Lesson Plan: 01: Intermediate Accounting 15th Edition by Kieso, Weygandt and Warfield, John Wiley & Sons, Inc

Lesson plan: 01
Subject: Intermediate Accounting (ACN-301)

Faculty Name: Dr. Rushdi Razzaque
Title Introduction of Financial Accounting and Accounting Standards

Sub-titles Financial Statements and Financial Reporting
Accounting Standards
Aim To orient students with financial statements of business entity

Objectives By the end of the lesson the students will be able to
Identify the major financial statements and other means of financial
reporting.
Identify the objective of financial reporting.
Explain the need for accounting standards.
Identify the major policy-setting bodies and their role in the standard-setting
process.
Brief Objectives of financial reporting.

contents
General purpose financial statements.
Accounting Standards and Generally Accepted Accounting Principles.
Key words Financial Statements, Financial Reporting, Accounting Standards, Generally

Accepted Accounting Principles (GAAP),
New IAS, IFRS, IASB, FASB, GAAP.

words
Probable How does accounting help the capital allocation process?
Questions
What is the objective of financial reporting?
Briefly explain the meaning of decision-usefulness in the context of financial

reporting.
Reference Intermediate Accounting; 15th Edition by Kieso, Weygandt and Warfield, John
Wiley &
s sons, Inc.
Lesson plan: 02

Title Introduction of Financial Accounting and Accounting Standards

Sub-titles Accounting Standards
Issues and ethics in Financial Reporting
Aim To orient students with the different aspects of financial reporting

environment.

Explain the meaning of generally accepted accounting principles (GAAP)
and the role of the Codification for GAAP.
Describe some of the challenges facing financial reporting.
Understand issues related to ethics in financial reporting.

Brief Accounting standards and its environment
contents
Ethics in financial reporting.
Key words Financial Statements, Financial Reporting, Accounting Standards, Generally
Accepted Accounting Principles (GAAP),
New IAS, IFRS, IASB, FASB, GAAP.

words
Probable What are the sources of pressure that change and influence the development
Questions of accounting standards?
What is the “expectation gap”?
Wiley &
s sons, Inc.
Lesson plan: 03

Title Conceptual Framework for Financial Reporting

Sub-titles Conceptual Framework for Financial Reporting
Aim To introduce students with the conceptual framework underlying the

Financial Reporting.

Describe the usefulness of a conceptual framework.
Describe the FASB’s efforts to construct a conceptual framework.
Brief What is Conceptual Framework for Financial Reporting?

contents
Need for a Conceptual Framework.
Development of Conceptual Framework.
Key words Conceptual Framework
New Statements of Financial Accounting Concepts

words
Probable What is a conceptual framework?
Questions
Why a conceptual framework necessary in financial accounting?
Who should be responsible for developing a conceptual framework in

financial accounting?
Wiley &
s sons, Inc.
Lesson plan: 04


Sub-titles Objective of financial reporting, qualitative characteristics of accounting
information, and elements of financial statements.
Aim To introduce students with the financial reporting objectives, the qualitative
characteristics of accounting information, and the elements of financial
statements.
Understand the objective of financial reporting.
Identify the qualitative characteristics of accounting information.
Define the basic elements of financial statements.
Brief Objective of financial reporting.

contents
Qualitative characteristics of accounting information.
Basic elements of financial statements.

Key words Qualitative characteristics, assets, liabilities, equity, investment and
distribution to owners, revenues, expenses, gains, and losses.
New Relevance, faithful representation, predictive value, materiality, neutrality,

words comparability, verifiability timeliness, comprehensive income
Probable BE 2-1, BE2-2, BE2-4, BE2-6, E2-4, E2-5
Questions
Wiley &
s sons, Inc.
Lesson plan: 05


Sub-titles Recognition, measurement, and disclosure concepts
Aim To introduce students with the assumptions, principles, and constraints

necessary in financial reporting.
Describe the basic assumptions of accounting.
Explain the application of the basic principles of accounting.
Describe the impact that the cost constraint has on reporting accounting
information.
Brief Basic Assumptions of Accounting.

contents
Basic Principles of Accounting.
Cost Constraint.
Key words Accounting Assumptions, Principles, and Constraint, MO
New Entity assumption, going concern, monetary unit assumption, measurement

words principle, revenue and expense recognition principles, full disclosure, and
cost constraint
Probable E2-6, E2-9, E2-10
Questions
Wiley &
s sons, Inc.
Lesson plan: 06

Title Income Statement and Related Information

Sub-titles Usefulness and limitations of the Income Statement.
Quality of Earnings.
Formats of the Income Statement.
Aim To orient students with the different features of the income statements
Understand the uses and limitations of an income statement.
Describe the content and format of the income statement.
Prepare an income statement.
Brief Usefulness and limitations of the income statements.

contents
Elements of the Income Statement.
Key words Income Statement
New Multiple-step, single-step, and condensed Income Statement, discontinued

words operations, extraordinary items, non-controlling interests, earnings per share.
Probable E4-1, E4-2, E4-6, P4-1
Questions
Wiley &
s sons, Inc.
Lesson plan: 07


Sub-titles Other Reporting Issues related to the Income Statement
Aim To orient students how to report accounting changes and errors, with the
retained earnings statement.
Understand the reporting of accounting changes and errors.
Prepare a retained earnings statement.
Brief Accounting changes and errors.

contents
Retained Earnings Statement.
Key words Changes in Accounting Principles and estimates.
New Prospective adjustments, retrospective adjustments, appropriated or restricted

words retained earnings.
Probable E4-12, P4-3, P4-4
Questions
Wiley &
s sons, Inc.
Lesson plan: 08


Sub-titles Other Reporting Issues related to the Income Statement
Aim To orient students with the Comprehensive Income.

Objectives By the end of the lesson the students will be able to explain how to report other
comprehensive income
Brief Comprehensive Income
contents
Statement of Stockholders’ Equity
Key words Comprehensive Income
New Comprehensive Income

words
Probable E4-16, P4-5, P4-6
Questions
Wiley &
s sons, Inc.
Lesson plan: 09

Title Balance Sheet and Cash Flow Statements
Sub-titles Usefulness and limitations of the Balance Sheet.
Classification in and formats of the Balance Sheets
Aim To orient students with the detailed formats and uses of the balance sheet.
Explain the uses and limitations of a balance sheet.
Identify the major classifications of the balance sheet.
Prepare a classified balance sheet using the report and account formats.
Brief Elements of the Balance Sheet.

contents
Classifications of the Balance Sheet.
Formats of the Balance Sheet.
Key words Balance sheet, current assets, non-current assets, liabilities, stockholders’
equity
New Intangibles, capital stock, additional paid-in capital, treasury stock

words
Probable E5-17, E5-3, E5-4, P5-2, Quiz on Chapter 2 &4
Questions
Wiley &
s sons, Inc.
Lesson plan: 10

Sub-titles Purposes of the Cash Flow Statement.
Contents of the Cash Flow Statement.
Aim To orient students with the cash flow statement’s content and how to prepare
cash flow statement.
Indicate the purpose of the statement of cash flows.
Identify the content of the statement of cash flows.
Prepare a basic statement of cash flows.
Brief Contents of the Cash Flow Statement.

contents
Usefulness of the Cash Flow Statement.
Key words Cash flows from operation, cash flows from financing and investment
activities.
New Significant non-cash activities, financial liquidity, financial flexibility, free
words cash flows .
Probable E5-17, P5-6, P5-7.
Questions
Wiley &
s sons, Inc.
Lesson plan: 11

Sub-titles Supplemental Disclosures related to the Balance Sheet.
Aim To orient students with the supplemental disclosures companies make related
to the Balance Sheet
Determine which balance sheet information requires supplemental disclosure.
Describe the major disclosure techniques for the balance sheet.
Using Ratios to Analyze Performance.
Brief Supplemental Disclosures.

contents
Techniques of Disclosures
Using Ratios to analyze performance.
Key words Supplemental disclosures, accounting policies, fair values, contra items.
New Contractual situations, contingencies, liquidity ratios, activity ratios,
words profitability ratios, and coverage ratios.
Probable P5-4, P5-5.
Questions
Wiley &
s sons, Inc.
Lesson plan: 12

Title Midterm Examination
Sub-titles Midterm Examination
Aim To assess the students on the knowledge of Chapter 1, Chapter 2, Chapter 4 and
Chapter 5.
Objectives To assess the students on the knowledge of Chapter 1, Chapter 2, Chapter 4 and
Chapter 5.
Brief
contents
Key words
New
words
Probable
Questions
Wiley &
s sons, Inc.
Lesson plan: 13

Title Cash and receivables

Sub-titles What is Cash?
Reporting Cash.
Accounts Receivable.
Aim To orient students with the cash and cash equivalent items, and accounts
receivable.
Identify items considered as cash.
Indicate how to report cash and related items.
Define receivables and identify the different types of receivables.
Brief Cash and Cash equivalents.

contents
Restricted Cash.
Bank Overdrafts.
Recognition of accounts receivable.
Key words Cash and cash equivalent, accounts receivable and notes receivables, trade
discount and cash discount.
New cash equivalent, accounts receivable and notes receivables, trade discount and
words cash discount.
Probable Define cash and cash equivalents
Questions Journalize the sales, sales return and receipt of cash transactions under gross
and net method of recording.
Wiley &
s sons, Inc.
Lesson plan: 14


Sub-titles Valuation of Accounts Receivable.
Notes Receivable.
Aim To orient students with the valuation accounts receivable.

Explain accounting issues related to recognition and valuation of notes
receivable.
Differentiate between the direct write-off method and the different

allowance methods.
Explain the fair value option.
Brief Trade and cash discounts.

contents
Uncollectible accounts receivable.
Direct write-off and allowance method.
Notes receivable.
Key words Bad debt expense, allowance for doubtful accounts

New Allowance method of uncollectible accounts, interest and non-interest
words bearing notes.
Probable E7-9, P7-2, P7-3, P7-4
Questions
Wiley &
s sons, Inc.
Lesson plan: 15


Sub-titles Special Issues related to accounting of receivables.
Aim To orient students with the fair value option and disposition of receivables.
Explain accounting issues related to disposition of accounts and notes
receivable.
Describe how to report and analyze receivables.
Brief Fair Value Option.

contents
Disposition of Accounts and Notes Receivable.
Presentation and analysis of receivables.
Key words Secured borrowing, Sale of receivables

New Factoring, sales with recourse, sales without recourse.
words
Probable E7-15, E7-16, P7-7
Questions
Wiley &
s sons, Inc.
Lesson plan: 16

Title Inventories Valuation

Sub-titles Inventory Valuation Systems.
Effect of Inventory Errors.
Costs Flow Assumptions Related to Inventory.
Aim To orient students with the basic issues related to inventory valuation.
Identify major classifications of inventory.
Distinguish between perpetual and periodic inventory systems.
Determine the goods included in inventory and the effects of inventory errors
on the financial statements.
Understand the items to include as inventory cost.
Describe and compare the cost flow assumptions used to account for
inventories.
Brief Perpetual and Periodic Inventory Systems.

contents
Costs Flow Assumptions.
Key words Perpetual and Periodic Inventory Systems, First-in-first Out (FIFO) Method,
Last-in-first-out (LIFO) Method, Specific Identification Method, Average
Cost Method.
New Perpetual and Periodic Inventory Systems, First-in-first Out (FIFO) Method,
words Last-in-first-out (LIFO) Method, Specific Identification Method, Average
Cost Method.
Probable Journalize transactions under perpetual inventory system
Questions Journalize transactions under periodic system
Calculate ending inventory under FIFO, LIFO, WAV method
Wiley &
s sons, Inc.
Lesson plan: 17


Sub-titles Lower of Cost or Market Rule
Valuation Bases for Inventory
Aim To orient students with the additional valuation techniques related to

inventory.
Describe and apply lower-of-cost-or-market rule.
Explain when companies value inventories at net realizable value.
Explain when companies use the relative sales value method to value
inventories.
Brief Lower-of-Costs-or-Market.
contents
Valuation Bases.
Key words Lower-of-Costs-or-Market, Net realizable value.

New Lower-of-Costs-or-Market, Net realizable value.
words
Probable E9-4, E9-5, P9-1, P9-2, P9-3.
Questions
Wiley &
s sons, Inc.
Lesson plan: 18


Sub-titles Valuation Bases for Inventory.
The Gross Profit Method.
Aim To orient students with the additional valuation techniques related to

inventory.
Discuss accounting issues related to purchase commitments.
Determine ending inventory by applying the gross profit method.
Explain how to report and analyze inventory

Brief Valuation Bases.
contents
The Gross Method of Estimating Ending Inventory.
Key words Purchase commitments, the gross profit method, markup.

New Purchase commitments, the gross profit method, inventory turnover.
words
Probable E9-9, E9-10, E9-11, E9-14, P9-4.
Questions
Wiley &
s sons, Inc.
Lesson plan: 19

Title Acquisition and Disposition of Property, Plant and Equipment

Sub-titles Property, Plant, and Equipment.
Aim To orient students with the accounting for acquisition of long term plant
assets.
Describe property, plant, and equipment.
Identify the costs to include in initial valuation of property, plant, and

equipment.
Describe the accounting problems associated with self-constructed assets.
Describe the accounting problems associated with interest capitalization.
Brief Costs of Plant Assets.

contents
Valuation of Plant Assets.
Key words Interest costs of self-constructed assets,

New Qualifying assets, capitalization period, weighted-average-accumulated
words expenditure.
Probable E10-8, P10-5, P10-6, P10-7,
Questions
Wiley &
s sons, Inc.
Lesson plan: 20

Title Acquisition and Disposition of Property, Plant and Equipment

Aim To orient students with the accounting for acquisition and disposition of long
term plant assets.
Understand accounting issues related to acquiring and valuing plant assets.
Describe the accounting treatment for costs subsequent to acquisition.
Describe the accounting treatment for the disposal of property, plant, and
equipment.
Brief Exchanges of non-monetary assets.

contents
Costs subsequent to acquisition.
Dispositions of Plant assets.
Key words Disposition of Plant assets, exchange of nonmonetary assets.

New Disposition of PPE, exchange of nonmonetary assets
words
Probable E10-19, E10-20, E10-21, P10-8, P10-9, Quiz on Inventory Issues.
Questions
Wiley &
s sons, Inc.
Lesson plan: 21

Title Depreciation, Impairments, and Depletion

Sub-titles Depreciation.
Aim To give an overview of depreciation methods, and impairment of assets.

Explain the concept of depreciation.
Identify the factors involved in the depreciation process.
Compare activity, straight-line, decreasing-charge, and special methods of

depreciation.
Explain the accounting issues related to asset impairment.
Explain the accounting procedures for depletion of natural resources.
Explain how to report and analyze property, plant, equipment, and natural
resources.
Brief Methods of Depreciations.

contents
Impairments.
Key words Straight line method, sum of the years digit, declining method.
New Impairments.
words
Probable E11-7, E11-12, E11-16, E11-17, P11-1, P11-2.
Questions
Wiley &
s sons, Inc.
Lesson plan: 22

Title Depreciation, Impairments, and Depletion

Aim To give an overview of impairment of assets, and accounting for natural resources.
Explain the accounting issues related to asset impairment.
Explain the accounting procedures for depletion of natural resources.
Explain how to report and analyze property, plant, equipment, and natural
resources.
Brief Impairments.
contents
Depletion.
Key words Impairments, depletion.

New Impairments, recoverability test, impairment loss, depletion.
words
Probable E11-22, P11-9.
Questions
Wiley &
s sons, Inc.
Lesson plan: 23

Title Intangible Assets

Sub-titles Intangible Assets Issues
Aim To orient students with the accounting for intangibles.

Describe the characteristics of intangible assets.
Identify the costs to include in the initial valuation of intangible assets.
Explain the procedure for amortizing intangible assets.
Brief Valuation of Intangibles.

contents
Amortization of Intangibles.
Key words Trademark, copyright, franchise, customer list, patent, amortization of

intangible assets, amortizations.
New Trademark, copyright, franchise, customer list, patent, amortization of
words intangible assets, amortizations.
Probable Quiz on Property, Plant, and Equipment, and Depreciation of Plant Assets.
Questions
Wiley &
s sons, Inc.
Lesson plan: 24

Title Intangible Assets

Sub-titles Intangible Assets Issues
Aim To orient students with the accounting for intangibles.

Describe the types of intangible assets.
Explain the accounting issues for recording goodwill.
Explain the accounting issues related to intangible-asset impairments.
Identify the conceptual issues and describe the accounting for research and
development costs.
Indicate the presentation of intangible assets and related items.
Brief Types of Intangibles.

contents
Accounting for Goodwill.
Research and Development Costs.
Presentation and analysis of Intangibles.
Key words Good will, impairment of goodwill, research and development costs.
New Good will, impairment of goodwill, research and development costs.

words
Probable E12-12, E12-13, E12-14, E12-15, P12-5.
Questions
Wiley &
s sons, Inc.
Lesson plan: 25

Title Review Lecture

Sub-titles Review Lecture
Aim To review on issues related to receivables, inventories, property, plant, and

equipment, and intangibles
Objectives To revisit the major issues related to different assets.
Brief
contents
Key words
New
words
Probable
Questions
Wiley &
s sons, Inc.
Lesson plan: 26

Title Final Examination.

Sub-titles Final Examination.
Aim To evaluate students on the issue of cash and receivables, inventories, property,
plant, equipment, and intangibles.
Objectives
Brief
contents
Key words
New
words
Probable
Questions
Wiley &
s sons, Inc.

Lesson Plan: 01: Intermediate Accounting 15th Edition by Kieso, Weygandt and Warfield, John Wiley & Sons, Inc

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Lesson plan: 01

Subject: Intermediate Accounting (ACN-301)

Title Introduction of Financial Accounting and Accounting Standards

Aim To orient students with financial statements of business entity

Identify the objective of financial reporting.

Explain the need for accounting standards.

Brief Objectives of financial reporting.

Accounting Standards and Generally Accepted Accounting Principles.

Key words Financial Statements, Financial Reporting, Accounting Standards, Generally

New IAS, IFRS, IASB, FASB, GAAP.

Briefly explain the meaning of decision-usefulness in the context of financial

Subject: Intermediate Accounting (ACN-301)

Title Introduction of Financial Accounting and Accounting Standards

Issues and ethics in Financial Reporting

Aim To orient students with the different aspects of financial reporting

Objectives By the end of the lesson the students will be able to

Describe some of the challenges facing financial reporting.

Understand issues related to ethics in financial reporting.

New IAS, IFRS, IASB, FASB, GAAP.

What is the “expectation gap”?

Subject: Intermediate Accounting (ACN-301)

Title Conceptual Framework for Financial Reporting

Aim To introduce students with the conceptual framework underlying the

Objectives By the end of the lesson the students will be able to

Describe the FASB’s efforts to construct a conceptual framework.

Brief What is Conceptual Framework for Financial Reporting?

Development of Conceptual Framework.

Key words Conceptual Framework

New Statements of Financial Accounting Concepts

Who should be responsible for developing a conceptual framework in

Subject: Intermediate Accounting (ACN-301)

Title Conceptual Framework for Financial Reporting

Understand the objective of financial reporting.

Identify the qualitative characteristics of accounting information.

Define the basic elements of financial statements.

Brief Objective of financial reporting.

Basic elements of financial statements.

New Relevance, faithful representation, predictive value, materiality, neutrality,

Subject: Intermediate Accounting (ACN-301)

Title Conceptual Framework for Financial Reporting

Aim To introduce students with the assumptions, principles, and constraints

Describe the basic assumptions of accounting.

Explain the application of the basic principles of accounting.

Brief Basic Assumptions of Accounting.

New Entity assumption, going concern, monetary unit assumption, measurement

Subject: Intermediate Accounting (ACN-301)

Title Income Statement and Related Information

Formats of the Income Statement.

Describe the content and format of the income statement.

Prepare an income statement.

Brief Usefulness and limitations of the income statements.

Key words Income Statement

New Multiple-step, single-step, and condensed Income Statement, discontinued

Subject: Intermediate Accounting (ACN-301)

Title Income Statement and Related Information

Understand the reporting of accounting changes and errors.

Prepare a retained earnings statement.

Brief Accounting changes and errors.

Key words Changes in Accounting Principles and estimates.

New Prospective adjustments, retrospective adjustments, appropriated or restricted

Subject: Intermediate Accounting (ACN-301)

Title Income Statement and Related Information

Aim To orient students with the Comprehensive Income.