AC420 Advanced Accounting I

for S1M 2005

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Course Number: AC420
Course Title: Advanced Accounting I
Instructor: Rosemary Whetzel
Title: Senior Instructor
Telephone: 252-633-1855
Term Dates: SPRING I Jan. 10, 2005 to March 6, 2005
Site: MCAS, Cherry Point
Times: Tuesday/Thursday 1930-2200
Prerequisite(s) AC325 and CS140 or equivalents
Credit Hours: 3


The mission of Park University, an entrepreneurial institution of learning, is to provide access to academic excellence, which will prepare learners to think critically, communicate effectively and engage in lifelong learning while serving a global community.


Park University will be a renowned international leader in providing innovative educational opportunities for learners within the global society.


A continuation of AC325. Selected topics in advanced financial accounting with emphasis on current accounting problems and pronouncements of the Financial Accounting Standards Board. Prerequisites: AC325 and CS140 or equivalents. 3:0:3.


The course is designed to provide the student with the most innovative and comprehensive coverage of advanced financial accounting topics.


The following is a list of major learning outcomes, which you will possess after completing this course:

The understanding of corporate mergers, consolidations, and control; the difference between a business purchase and a pooling of interest; how to record the purchase and account for the acquired assets and liabilities after the purchase; and the techniques for calculating, recording and valuing goodwill.

The proper way to prepare consolidated financial statements at the time of the purchase of net assets or common stock.

How to account for an investment in a subsidiary company; the concepts and techniques for preparing on-going consolidated statements; the method of applying the Economic Unit Concept to goodwill.

The correct recording of intercompany merchandise sales, plant asset sales, and debt, and the elimination of resulting gains and losses in the consolidated financial statement process.

Consolidation statement techniques with regard to cash flows, earnings per share and taxation.


Lecture on Chapter material, class discussion and written questions, exercises and problems will be assigned. We will use the computer room to solve problems using excel.


Student is required to read all assigned material and be prepared for each class. An assignment sheet will be given out on Thursday of each week with next week’s reading and written assignments.


Fisher, Taylor and Cheng. Advanced Accounting, 8th Edition. South-Western Learning, 2002.


GAAP textbook, Wall St. Journal, websites such as,, etc.


Each student is required to show-up “on time” and be prepared for class. Homework is to be submitted when due. Participation in the classroom is expected, and exams must be taken when scheduled.

Academic Honesty “Academic Honesty is required for all members of a learning community. Hence Park will not tolerate cheating or plagiarism on tests, examinations, papers or other course assignments. Students who engage in such dishonesty may be given failing grades or expelled from Park.”

Plagiarism: Plagiarism-the appropriation or imitation of the language or ideas of another person and presenting them as one’s original work-sometimes occurs through carelessness or ignorance. Students who are uncertain about proper documentation of sources should consult their instructors.

Attendance Policy: Instructors are required to keep attendance records and report absences. The instructor may excuse absences for cogent reasons, but missed work must be made up within the term of enrollment. Work missed through unexcused absences must also be made up within the term of enrollment, but unexcused absences may carry further penalties. In the event of two consecutive weeks of unexcused absences in a term of enrollment, the student will be administratively withdrawn, resulting in a grade of “F”. An incomplete will not be issued to a student who has unexcused or excessive absences recorded for a course. Students receiving Military Tuition Assistance (TA) or Veterans Administration (VA) educational benefits must not exceed three unexcused absences in the term of enrollment. Excessive absences will be reported to the appropriate agency and may result in a monetary penalty to the student. Reports of F grade (attendance or academic) resulting from excessive absences for students receiving financial assistance from agencies not mentioned above will be reported to the appropriate agency.

Late Submission of Work-If late submission is due to an excused absence or otherwise pre-arranged with the instructor, late submission will be graded without prejudice. Late submission will not be accepted for assignments missed due to unexcused absences.

Disabilities Guidelines-Park University is committed to meeting the needs of all students that meet the criteria for special assistance. These guidelines are designed to supply directions to students concerning the information necessary to accomplish this goal. It is Park University’s policy to comply fully with federal and state law, including Section 504 of the Rehabilitation Act of 1973 and the American with Disabilities Act of 1990, regarding students with disabilities and, to the extent of any inconsistency between these guidelines and federal and/or state law, the provisions of the law will apply. Additional information can be found on the Park University web page:


Week 1 – Introduction to Class
Chapters 1 & 2, Business Combinations

Week 2 – Chapter 3, Consolidated Financial Statements

Week 3 – Chapters 3 and 4, Continuation of Consolidated

Week 4 – Chapter 5, Intercompany Transactions
Review for mid-term exam.

Week 5 – Mid-term exam.
Chapter 6, Consolidated Cash Flow

Week 6 – Chapter 7, Special Issues

Week 7 – Chapter 8, Equity Transactions

Week 8 – Final Exam

X. GRADING PLAN – Grading will be weighted as follows: Homework 15%, Group problems and class participation 25%, Mid-term Exam 25% and Final Exam 35%.

Letter Grade

A – 93-100
B – 85-92
C – 77-84
D – 69-76
F – Below 69

Important Dates

Beginning of Term: Jan 10, 2005
Last Day of Add/Drop: Jan 17, 2005
Last Day of Partial Refund for Withdrawal: Feb 4, 2005
End of Term: March 6, 2005