phone: 758-4458
Calloway 204 Email: duchacje@wfu.edu
OFFICE HOURS: MW 2:30 - 5:30
TEXT: Kieso and Weygandt, Intermediate Accounting, 9th Edition.
Additional Readings
1999 Pepsico Annual Report located at: http://www.pepsico.com/
COURSE GRADING
Midterm Exam 25%
Final Exam 35%
Case Write-up 10%
Case Presentation 10%
Class Participation 20%
100%
COURSE REQUIREMENTS
Final course grades will be based on your performance on one mid-term examination, one final exam, homework, and my subjective evaluation of your in-class performance, attitude and participation. The mid-term exam will be given during the early evening (5 - 8 p.m.) on Thursday April 6. The final exam will be given at the time indicated on the Spring 2000 Course Schedule, unless otherwise indicated. This is a graduate course, and as such grade distributions in the past have been approximately 20-30% A’s, 60-80% B’s, and 0-10% C’s. While this has been the past experience of students in this course, it in no way guarantees that such a distribution will exist this semester. I will not hesitate to give non-passing grades to individuals whose work product does not reflect that of a graduate student in the Calloway School.
Homework exercises, and problems are identified on the attached assignment sheet and will be collected and graded. You are expected to have the homework completed on the date noted on the assignment sheet, even if we haven't started that chapter yet. The homework should be fully completed and presented in a neat and professional manner. This is a difficult and fast-paced class. In order to maximize the probability of your receiving the highest grade possible it is imperative that you keep up with the readings and homework assignments. If you wait until the last minute and try to cram for the exams, your chances for success will be greatly reduced.
Case write-ups and presentations will be graded.
Class participation consist primarily of my subjective evaluation of your in class performance and participation. This is a graduate course and you are expected to come to class prepared to participate.
SUPPLEMENTARY COURSE MATERIALS
Handout Cases
As I noted above, we will be discussing at least one case for each of the topical areas we cover. These cases can be downloaded from my home page (www.wfu.edu/~duchacje)
DT 92-3 When Should a Gain Be Recognized
DT 95-1 Toys in the Attic
DT 93-8 Franchise Fee Revenue
ML 1-1 Accounting for Internet Eyeballs
DT 89-10 Is Overfunding an Asset
DT 94-5 A No Cost Deferred Compensation Arrangement
DT 92-6 Build-Lease Transaction
DT 91-6 Sale of An Asset Subject to an Operating Lease
DT 92-8 Accounting for a Floating Asset
ML 2-1 Are Tolling Agreements Leases?
DT 94-8 Making Money the Old Fashioned Way
ML 2-2 Accounting for Income Tax Benefits
DT 89-3 Hidden Treasures Construction Company
DT 92-2 Cash Flow Reporting of ESOP Loan Repay..
HBS - 1 Northrop Corporation
DT 91-10 Determining the Functional Currency
DT 92-7 Accounting for an Equity Kicker
DT 92-5 Mandatorily Redeemable Preferred Stock
Articles
In addition to the course text, we will be discussing several articles during the course of the semester. These articles are available for download from either my home page, or the Wake Forest Courseinfo home page (http://courseinfo.wfu.edu)
Akst, D. "How Barry Minkow Fooled the Auditors", 10/2/89.
"Less Than Meets the Eye", 12/29/97.
Imhoff, et. Al., "Operating Leases: Impact of constructive Capitalization", March 1991.
Weber, et. Al. "Using Income Tax Disclosures to Explore Significant Economic
Transactions", September 1992.
"R. McDonald, CPA", 9/16/91.
"An Enormous Temptation to Waste", 2/10/97
Annual Report
We will also be looking at the the details of the 1999 Pepsico annual report as we go through the various topics covered in this course. The Pepsico annual report may be viewed online at the Pepsico web site (http://www.pepsico.com/).
Tentative Assignment Schedule
M March 13
No Class - prepare for class on Tuesday March 14
T March 14 Revenue Recognition
Readings
Chapter 19
Akst, D. "How Barry Minkow Fooled the Auditors", Forbes, 10/2/89.
Assignment
Problems 19-1
Discuss: Akst, D. "How Barry Minkow Fooled the Auditors", Forbes, 10/2/89.
Case 19-2 (Kieso)
W March 15 Revenue Recognition
Readings
Chapter 19
Assignment
Problems 19-5, 19-7, 19-8, 19-10
R March 16 Revenue Recognition
Readings
Chapter 19
"Less Than Meets the Eye", Forbes, 12/29/97.
Revenue Recognition Handout Case (DT 92-3, DT 95-1, DT 93-8)
Assignment
Problems 19-10
Case 19-8 (Kieso)
Revenue Recognition Handout Cases (DT 92-3, DT 95-1, DT 93-8, ML 1-1)
M March 20 Accounting for Pensions & Postretirement Benefits
Readings
Chapter 21
Assignment
Exercises 21-12, 14
T March 21 Accounting for Pensions & Postretirement Benefits
Readings
Chapter 21
Assignment
Exercises 21-15,23
Problems 21- 2, 7
W March 22 Accounting for Pensions & Postretirement Benefits
Readings
Chapter 21
Pepsico Annual Report
Assignment
Problems 21- 8
Review and analyze the pension footnote in Pepsico’s 1998 annual report.
R March 23 Accounting for Pensions & Postretirement Benefits
Readings
Pension Handout Case (DT 89-10)
Role Play Case (DT 94-5)
Assignment
Case 21-6 (Kieso)
Pension Handout Case (DT 89-10), Role Play Case (DT 94-5)
M March 27 Accounting for Leases
Readings
Chapter 22
Assignment
Exercises 22-10
Problems 22-1
T March 28 Accounting for Leases
Readings
Chapter 22
Assignment
Exercises 22-13, 22-15
Problems 22-6, 22-10
W March 29 Accounting for Leases
Readings
Chapter 22
Imhoff, et. Al., "Operating Leases: Impact of constructive Capitalization"
Pepsico Annual Report
Assignment
Problems 22-11, 22-14, 22-15
Review and analyze the lease footnote in Pepsico’s 1998 annual report.
R March 30 Accounting for Leases
Readings
Leases Handout Cases (DT 92-6, DT 91-6, DT 92-8, ML 2- 1)
Assignment
Leases Handout Cases (DT 92-6, DT 91-6, DT 92-8, ML 2 - 1)
M April 3 Accounting for Income Taxes
Readings
Chapter 20
Assignment
Exercises 20-17
Problems 20-5
T April 4 Accounting for Income Taxes
Readings
Chapter 20
Assignment
Exercises 20-18, 20-21
Problems 20-6
W April 5 Accounting for Income Taxes
Readings
Chapter 20
Pepsico Annual Report
Assignment
Problems 20-6, 10
Review and analyze the income tax footnote in Pepsico’s 1998 annual report.
R April 6 Accounting for Income Taxes
Readings
Weber, et. Al. "Using Income Tax Disclosures to Explore Significant Economic Transactions"
Handout Case ML 3 - 1
Mid-Term Exam 5-8 pm
M April 10 Accounting Changes and Error Corrections
Readings
Chapter 23
Assignment
Problem 23-6
T April 11 Accounting Changes and Error Corrections
Readings
Chapter 23
Assignment
Problem 23-1, 23-3, 23-7 (part 4 and 5 only)
W April 12 Accounting Changes and Error Corrections
Readings
Chapter 23
Assignment
Problem 23-7 (part 4 and 5 only), 11
R April 13 Accounting Changes and Error Corrections
Readings
Chapter 23
Accounting Change and Error Case (DT 89-3), Additional Case (DT 94-8)
Pepsico Annual Report
Assignment
Accounting Change and Error Case (DT 89-3), Additional Case (DT 94-8)
M April 17 Statement of Cash Flows
Readings
Chapter 24
Pepsico Annual Report
Assignment
Problems 24-1
Analyze Pepsico’s Statement of Cash Flows
T April 18 Statement of Cash Flows
Readings
Chapter 24
Case HBS-1
Assignment
Case HBS-1
Exercise 24-3, 4, 10
Problems 24-3, 24-5
W April 19 Statement of Cash Flows
Readings
Chapter 24
"R. McDonald, CPA" Forbes
"An Enormous Temptation to Waste", Business Week
Cash Flow Statement Handout Case (DT 92-2)
Assignment
Problems 24-7
Cash Flow Statement Handout Case (DT 92-2)
R April 20 Introduction to Derivatives and Financial Instruments
Readings
TBA
Assignment
TBA
M April 24 Introduction to the Securities and Exchange Commission / Miscellaneous Issues
Readings
TBA
Assignment
TBA
T April 25 Hylton Lecture
Attendance required at Critical Issues Forum
W April 26 Introduction to Derivatives and Financial Instruments
Readings
TBA
Assignment
TBA
R April 27 Introduction to Derivatives and Financial Instruments
Readings & Assignment
TBA