Spring Course Number:ECC-ACC670 Teaching Language: English 1
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Class Title:Accounting System Design 2 Instructor:Professor Toshifumi Takada Semester:Spring Course Number:ECC-ACC670 Teaching Language: English 1. Course Objectives and Outline Students who completed Accounting System Design 1 can take this course Accounting System Design 2. There are 3 accounting reporting systems in Japan; disclosure for investors by Financial Instruments and Exchange Act, financial statements for stakeholders by Companies Act and tax return by Corporation Tax Act. These accounting reporting systems use their accounting standards. 2. Learning Goal The objective of this course is to understand both the differences and the philosophy of the accounting standards. 3. Course Content and Schedule Class time: Sunday, 10:30 – 12:00 from April 3, 2016 to July 17, 2016; 15 classes in total. A few classes will be skipped but it will be announced to you beforehand. Class room: Amon Building 4F, No 2.Classroom Table: Accounting System Design 2 Schedule # Date Topic Content Reference 1 3 April Orientation Objective, Outline, PPT Exam, Evaluation 2 10 Accounting reporting Objective of accounting PPT April systems and accounting reporting; Reference standards in Japan Accounting standards 3 17 Role of auditing, Guarantee of quality; PPT April Inspection, investigation Quality of accounting: Reference Accounting fraud 4 24 Recognition of income; Understanding Can vs PPT April Sales revenue; Shall; Other income Revenue vs income Dividend 5 1 May Cost of sales; Value for business PPT Value of stock on hand Cost or value Reference (inventories) evaluation Sales back 6 8 May IFRS; Best practice; PPT GAAP Domestic GAAP Reference Political considerations 7 15 May Sales discount; Cancellation of sales; PPT Revision of sales price; Optional contract = Reference Window dressing promise of sales; 8 22 May Multiple methods of Economic events PPT Evaluation of inventory Convention & theory Report FIFO, LIFO, Average, Weighted average 9 29 Methods of depreciation Value of tangible assets; PPT May Plant, Machinery, Automobile, Others 5 June Skip 10 12 June Sales of own stocks Enron case; PPT Livedoor case; Reference Use of SPE (SPC) 11 19 June Compensation to Employee, management PPT CEO and directors CEO, director, auditor Report Committee members 12 26 June Entertainment expense Use money for business PPT Advertisement Direct relation to sales Bonus 13 3 July Research & development Unsuccessful R&D PPT Successful R&D = Assets or expense? 14 10 July Retirement expense Bonus PPT Pension (type 1 and type 2) 15 17 July Panel discussion Distinguished panelists will be invited 4. Assessment Criteria (1) 20%: Attendance and number of questions (2) 30%: 3 times of reports (3) 50%: Examination Examination will be held on 24 July 10:30-11:30. (Amon Building4F, No.2.classroom) 5. Textbook and Reading List 1: John Hicks, Value and Capital, 1939 2: Adam Smith, Wealth of Nations, 1776 3 John Stuart Mill, On Liberty, 1859 You can download these 3 reference books from Kindle. 6. Preparation and Review Please read the ppt seriously 7. Note(Requirements, E-mail, Office Hour) E-mail: [email protected] Office Hour: one hour after the class (12:00-13:00) Class Title:Financial Accounting 2 Instructor:Hiroko Inokuma Semester: Spring Course Number:EAC-ACC671 Teaching Language: English 1. Course Objectives and Outline Financial Accounting is a critical element of economic infrastructure, which is to provide financial information about an entity for its stakeholders and thus fulfill its accountability obligation. In Japan, the financial accounting consists of two systems; the financial reporting system under the Financial Instruments and Exchange Act and the statutory reporting system under the Companies Act. Financial reports in these systems must be prepared in accordance with Generally Accepted Accounting Principles (GAAP) of Japan. Moreover, those systems are interrelated with the tax accounting system. In this course, the students will study the basic and advanced concepts, frameworks and rules of Japan GAAP and its relationship with the society and the economy. Though the concepts and rules of the IFRS are regarded as a part of Japan GAAP, the students are also required to study other elements of Japan GAAP, including the concepts and rules of Japanese tax accounting systems. In addition, we’ll discuss about the fundamental and advanced topics on international accounting and auditing theories in this lecture course. 2. Learning Goal In this lecture course, students are expected to develop their capabilities to understand intermediate level of financial accounting issues. In addition, we’d like to learn about current auditing and international accounting issues. 3. Course Content and Schedule # Date Topic Content Reference 1 4.03 Class Class Objective, Outline, Method, PPT Introduction Evaluation And Class Expectation. 2 4.10 Equity, Dilutive Securities and Earnings per Share PPT convertible Kieso,Ch.16 securities 3 4.17 Investment(1) Accounting framework for financial assets, PPT accounting for debt investments at Kieso,Ch.17 amortized cost/ fair value, Accounting for equity investments at fair value, equity method and fair value method Impairment of debt investment 4 4.24 Investment(2) Defining derivatives, basic principles in PPT Accounting for accounting for derivatives, Derivatives Kieso,Ch.17 Derivative used for hedging-fair value hedge and cash Appendix17A Instruments flow hedge 5 5.01 Revenue Overview of revenue recognition, New PPT Recognition(1) revenue recognition standard, five-step Kieso,Ch.18 process, other revenue recognition issues 6 5.08 Revenue Long-term construction contracts, PPT Recognition(2) Revenue recognition over time, Kieso,Ch.18 percentage-of –completion method Appendex18A, Cost-recovery method 18B Revenue recognition of franchises 7 5.15 Accounting for Fundamentals of accounting for income PPT Income Taxes taxes, future taxable amounts and deferred Kieso, Ch.19 taxes, deferred tax asset/liability, temporary differences, permanent differences, tax rate consideration, F/S presentation 8 5.22 Accounting for Nature of pension plans, defined PPT Pensions and contribution plan, defined benefit plan, Kieso,Ch.20 Postretirement the role of actuaries in pension Benefits accounting, accounting for pensions Using a pension worksheet Reporting pension plans in F/S 9 5.29 Accounting for The leasing environment, the nature, PPT Leases economic substance, and advantages of lease Kieso,Ch.21 transactions Accounting by the lessee-capitalization criteria, finance lease method, operating method, Accounting by the lessor- economics of leasing, direct-financing method, operating method, residual values 10 6.05 Accounting Accounting changes: change in accounting PPT Changes and Error policy and change in accounting estimate Kieso,Ch.22 Analysis Direct and indirect effects of changes Accounting errors, error analysis 11 6.12 Statement of Cash Usefulness of the statement of cash flows, PPT Flows Classification, cash and cash equivalents, Kieso,Ch.23 Format of statement of cash flows, indirect method, direct method, special problems in statement preparation 12 6.19 Presentation and Full disclosure principle, notes to the PTT Disclosure I F/S, common notes, Kieso,Ch.24 Fiancial Disclosure issues-Disclosure of special Reporting transactions or event, subsequent events, segmented information reported, interim reports Auditor’s and management’s reports Current reporting issues 13 6.26 International Globalization and Accounting and Auditing PTT Accounting system(1) fundamental issues in Reference issues international accounting materials prepared later 14 7.03 Current topics of Globalization and Accounting and Auditing PPT international system(2)- non-financial information, Reference accounting integrated reporting, business reporting materials prepared later 15 7.10 Wrap-up Class reflection: What learned this PPT semester? 4. Assessment Criteria (1) 20%: Attendance and class participation (2) 10%: Frequency and quality of remarks in class (3) 40%: Short essays and quizzes(including homework) (4) 30%: Final examination 5. Textbook and Reading List Textbook Intermediate Accounting: IFRS Edition, 2nd Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, July 2014, Wiley. 20 copies are available at Hirai campus. Reading List/References Japanese Accounting and Auditing System American Institute of Certified Public Accountants (1988) The Accounting Profession in Japan, Professional Accounting in Foreign Countries Series, 81 pages. The Japanese Institute of Certified Public Accountants, Corporate Disclosure in Japan – Overview (Fourth Edition), July 1998. The Japanese Institute of Certified Public Accountants, Corporate Disclosure in Japan – Accounting (Third Edition), July 1999. The Japanese Institute of Certified Public Accountants, Corporate Disclosure in Japan – Reporting (Fourth Edition), December 2002. The Japanese Institute of Certified Public Accountants, Corporate Disclosure in Japan – Auditing (Third Edition), April 2005. Understand Japanese accounting theory Kyojiro Someya, Japanese Accounting: A Historical Approach, 1996/6/1 Kunio Ito, Makoto Nakano, International Perspectives on Accounting and Corporate Behavior (Advances in Japanese Business and Economics) 2014/3/21 Sunder, S. and H. Yamaji (ed.)(1999) The Japanese Style of Business Accounting, Quorum Books, 268 pages 1999/12/30. Teruyuki Kawasaki, Takashi Sakamoto General Accounting Standards for small-and Medium-Sized Entities in Japan, Wiley, 2014 Three GAAP comparison : JGAAP,