EAC 3212 Intermediate Accounting 2

Course Description

Continues EAC3211. Includes the valuation of liabilities and equities, revenue realization, accounting changes, income taxes, leases, and financial statement disclosures.

Course Objectives

• Account for the issuance of stock for cash on a subscription basis and in exchange for noncash assets or for services
• Account for the repurchase of stock (using both the cost and par value methods) and for the issuance of stock rights and stock options
• Account for cash dividends, property dividends, small and large stock dividends, and stock splits
• Prepare a statement of changes in stockholders’ equity
• Account for non-current operating asset acquisitions, using various special arrangements, including deferred payment, self-construction, basket purchase, and as part of an acquisition of an entire company
• Compute annual depreciation expense using straight-line, accelerated, use-factor, and group depreciation methods and indicate how changes in estimate will affect the computation
• Identify the issues impacting proper recognition of amortization or impairment for intangible assets
• Account for the sale of depreciable assets in exchange for cash and in exchange for other depreciable assets
• Account for debt and equity securities, including the purchase, the change in value, the transfer of securities between categories, and the sale of these securities
• Account for both capital and operating leases from the standpoint of both lessor and lessee
• Prepare and interpret the lease disclosures required of both lessees and lessors
• Compute the amount of deferred tax liabilities and assets and determine the effects of future tax rates on these tax assets/liabilities
• Account for payroll, payroll taxes, and compensated absences
• Compute the periodic pension expense and prepare the required pension disclosures
• Account for the following types of derivatives: swaps, forwards, futures, and options
• Apply the rules for contingent items to the areas of lawsuits and environmental liabilities
• Prepare the necessary supplemental disclosures of financial information by product line and by geographic area
• Identify the difficulties encountered when preparing interim reports
• Compute basic earnings per share and diluted earnings per share and explain the disclosure requirements associated with these computations
• Explain the difference between a change in accounting estimate and a change in accounting principle and compute the necessary adjustments for a change in accounting principle
• Identify the various types of errors that can occur in the accounting process and be able to correct errors when necessary
• Analyze financial statements using common size financial statements and financial ratios

The course description, objectives and learning outcomes are subject to change without notice based on enhancements made to the course. November 2013