SUKKUR INSTITUTE OF BUSINESS ADMINISTRATION

Faculty of Business Administration

ACC-207 Corporate Accounting

Programs & Class: BBA-III(4Years) Semester: FALL 2022
Credit Hours: Class Work: 4 Instructor: SAJJAD AHMED MAHESAR

Pre-requisite Courses: Post-requisite Courses:

1 Principles of Accounting (ACC-206) 1. Managerial Accounting (ACC-306)

Co-requisite Courses: None e-mail:sajjad.ahmed@iba-suk.edu.pk

Office Hours: 9 to 5 Thursday and Saturday Consulting Hours: 3PM To 5PM

Evaluation
1. Assignments/Class Participation/Home Assignment 10%
2. Quizzes 05 %
3. Presentation 05 %
4. Mid-Term Examination 40 %
5. Final Examination 40 %

Recommended Books:
1  Financial and By: Williams, Hakka Bettner Publisher Name & Edition
Managerial McGraw-Hill
Accounting Sixteenth Edition.

Reference Books:
1 Financial Accounting ACCA ( F3) Publisher Name & Edition
International Edition

Digital & Web Resources:

1. http://www.goole.com/accounting

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 2. http://digitallibrary.edu.pk/ibasukkur.html
3. http://www.gapinc.com
4. http://www.ford.com

Introduction to Course:
The purpose of accounting is to provide financial information about an economic entity. Accounting although
commonly called basis for business decisions, yet it is the need of every citizen. A citizen being a consumer, a
house owner, an investor, a voter, a loan seeker to build a house etc. always needs basic knowledge of accounting.

Financial Accounting is a sub-system and important part of MIS of any organization, large or small. A profound
insight into this discipline is an essential requirement for every investor, creditor, business executive, tax
functionary and a regulator. Moreover students of business administration have to do several courses in
accounting and finance during their degree program. Therefore they should have strong foundation in accounting
methods, good concepts and a better acquaintance with Generally Accepted Accounting Principles (GAAP).

Course Learning Objectives:

 To discuss accounting as the language of business and the role of accounting information in making
economic decisions.
 To explain the importance of financial accounting information for external parties- primarily investors
and creditors in terms of the objectives and characteristics of reliable accounting information.
 To explain important relationships among the statement of financial position, income statement and
statement of cash flows and how these statements relate to each other.
 To explain the common forms of business ownership- sole proprietorship, partnership and corporation-
and demonstrate how they differ in terms of their presentation in the statement of financial position.
 To identify the steps in accounting cycle and discuss the role of accounting records in an organization.
 To describe the operating cycle of a merchandising company.
 To define financial assets- cash, marketable securities and receivables.
 To discuss perpetual and periodic inventory systems.
 To discuss accounting for long term assets; to distinguish capital and revenue expenditures and various
depreciation methods.
 To discuss accounting for corporation business- retained earnings and stockholders equity. Significance
of par value, book value and market value. To discuss effects of stock splits and treasury stock.
 To discuss accounting for corporations in view of discontinued operations, extraordinary items, and other
unusual events.
 To analyze financial statements from the viewpoints of common stockholders, creditors and other parties.

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 Detailed Course Outline

BBA-III

Assignments Suggested
Session # Topic
/Quizzes Reading
1-2 Inventories and Cost of Goods Sold
 The Flow of Inventory Costs
 Which Unit Did We Sell? Exercises Chapter #
 Data for an Illustration 08
 Specific Identification

3-4 Inventories and Cost of Goods Sold

 Cost Flow Assumptions
 Average-Cost Method
Demons Chapter #
 First-In, First-Out Method
Prob 08
 Last-In, First-Out Method

5-6 Inventories and Cost of Goods Sold

 Evaluation of the Methods
 Do Inventory Methods Really Affect Performance?
Exercises
 The Principle of Consistency Chapter #
 Just-In-Time (J/T) Inventory Systems 08

7-8 Inventories and Cost of Goods Sold

 Taking a Physical Inventory as Management
 Recording Shrinkage Losses
 LCM and Other Write-Downs of Inventory
Demons Chapter #
 The Year-End Cutoff of Transactions and Statements
Prob 08
 Periodic Inventory Systems

9-10 Plant and Intangible Assets

 Plant Assets as a "Stream of Future Services"

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  Major Categories of Plant Assets
 Accountable Events in the Lives of Plant Assets
 Acquisitions of Plant Assets
 Determining Cost: An Example
 Some Special Considerations Exercises
Chapter #
 Capital Expenditures and Revenue Expenditures
09
 Depreciation
 Allocating the Cost of Plant and Equipment over the Years of Use
 Causes of Depreciation

11-12 Plant and Intangible Assets

 Methods of Computing Depreciation
 The Straight-Line Method
 The Declining-Balance Method
 MACRS: The Tax Method
 Which Depreciation Methods Do Most Businesses Use?
 Financial Statement Disclosures
 The Impairment of Plant Assets
Chapter #
 Disposal of Plant and Equipment
09
 Gains and Losses on Disposals of Plant and Equipment
 Gains and Losses for Income Tax Purposes
 Which Amounts Are Recorded in the Accounting Records?

13-14 Plant and Intangible Assets

 Trading in Used Assets for New Ones
 Other Income Tax Reporting Obligations
 Intangible Assets
 Characteristics
 Operating Expenses Versus Intangible Assets
 Amortization
Exercises Chapter #
 Goodwill
09
 Patents
 Trademarks and Trade Names
 Franchises
 Copyrights

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15-16 Plant and Intangible Assets
 Other Intangibles and Deferred Charges
 Research and Development (R&D) Costs
 Natural Resources
 Accounting for Natural Resources
 Depreciation, Amortization, and Depletion - A Common Goal
 Plant Transactions and the Statement of Cash Flows Problems Chapter #
 Supplemental Topic: Other Depreciation Methods 09
 The Units-of-Output Method
 MACRS
 Sum-of-the-Years' Digits
 Decelerated Depreciation Methods
 Depreciation Methods in Use: A Survey
17-18 Liabilities
 The Nature of Liabilities
 Current Liabilities
 Accounts Payable
 Notes Payable
 The Current Portion of Long- Term Debt
Exercises
 Accrued Liabilities Chapter #
 Payroll Liabilities 10
 Unearned Revenue

19-20 Liabilities
 Long- Term Liabilities
 Maturing Obligations Intended to Be Refinf11ced
 Installment Notes Payable
Chapter #
 Special Types of Liabilities Exercises
10
 Bonds Payable
 What Are Bonds?
 Tax Advantage of Bond Financing
 Accounting for Bonds Payable

21-22 Liabilities
 The Concept of Present Value
 Bond Prices After Issuance

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  Early Retirement of Bonds Payable
 Lease Payment obligations
 Operating Leases
 Capital Leases
 Liabilities for Pensions and Other Postretirement
Home
 Benefits Chapter #
Assignment
 Deferred Income Taxes 10
 Liabilities and Cash Flows
 Evaluating the Safety of Creditors' Claims
 How Much Debt Should a Business Have?

23-24 Liabilities
 Supplemental Topics
 Accounting for Bond Discount; An Illustration
 Accounting for Bond Premium
 Bond Discount and Premium in Perspective Demons
 End-of-Chapter Review Prob
 Assignment Material
 Lab
25-26 Stockholders' Equity: Paid-in Capital
Corporations
 Why Businesses Incorporate
 Publicly Owned Corporations
 Formation of a Corporation
 Stockholder Records in a Corporation Exercises Chapter #
 Paid-in Capital of a Corporation 11
 Authorization and Issuance of Capital Stock

27-28 Stockholders' Equity: Paid-in Capital

Corporations Exercises
 Common Stocks and Preferred Stocks
 Characteristics of Preferred Stock Chapter #
 Stock Issued for Assets Other Than Cash 11
 Subscriptions to Capital Stock
 Donated Capital
 Book Value per Share of Common Stock

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29-30 Stockholders' Equity: Paid-in Capital
Corporations
 Market Value
 Market Price of Preferred Stock Demons
Chapter #
 Market Price of Common Stock Prob.
11
 Book Value and Market Price

31-32 Stockholders' Equity: Paid-in Capital

Corporations
 Stock Splits
 Treasury Stock
Demons Chapter #
 Recording Purchases of Treasury Stock
Prob. 11
 Re issuance of Treasury Stock
 Stock "Buyback" Programs

33-34 Income and Changes in Retained Earnings

 Reporting the Results of Operations
 Developing Predictive Information
Article Chapter #
 Reporting Irregular Items: An Illustration
Presentation 12
 Continuing Operations
 Discontinued Operations

35-36 Income and Changes in Retained Earnings

 Extraordinary Items
 Changes in Accounting Principles
 Earnings per Share (EPS) Problems Chapter #
 Basic and Diluted Earnings per Share 12
 Transactions Affecting Retained Earnings

37-38 Income and Changes in Retained Earnings

 Cash Dividends
 Dividend Dates
Home assign Chapter #
 Liquidating Dividends
12
 Stock Dividends

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39-40 Income and Changes in Retained Earnings
 Statement of Retained Earnings
 Prior Period Adjustments
 Comprehensive Income Chapter #
Exercises
 Statement of Stockholders' Equity 12
 Stockholders' Equity Section of the Balance Sheet

41-42 Statement of Cash Flows

 Statement of Cash Flows
 Purpose of the Statement
 Example of a Statement of Cash Flows Chapter #
 Classification of Cash Flows Exercises 13
 Critical Importance of Cash Flows from Operating Activities
 The Approach to Preparing a Statement of Cash Flows
 Preparing a Statement of Cash Flows: An Illustration

43-44 Statement of Cash Flows

 Reporting Operating Cash Flows: The Direct and Indirect Methods
 Cash Flows from Investing Activities
 Cash Flows from Financing Activities Chapter #
Home assign
 Relationship Between the Statement of Cash Flows and the Balance Sheet 13

45-46 Statement of Cash Flows

 The Statement of Cash Flows: A Second Look
Case study Chapter #
 Using the Statement of Cash Flows
13
 Annotated Statement of Cash plows: ABM

47-48 Statement of Cash Flows

 Industries Incorporated
 Managing Cash Flows Chapter #
 Budgeting: The Primary Cash Management Tool Problems 13
 Supplemental Topics
49-50 Financial Statement Analysis
 Purpose of Analysis
 Tools of Analysis Home assign

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  Dollar and Percentage Changes
Chapter #
 Trend Analysis
14
 Component Percentages

51-52 Financial Statement Analysis

 Ratios Chapter #
Exercises
 Working Capital 14
 Measures of Profitability
53-56 Revision

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