COURSE DESCRIPTION

This course studies the generally accepted accounting principles (GAAP) as they affect today's practitioners. The course emphasizes is on accounting conceptual framework and philosophy which includes income, liability, and asset valuation based on inductive, deductive, and capital market approaches. The course also surveys price-level changes, monetary and nonmonetary factors, problems of ownership equities, and the disclosure of relevant information to investors and creditors.

COURSE TOPICS

Accounting in US since 1930
The role of the American Institute of Certified Public Accountants (AICPA)
The role of the Accounting Principles Board (APB)
The role of the Financial Accounting Standards Board (FASB)
The role of ethics in accounting
The development of the International Financial Reporting Standards (IFRS)
Early developed accounting theory
The American Accounting Association’s (AAA) conceptual framework
FASB’s conceptual framework project
the International Accounting Standards Board’s (IASB) – FASB joint financial statement presentation project
The role of the International Accounting Standards Committee (IASC)
The role of the IFRS Foundation
The IASB-FASB convergence project
The Securities and Exchange Commission (SEC) roadmap to convergence
The deductive and inductive approaches
Fundamental analysis
The Capital Asset Pricing Model (CAPM)
Normative and positive accounting theory
The agency theory
The nature of income
Historical-cost and current-value accounting models
Accounting for inflation
Revenue recognition and realization
Quality of earnings and earnings management
Fraudulent financial reporting
Income statement elements

The APB Opinion No. 9
Discontinued operations
Extraordinary items
Cumulative effect of change in accounting principle
Basic and diluted earnings per share
Comprehensive income statement
Correction of errors
Balance sheet elements
Fair value measurement
Elements of the statement of cash flow
FASB Standard No. 95
Evaluating an entity’s financial health

Components of working capital
Uses of working capital
Financial analysis of an entity’s working capital position
Self-constructed assets
Fixed asset group purchases
The depreciation process
Impairment of fixed assets
Accounting for asset retirement obligations
International Accounting Standards No. 16, 23, and 36
FASB Standard No. 115
The cost and equity methods
The fair value option
Accounting for investments in debt securities
Transfer of financial assets
FASB Standard No. 142
Accounting for research and development costs
The International Accounting Standards No. 28, 32, and 36
Accounting Fair Value Measurement
The Recent Financial Crisis

COURSE OBJECTIVES

After completing this course, students will be able to:

Explain the sources of the Generally Accepted Accounting Principles (GAAP).
Evaluate various accounting conceptual framework projects.
Explain the objectives and the uses of the International Accounting Standards.
Assess various research methodologies to develop accounting theory.
Assess the quality of earnings.
Explain the elements of the income statement and the comprehensive income statement.
Explain the elements of the balance sheet and the statement of cash flow.
Explain the components of working capital.
Explain the proper accounting treatment for property, plant, and equipment.
Explain the proper accounting treatment for long-term investments and intangible assets.
Analyze the relationship between the accounting fair value measurement and the recent financial crisis.

COURSE MATERIALS

You will need the following materials to complete your coursework. Some course materials may be free, open source, or available from other providers. You can access free or open-source materials by clicking the links provided below or in the module details documents. To purchase course materials, please visit the University's textbook supplier.

Required Textbook

Financial Accounting Theory and Analysis: Text and Cases, 10th Edition

by Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey.

ISBN-13: 978-0470646281

COURSE STRUCTURE

Accounting Theory is a three-credit online course, consisting of ten modules. Modules include an overview, topics, study materials, and activities. Module titles are listed below.

Module 1: Accounting History
Course objectives covered in this module: 1
Module 2: Accounting Conceptual Framework
Course objectives covered in this module: 2
Module 3: International Accounting Standards
Course objectives covered in this module: 3
Module 4: Developing Accounting Theory
Course objectives covered in this module: 4
Module 5: Income Measurement
Course objectives covered in this module: 5
Module 6: Income Statement
Course objectives covered in this module: 6
Module 7: Balance Sheet and Statement of Cash Flow
Course objectives covered in this module: 7
Module 8: Working Capital Concept
Course objectives covered in this module: 8

Module 9: Property, Plant, and Equipment
Course objectives covered in this module: 9
Module 10: Long-Term Investments and Intangible Assets
Course objectives covered in this module: 10

ASSESSMENT METHODS

For your formal work in the course, you are required to participate in online discussion forums, complete written assignments and complete a final project. See below for details.

Consult the Course Calendar for assignment due dates.

Discussion Forums

You are required to participate in ten graded discussion forums. Discussion forums are on a variety of topics associated with the courses modules. There is also an ungraded but required introduction forum in Module 1.

Written Assignments

You are required to complete ten written assignments. The written assignments are on a variety of topics associated with the course modules.

Final Project

The Final Project requires 10-12 pages of academic research paper written in APA Style. The paper should include: title page, abstract, keywords, introduction, discussion and analysis, conclusion, and references.

GRADING AND EVALUATION

Your grade in the course will be determined as follows:

Online discussions (10)—20 percent
Written assignments (10)—50 percent
Final project—30 percent

All activities will receive a numerical grade of 0–100. You will receive a score of 0 for any work not submitted. Your final grade in the course will be a letter grade. Letter grade equivalents for numerical grades are as follows:

A	=	93–100	B	=	83–87
A–	=	90–92	C	=	73–82
B+	=	88–89	F	=	Below 73

To receive credit for the course, you must earn a letter grade of C or higher on the weighted average of all assigned course work (e.g., assignments, discussion postings, projects, etc.). Graduate students must maintain a B average overall to remain in good academic standing.

STRATEGIES FOR SUCCESS

First Steps to Success

To succeed in this course, take the following first steps:

Read carefully the entire Syllabus, making sure that all aspects of the course are clear to you and that you have all the materials required for the course.
Take time to read the entire Online Student Handbook. The Handbook answers many questions about how to proceed through the course and how to get the most from your educational experience at Thomas Edison State University.
Familiarize yourself with the learning management systems environment—how to navigate it and what the various course areas contain. If you know what to expect as you navigate the course, you can better pace yourself and complete the work on time.
If you are not familiar with Web-based learning be sure to review the processes for posting responses online and submitting assignments before class begins.

Study Tips

Consider the following study tips for success:

To stay on track throughout the course, begin each week by consulting the course Calendar. The Calendar provides an overview of the course and indicates due dates for submitting assignments, posting discussions, and scheduling and taking examinations.
Check Announcements regularly for new course information.

ACADEMIC POLICIES

To ensure success in all your academic endeavors and coursework at Thomas Edison State University, familiarize yourself with all administrative and academic policies including those related to academic integrity, course late submissions, course extensions, and grading policies.

For more, see: