Contemporary Issues in Accounting ACNE 4222

Course description:

Significant and rapid changes in accounting rules are impacting the financial reporting and analysis that management uses to make business decisions. This course will explore contemporary accounting topics that accounting professionals will face in the workplace and how the accompanying requirements are changing the way that companies and their business partners use, report, analyze, and interpret financial data. Subjects covered will vary as conditions change but may include International Financial Reporting Standards (IFRS) vs. Financial Accounting Standards(FAS) as alternative Fair-Value-Based measurement systems, with specific emphasis on Pensions and Post-Retirement Benefits, Leases valuation and reporting, types of accounting changes (principle and estimate) and the relevant positivist-based opportunistic motives for accounting changes such as earnings management, and dilutive EPS measurement in the presence of Stock Compensation Based Schemes in firms of complex capital structure. 

Course Aims:

  • Understand accounting and reporting differences between alternative Fair-Value-Based measurement systems of FAS and IFRS.
  • Raise an awareness of and critically analyze contemporary issues in leases valuations as liabilities and assets from lessees’ and lessors’ point views under IAS 13 vs. FAS 13.
  • Raise an awareness of and critically analyze contemporary issues in Pension Accounting as liabilities and assets from the employers’ point view under FAS 158 and IAS 19. 
  • Raise an awareness of and critically analyze contemporary issues in measuring dilutive EPS in the presence of Stock Compensation Based Schemes under IFRS2 vs. FAS 123R.
  • Evaluate ethical issues that arise in companies' choice of accounting treatments and policy adoption based on underlying positivist-opportunistic behavior to manage earnings towards favorable outcomes. 

Course outcomes:

Upon completion of this course, the student should be able to:
  • Understand some of the practical differences between IFRS and FAS as alternative sets of accrual based and fair value oriented accounting GAAPs.  
  • Prepare specific elements of financial statements such as Pensions’ assets and liabilities as well as leases’ assets and liabilities based on true and fair value presentation according to IFRS and FAS.
  • Calculate and present basic and dilutive EPS as resulting from varying types of fair value stock compensation plans according to IFRS and FAS.
  • Understand the potential earnings management motives underlying specific accounting choices and policy adoption by firm managers.