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ACCT 400 Advanced Accounting Course Guide

Course Description

Advanced Accounting is a continuation of the study of financial accounting. The areas of coverage in this course include issues concerning the operation of Partnerships, Business Combinations and Consolidated Financial Statements, and International Accounting Issues. These topics require a working knowledge of GAAP and Professional Pronouncements.

The course is designed to provide an understanding of the technical requirements as well as developing an appreciation for working with accounting pronouncements and research of accounting issues. Professional Communication skill for writing and speaking will be
emphasized throughout the semester.

Specific, Assessable Learning Outcomes

The student will be able to:
1. Properly prepare consolidated financial statements as of the date of acquisition and for periods subsequent to the date of acquisition. (Synthesis)
2. Demonstrate an understanding of current GAAP related to Business Combinations and its relationship to present reporting practices. (Analysis)
3. Demonstrate an understanding of the accounting techniques and methods associated with the formation and liquidation of partnerships. (Application)
4. Prepare and analyze accounts for importing and exporting transactions denominated in foreign currencies, as well as accounting for forward exchange contracts. (Analysis and Synthesis)

Recommended Teaching Methodology

Faculty teaching the course are expected to utilize a variety of teaching styles and evaluation mechanisms throughout the semester. Assessment of written and/or communication skills is encouraged. There will be the equivalent of at least one class (or cases) addressing the behavioral and ethical considerations inherent in the collection, analysis, and use of information for management decision making.


Course Outline

   Advantages & Disadvantage (Legal Issues)
   Adding Partners
   (Depending upon time and faculty interest Tax advantages and disadvantages)

Business Combinations
   Accounting for Investments
         Equity Method
   Acquiring a controlling interest in another Business
Consolidation Procedures including proper assignment, depreciation, and amortization of any difference between cost and book values and non-controlling interest disclosures. Some focus on improved recognition and measurement of the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree.
   Time of Acquisition
   After Acquisition
   Intercompany Transactions (Inventory)
        (If there is time and faculty interest Intercomnay debt and asset transactions may be discussed.)
International Accounting
   IASB and Different Standards
   Accounting for Purchase & Sale Transactions denominated in another currency
          Derivatives as applied to foreign Currency Transactions
   Translation and Remeasurement of Financial Statements

Recommended Assessment Measures

1. Quizzes and tests given during the semester.
2. The faculty teaching the course will utilize the same textbook and will participate in a common final examination.

Required AACSB Assessment of Learning Objectives

Technical competence in consolidation and foreign currency transactions will be assessed through the common Departmental Final Exam in ACCT 400. Other learning objectives may be assessed in class during the semester using a common rubric.

Statement of Expectations

This course is required for students who will be taking the CPA examination. It is the last course in Financial Accounting for students who have completed Intermediate Accounting. The students can be assessed on many Financial Accounting issues such as preparation of Financial Statements.

The students will be expected to show an interest in the subject, the willingness to commit the necessary resources in terms of time and intellectual effort, and the willingness to actively participate in the skill development process.

Most of the learning that will take place will not occur in the classroom. It will occur while working on the material outside of class – when reading, thinking critically, analyzing, and applying the concepts to real problems. The amount learned and the level of skill developed will be directly proportional to the amount of effort put forth in preparing for class.

The classes are opportunities to discuss and apply the material, to develop communication ability, and to create leadership skills. There are opportunities for the faculty member to provide insight, to help when appropriate, and to evaluate performance. Like any athletic or artistic endeavor, most of the knowledge acquisition and skill development takes place when practicing, not performing.

Prerequisite Knowledge

ACCT 200, 205. 300 & 305. Specifically, students must thoroughly understand GAAP, the construction of financial statements, and the interrelationships that exist within the financial statements. Students are also expected to be capable of designing and implementing a rudimentary cash basis accounting system through the preparation of financial statements.

A student is expected to possess a working knowledge of spreadsheets, as well as the ability to use quantitative manipulation of information within a decision-making context. An ability to make an oral presentation and the ability to write about and research business and accounting topics is also expected.

Students entering ACCT 400 are expected to be at least Senior level students as such prior background in information literacy will be continued by the expectation that students can and will obtain information about companies from the library and internet.

Institutional Mechanism for Providing Feedback for Continuous Quality Improvement

The faculty teaching the course will meet at least annually to discuss their results.


The Accounting Department policy regarding programmable calculators requires students to bring a simple four-function calculator to use on exams rather than their TI-83s in order to reduce the likelihood of cheating. All personal electronic devices (including cell phones) must be stored during class.