Bilkent University - Middle East Technical University

Instructor
Hamdi AYDIN
Section
01
MIDDLE EAST TECHNICAL UNIVERSITY
Department of Management
BA4417 – Intermediate Accounting
Spring 2014
Schedule and Room
Office-Phone
Office Hours
Wednesday : 09:oo – 10:00
Thursday : 10:15 – 13:oo
H102
Friday : 09:0 – 10:oo
G208
2102050
COURSE DESCRIPTION:
Accounting is in the process of adopting itself to globalization by developing International Financial
Reporting Standards (IFRS) but not without problems. Today there is a “rule-based vs. principlebased (objective-based)” accounting standards debate in the accounting circles; “uniform chart of
accounts vs. accounting standards” implementation in different countries; “local tax laws and
regulations based accounting vs. International Financial Reporting Standards” confusion among the
practitioners. Despite all of these issues hundreds of publicly held national and international
corporations, small and medium sized firms are preparing financial statements and reports for the
users in their jurisdictions.
The objective of the course is to provide the student in-depth coverage of International Financial
Reporting Standards (IFRSs) -- including International Accounting Standards (IASs) with underlying
rationale. Turkish tax rules and regulations as departed from IFRSs and IASs shall be referred to in
relation to implementation of IAS/IFRSs. The emphasis shall be on the recognition, measurement,
and disclosure of the transactions/events as well as interpretation of the financial statements.
COURSE THEMES: International Accounting Standards Board (IASB); Financial Accounting Standards
Board (FASB); Generally Accepted Accounting Standards (GAAP); Public Oversight Agency; IFRSs;
IASs; Conceptual Framework for Financial Reporting; Rule-Based Accounting Standards; PrincipleBased Accounting Standards; Accounting Information System; Financial statements; the statement
of financial position (balance sheet); income statement; cash flow statement; statement of
shareholders’ equity; assets; liabilities; equity, revenues; expenses; general journal; general ledger;
trial balance; accrual; corporate tax; income tax; Tax Procedures Law; valuation; recognition; derecognition; Fair value; historical cost; uniform chart of accounts (UCA).
LEARNING OUTCOMES:
Upon successful completion of this course, you should be:
- use the basic concepts of IAS/IFRSs and its terminology,
- able to implement the recognition, valuation and de-recognition principles of IAS/IFRSs.
- able to prepare the financial statements in accordance with IAS/IFRSs considering tax
implications.
- familiar with the valuation principles and methodology of IAS/IFRSs.
- able to interpret IAS/IFRSs based the financial statements
- able to identify major asset, liability, equity, revenue and expense items and explain how
they are accounted for and reported in accordance with IAS/IFRS,
LEARNING RESOURCES:
Required Text Book: Intermediate Accounting, IFRS EDITION, Volume I & II, Donald E. KIESO, Jerry J.
WEYGANDT, Terry D. WARFIELD, John Wiley & Sons, Inc., ISBN: 13 978-0470-61630-7, and ISBN: 13
978-0740-61631-4, respectively , 2011.
Additional Materials: (1) Accounting System Implementation General Communiqué, No: 1.
(Muhasebe Sistemi Uygulama Tebliği Sıra No: 1), as amended.
(2) Tax Procedures Law No: 213. (213 Sayılı Vergi Usul Kanunu)
(3) IASs and IFRSs available at www.iasb.org in English and www.kgk.gov.tr in Turkish.
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PREREQUISITES: BA1401 –Principles of Financial Accounting and a working knowledge of
accounting and bookkeeping.
ASSESSMENT AND GRADING:
The following will be used to assess the learning outcomes:
1. In class participation: Attendance by itself is a necessary but not a sufficient condition to
receive a class participation grade. Active participation will be assessed based on the
contribution of the individuals to class discussions. You should be a part of the teaching and
learning activities.
2. Assignments: Three (3) of the assignments per chapter at the most shall be delivered to the
instructor on the last date of due date indicated on the tentative course outline below. Late
submission of assignments will not be accepted.
3. Presentation:
(a) Download auditing report of a local or foreign publicly held company by 01 March 2014.
(b) Select a group of accounts and identify the related “notes”(s) (e.g., Tangible Fixed Assets,
Notes No: 12”).
(c) Identify the relevant IAS/IFRS related to the selected account group (e.g., IAS16- Property,
Plant and Equipment).
(d) Prepare a 15-minute presentation explaining the main provisions of selected IAS/IFRS, and
using the selected firm’s reports explain the disclosure of the account and auditor’s
/management report and opinion.
(e) Answer questions about the selected IFRS/IAS and the selected report.
4. Midterm and Final Examinations: There will be three midterms and a final examination to
evaluate the student’s course performance. The examinations will be a mixture of multiple
choice questions and problems. The questions will be designed to assess the students’
knowledge of the course content and their critical thinking abilities.
5. Make up exams are given as per the regulation of the University and administered on the first
Wednesday following the related exam. Do not forget to submit a copy of the document
(health report, etc.) to the instructor within three days following the date of the exam
missed.
Grading Policy
Midterm I
Midterm II
Final
Class assignments
Presentation
Percentage
90 - 100
85 - 89
80 - 84
75 - 79
70 - 74
Grade
AA
BA
BB
CB
CC
25%
25%
25%
10%
15%
100%
Percentage
65 - 69
60 - 64
50 - 59
49 below
Grade
DC
DD
FD
FF
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TENTATIVE COURSE SCHEDULE
Chapters exclude Appendices unless indicated otherwise.
Date
1
Feb.20
Reading
Ch. 1
2
Feb.27
Ch. 2
Ch. 3
3
March 6
Ch. 4
4
5
March 13
Mar.20
Ch. 5
Ch. 7
Ch. 8
6
Mar.27
Ch. 9
7
April 3
Ch. 10
Subject
Financial Reporting and Accounting
Standards
8 April 3
9 April 10
10
April 17
Ch. 11
Ch.12
11 April 24
12
May 8
Ch. 14
Conceptual Framework
The Accounting Information System
Income Statement and Related
Information
Statement of Financial Position and
Cash Flow
Cash and Receivables, App. 7A &7B
Valuation of Inventories
Inventories: Additional Valuation
Issues
Midterm I (Ch. 1-9)
Acquisition & Disposition of Property,
Plant, and Equipment
Depreciation, Impairments, and
Depletion & Appendix 11A
Intangible Assets
Current Liabilities, Provisions, and
Contingencies
Midterm II (Chapters 10 - 13)
Non-Current Liabilities
Ch. 15
Equity & Appendix 15A
13 May 15
Ch. 17
Investments, App. 17A, App. 17B
14 May 22
Ch. 18
Revenue
Final Exam (Chapters 14, 15, 17, 18)
Ch. 13
Assignments due
Financial Reporting Problem,
Int. Reporting Case (P. 36)
E2-6, E2-9, E2-10,
E3-4, P3-1 (use UCA)a, P3-4
E4-6, P4-7
E5-12
E7-1, E7-25, P7-6, P7-15
P8-1, P8-6, CA8-6
BE9-2, E9-11, E9-15
E10-6, E10-7, E10-22, E10-25,
E10-26
P11-1 (SL&DDB only), p11-13
E12-1, E12-4, E12-13, E12-16
E13-2, E13-3, E13-5, E13-6
Handout
E14-16, P14-2, P14-14
E15-2, E15-10, E15-14, E15-19,
P15-5, PRESENTATION
E17-1, E17-2, E17-6, E17-10,
E17-16, PRESENTATION
E18-1, E18-5, E18-10, P18-13,
PRESENTATION
a) UCA: Uniform Chart of Accounts
ACADEMIC HONESTY:
Any conduct which endangers the atmosphere of honesty and trust in the University cannot
be tolerated or condoned. Violations of academic honesty include but are not limited to
cheating on exams, looking or attempting to look at another student's answers, allowing
others to copy one's answers and plagiarism on assignments. Violations of academic honesty
can result in disciplinary action, as stated in the "Student Disciplinary Rules and Regulation"
of the University.
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