中南财经政法大学会计学院 School of Accounting, Zhongnan University of Economics Law 中级会计学(英文)课程 (Intermediate Accounting) 数递大编 ( SYLLABUS) 《中级财务会计》教学小组编写 Teaching Team of Intermediate Accounting 2006年2月修订 (Feb2006)
中南财经政法大学会计学院 School of Accounting, Zhongnan University of Economics & Law 中级会计学(英文) 课程 (Intermediate Accounting) 教学大纲 (SYLLABUS) 《中级财务会计》教学小组编写 Teaching Team of Intermediate Accounting 2006 年 2 月修订 (Feb.2006)
Course Nature This course is designed for undergraduate students majoring in accounting and auditing. It is arranged in the fourth or fifth semester. It is aimed to enhance students ability both in westem accounting knowledge and professional English, and to improve competitive for their job The teaching content and arrangements of this course should be strictly according to this teaching outline Teaching Objective After finishing learning this course, the students are required to understand the fundamenta western accounting theory, accounting concepts and the procedures and skills in dealing with the preparation of financial statements. By comparing the major differences of accounting treatment between U.s.A and China, the students are required to make comments on Chinese and Us accounting standards and make research on them Teaching Content Lesson 1 THE ENVIRONMENT OF FINANCIAL REPORTING L. Accounting information: users, uses, and GAAP in U.S.A 2. The development of accounting standards in U.S.A 2. 1 Brief history of development of accounting standards -CAP, APB, FASB 2. 2 Financial Accounting Standards Board(FASB 2.2.1 Organization 2.2 Statements issued by FaSB 3. Other organizations currently influencing GAAP in U.S.A 3. 1 SEC, AICPA, EITF, CASB, IRS, AAA, IASC/IASB, GASB, professional organizations 3.2 Relationship of organizations in current standard setting environment 4. Ethics in the accounting environment 5. Comparison of the development of accounting standards in China and in U.S.A (Case) Lesson 2 FINANCIAL REPORTING: ITS CONCEPTUAL FRAMEWORK 1. FASB conceptual framewo 1. 1 General value of framework 1.2 Nature and components of the FASbs conceptual framework 2. Objectives of financial reporting 3. Qualitative characteristics of accounting information
- 1 - Course Nature This course is designed for undergraduate students majoring in accounting and auditing. It is arranged in the fourth or fifth semester. It is aimed to enhance students’ ability both in western accounting knowledge and professional English, and to improve competitive for their job. The teaching content and arrangements of this course should be strictly according to this teaching outline. Teaching Objective After finishing learning this course, the students are required to understand the fundamenta western accounting theory, accounting concepts and the procedures and skills in dealing with the preparation of financial statements. By comparing the major differences of accounting treatment between U.S.A and China, the students are required to make comments on Chinese and US accounting standards and make research on them. Teaching Content Lesson 1 THE ENVIRONMENT OF FINANCIAL REPORTING Forewords I. Accounting information: users, uses, and GAAP in U.S.A. 2. The development of accounting standards in U.S.A. 2.1 Brief history of development of accounting standards – CAP, APB, FASB 2. 2 Financial Accounting Standards Board (FASB) 2.2.1 Organization 1.2.2 Statements issued by FASB 3. Other organizations currently influencing GAAP in U.S.A. 3.1 SEC, AICPA, EITF, CASB, IRS, AAA, IASC/IASB, GASB, professional organizations 3.2 Relationship of organizations in current standard setting environment 4. Ethics in the accounting environment 5. Comparison of the development of accounting standards in China and in U.S.A. (Case) Lesson 2 FINANCIAL REPORTING: ITS CONCEPTUAL FRAMEWORK 1. FASB conceptual framework 1.1 General value of framework 1.2 Nature and components of the FASB’s conceptual framework 2. Objectives of financial reporting 3. Qualitative characteristics of accounting information
3. 1 Hierarchy of qualitative characteristics 3.2 Pervasive constraint: benefits cost 3.3 Primary decision-specific qualities. 3.3.1. Relevance 3.4 Secondary decision-specific qualities- Comparability and consistency 3.5 Threshold for recognition: materiality 4. Accounting assumptions and conventions 4. 1 Assumptions- Entity, Continuity (going-concern), Period of time, Monetary unit 4. 2 Conventions-- Historical cost, Realization and recognition, matching and accrual 5. Elements of financial statements 5.1 Balance sheet -Asset, Liability, Equity 5.2 Income statement -Revenue, Expenses, Gains, Losses 5.3 Statement of cash flows-Operating cash flows, Investing cash flows, Financing cash flows 5.4 Statement of changes in equity-Investment by owners, Distribution to owners 6. Comparison of accounting concepts in China and in U.S.A.(Case) Lesson 3 THE BALANCE SHEET AND STATEMENT OF CHANGES IN STOCKholders, EQUITY Interrelationship of financial statements 2. Elements of the balance sheet 3. Measurement of the elements of the balance sheet 4. Reporting classifications on the balance sheet 4. 1 Asset and liability classifications 4. 2 Conceptual guidelines for reporting assets and liabilities 4.3 Stockholders equity classifications 5. Limitations of the balance sheet tatement of changes in stockholders'equity l Other disclosure issues 8. Reporting techniques 9. Balance Sheet analysis Lesson 4 THE INCoME STATEMENT AND INCOME rECoGNITIon 1.C。 ncepts of income 1. 1 Capital maintenance 1.2 Transactional approach Elements of the income statement 3. Income statement content 3. 1 Income from continuing operations 3.2 Results from discontinued operations 3.3 Extraordinary items 3.4 Effects of accounting changes
- 2 - 3. 1 Hierarchy of qualitative characteristics 3.2 Pervasive constraint: benefits > cost 3.3 Primary decision-specific qualities. 3.3.1. Relevance 3.3.2. Reliability 3.4 Secondary decision-specific qualities- Comparability and consistency 3.5 Threshold for recognition: materiality. 4. Accounting assumptions and conventions 4.1 Assumptions-- Entity, Continuity (going-concern), Period of time, Monetary unit 4. 2 Conventions-- Historical cost, Realization and recognition, matching and accrual accounting, Conservatism (prudence) 5. Elements of financial statements 5.1 Balance sheet – Asset, Liability, Equity 5.2 Income statement – Revenue, Expenses, Gains, Losses 5. 3 Statement of cash flows—Operating cash flows, Investing cash flows, Financing cash flows 5.4 Statement of changes in equity—Investment by owners, Distribution to owners 6. Comparison of accounting concepts in China and in U.S.A. (Case) Lesson 3 THE BALANCE SHEET AND STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY 1. Interrelationship of financial statements 2. Elements of the balance sheet 3. Measurement of the elements of the balance sheet 4. Reporting classifications on the balance sheet 4. 1 Asset and liability classifications 4. 2 Conceptual guidelines for reporting assets and liabilities 4. 3 Stockholders' equity classifications 5. Limitations of the balance sheet 6. Statement of changes in stockholders' equity II Other disclosure issues 8. Reporting techniques 9. Balance Sheet analysis Lesson 4 THE INCOME STATEMENT AND INCOME RECOGNITION 1. Concepts of income 1. 1 Capital maintenance 1. 2 Transactional approach 2. Elements of the income statement 3. Income statement content 3.1 Income from continuing operations 3.2 Results from discontinued operations 3.3 Extraordinary items 3.4 Effects of accounting changes
3.5 Earnings per share 4. Income statement formats 4.1 Single-step 5. Limitations of the income statement 8. Conceptual issues of revenue recognition 8. 1 Revenue recognition criteria 8.2 E conomic substance versus legal form 8. 3 Transfer of risks and benefits 8.4 Collectibility of receivable Revenue recognition alternatives 9.1 Normal revenue recognition 9. 2 Revenue recognition prior to the period of sale 9.3 Revenue recognition after the period of sale Lesson 5 THE STATEMENT OF CASH FLOws 1. Conceptual overview and uses of the Statement of Cash Flows 2. Structure of the statement of cash flows 2. 1 Three categories of cash flows 2.2 Supplemental disc 3. Reporting Cash Flow From Operations 3. 1 Operating cycle 3.2 Two methods 3.2.1 Direct method- Illustration 3.2.2 Indirect method- Illustration 4. Preparing a complete Statement of Cash Flows A six-step process for preparing a statement of cash flows 5. Using cash flow data to assess financial strength Chapter 6 CASH AND RECEIVABLES Accounting for cash 1.1 Measurement as a current asset 1.2 Cash and cash equivalents 1.3 Cash management 1. 4 Petty cash system 2 Bank 3. Special topics 3.1 Electronic funds transfer systems 3.2 Compensating balances 4.1 Classifications 4.1.1 Current vs noncurrent
- 3 - 3.5 Earnings per share 4. Income statement formats 4.1 Single-step 4.2 Multiple-step 5. Limitations of the income statement 6. Income Statement analysis 7. Comprehensive income 8. Conceptual issues of revenue recognition 8.1 Revenue recognition criteria 8.2 E conomic substance versus legal form 8.3 Transfer of risks and benefits 8.4 Collectibility of receivable 9. Revenue recognition alternatives 9.1 Normal revenue recognition 9. 2 Revenue recognition prior to the period of sale 9. 3 Revenue recognition after the period of sale Lesson 5 THE STATEMENT OF CASH FLOWS 1. Conceptual overview and uses of the Statement of Cash Flows 2. Structure of the Statement of Cash Flows 2.1 Three categories of cash flows. 2.2 Supplemental disclosures 3. Reporting Cash Flow From Operations 3.1 Operating cycle 3.2 Two methods 3.2.1 Direct method-- Illustration 3.2.2 Indirect method-- Illustration 4. Preparing a complete Statement of Cash Flows A six-step process for preparing a statement of cash flows. 5. Using cash flow data to assess financial strength Chapter 6 CASH AND RECEIVABLES I. Accounting for cash 1.1 Measurement as a current asset 1.2 Cash and cash equivalents 1.3 Cash management 1.4 Petty cash system 2. Bank reconciliation 3. Special topics 3.1 Electronic funds transfer systems 3.2 Compensating balances 4. Receivables 4.1 Classifications 4.1.1 Current vs noncurrent
4.1.2 Trade receivables 4.1.3 Nontrade receivables ∨a| uation issue 4.2. Initial recording based on expected future cash flows 4.2.2 Estimation of the probability of collection 5. 1 Cash(sales) discounts 5.2 Sales returns and allowances 6. Valuation of accounts receivable for uncollectible accounts 6.1 Estimated bad debts method 6.1. 1 Income statement approach 6.1.2 Balance sheet approach 6.2 Recording bad debts 6.3 Writing off uncollectible accounts 6.4 Collection of an account previously written-off Generating immediate cash from accounts receivable 7.1 Conceptual issues 7.2 Pledging 7.3 Assignment 7.4 7.5 Disclosure of fingne 8. Notes receivable (short-term) Lesson 7 INVENTORIES 1. Classifications of inventory Ill. Alternative inventory systems 2. 1 Perpet 2.2 Periodic 3. Items to be included in inventory quantities 4. Determination of inventory costs 4. 1 Items included in inventory cost 4.2 Discounts as reductions in cost 4.3 Purchase returns and allowances 4.4 Summary 5. Inventory valuation method 5. 1 Specific identification 5. 2 First-in, first-out (FIF 5.3 Average cost 5. 4 Last-in, first-out (LIFO) 6. Inventory valuation at other than cost Lower of cost or market (LCM) 6. 1. 1 Application of LCM
- 4 - 4.1.2 Trade receivables 4.1.3 Nontrade receivables 4.2 Valuation issues 4.2.1 Initial recording based on expected future cash flows 4.2.2 Estimation of the probability of collection 5. Accounts receivable 5. 1 Cash (sales) discounts 5.2 Sales returns and allowances 6. Valuation of accounts receivable for uncollectible accounts 6.1 Estimated bad debts method 6.1.1 Income statement approach 6.1.2Balance sheet approach 6.2 Recording bad debts 6.3 Writing off uncollectible accounts 6.4 Collection of an account previously written-off 6.5 Direct write-off method 7. Generating immediate cash from accounts receivable 7.1 Conceptual issues 7.2 Pledging 7.3 Assignment 7.4 Factoring of receivables 7.5 Disclosure of financing agreements 8. Notes receivable (short-term) Lesson 7 INVENTORIES 1. Classifications of inventory III. Alternative inventory systems 2. 1 Perpetual 2. 2 Periodic 3. Items to be included in inventory quantities 4. Determination of inventory costs 4.1 Items included in inventory cost. 4.2 Discounts as reductions in cost. 4.3 Purchase returns and allowances. 4.4 Summary 5. Inventory valuation methods 5. 1 Specific identification 5. 2 First-in, first-out (FIFO) 5. 3 Average cost 5. 4 Last-in, first-out (LIFO) 5. 5 Comparison 6. Inventory valuation at other than cost 6. 1 Lower of cost or market (LCM) 6. 1.1 Application of LCM