ACCT 2190 - Intermediate Accounting 2

Credit Hours: 4.00

Objectives:

1. Account for current and long-term liabilities
2. Compute EPS for a simple and complex capital structure
3. Account for long-term stock and bond investments
4. Account for reporting requirements for pension plans
5. Prepare a Statement of Cash Flow using the direct and indirect methods

Outcome 2: Upon completion of this course, students will be able to identify accounting theory at a paraprofessional level.

Objectives:

1. Account for stockholder equity
2. Define full disclosure and revenue recognition principles
3. Account for income tax according to FASB
4. Account for capital leases by the lessee and lessor
5. Account for changes in principles, estimates, and error correction

• Communication: The graduate can communicate effectively for the intended purpose and audience.
• Critical Thinking: The graduate can make informed decisions after analyzing information or evidence related to the issue.
• Global Literacy: The graduate can analyze human behavior or experiences through cultural, social, political, or economic perspectives.
• Information Literacy: The graduate can responsibly use information gathered from a variety of formats in order to complete a task.
• Quantitative Reasoning: The graduate can apply quantitative methods or evidence to solve problems or make judgments.
• Scientific Literacy: The graduate can produce or interpret scientific information presented in a variety of formats.

1. Describe the nature, valuation and reporting of current liabilities
2. Explain the classification issues of short-term debt expected to be refinanced
3. Explain the accounting for gain and loss contingencies
4. Indicate how to present and analyze liabilities and contingencies

Long-term Liabilities

1. Describe the nature of bonds and indicate the accounting for bond issuances
2. Describe the accounting for extinguishment of debt
3. Explain the accounting for long-term notes payable
4. Describe the accounting for the fair value option
5. Indicate how to present and analyze long-term debt

Stockholders’ Equity

1. Describe the corporate form and the issuance of shares of stock
2. Describe the accounting and reporting for reacquisition of shares
3. Understand the accounting and reporting issues related to dividends
4. Indicate how to present and analyze stockholders’ equity

Dilutive Securities and Earnings per Share

1. Describe the accounting for the issuance, conversion and retirement of convertible securities
2. Contrast the accounting for stock warrants and for stock warrants issued with other securities
3. Describe the accounting and reporting for stock compensation plans
4. Compute basic EPS and diluted EPS

Investments

1. Understand the accounting for investments in debt securities
2. Understand the accounting for investments in equity securities
3. Explain the equity and consolidation methods of accounting
4. Evaluate other major issues related to investments in debt and equity securities

Revenue Recognition

1. Understand the fundamental concepts related to revenue recognition
2. Understand and apply the five-step revenue recognition process
3. Apply the five-step process to major revenue recognition issues
4. Describe presentation and disclosure regarding revenue

Accounting for Income Taxes

1. Understand the fundamentals of accounting for income taxes
2. Identify additional issues in accounting for income taxes
3. Explain the accounting for loss carrybacks and loss carryforwards
4. Describe the presentation of deferred income taxes in financial statements

Accounting for Pensions and Postretirement Benefits

1. Understand the fundamentals of pension plan accounting
2. Use a worksheet for employer’s pension plan entries
3. Describe the accounting and amortization of prior service costs
4. Explain the accounting and amortization for unexpected gains and losses
5. Describe the requirements for reporting pension plans in financial statements

Accounting for Leases

1. Explain the nature, economic substance, and advantages of lease transactions
2. Describe the accounting for leases by lessees
3. Describe the accounting for leases by lessors
4. Describe the accounting and reporting for special features of lease arrangements