This first course in a two-course financial reporting sequence provides for the preparation and understanding of financial information. Topics include: financial accounting theory and practice; official pronouncements of generally accepted accounting principles (GAAP) and conceptual statements; financial statement preparation and analysis; revenue and expense recognition; accounting for assets and current liabilities; noncurrent liabilities and stockholder equity; and financial statement disclosures.
- Learn the language of accounting (Understanding), that is, journal entries and the T-account format to represent economic transactions of business entities.
- Prepare financial statements (Understanding and Applying) in increasingly complex business environments. The financial statements that are prepared are as follows: Balance sheet; Income statement; Statement of stockholders equity; Statement of cash flows; Footnotes.
- Analyze the financial statements , disclosures, and management discussion and analysis (MD&A) of two publicly traded companies with respect to significant topical areas (Analyzing and Evaluating).
- Distinguish between various basis of accounting (Analyzing), that is: U.S. generally accepted accounting principles Accounting Standards Codification (ASC); International generally accepted accounting principles International Financial Reporting Standards (IFRS); Other comprehensive basis of accounting (OCBOA).
- Apply financial accounting theory to complex business transactions (Applying), that is prepare journal entries in order to: Recognize revenue; Recognize expenses; Account for assets; Account for liabilities; Account for equities; Prepare required disclosures.
- Evaluate the various basis of accounting and assess the differing effects on financial reporting and disclosures (Analyzing and Evaluating).
- Articulate the ideas and concepts of financial accounting theory (Understanding) by assessing the conceptual framework and authoritative standards.