Intermediate Financial Accounting I

(ACCT2012)
Dr. Nafis RAHMAN
Assistant Professor of Accounting
School of Business
The University of Hong Kong
Spring Semester, 2019

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 Introduction
• Dr. Nafis Rahman
•

• Academic background
• PhD in accounting: The University of British Columbia, Canada
• MS in Financial Management: Pace University, USA
• BA in Accounting: Ohio Wesleyan University, USA

• Working experience
• Assistant professor, The University of Hong Kong 2016- present

• Research Interests: Capital Market, Accounting Restatement, Investor Home Bias,

Analyst Report, Corporate Social Responsibility.

• Contact information
• Office: Room 1318, K.K.Leung Building
• Email: nnrahman@hku.hk; Phone: 3917-4222

• Office hours: Tue (10:30am–12:00pm), (1:30pm –3:00pm)

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 Tutor
■Mr. Sam Sit
■Contact information
Office: Room 609, K.K.Leung Building
Email: samsit@hku.hk
Phone: 3917-4670
■ Office hours: By appointment

TEXTBOOK AND READING MATERIALS

TEXTBOOK:
Intermediate Accounting (2nd Global Edition).
Authors: J. Spiceland; J. Sepe; M. Nelson; P. Tan; B. Low; and K. Low.
Publisher: McGraw-Hill
ISBN: 9789813153417

LECTURE NOTES can be downloaded from the MOODLE. Please

print them out for each lecture.
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Text-
book

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Course description
 Background requirement: Course of Introduction to Financial Accounting (ACCT1101)

 The first course of a series of two intermediate financial

accounting subjects.
 It builds on the foundation laid in the Introductory Financial
Accounting course to better equip students with the required
techniques in preparing and interpreting financial statements.
 It reviews the fundamental financial accounting concepts and
focuses on the detailed recording and reporting of important
items. It also examines the conceptual framework of accounting
and financial statement presentation.
 This course is a required course for Advanced Financial Accounting
courses.

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Course objective

1. Provide students with the fundamental concepts

and techniques in financial reporting.
2. Enable students to integrate and apply their
knowledge in decision-making scenarios.
3. Develop students’ understanding of the ethical
issues in accounting regimes.
4. Inculcate students’ professionalism.

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 Class assessment
Attendance, assignments and in-class participation 10%
Mid-term test 30%
Group project (case report and in-class presentation) 15%
Final examination 45%

Mid-term Exam Information:

 Date: March 11, 2019 (Monday)
 Time: 7:00pm – 9:00pm
 Exam Rooms: LE2 for SubClass G (the morning class)
MB201 for SubClass H (the afternoon class)
MB217 for SubClass I (the evening class)
 No make-up test
 It is possible (but unlikely) that the Mid-term exam time for this class will
clash with your other midterm exams. Please reserve the priority for our
course if there is any time conflict with other midterms/activities. You
should also notify Sam about such time conflicts. 7
Attendance, assignments & participation (10%)

■ Homework assignments (5%)

 Weekly homework will be disclosed on Moodle;
 Tutorial discussion questions will also be disclosed on Moodle;
 Graded by Sam.

■ Attendance & Participation in Tutorials (5%)

 Attendance to tutorial sessions;
 Encouraged in-class participation.
-- Ask or answer questions in the lectures;
-- Participate in discussions during in-class presentations;
-- Attend the regular lectures on Tuesdays and Friday;

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Group project (15%)
 Guidance
 Time line for presentation
 5 to 7 persons/team;
 One team leader (contact person);
Feb 1: finalize your
 In the same subclass;
team;
 In-class presentation (no more than 10 minutes);  Presentation in the last
 Written repot to be submitted in addition to week of class:
presentation in class;
Apr. 23: Groups A1, A2,
 Download the group sign-up form on MOODLE;
B1, and B2
 Submit one sign-up form per team.
 There are 5 cases. Each case will be covered by Apr. 26: Groups C1, C2,
two groups. For example, groups A1 and A2 will D1, D2, E1, and E2
be responsible for Case A. Your performance will
be compared to your peer group.
 Suggestion: make sure your friends are
successfully enrolled in this course.
 Cases will be available on MOODLE.

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Group sign-up form
Subclass
No Student ID Full name Email
(the same subclass)
1
2
3
4
5
6
7

Our group’s nickname is: _________________________

Team Leader Name and ID: _______________________________

(Note: Team leader is the contact person on behalf of the whole team)

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The Case Report
o Your group needs to write a short report (maximum 700
words) explaining your recommendations for the case
o You have to find real life examples in support of your case
recommendations (see the Case Guideline file for details).
o You should submit the printout of the report on the
presentation day. You should also send a softcopy the day
before the presentation day to Dr. Rahman and Sam.
o The written report will contribute to 5% of your total grade
o Both your business analytical skills and quality of writing
will be assessed.

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The Case Presentation
o Your group needs to prepare ahead of time to explain the
issues and present your case recommendations in a
systematic way.
o You have to find real life examples in support of your case
recommendations (see the Case Guideline file for details).
o Bring print-out (black and white is okay) of your presentation
power-point slides
o Microsoft PowerPoint or similar software should be used for
presentation.
o DO NOT use video or audio from prepared files.
o The group presentation will contribute to 10% of your grade

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Class materials
 Detailed coverage (i.e., the page numbers of the
textbook) is stated in the course outline. Minor
adjustment is possible (if necessary) during this
semester, depending on the progress.
 Lecture notes will be available on Moodle.
 The homework assignments will be posted on Moodle.
 Tutorial discussion questions will be posted on Moodle.

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Course coverage: Part I (before mid-term exam)
Chapter Topic Coverage
(page no.)
Ch. 1 Conceptual framework 19 – 31 (Part B)

Time value of money (covered in tutorial sessions) 27

Ch. 2 Financial disclosures 62 – 72 (Part B)
Ch. 3 Comprehensive income 115 – 118

Profits from continuing operations and earnings quality 118 – 128

Discontinued operations 128 – 133 133 – 136

Accounting changes
Ch. 4 Content and value of the Statement of Cash Flows (SCF) 178 – 194 (Part A)

Prepare the SCF (Direct method for operating activities) 195 – 218 (Part B)

Prepare the SCF (Indirect method for operating activities) 218 – 222 (Part C)

Ch. 5 IFRS 15 & five-step framework 279 – 300

(Partial – will not Recognize revenue at a single point in time 300 – 308
cover the entire
Recognize revenue over a period of time (exclude ‘some 309 – 330 (exclude 322
chapter before
complexities’) – 327)
Midterm)
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Course coverage: Part II (after mid-term exam)
Chapter Topic Coverage
(page no.)
Ch. 5 IFRS 15 & five-step framework 279 – 300

(Partial--the Recognize revenue at a single point in time 300 – 308

remaining portion
Recognize revenue over a period of time (exclude ‘some 309 – 330 (exclude
after mid-term
complexities’) 322 – 327)
coverage)

Ch. 6 Costs to be capitalized 372 – 379 (exclude

(exclude asset retirement obligations) 374 – 376)

Self-constructed assets (capitalization of borrowing cost) 391 – 397

Ch.7 Amortization of intangible assets 441 – 443

Subsequent changes in fair value 450 – 455

Impairment of value 463 – 474

Ch. 8 IFRS 9 & debt investments 509 – 535

Equity method of accounting for investments 551 – 560

Ch. 9 Contingencies 611 – 630

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 Tutorials
■ Instruction for the registration of tutorial sessions.
 Register it through Moodle;
 Instruction file is posted on Moodle;
 Mr. Sam Sit will be available for any question;
 Limited number of seats for each tutorial slot;
■ Important information about 2019 tutorials.

 Tutorial session is different from Groups for final project; You

may or may not have discussion groups in tutorials;
 Registration period: Jan. 15 (8pm) to Jan.17 (5pm) ;
 First come, first served.
 Tuesdays (4 sessions) and Wednesdays (3 sessions).
 Max. 27 students per tutorial; A total of 7 sessions.
 The first tutorial session will be held on Jan. 22nd /23rd
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Tutorial sessions

Class 1: 10:30-11:20 (Tue)

Class 2: 11:30-12:20 (Tue)
Class 3: 13:30-14:20 (Tue)
Class 4: 14:30-15:20 (Tue)
Class 5: 10:30-11:20 (Wed)
Class 6: 11:30-12:20 (Wed)
Class 7: 12:30-13:20 (Wed)

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 Tutorials and homework
 Please see the instruction documents on MOODLE
about how to sign up tutorial sections. (Important!)
 Please register the tutorial sessions as early as possible.
 You can download the homework assignments and
tutorial questions from MOODLE.
 You can hand in the homework assignments during the
tutorials (please follow Sam’s requirements).
 All assignments must be hand-written.
 Please do NOT use the “hand-in homework” functions
on Moodle.

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Let’s Start!!

I hope you will enjoy this class and find it to be

beneficial for your academic, professional, and
personal growth

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