NANYANG TECHNOLOGICAL UNIVERSITY NANYANG BUSINESS SCHOOL BU8101 Accounting: A User Perspective _________________________________________________________________________________

Academic Year Course Coordinator Pre-requisites No. of AUs

: : : :

2012/2013 Mrs. Ho-Lau Yin Kheng None 3

Semester Other Instructor(s)

: :

2 Anne Chia (PT) Dong Yue (Phd)

Course Description and Scope This is a basic course in financial and managerial accounting meant for non-accounting and nonbusiness students. It exposes students to the environment of accounting and its role in providing useful information for decision making by various stakeholders of business organizations. By the end of the course, students should be able to appreciate the role, scope and value of information for managing business organizations towards achieving their goals. Students will learn fundamental concepts and techniques in financial and managerial accounting, through solving business problems. In this course, students are treated to an understanding of a broad range of the underlying accounting concepts without the need to be involved in too much detail associated with the processes. Whilst non-accounting and non-business students need not have to prepare comprehensive financial statements, it would be beneficial for them to be able to understand, interpret, analyse and use them.

Course Learning Objectives Learning Goal Acquisition of knowledge Course Learning Objectives 1. Understand the interaction between accounting and business. 2. Learn how business transactions, which are the result of business decisions, are recorded to show their effects on financial statements. 3. Understand the role and structure of the accounting and control functions within an organization. 4. Learn basic quantitative and qualitative techniques for interpreting and analysing financial information and to use the relevant financial information for planning, control and decision-making. Problem solving and decision-making 1. Develop students ability to use relevant information for decision -making, planning and control to achieve organizational goals. 2. Develop students problem solving skills and the ability to recognise ethical concerns, evaluate key elements, determine alternatives and select the best alternatives. Others 1. 1. Develop students presentation, communication and group working skills.

Learning & Teaching Methods The teaching-learning mode is structured into 1.5 hours lecture and 1.5 hours seminar per week. The first lecture will commence on 14 January 2013 and the first seminar will commence in the week beginning 21 January 2013. 1

The purpose of the lecture is to expose students to the basic concepts and principles of accounting. The purpose of the seminars, unlike the lecture, is to have small-group classes so that detailed analysis, interaction and discussion are possible. The seminars involve a variety of learning activities such as (a) discussion of conceptual overview of the assigned material for the seminar, (b) critical analysis and discussion of the relevant literature, (c) the use of relevant case studies for developing critical analysis, discussion and presentation skills, and (d) dealing with hands-on basic numerical problems for developing essential technical knowledge and skills. Other learning activities outside class-contact time may include online quiz and e-learning activities found in BU8101 Accounting Learning Centre in the edveNTUre and online practice exercises and e-learning activities available in McGraw Hills Connect System. Students are encouraged to explore the issues further through the various learning activities mentioned above. Group discussion is strongly encouraged as it enables examining an issue or problem from multiple perspectives and it facilitates developing communication and group working skills.

Course Assessments Components Coursework Group Assignment Presentation/Participation Online Quiz (closed book) Final Examination (closed book) Total 10 20 20 50 100 Group Individual/Group Individual Individual Marks Individual/Group

Assessment Plan Course Learning Objective Assessment Method Group Assignment To understand the role and structure of the accounting and control functions within an organization. Online Quiz Examination Presentation/Participation Group Assignment To use relevant financial information for control and decision making and employ basic quantitative and qualitative techniques to interpret and analyse financial information. Online Quiz Examination Presentation/Participation Group Assignment To develop students analytical skills and the ability to recognise ethical concerns, evaluate key elements, determine alternatives and select the best alternatives. Online Quiz Examination Presentation/Participation To develop students presentation, communication and group working skills Group Assignment Presentation/Participation

Group Assignment (10%) The group assignment refers to the self-study seminar No. 7. It is to be completed in assigned groups. The group assignment provides students with an additional opportunity to develop communication and group working skills to examine issues and problems from multiple perspectives. Details of the assignment will be provided in the main edveNTUre site. Presentation/Participation (20%) (a) Presentation (10%) Each student will be assigned a group at the beginning of the semester. Each group will then be assigned on a random basis to present questions in a seminar. Every member of the presentation group is expected to participate and present in front of the class. All presentations must be in PowerPoint format. Students will be assessed based on the quality of the presentation on an individual as well as on a group basis. (b) Participation (10%) Assessment will be based on in-class discussions. Participation in class discussions include asking relevant questions, volunteering a response to instructors questions, or responding to an instructors cold call. Class participation points will not be earned by merely attending class. In addition, absence from class without a valid medical certificate will earn you a zero score for class participation in the week of your absence. Online Quiz (20%) The online quiz will be administered during seminars in the week commencing 11 March 2013 (the week immediately after the recess week). The quiz, which comprises multiple-choice questions, will be conducted in IT labs. The coverage of the quiz can include all topics discussed during lectures and seminars up to that point. Students who are absent from the quiz without a valid medical certificate will be awarded a zero score. Final Examination (50%) The final examination is closed book and will be held on Monday, 29 April 2013 at 5.00pm.

Academic Integrity: Good academic work depends on honesty and ethical behaviour. The quality of your work as a student relies on adhering to the principles of academic integrity and to the NTU Honour Code, a set of values shared by the whole university community. Truth, Trust and Justice are at the core of NTUs shared values. As a student, it is important that you recognize your responsibilities in understanding and applying the principles of academic integrity in all the work you do at NTU. Not knowing what is involved in maintaining academic integrity does not excuse academic dishonesty. You need to actively equip yourself with strategies to avoid all forms of academic dishonesty, including plagiarism, academic fraud, collusion and cheating. If you are uncertain of the definitions of any of these terms, you should go to the academic integrity website http://academicintegrity.ntu.edu.sg for more information. Consult your instructor(s) if you need any clarification about the requirements of academic integrity in the course.

Readings and References Main Text WHB: Williams, J.R., Haka S.F. and Bettner M.S. th Financial and Managerial Accounting: The Basis for Business Decisions, 16 Edition, McGraw-Hill (2012). HF5636.F491

Supplementary Texts The following are suggested texts to supplement the main text for additional reading materials, whenever necessary. You need not buy them; they will be made available in the library. WC: Wild, J.J. and Chiappetta, B. th Financial and Managerial Accounting: Information for Decisions, 4 Edition, McGraw-Hill (2011) HF5636.W668 2011 Marian Powers, Belverd E. Needles, Susan V. Crosson. Financial and Managerial Accounting Principles, 9th Edition, Cengage Learning South Western (2011) HF5635.P888

PNC:

Other Resources Websites Each student of the course will have access to three websites in the Edventure. In the first, BU8101 Accounting: A User Perspective, most of the resource materials required for the lectures and seminars will be posted on it. In the second, BU8101 Accounting Learning Centre, students are advised to access it for self-learning and online seminars. There are also chapter summaries for every chapter of the main textbook, multiple-choice quizzes, true/false quizzes and internet exercises. The third website will be created for each seminar group. Students of the same seminar group will be able to have online forum discussions and information sharing with members of their class.

Course Instructors Instructor Mrs. Ho-Lau Yin Kheng (Coordinator) Anne Chia (Co-lecturer) Dong Yue Office Location S3-01C-88 Phone 6790 5694 Email yklau@ntu.edu.sg AnneChia@ntu.edu.sg YDONG1@ntu.edu.sg

Proposed Weekly Schedule

Lecture No./ Week Commencing 1 14 Jan.

Lecture Topics

Learning Objectives

Readings/Activity

Introduction to Accounting 1. Course requirements & administrative/housekeeping matters 2. Importance of accounting 3. The objectives and characteristics of : Financial accounting information and Management accounting information 4. The sources of integrity of accounting information 5. Forms of business organizations 6. The Accounting Framework, Financial Statements and Some Accounting Concepts

1. To provide an overview of BU8101 and to discuss course requirements. 2. To understand the importance of accounting information in making economic decisions. 3. To understand the difference between financial and management accounting information and their uses. 4. To know the elements of external and internal financial reporting that creates integrity in the reported information. 5. To know the different types of business organizations. 6. To understand the nature and general purpose of financial statements and have an overview of the accounting concepts underlying the preparation of these financial statements. 7. To understand how certain business transactions affect the elements of the accounting equation and how these statements relate to each other. 1. To understand the steps in the accounting cycle from source documents to adjusting and closing activities. 2. To understand the double entry accounting system. 3. To understand the purpose of adjusting entries and the application of the accounting period, realization, matching, materiality and accrual accounting concepts.

WHB, Chapters 1 & 2 No seminar for this week

2 21 Jan.

The Accounting Cycle 1. Capturing economic events 2. Make adjustment entries Accruals Deferrals 3. Prepare adjusted trial balance 4. Prepare financial statements and close books 5. Ethics, fraud and corporate governance

WHB, Chapters 3, 4 & 5 Getting to know one another and briefing on group presentation and class participation Discuss use of BU8101 Accounting Learning Centre Seminar No. 1

3 28 Jan.

Financial Statements: Statement of Financial Position (Balance sheet) Accounting and Presentation of: 1. Current assets Financial assets which include cash and cash equivalents, short-term investments and receivables

1. To identify the difference between current and non-current assets. 2. To define financial assets and their valuation in the balance sheet. 3. To understand the risks and control associated with accounts receivables. 4. To understand the risks associated with cash and the need for control. 5. To know how to do bank reconciliation. 6. To understand financial ratios relating to accounts receivables and liquidity. 1. To learn to account for inventory and cost of goods sold under the perpetual inventory system and its valuation in the balance sheet. 2. To understand the risks and controls associated with inventory. 3. To understand financial ratios relating to inventory. 4. To learn to account for the cost, the use and the disposal of non-current assets, specifically plant assets. 5. To know that plant assets may be revalued (detailed accounting will not be taught). 1. To learn the characteristics of the different types of liabilities and how they are disclosed in the balance sheet. 2. To understand the components of owners equity. 3. To know the difference between common stock and preferred stock. 4. To know what is treasury stock. 5. To understand the difference between debt and equity and its impact on financial leverage. 6. To understand leverage ratio as a measurement of risk. 7. To understand the major elements of the statements of comprehensive income and the statement of changes in equity.

WHB, Chapter 7 Seminar No. 2

4 4 Feb.

Financial Statements: Statement of Financial Position (Balance sheet) Accounting and Presentation of: 1. Current assets Inventory 2. Noncurrent assets Fixed assets Intangible assets

WHB, Chapters 8 & 9 Seminar No. 3

5 11 Feb.

Financial Statements: Statement of Financial Position (Balance sheet) Accounting and Presentation of: 3. Liabilities Current liabilities Noncurrent liabilities Contingent liabilities 4. Owners equity Share capital and reserves o Common stock (ordinary shares) o Preferred stock (preference shares) Treasury stock Statement of Comprehensive Income Statement of Changes in Equity

WHB, Chapters 10, 11 & 12 Seminar No. 4

6 18 Feb.

Financial Statements The Cash Flow Statement

1. To understand the effect of operating, investing and financing activities of the firm on its cash flow. 2. To highlight the difference between the accrual basis of accounting and cash basis by illustrating with the preparation of cash flow from operations using the indirect method and in accordance with FRS 7. 1. To explain the uses of dollar and percentage changes, trend percentages, component percentages, and ratios. 2. To compute ratios widely used in financial statement analysis and explain the significance of each. 3. To analyze financial statements from the view point of common stockholders, creditors, and others.

WHB, Chapter 13 Seminar No. 5

7 25 Feb.

Interpretation and Analysis of Financial Statements Analytical techniques Financial ratio analysis

WHB, Chapters 7, 8, 10, 13 & 14 Seminar No. 6 Group Assignment - Selfstudy seminar No. 7 is to be completed in assigned groups.

Recess 4 March to 10 March 2013 8 11 Mar. Managerial Accounting Fundamentals Management accounting systems framework Manufacturing costs and costs flow Managerial Accounting Tools Job order costing and cost allocation o Traditional costing system 1. To understand the principles guiding the design of management accounting systems. 2. To understand the components of manufacturing costs and distinguish between product costs and period costs, and direct costs and indirect costs. 3. To learn how manufacturing costs flow through perpetual inventory accounts. 4. To account for the flow of costs when using job order costing. 5. To understand how product costs are allocated using the traditional costing system. WHB, Chapter 16 &17 Online Quiz during seminar time Location: IT labs at S4-B1 Coverage: Lectures 1 to 7 & Seminars 1 to 7

9 18 Mar.

Managerial Accounting Tools Job costing and cost allocation (continued) o Activity based costing system (ABC) Cost-volume-profit analysis

1. To understand how product costs are allocated using the ABC costing system. 2. To understand how ABC overcome the limitations of the traditional costing system and improve decision making. 3. To understand the difference between fixed, variable and semivariable costs. 4. To understand the relationship between cost, volume and profit. 5. To learn how to perform cost-volume-profit analysis. 1. To understand the role of cost information and their relevance in decision making. 2. To learn to use incremental analysis in common business decision making. 3. To learn to evaluate decisions using quantitative and qualitative factors. 1. To understand the purposes and benefits of budgeting. 2. To understand the process and approaches to developing the master budgets. 3. To learn the preparation of flexible budgets and its uses. 4. To understand the behavioral impacts of budgets. 1. To distinguish among cost centres, profit centres and investment centres. 2. To explain the need for responsibility centre information and describe a responsibility accounting system. 3. To prepare an income statement showing contribution margin and responsibility margin. 4. To distinguish between traceable and common fixed costs. 5. To understand the usefulness of the contribution margin and responsibility margin in making short-term and long-term decisions.

WHB, Chapter 17 & 20 Seminar No. 8

10 25 Mar.

Tools for Planning and Control Relevant cost information Incremental cost analysis and decision making

WHB, Chapter 21 Seminar No. 9

11 1 Apr.

Tools for Planning and Control Strategy and budgeting The master budget and behavioural implications Flexible budgeting Cost Analysis and Performance Evaluation Responsibility accounting Rewarding business performance

WHB, Chapter 23 Seminar No. 10

12 8 Apr.

WHB, Chapter 22 & 25 Seminar No. 11

13 15 Apr.

Contemporary Managerial Accounting Tools Value chain Procedures to assess resource use across value chain. o Activity-based management and costing o Target costing o Just-in-time management o Total quality management

1. To define the value chain and its basic components. 2. To distinguish between non-value added and value added activities. 3. To understand the various procedures to assess resource use across value chain. 4. To go through work examples on the topics discussed.

WHB, Chapter 19 Seminar no. 12

Final Examination Monday, 29 April 2013 at 5.00pm