A591 Financial Accounting Theory : simplebooklet.com

SectionNumberMeeting Day&TimeMeetingLocation12663T/TH 9:20-10:50amCG 20699982T/TH 11:15 - 12:45pmCG 2069Class readings and notes areposted on Canvas. We will usea canvas app calledHypothes.is. This applicationallows users to annotateanything online with classmates. Since we are readingconceptual, analytical, andarchival accounting literature,this app will allow you to useeach other as a resource as youread. This app will simulatereading together as a group.Instructor: Angela AndrewsEmail: abandrew@iu.eduPhone: (812) 855-1894Office: HH 5110 Course ResourcesInstructor InformationOffice HoursThursday 1 -2:30 pm and byappointment Section InformationA 5 9 1 |  3A 5 9 1 |  3

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The objective of this course is to providestudents with an awareness of the currentfinancial reporting environment and institutions,and the conceptual basis for each. Havingbeen exposed to the methodology andpractice of accounting in other courses,students in this course will have the opportunityto critically examine the broader implicationsof financial accounting for our economy's fairand efficient working.Course DescriptionFor example, most accounting courses coverthe "what" and "how" of accounting, usingjournal entries or case studies to gainfamiliarity with the accounts that the companyuses to learn how financial statements arecreated and to calculate the proper debit andcredit amounts. In contrast, this course seeksto answer the most fundamental question inaccounting specifically the "why".Our pursuit of an answer is not narrowlyfocused on examining specific methodsand practices but encompasses thequestion of why financial accountingexists at all. While various theories ofinvestor behavior will be discussed, thiscourse will focus on the theory of rationalinvestors as important to helpingaccountants prepare useful financialstatement information. As such, theConceptual Framework will be animportant aspect of the course, as its past,current and future development are tiedto developments in accounting theory.A 5 9 1 |  4A 5 9 1 |  4

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LEARNING OUTCOMESThe course goals, learning outcomesand group project collectivelysupport all of the 3/2 MBA andMSADA Programs Learning Goals. A complete listing of the learninggoals for the 3/2 MBA and MSADAPrograms can be found in theAppendix to this document.Upon successful completion of thiscourse, students should be able todescribe the role of financialaccounting information in the economy;including the need for accountinginformation. Students shouldunderstand the efficient marketshypothesis, related empirical researchand the economic and political issuesrelated to standard setting (3/2 MBALearning Goals 1 and 3 and MSADALearning Goals 1 and 2).Students should be able tocommunicate their understanding offinancial accounting theory in classdiscussions on theoretical topics(3/2 MBA Learning Goals 1, 4 and 6,and MSADA Learning Goals 1 and2).A 5 9 1 |   5A 5 9 1 | 5

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AcademicMisconductThe vast majority of IU and Kelley students act honestly and with integrity in their personal lives and inclass. Unfortunately, each year a small group of students deviate from those values and (eitherintentionally or unintentionally) engage in academic misconduct. Please do not find yourself amongthat group.To avoid academic misconduct, You are responsible for knowing and complying with theresponsibilities and duties set forth in your graduate program's Code of Conduct, the IndianaUniversity Code of Student Rights, Responsibilities, and Conduct, and any other Kelley or IU rules andregulation about academic misconduct. In the event you commit an act of academic misconduct, anappropriate sanction will be imposed, and the misconduct will be reported to Indiana University.Sanctions could include a grade of F for the class.Note that academic misconduct includes plagiarism, even if unintentional. Hence, be sure tocarefully review the definition of plagiarism found in the IU Code. Additionally, sharing (includinguploading) past or current quizzes, tests, or homework assignments from this class with each other(unless specifically authorized by assignment, test, or quiz instructions) or via unauthorized sources,including third-party websites such as Chegg, is against course rules and constitutes academicmisconduct, even when the intent is not to enhance one’s personal grade. Likewise, accessing(including downloading) past or current quizzes, tests, or homework assignments via unauthorizedsources, including third-party websites such as Chegg, is also against course rules and constitutesacademic misconduct. The policy on Generative AI that I am adopting can be found here.If I determine that you have committed academic misconduct, I will notify you by meeting with youand explaining the basis for my determination. I may also consult with the program Conduct ReviewCommittee. Then, I will report the misconduct to the University, as I am required to do. If you are thesubject of a report of misconduct that you believe is inaccurate or if you believe that an imposedsanction is inappropriate, you have a right to appeal the finding of misconduct and/or the sanction.Appeals are initiated by emailing ksappeal@indiana.edu.A 5 9 1 |  7A 5 9 1 |  7

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CPA Exam NoticeIndiana University students who wish to become licensed CPAs will need to take the UniformCPA Examination after graduation. Although the CPA exam is a uniform nationally administeredexam, the educational requirements needed to sit for the exam vary from state to state. Moststates, including Indiana, require 120 hours of college credit to sit for the exam. In addition, eachstate requires a certain number of accounting and other business credits. Indiana University’sundergraduate accounting degree requirements satisfy the accounting and other business creditrequirements mandated by the Indiana Professional Licensing Agency. Since these requirementsare subject to change, students are encouraged to research these requirements along with therequirements mandated by other states. Several states require additional accounting hours andsome states require specific courses that are not included in IUB’s required curriculum. It is eachstudent’s responsibility to research these exam requirements. Further information is available atwww.nasba.org, www.cpa-exam.org, and by telephone at 1- 800-cpa-exam.Unauthorized Use, Sale or Distribution of Course Material andContentI hold the exclusive right to distribute, modify, post, and reproduce any course materials I havecreated, including written materials, study guides, lectures, assignments, exercises, and exams.Commercial tutoring services and/or online platforms may offer students something of value(money, access to materials for other courses, etc.) for sharing materials from this class. Doing sois a violation of my intellectual property rights and violates related University policies. In addition,some online course content, including recorded lectures and/or recordings of class sessions maybe made available to you to view and download. While you are permitted to take notes on suchcontent for your personal use, you are not permitted to distribute or re-post such content eitherin its original or in altered form without my express written permission.Finally, you may not record, capture, or photograph class sessions (whether in person or online)without my express written permission.Violation of course rules involving unauthorized or improper use, sale, or distribution of coursematerial and content as outlined above is an act of academic misconduct under the IU Code ofStudent Rights, Responsibilities, and Conduct.SYLLABUSPAGE 23Adobe Stock imageCourse PoliciesA 5 9 1 |  8A 5 9 1 |  8

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Adobe Stock imageAccommodations for Religious ObservancesStudents missing class or graded activities for a religious observance can find the officiallyapproved accommodation form by going to the Vice Provost for Faculty and Academic Affairs’webpage for religious accommodations. The form must be submitted at least 2 weeks prior toyour anticipated absence/need for accommodation.Accessible Educational Services Indiana University is dedicated to ensuring that students with disabilities (e.g., chronic health,neurodevelopmental, neurological, sensory, psychological & emotional, including mental health,etc.) have the support services and reasonable accommodations needed to provide equalaccess to academic programs. To request an accommodation, you must establish your eligibilityby working with Accessible Educational Services (AES), which can be reached atiubdss@indiana.edu or 812-855-7578. Additional information can be found at IU’s Accessibilitywebsite. The process of establishing accommodation is a responsibility shared by you and theAES Office. Only AES-approved accommodations will be utilized in the classroom. After youhave met with AES, it is your responsibility to share your accommodations memo from AES withme. Note that AES services are confidential, may take time to put into place, and are notretroactive. Captions and alternate media for print materials may take three or more weeks toproduce. Therefore, please contact AES as soon as possible if you believe you will requireaccommodation. I look forward to ensuring you have the support you need to succeed in thisclass once you meet with AES and notify me of the outcome of that consultation. Bias-Based Incident ReportingBias incidents (events or comments that target an individual or group based on age, color,religion, disability, race, ethnicity, national origin, sex, gender, gender identity, sexual orientation,marital status, or veteran status) are not appropriate in our classroom or on campus.What should you do if you witness or experience a bias incident? See it? Hear it? Report it bysending an email (biasincident@indiana.edu or incident@indiana.edu ), submitting a report online(https://biasincident.indiana.edu), using the IU mobile app (available at m.iu.edu ), or calling theDean of Students Office (812-855-8187). Reports can be made anonymously.SYLLABUSPAGE 23A 5 9 1 |  9

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Sexual Misconduct and Title IX As your instructor, one of my responsibilities is to create a positive learning environment for allstudents. IU policy prohibits sexual misconduct in any form, including sexual harassment, sexualassault, stalking, sexual exploitation, and domestic violence. If you have experienced sexualmisconduct, or know someone who has, the University can help. If you are seeking help andwould like to speak to someone confidentially, you can make an appointment with the IU SexualAssault Crisis Services at 812-855-5711 or contact a Confidential Victim Advocate at 812-856-2469 or cva@indiana.edu . It is also important that you know that University policy requires me toshare certain information brought to my attention about potential sexual misconduct, with thecampus Deputy Sexual Misconduct & Title IX Coordinator or the University Sexual Misconduct &Title IX Coordinator. In that event, those individuals will work to ensure that appropriatemeasures are taken, and resources are made available. Protecting student privacy is of utmostconcern, and information will only be shared with those who need to know to ensure theUniversity can respond and assist. I encourage you to visit http://stopsexualviolence.iu.edu tolearn more.Mental Health and Stress Management at Kelly and IU As a student, you may experience a range of issues that can cause barriers to learning, such asdifficulty with mental health, including increased anxiety (feeling irritable, restless, oroverwhelmed), difficulty concentrating or managing your time. Or you may find that you feel sador “empty,” less interested in activities you once enjoyed; inadequate compared to others; oreven hopeless. These mental health concerns could lead to diminished academic performance,drug/alcohol misuse, strained relationships, and/or a reduced ability to participate in dailyactivities. The moment you experience any of these, we are here to support you. The KelleySchool of Business and Indiana University encourage you to reach out. Here are some resourcesavailable to help:If your mental health or stress is affecting this class in particular, reach out to me via e-mail oroffice hours. I can work with you and direct you to support resources.Indiana University Counseling and Psychological Services (CAPS) is available to assist you. Youcan learn more about the broad range of confidential mental health services available oncampus via the CAPS website (http://healthcenter.indiana.edu/counseling/).A Care Referral is another easy way to request help with an issue or concern, especially if you donot know which office or department to contact. You can submit a Care Referral for yourself, oranother related to academic/administrative, personal, health/wellness, behavioral, or biasissues. File a report at https://go.iu.edu/carereport . Adobe Stock imageA 5 9 1 |  1 0

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A P P E N D I X A : 3 / 2 M B A I N A C C O U N T I N GP R O G R A M G O A L SIndiana University Kelley School of Business - BloomingtonProgram Learning Competencies and Student Learning Outcomes 1. Principles of Accounting and Auditing: Ability to describe and apply accounting principles and rules to avariety of business situations.SLO 1: Prepare or revise selected accounts and disclosures related to the four major accounting statementsgiven transactions and events for a business entity.SLO 2: Analyze events and business transactions for an entity and make appropriate journal entries.SLO 3: Apply generally accepted auditing standards to evaluate a firm's financial statements.SLO 4: Describe theories about the role of information, including accounting, in a market-based economy.2. Internal Structure and Operations: Ability to describe and analyze the internal structures and operations ofa wide range (in size and scope) of businesses.SLO 1: Identify effective tools and frameworks for analyzing internal business processes.SLO 2: Systematically evaluate business processes.SLO 3: Recommend ways to improve business processes and internal competitive forces.3. External Environments: Ability to describe and analyze the relationship between businesses and relevantexternal environments.SLO 1: Identify and analyze major cultural, economic, social, and legal environments faced by businessorganizations. SLO 2: Construct and communicate a framework for evaluating a business decision that isaffected by regulatory, legal, or political factors.SLO 3: Identify and evaluate the competitive forces encountered by business organizations and recommendappropriate strategies.4. Integration of Tools and Techniques of Business: Ability to identify and apply the tools and techniques ofbusiness analysis, and use specific technical knowledge to analyze business problems.SLO 4.1: Understand and apply technologies and methodologies used in data‐centric business environments.SLO 4.2: Design and construct a data analysis model to solve problems or make decisions in a business caseor scenario.SLO 3: Develop a business proposal integrating decisions across multiple functional business areas.SLO 4: Make and defend business decisions based on analytical frameworks.5. Values / Legal and Ethical Considerations: Ability to identify, interpret and apply legal and ethicalprinciples, remaining true to one’s values while using critical thinking to craft holistic solutions.SLO 1: Build effective personal strategies for making the difficult choices demanded by the defining momentsof one’s professional and personal lives.SLO 2: Identify, analyze, and reconcile the legal and ethical issues and interests at play when conflict arises.SLO 3: Resolve a legal and/ or ethical dilemma and defend the resolution using analytical legal and ethicalframeworks.6. Professional Skills: Ability to demonstrate effective management skills and professional attitudes.SLO 1: Work successfully within a team of peers to accomplish a project.SLO 2: Evaluate peer performance by providing oral and written performance feedback.SLO 3: Communicate business ideas clearly in oral and written formats.A 5 9 1 |  1 1

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A P P E N D I X B : M S A D A P R O G R A MG O A L SIndiana University Kelley School of Business - BloomingtonMaster of Science in Accounting with Data Analytics Program Learning Competencies andStudent Learning Outcomes 1. Principles of Accounting: Ability to describe and apply accounting principles and rules to a variety ofbusiness situations.SLO 1: Prepare or revise selected accounts and disclosures related to the four major accountingstatements given transactions and events for a business entity.SLO 2: Analyze events and business transactions for an entity and make appropriate journal entries.SLO 3: Describe how tax planning can affect companies' effective tax rates and the structuring ofbusiness transactions.2. Integration of Tools and Techniques of Business: Ability to identify and apply the tools and techniquesof business analysis, and use specific technical knowledge to analyze business problems.SLO 1: Understand and apply technologies and methodologies used in data‐centric businessenvironments.SLO 2: Design and construct a data analysis model to solve problems or make decisions in a businesscase or scenario.SLO 3: Develop a business proposal integrating decisions across multiple functional business areas.SLO 4: Make and defend business decisions based on analytical frameworks.3. Values / Legal and Ethical Considerations: Ability to identify, interpret and apply legal and ethicalprinciples, remaining true to one’s values while using critical thinking to craft holistic solutions.SLO 1: Build effective personal strategies for making the difficult choices demanded by the definingmoments of one’s professional and personal lives.SLO 2: Identify, analyze, and reconcile the legal and ethical issues and interests at play when conflictarises.SLO 3: Resolve a legal and/or ethical dilemma and defend the resolution using analytical legal andethical frameworks.4. Professional Skills: Ability to demonstrate effective management skills and professional attitudes.SLO 1: Work successfully within a team of peers to accomplish a project.SLO 2: Evaluate peer performance by providing oral and written performance feedback.SLO 3: Communicate business ideas clearly in oral and written formats.A 5 9 1 |  1 2

A591 Financial Accounting Theory

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