Course Objectives and Requirements:

Advanced Accounting (hereafter, FA4) provides an in-depth study of Three major areas of advanced financial accounting:

• consolidated financial statements

• foreign currency translation and the consolidation of foreign operations

• accounting for partnership

The aim of FA4 is to help you, through the study of these topics, to develop

• technical and procedural skills required to deal with advanced areas of the GAAP framework established by the International Accounting Standards Board

• the ability to apply conceptual principles when selecting appropriate accounting policies in particular circumstances

• the ability to assess a situation, identify issues and alternatives, and formulate recommendations using ethical, professional judgment

Regarding the requirements, I require two things of the students. First, the students must attend class. Second, you must try to complete the assignments both in class and outside class. These two things are important for the student’s individual success in the course.

Course Contents:

The following is the course outline；

Chapter 1 The Equity Method of Accounting for Investments

The reporting of investment in corporative equity securities

International Accounting Standard 28---Investments in Associates

Equity Method

Fair-value reporting option for equity

Chapter 2 Consolidation of Financial Information

Expansion through corporate takeovers

The consolidation process

Financial Reporting for Business Combinations

Procedures for consolidating financial information

Acquisition-Date Fair-value allocations---Additional Issues

Chapter 3 Consolidations---Subsequent to the Date of Acquisition

Consolidation---the effects created by the passage of time

Investment accounting by the acquiring company

Recorded by the equity method

Subsequent consolidations---investment recoded using initial value or partial equity method

Goodwill impairment

Comparisons with international accounting standards

Amortization and impairment of other intangibles

Contingent consideration

Push-down accounting

Chapter 4 Consolidated Financial Statements and outside ownership

Consolidated financial reporting in the presence of a non-controlling interest

Allocating and subsidiary’s net income to the parent and non-controlling interests

Partial ownership consolidations

Alternative fair-value specification

Revenue and expense reporting for midyear acquisitions

Step acquisitions

Comparisons with international accounting

Chapter 5 Consolidated financial statements---Intra-entity assets transactions

Intra-entity inventory transactions

Intra-entity land transfers

Intra-entity transfer of depreciable assets

Chapter 6 Variable Interest Entities, Intra-entity Debt, Consolidated Cash Flows, and other issues

Consolidation of Variable Interest Entities

Intra-entity debt transactions

Consolidation of cash flows

Consolidated earnings per share

Subsidiary stock transactions

Chapter 7 Consolidated Financial statements---ownership Patterns and Income taxes

Indirect subsidiary control

Mutual ownership

Income tax accounting for a business combination

Comparisons with international standards

Chapter 9 Foreign Currency Transactions and hedging foreign exchange risk

Foreign exchange markets

Foreign currency transactions

Hedges of foreign exchange risk

Derivatives accounting

Hedge accounting

Chapter 10 translation of foreign currency financial statements

Exchange rates used in translation

Translation methods

Complicating aspects of the temporal method

Treatment of translation adjustment

Translation of financial statements

Re-measurement of financial statements-temporal method

Consolidating of a foreign subsidiary

Chapter 14 Partnership

Credits: 3