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Department of BBS, Karachi Campus

Course Outline
General Information

Program / Semester BBA-3 / Spring2021

Course Title / Code Financial Accounting / ACC 102
Instructor / Contact
Quanita Shamoon
Email / Office Location Quanitashamoon.bukc@bahria.edu.pk
Class Timings / Room 0330-1130 Thursday
Consultation Timings Preferably with prior appointment.

Mode of Education  On-Campus Classes has been planned as per BU and HEC
Policies under the given precautionary situation of COVID-
19.
 Lectures cum Discussion shall be on-campus as mentioned
in Teaching Plan on succeeding pages of this course outline.
 For coming to the campus, students would be required to
take preventive measures as specified by BU / HEC and
available on website / social media.
 Unwell students with even slight symptoms shall not come to
the campus, rather attend online classes at their homes.
 Online Medium is Microsoft Teams for which detailed
instructions are attached separately.
 Students would require to follow the registration and login
system as per instructions of IT experts passed on them
directly or through the class teacher.

Bahria Business School: Vision and Mission

Vision

“To be the leading business school to develop professional acumen to engage and
serve organizations and business communities”

Mission

“Creating conducive collegiate teaching, learning and research environment to

produce critical thinkers and leaders to address business and community challenges
through ethical and best practices”
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Values

Ethics- Moral principles that govern the School’s activities Commitment- The
essence of motivation for achieving goals Integrity- As a guiding principle in all
activities to act with honesty

Tolerance- Capability to endure changes in the environment with the respect of

others’ opinions Equity- Being fair and Impartial in all activities

Discipline- Abiding by the Code of Conduct and behavioral parameters Prudence-

Driving actions by good judgment, logic and wisdom Innovation- Path to
continuous improvement and success

Engagement- Demonstration of active involvement with internal and external

stakeholders

Program: Mission, Objectives and Learning Outco mes

Program Mission

BBA program promotes business management aptitude among the young minds at state-of-
the-art campuses across the country under guidance of renowned academics and corporate
leaders. The program strives to inculcate ethical business practices among our graduates to
promote socially responsible businesses for equitable development in the country.

Program Education Objectives (PEOs)

 To produce BBA graduates equipped with the business knowledge and skills.
 To arouse curiosity of young minds to know the business issues as business manager.
 To develop critical thinking on the business issues and for their pragmatic solutions.
 To expose the students to the changing business environment in Pakistan and abroad.
 To increase the pool of socially responsible Business executives in the society.

Program Learning Outcomes (PLOs)

 BBA graduates will be able to execute the concepts of businesses at the work place.
 Graduates will be able to participate actively in the business development of firms.
 They will be able to become entrepreneur themselves or will be able to contribute to the
realization of entrepreneurs’ business vision.
 Our graduates will be able to promote work ethics in business organizations.
 Graduates will be able to pursue higher degrees in the field of education and research in
the national and international universities of repute.

Course Learning Outcomes (CLOs): After attending this course, the students should be able to:-
 Understand the nature of Plant Assets (Tangible and Intangible both), their types, determine their
costs, allocate their cost over the useful life under various methods, and their sale and exchange.
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 Define liabilities and their types, with special reference to notes payable, installments notes
payable, bonds, and leasing.
 Define Partnership, types of partners, formation and dissolution of a partnership firm and its
accounting process.
 Define corporations and their types, types of stocks, issuance of stocks, and understand and
make the stockholders’ equity section of balance sheet.
 Develop predictive information, and understand the causes of changes in retained earnings, along
with the types of dividends and their accounting processes.
 Understand the purpose and importance of Cash Flow Statement, and prepare the same under
both direct and indirect method.

Course Description

This course is a continuation of Principles of Accounting. It explores more deeply the accounting
principles and conventions related to financial statements’ preparation. Put together these two
courses would ensure that students fully understand all the activities leading to preparation of financial
statements and the characteristics of financial statement components.
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Course Contents and Time Distribution

Wee Teaching
Topics Activities
k Mode
1.  Introduction Class activity1:
 PLANT ASSETS Title of the Case Study – UNITED PARCEL Classroom
 Major Categories of Plant assets SERVICE
 Accounting for Plant Assets Theme:The theme of this case study is to
 Acquisition of plant assets highlight the importance of Plant Assets.
 Determining cost: an
example Task:Student will read the case study and
 Some Special Considerations participate in the class discussion for
 Land KNOWLEDGE ENHANCEMENT & SKILL
BUILDING.
 Land improvements
 Buildings Availability: Financial & Managerial
 Equipment
Accounting, 17th Edition by William,
 Allocation of a lump-sum purchase
Haka & Bettner
Capital expenditures and revenue
expenditures Class activity 2:

Handout’s End of the Chapter practice

question(s) - Pr9.1, Ex9.2

Home assignment:
Revise the lecture & problem solved in the
class. Read the topic due for discussion in
the next class.

2.  Depreciation Class activity1:

 Depreciation is not a process of
Discussion / Question Answer on learning Classroom
valuation
outcomes of the pre-reading assignment.
 Book value
 Causes of depreciation
 Physical deterioration
 Obsolescence Class activity2:
 Methods of computing depreciation Handout’s End of the Chapter practice
 The straight-line method questions - Ex9.2, Ex9.3a, Ex9.4, Ex9.13
 Depreciation for fractional
periods
 Methods of computing depreciation Home assignment:
Revise the lecture & problem solved in the
cont…
class. Read the topic due for discussion in
 MACRS (Discussion Only)
the next class.
 The declining-balance
method
 Other depreciation methods
 The units-of-output
method
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3.  Financial statement disclosures
 Estimates of useful life and residual
value
 The principle of consistence
 Revision of estimated useful life
 The impairment of plant assets
 Disposal of plant and equipment
 Gains and losses on disposal
 Disposal at a price
above book value
 Disposal at a price
below book value
 Trading in used assets for new ones
4.  Natural resources
 Accounting for natural
resources
 Depreciation of buildings
and equipment closely
related to natural resources
 Intangible assets
 Characteristics
 Operating expenses versus
intangible assets
 Amortization
 Goodwill
Class activity1:
Discussion / Question Answer on learning Classroom
outcomes of the pre-reading assignment.
Class activity 2:
Handout’s End of the Chapter practice
questions - Ex9.6, Ex9.7, Pr9.4, Pr9.5
Home assignment:
Revise the lecture & problem solved in the
class. Read the topic due for discussion in
the next class.
Class activity1:
Discussion / Question Answer on learning Classroom
outcomes of the pre-reading assignment.
Class activity 2:
Handout’s End of the Chapter practice
questions - Ex9.9, Ex9.11
Home assignment:
Revise the lecture & problem solved in the
class. Read the topic due for discussion in
the next class.

5.  Patents Prior reading assignment:

 Trademarks and trade names
Read: Classroom
 Franchises
 Copyrights  Case Study – DuPont
 Other intangibles and
deferred charges
 Research and Availability: Financial & Managerial
development (R & Accounting, 16th Edition by William,
D) costs Haka & Bettner
 LIABILITIES
 The nature of liabilities
Chapter: Liabilities – Relevant topics should
 Distinction between debt and be read for each session of this chapter
equity
 Many liabilities bear interest
Class activity1:
 Estimated liabilities
 Current liabilities Discussion / Question Answer on learning
 Accounts payable – outcomes of the pre-reading assignment.
 Notes payable –
 The current portion of long-
term debt – Class activity 2: Handout’s End of the
 Accrued liabilities – Chapter practice questions
 Payroll liabilities –
 Unearned revenue –
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Home assignment:

Revise the lecture & problem solved in the

class. Read the topic due for discussion in
the next class.

6.  Long-term liabilities Class activity1: Discussion / Question

 Maturing obligations Answer on learning outcomes of the pre-
intended to be refinanced reading assignment. Classroom
 Installment notes payable
 Allocating
installment payments
between interest and
Class activity 2: Handout’s End of the
principal
Chapter practice question - Ex10.7, Ex10.9,
 Preparing and using
Pr10.4
an amortization table
he current portion of
long-term debt
Home assignment:

Revise the lecture & problem solved in the

class. Read the topic due for discussion in
the next class.

7.  Long-term liabilities Class activity1: Discussion / Question

a. Bonds payable Answer on learning outcomes of the pre-
i. What are bonds? reading assignment. Classroom
ii. Types of bonds
iii. Accounting for
bonds payable Class activity2: Concepts will be built
Bonds issued between interest dates through lecture & discussion.

Class activity3: Handout’s End of the

Chapter practice questions - Ex10.10,
Ex10.13, Pr10.2, Pr10.3, Pr10.6, Pr B-6

Home assignment:

Revise the lecture & problem solved in the

class. Read the topic due for discussion in
the next class.

8.  PARTNERSHIP Prior reading assignment:

 Characteristics
Read: Classroom
 Types of Partnerships
 Types of Partners  Chapter: Partnership – Relevant topics
 Partnership should be read for each session of this
Agreement chapter
 Formation of a Partnership
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Firm
 Distribution of Profits/Losses
 Admission of a Partner
 Dissolution of a Partnership
Firm
9.  Midterm Examination
10.  STOCKHOLDERS’ EQUITY:
PAID-IN CAPITAL
 Corporations
 Why businesses incorporate
 Publicly owned corporations
 Publicly owned corporations
face different rules
 Formation of a corporation
 Organization costs
 Rights of
stockholders
 Functions of the
board of directors
 Functions of the
corporate officers
 Stockholder records in a corporation
– Stockholders subsidiary ledger &
Stock transfer agent and stock
registrar
11.  Paid-in capital of a corporation
 Authorization and issuance
of capital stock
 Par value & Issuance
of par value stock
 Common stocks and
Class activity1: Discussion / Question
Answer on learning outcomes of the pre-
reading assignment.
Class activity 2: Handout’s End of the
Chapter practice questions
Home assignment:
Revise the lecture & problem solved in the
class. Read the topic due for discussion in
the next class.
 Covered Subjects Included
Prior reading assignment:
Read: Classroom
 Chapter: Stockholders’ Equity: Paid-in
Capital – Relevant topics should be read
for each session of this chapter
Class activity1: Discussion / Question
Answer on learning outcomes of the pre-
reading assignment.
Title of the Case Study – Target Corporation
Theme:The theme of this case study is to
highlight the importance of Stockholders’
Equity.
Task:Student will read the case study and
participate in the class discussion for
KNOWLEDGE ENHANCEMENT & SKILL
BUILDING.
Availability: Financial & Managerial
Accounting, 16th Edition by William, Haka &
Bettner
Class activity 2:
End of the chapter questions
Home assignment:
Revise the lecture & problem solved in the
class. Read the topic due for discussion in
the next class.
Class activity1: Discussion / Question
Answer on learning outcomes of the pre-
reading assignment. Classroom
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preferred stocks
 Characteristics of preferred
Class activity 2: Handout’s End of the
stock
Chapter practice questions - Ex11.1, Ex11.2,
 Stock preferred as to Ex11.3, Ex11.4, Pr11.1, Pr11.2
dividends
 Cumulative
preferred stock
 Other features of Home assignment:
preferred stock Revise the lecture & problem solved in the
class. Read the topic due for discussion in
the next class.

12.  Book value per share of Class activity1: Discussion / Question

common stock
 Book value when a
company has both
preferred and
common stock
 Accounting by the issuer &
the investor
 Stock splits
 Treasury stock
 Restrictions of
retained earnings for
treasury stock owned
13.  INCOME & CHANGES IN
RETAINED EARNINGS
 Reporting the results of operations
• Developing predictive
information
• Reporting irregular items: an
illustration
• Continuing operations
• Discontinued operations
• Extraordinary items
• Changes in accounting
principle
• Earnings per share (EPS)
• Computing earnings
per share
• What happens if
more shares are
issued?
Preferred dividends
and earnings per
share
Answer on learning outcomes of the pre-
reading assignment. Classroom
Class activity2: Handout’s End of the
Chapter practice questions - Ex11.5, Ex11.6,
Ex11.7, Ex11.8, Ex11.9, Ex11.10, Ex11.11,
Ex11.12, Pr11., Pr11.3, Pr11.4, Pr11.5
Home assignment:
Revise the lecture & problem solved in the
class. Read the topic due for discussion in
the next class.
Prior reading assignment:
Read: Classroom
 Case Study – Procter & Gamble Co
 Chapter: Income and Changes in
Retained Earnings – Relevant topics
should be read for each session of this
chapter
Class activity1: Discussion / Question
Answer on learning outcomes of the pre-
reading assignment. Handout’s End of the
Chapter practice questions - Ex12.3, Ex12.4,
Pr12.5, Pr12.6
Home assignment:
Revise the lecture & problem solved in the
class. Read the topic due for discussion in
the next class.

14.  Other transactions affecting retained Class activity 1: Handout’s End of the
earnings Chapter practice questions - Ex12.5, Ex12.6,
 Cash dividends Ex12.7, Ex12.9, Pr12.5, Pr12.6 Classroom
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 Dividend dates Home assignment:
 Stock dividends
Revise the lecture & problem solved in the
 Statement of retained earnings
class. Read the topic due for discussion in
 Prior period adjustments the next class.
 Restrictions of retained
earnings
 Statement of stockholders’ equity
 Stockholders’ equity section of the
balance sheet
15.  The approach to preparing a Class activity1: Discussion / Question
statement of cash flows Answer on learning outcomes of the pre-
 Preparing a statement of cash flows: reading assignment. Classroom
an illustration Case Study – Lowe’s
 Operating activities –
Direct[Discuss only]& Availability: Financial & Managerial
Indirect Accounting, 16th Edition by William,
 Investing activities Haka & Bettner
 Financing activities
 Cash and cash equivalents Class activity 2: Handout’s End of the
 GAAP vs. IFRS approaches Chapter practice questions - Ex13.3, Ex13.4,
for Statement of Cash Flow Ex13.5

Home assignment:

Revise the lecture & problem solved in the

class. Read the topic due for discussion in
the next class.

16.  Investing activities Class activity: Handout’s End of the Chapter

 Financing activities practice questions - Ex13.6, Pr13.5, Pr13.6
 Cash and cash equivalents Classroom
Home assignment:

Revise the lecture & problem solved in the

class. Read the topic due for discussion in
the next class.

17.  GAAP vs. IFRS

approaches for Statement
of Cash Flow Classroom
18. Final Examination

Teaching Methodology

Mixed methodologies shall be put in practice for comprehensive learning. For this
purpose, students shall be involved in discussions, presentations, group activities
and reference studies. Students shall be distributed into groups for mutual
discussions; learn how to share works, prepare team based solution to problems and
develop arguments for presentation.
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Course Reference Material

 William, Haka, Bettner, Carcello, Financial & Managerial Accounting: The basis
for the Business Decision, 17th Edition McGraw hill
o Weygandt, Kimmel, Kieso Financial Accounting IFRS Edition, John Wiley and
sons
o Kimmel, Weygandt, Kieso,Accounting ,4th Edition, John Wiley and sons
o Weygandt, Kimmel, Kieso ,Accounting Principles ,International Student Edition ,
John Wiley and sons
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Assessment Plan

Total Remarks
Marks Frequency Marks
Marks

Assignments 4 5 20 Student’s
participation in class
Quizzes 3 [n-1] 5 15
activities counted in
Mid Term 1 25 25 assignments
etcetera.
Final Paper 1 40 40

University Policy of Fairness

Bahria University follows strict policy of fairness in examinations, assignments, other
academic activities and conduct. The University appreciates decent behavior,
acceptable moral norms and respectful display of attitude towards others in the
campus. Details of expected behavior and conduct are covered in students’
handbook which is available on university website. It also covers in detail plagiarism
and its consequent disadvantages to the students as per HEC policies / rules.

Prof. Dr Bashir Ahmad, BBS, BUKC