1 BUS-A 422 Advanced Financial Accounting I Fall 2020 – Onlinedue to COVID-19 INSTRUCTOR OFFICE CONTACT OFFICE HOURS P.J. Hoffman HH 5100 [email protected](812)-855-7342 By appointment Course Description & Learning Goals My primary objective in teaching A422 is to help you develop a fundamental understanding of the concepts underlying business combinations, financial reporting for combined entities, foreign-currency and hedging issues, derivatives, segment reporting, and goodwill allocation/impairment. To achieve this goal, we will consider theoretical, procedural, and practical issues in each of the previously mentioned topical areas. As is the case with most accounting courses, we will primarily focus on the preparation of financial statements (i.e., knowing some journal entries might help). However, because financial accounting is a means of communicating information about an entity to present and potential investors and creditors, we also will consider the interpretation of financial statements (i.e., you will be reading some real-world annual reports). In my experience, class attendance and systematic and timely completion of pre-class exercises and other practice problems is the best predictor of performance in any accounting course. This generalization is especially true for A422. As the name implies, Advanced Financial Accountingcovers some pretty heady topics. However, if you keep up with the reading, do each session’s pre-class exercises before viewing the lecture (hence the name “pre-class”), ask stimulating and exciting questions, and have an excellent attitude, you will probably get a pretty good grade and have a decent time while you’re at it. Prerequisites According the Registrar, the prerequisites for A422 are “BUS-A 310 or BUS-A 312 with a grade of C or better.” If you do not satisfy one of these prerequisites, then sometime this semester you will be dropped from the class enrollment by the Undergraduate office. In addition, students should note that the prerequisites are the minimum level of mastery necessary to enter the course. History suggests if you struggled in A310 or A312, then it is highly likely that you will struggle in this course, too. A warning to A310 students: A422 is a real accounting class. In the past, some finance majors chose to avoid the two-course Intermediate Accounting sequence (i.e., A311 and A312) and instead chose to take the less-difficult A310 course. A number of these former A310 students had a difficult time in A422; some suffered to the point of suggesting that future A310 students be warned to avoid this class. I’m not sure I agree with their recommendation; however, I do believe that each former A310 student should seriously consider whether they are willing to invest the resources necessary to (1) actually learn accounting and (2) also master the material in A422. These questions can only be answered by each student via sober self-assessment and honest introspection. I remind you that A422 is an elective (i.e., no student at IU is required to take A422). If you choose to take the class, then I extend a warm welcome to you.