Intermediate Accounting II (August 2022)

Course Name:            INTERMEDIATE ACCOUNTING II

Course Code:             ACC 2206

Level of course:         11 Semester 11

Credit units:               4 CU 

Brief course description

Intermediate accounting 11 introduces the students to company accounts and equips them with higher concepts of financial accounting that are applicable to any form of business organization but with emphasis on companies. It focuses on the preparation of company accounts and concepts that are relevant to company accounts. The course also introduces the students to the preparation of statement of cash flows, branch accounts, business purchase and interpretation of financial statements. It builds on knowledge learned at lower levels and shows how what was learned at those levels can be applied and used in any form of business enterprise.

Objectives

1.      To equip students with new concepts in financial accounting

2.      To show students how to prepare accounts and financial statements of companies.

3.      To direct students to the preparation of cash flow statements, branch accounts, business purchase and interpretation of financial statements

4.      To enhance the students’ ability to apply the knowledge gained to organizations with peculiar nature and in some accounting situations they find.

Learning outcomes

By the end of this course students should be able to:

1.      Know the basic concepts of company accounts.

2.      Have the capacity to prepare the accounting entries and financial statements of companies      

3.      Demonstrate the ability to prepare statement of cash flows and branch accounts for any form of business organization.

4.      Know how to handle transactions pertaining to business purchase and interpret basic accounting ratios. 

Detailed course description (contents)

Company accounts                                                                                                    (8 hours)

·         Introduction

·         Chief characteristics of public limited companies

·         Formation of companies

·         Shares and share capital

Issue of shares by public limited companies                                                           (12 hours)

·         The concept of Issue of shares

·         Over subscription and under subscription of Shares

·         Calls in arrears and calls in advance

·         Forfeiture of shares

·         Re-issue of shares.

Debentures                                                                                                                 (8 hours)

·         Issue of Debentures

·         Debentures issued at discount

·         Writing off discount on debentures & repayment of debentures

·         Conversion of Debentures into shares

Reserves and Financial statements of public limited companies                         (8 hours)

·            Types of Reserves

·            Appropriation of retained earnings

·            Share holders equity

·            Preparation of financial statements of a company

Statement of Cash Flows                                                                                     (8 hours)

·            Classification of cash flows

·            IAS 7 and additional notes required

·            Preparation of the statement of cash flows

Purchase of Business                                                                                                (8 hours)

·               Business takeovers

·               Entries in the books of the vendor

·               Conversion of a partnership into a limited company.

Accounting for Branches                                                                                         (8 hours)

·            Introduction to branch accounts

·            Accounting for depended branches

·            Accounting for independent branches

·            Final accounts of branches

Accounting ratios                                                                                                      (6 hours)

·               Analysis of financial Statements

·               Ratio Analysis

Mode of delivery

Lectures

Illustrations

Discussions

Debates

Case studies

Mode of Assessment

 

Tests                            20%

Assignments                15%

Group presentations    15%

 Final exam                  50%        

 

References

Bazley, J.,  Nikolai, L., and Jones, J. (2010) Intermediate accounting; International edition. 11^th Edition. ISBN

Frank, W and ALAN, S (2012) Business accounting 1 12^th edition. England: Finance Times Prentice Hall.

Frank, W and ALAN, S (2012) Business accounting 2 11^th edition. England: Finance Times Prentice Hall.

International Accounting Standards Board. (2007) International Financial Reporting Standards. International Accounting Standards Board 30 cannon street London

Jerry, J., Weygandt.,  and Donald, K. (1995) Financial accounting. John Wiley and Sons Inc

Saleemi, N. A. (1996) Advanced financial accounting simplified, Volume II, Nairobi Kenya: N.A Saleemi publishers.