COURSE DESCRIPTION
Accounting II is an advanced course designed to build upon the foundational concepts introduced in the introductory accounting course. This course delves deeper into complex accounting principles, focusing on business combinations, consolidations, financial instruments, revenue recognition, and impairment of financial assets.
Structured to provide students with a comprehensive understanding of advanced accounting practices, the course equips them with the skills necessary to analyze and prepare consolidated financial statements, account for financial instruments, and navigate the complexities of revenue recognition under IFRS and US GAAP standards.
Key Points
- Business Combinations and Goodwill: This section covers the accounting for business combinations, focusing on the acquisition method, recognition of goodwill, and measurement of non-controlling interests. Students will learn how to accurately account for mergers, acquisitions, and the resulting goodwill, ensuring that financial statements reflect the true financial position of the combined entities.
- Consolidation of Financial Statements: Students will explore the principles of consolidating financial statements for parent companies and their subsidiaries. The course emphasizes the elimination of intercompany transactions and balances, the recognition of non-controlling interests, and the preparation of consolidated balance sheets and income statements that provide a holistic view of the group’s financial performance.
- Accounting for Financial Instruments: This key point focuses on the classification, measurement, and disclosure of financial instruments, including derivatives and hedging activities. Students will learn to apply IFRS 9 and ASC 825 standards in recognizing, measuring, and disclosing financial instruments in financial statements, with a particular focus on the use of fair value and amortized cost.
- Revenue Recognition: The course covers the complex topic of revenue recognition under IFRS 15 and ASC 606, focusing on the five-step model for recognizing revenue from contracts with customers. Students will gain an in-depth understanding of how to identify performance obligations, allocate transaction prices, and recognize revenue either at a point in time or over time.
- Impairment of Financial Assets: This section deals with the impairment of financial assets using the expected credit loss (ECL) model. Students will learn how to assess and recognize impairment for financial assets measured at amortized cost or FVOCI, ensuring that the financial statements accurately reflect the credit risk and potential losses associated with these assets.
- Advanced Disclosure Requirements: The course emphasizes the importance of transparent and comprehensive disclosures in financial statements. Students will explore the disclosure requirements for business combinations, financial instruments, and revenue recognition, ensuring that all relevant information is presented clearly and accurately to stakeholders.
Core Learning Outcomes
- Apply Business Combination Accounting: Demonstrate proficiency in applying the acquisition method and accounting for goodwill in business combinations.
- Prepare Consolidated Financial Statements: Construct accurate consolidated financial statements, eliminating intercompany transactions and recognizing non-controlling interests.
- Classify and Measure Financial Instruments: Apply IFRS 9 and ASC 825 standards to classify, measure, and disclose financial instruments in financial statements.
- Implement Revenue Recognition Principles: Utilize IFRS 15 and ASC 606 to recognize revenue accurately, identifying performance obligations and allocating transaction prices.
- Evaluate Impairment of Financial Assets: Assess impairment for financial assets under the ECL model, ensuring proper reflection of credit risks and potential losses.
- Ensure Compliance with Disclosure Requirements: Apply advanced disclosure standards, presenting clear and comprehensive information on financial instruments, revenue recognition, and business combinations.
REFERENCE MATERIALS
for
Full-CLC Students
Based on your HESEAP application, you have been awarded full CLC for this course, classifying it as a test-out course, meaning no traditional instruction will be provided. Your CLC award signifies that you possess knowledge, whether gained through prior education or experience, equivalent to or surpassing what would typically be learned in a traditional college setting. Consequently, classroom attendance is not required; however, you are required to successfully pass a final exam for the course.
USILACS remains committed to fostering your academic success. Should you find a refresher necessary or wish to deepen your understanding of the subject, it is recommended that you explore a variety of free online educational resources on the suggested topics below.
Thousands of FREE Online College Courses:
Search Topics: Publications/Videos/Papers
The majority of the exam questions for this course are based upon information contained in the below search topics.
- Financial Accounting Standards Board (FASB)
- Source: https://www.fasb.org
- Description: The official site of the Financial Accounting Standards Board (FASB) provides access to GAAP and updates on accounting standards in the US It serves as an essential resource for understanding US accounting principles, revenue recognition, and financial statement reporting.
- International Financial Reporting Standards (IFRS) Foundation
- Source: https://www.ifrs.org
- Description: The IFRS Foundation’s website offers detailed information on global IFRS standards. This site is valuable for understanding the principles and differences between IFRS and GAAP, especially in global financial reporting.
- AccountingTools: Advanced Financial Accounting
- Source: https://www.accountingtools.com
- Description: AccountingTools provides comprehensive guides on advanced accounting topics, including revenue recognition, consolidation, derivatives, and hedge accounting. This site helps expand practical knowledge of accounting treatments and financial reporting.
- PwC IFRS and GAAP Comparison
- Source: https://www.pwc.com/ifrs
- Description: PwC’s comparison of IFRS and GAAP standards offers valuable insight into the differences between these two accounting frameworks. This resource is critical for professionals dealing with multinational corporations and those interested in international accounting practices.
Please note that USILACS is not the source of the above links; therefore, we do not have control over their accessibility. Some links may no longer be active, and in such cases, we encourage you to copy and paste the title into Google or YouTube to find an alternative source. Should you encounter an inactive link, feel free to contact our academic team at academics@usilacs.org for assistance or to notify them so that the link can be updated.
Occasionally, the links may prompt you to download reference material in PDF format. While we have made every effort to ensure the safety of the sources, we encourage you to take precautions to verify the security of any downloads on your device.
Although comprehensive study materials have been provided, you can search for the topics and titles on Google and YouTube if additional resources are needed.
Tips for Success
Remember that the exams are open-book, meaning you can keep reference materials open in other tabs for easy access during the exam. Some reference materials are extensive, with hundreds of pages. To quickly find answers, follow these steps:
- Choose a keyword or phrase from the exam question.
- Open the reference material.
- Press ‘Ctrl’ + ‘F’ on your keyboard to open a search bar.
- Enter your keyword or phrase and click search. This will display all instances of that word or phrase within the document, allowing for more efficient navigation.