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2013/2014  KAN-CM_SU5G  Cases in Financial Reporting

English Title
Cases in Financial Reporting

Course information
Language English
Exam ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration Summer
Course period Summer
Please check www.cbs.dk/summer for the course schedule.
Time Table Please see course schedule at e-Campus
Study board
Study Board for MSc in Economics and Business Administration
Course coordinator
  • Course instructor - Kin Lo, Sauder School of Business
    Patricia Plackett - Department of Operations Management (OM)
Main academic disciplines
  • Financial and management accounting
Last updated on 23-07-2013
Learning objectives
By the end of the course, the student should be able to:
  • Analyze the effect of accounting alternatives in specific scenarios.
  • Evaluate and choose among accounting alternatives.
  • Identify and evaluate the accounting choices made by management and standard setters.
Course prerequisites
Introductory level financial accounting and introductory level management accounting.
Prerequisites for registering for the exam
Requirements about active class participation (assessed approved/not approved)
Mandatory Mid-term Assignments: Students must satisfactorily complete a group presentation to be eligible to write the final exam.
Examination
4 hour written exam:
Examination form Written sit-in exam
Individual or group exam Individual
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Summer Term
Aids allowed to bring to the exam Limited aids, see the list below and the exam plan/guidelines for further information:
  • Additional allowed aids
  • Allowed dictionaries
  • Books and compendia brought by the examinee
  • Notes brought by the examinee
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Description of the exam procedure
Students are permitted to use a calculator (without internet acces and not in mobile phones), books and notes. Students will be allowed to upload electronic files from USB BEFORE the exam. During the exam USBs will not be allowed.
Course content and structure
Principally using the case method, this course engages students to explore the consequences of alternative accounting standards, policies, choices, and estimates. As this course requires students to analyze financial statements and the implications of alternatives, a solid foundation in introductory accounting is required. Furthermore, the financial statement analysis will be more than just from the perspective of a passive user who receives the financial statements, but can be also from the perspective of the preparer (management), the auditor, or the standard setter. This holistic approach and the case method allow students to gain a deeper appreciation of financial accounting issues.

The course's development of personal competences:
By the end of the course, students should be able to:
1.  Analyze scenarios, generate suitable accounting alternatives, and analyze their effects on financial statements.
2.  Evaluate accounting alternatives to make appropriate conclusions and recommendations.
3.  Understand the motives for different accounting choices made by management and standard setters.
Teaching methods
The primary teaching method is case discussion.

Preliminary Assignment: To help students get maximum value from ISUP courses, instructors provide a reading or a small number of readings to be read before the start of classes with a related task or tasks in the first two classes in order to 'jump-start' the learning process. Students should read Sections G and I of Chapter 3 in the textbook (pages 86 - 115)
Expected literature
Kin Lo and George Fisher, Intermediate Accounting, Volumes 1 and 2, 2nd Canadian Edition, Pearson Education Canada, 1029 pages both volumes combined.
eText:  ISBN 978-0-13-311188-0  and    978-0-13-313539-8 (available on www.coursesmart.com) 
  
Syllabus
Class 1:    Introduction to analysis of accounting cases
                 Case 1-3 In-substance defeasance of long-term debt
                 Economic consequences of accounting choices and standards
Class 2:    Case 2-1 West Pacific's mortgage-backed securities
                 Conceptual framework for financial reporting
                 Case 3-2 Grosco's redeemable preferred shares
                 Accrual accounting and the importance of timing in recognition of events in accounting
Class 3:    Case 4-5 Happy Valley Homes
                 Revenue recognition
Class 4:    Case 5-1 MGM Mirage
                 Case 7-2 Tightrope Limited
                 Cash, receivables, and financial assets
Class 5:    Case 8-1 Pan Asia Airlines
                 Case 8-2 Intrawest's interest capitalization policy
                 Property, plant, and equipment
Class 6:    Case 12-2 Total Protection Limited
                 Case 14-1 Ultramart
                 Accounting and capital structure
Class 7:    Case 18-2 PDQ leasing options
                 Case 19-4 Enviro Ltd.
                 Off-balance sheet financing and cash flows
Class 8-10:  Group presentations
Class 11:  Comprehensive review
Last updated on 23-07-2013