Advanced Accounting
Acct 400
Fall 2005

Professor: Dr. Margaret R. Garnsey
Office: Siena Hall 433
Phone: 783-2397
web page:
Office Hours: M 8:30AM - 10:00AM and 5:00PM - 6:00 PM W & F 8:15 - 10:15 AM
Text: Accounting: Advanced Accounting: ACCT 400 , Dr. Garnsey & Dr. Stokes McGraw-Hill Primus 6th edition Baker-Lembke-King. Readings include all Appendices.

Prerequisite: Acct 305.
Note: The course has been placed on Blackboard The syllabus and tentative schedule (day and night class) are up on the site.

Academic Integrity

The concept of academic integrity lies at the very heart of any college. This is particularly true of Siena with its strong Franciscan tradition and its dedication to fostering sound moral growth. In such an environment, academic dishonesty cannot be tolerated. Students who commit such acts expose themselves to punishment as severe as dishonorable dismissal from the college.

Academic dishonesty can take several forms, including, but not limited to, cheating [dishonesty in a test situation], plagiarism [dishonesty in the presentation of materials in a paper or report], and computer abuse. In any situation in which a student is unsure what constitutes academic dishonesty, it is the student’s responsibility to raise the question with his or her instructor. It is also the student’s responsibility to be familiar with the student guidelines on academic dishonesty, “Academic Integrity and the Siena Student.”

School of Business Mission Statement

The mission of the School of Business is to offer values oriented, intellectually stimulating educational programs that prepare students for business careers and continuing intellectual and professional development. The School of Business places paramount importance on teaching and learning in an atmosphere enriched by business collaboration, professional activity, and scholarship. This is accomplished by integrating the College’s liberal arts and Franciscan traditions with current business theory, skills, and practices.

Course Description

Advanced Accounting is a continuation of the study of financial accounting. The areas of coverage in this course include issues concerning the operation of Partnerships, Business Combinations and Consolidated Financial Statements, and International Accounting Issues. These topics require a working knowledge of GAAP and Professional Pronouncements.

The course is designed to provide an understanding of the technical requirements as well as developing an appreciation for working with accounting pronouncements and research of accounting issues. Professional Communication skill for writing will be emphasized throughout the semester.

Specific, Assessable Learning Objectives

The student should be able to:

  1. Explain the characteristics of corporations and partnerships.
  2. Determine values when forming, operating, or dissolving partnerships.
  3. Account for investments under the cost and equity methods.
  4. Prepare basic consolidated financial statements for a purchased subsidiary, including the allocation of any difference between cost and book value.
  5. Value transactions involving foreign customers/suppliers.
  6. Explain how the functional currency of is determined and used in the consolidation of international subsidiaries

Additional Major Objectives

  1. To have the student develop critical thinking and writing skills primarily by applying accounting concepts to a semester project. This project is intended to give the student experience in research of accounting issues and in using official pronouncements.
  2. To provide the student with additional experience in using the computer, especially spreadsheets and word processing.

Course Outline

     Advantages & Disadvantage (Legal Issues)
     Allocation of income to partners
     Adding Partners
Business Combinations
     Accounting for Investments
          Equity Method
     Acquiring a controlling interest in another Business
          Accounting for the interest
     Consolidation Procedures
          Time of Acquisition
          After Acquisition
          Intercompany Transactions (inventory and fixed assets)
International Accounting
     IASB and Different Standards
     Accounting for Purchase & Sale Transactions denominated in another currency
     Derivatives as applied to foreign Currency Transactions
     Translation and Remeasurement of Financial Statements


  1. Lectures on each topic incorporating illustrations and examples to enhance understanding.
  2. In-class problems, intended to give the student experience in applying concepts in a structured setting.
  3. Discussion of the semester project will be incorporated into classes as the topics covered in the project are encountered.


  1. Students are encouraged to contact the instructor by e-mail with any questions which arise out of class. I check my e-mail at least twice a day and will respond within 24 hrs. in most cases.
  2. Students are expected to attend all classes. The instructor reserves the right to drop any student’s final grade one letter grade for missing more than 3 classes and failing a student who misses more than 4 classes. Students who have a valid documented reason for missing class should contact the instructor PRIOR to the class they are going to miss.
  3. Students are expected to read the assigned chapters PRIOR to class. Students are to take an on-line quiz in Blackboard the day prior to the start of each chapter. Students should come to class prepared to discuss the issues covered in the chapters.
  4. The semester project was developed by Dr. Stokes and is intended to provide students with research and writing experience as well as reviewing certain accounting procedures. Text accompanying the project requirements should be typed. Grammar and punctuation will be considered when grading project. Approximately one-half of the grade on the written requirements of the project will be for writing. Please make sure you proofread you work prior to turning it in. It may also be beneficial to have a friend proofread your work. Due dates for the individual parts of the project are given tentatively in the schedule the due dates may be changed in class approximately one week prior to their being due if necessary. The requirements are due at the beginning of the class on the due date. Any requirements turned in late will be penalized by 25%.
  5. Lab problems are to be turned into the accounting lab prior to its closing on the day given in the syllabus. These problems are to give you experience working out problems similar to those which may appear on tests. In-class problems, which you are asked to complete at home, will be collected by the instructor in the next class period and graded. It is much faster to set up a template in Excel to do consolidation worksheets than to do them by hand. It would be well worth your time to set one up
  6. There will be three in class exams and a comprehensive final exam (excluding partnerships). Exams will include both subjective and objective questions.


The course grade will be based on the points earned from the total points available throughout the semester (NO extra credit is available): 

     Minimum points needed to receive
grade indicated:
Exam 1 190  A- 915
Exam 2 190  B- 815
Exam 3 190  C- 700
Final Examination 230  D- 600
Project 175  F < 600
Lab Problems 70    
On-Line Quizzes 25    
Excel Problems 30    
Inn-class participation and problems 35    
Total Points available 1,135    


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