ACCT331 – Intermediate Accounting: Assets
This intermediate financial accounting course builds on the basic understanding that students would have acquired in the introductory accounting courses and will focus on the asset side of the statement of financial position.
In the first part of the course, students cover financial reporting and accounting concepts; income statements and statements of financial position presentation; the statement of cash flows; revenue and expense recognition; and the interest concepts of future and present value. In the second half, students cover current monetary balances; inventory and cost of goods sold; investments and financial instruments; and property, plant and equipment.
An underlying theme of the course is how various readers use financial statement information and what they want to know. Students learn how investors, creditors, and other users synthesize disclosures of accounting policy choices, measurement methods, and restatements from prior years into their investment and lending decisions. The predictive value of the financial statements to users is explored through the income statement presentation of discontinued operations, extraordinary items, and restatements, and through the balance sheet presentation of financial instruments.
In examining the inherent contradiction between the theoretical foundation of the accrual basis of accounting and the statement of cash flows, students become critical thinkers about the role of accounting standards in improving the quality of earnings information available to financial statement users.