Case assignments 232

Accounting 232
Spring 2006
Case Assignments

Objectives: The objectives of the case assignments for Intermediate Accounting II are to allow you to improve your writing, organization and analysis skills in relation to financial reporting topics. By using FARS to research accounting issues and cases, you will improve your research and analytical abilities. In addition, you will use the Internet to obtain some information, and you will enter three of the cases, as indicated, into your student portfolio.

Requirements: Two case assignments are taken from your textbook (KWW); two of the three FARS cases are provided on the last page of this syllabus. The last FARS case will be distributed in class. Each case write-up is due at the beginning of class on the date indicated. Each paper should be approximately one page in length (typed, single-spaced). Be sure to proofread and spell-check your paper! [Note: The format requirements for FARS research reports are included at the bottom of the last page of this syllabus. The textbook case write-ups should be in essay or memo format and should respond the questions in the individual case.]

Assignments and Due Dates:

Case Assignment #1: KWW – Chapter 24 (p. 1325) – C24-12 (Ethics Case)
Due Date: Wednesday, February 1 – 15 points

Student Portfolio Assignment #1
Due Date: Wednesday, April 26 – 10 points

After Ethics Case C24-12 has been graded and returned to you, this assignment is to be entered into your student portfolio.

Case Assignment #2: FARS – Investment Accounting (syllabus page 9)
Due Date: Monday, February 20 – 15 points

Student Portfolio Assignment #2
Due Date: Wednesday, April 26 – 10 points

After FARS Investment Accounting Case has been graded and returned to you, this assignment is to be entered into your student portfolio.

Case Assignment #3: FARS – Income Tax Accounting (syllabus page 9)
Due Date: Wednesday, March 22 – 25 points

Case Assignment #4: KWW – Chapter 21 (page 1145) – Research Case 1
Due Date: Monday, April 17 – 15 points

For this assignment, you will obtain this information from corporate annual reports. One method of obtaining annual reports is to use the SEC’s EDGAR database. To access this information, go to the SEC web site (http://www.sec.gov) and from here to the EDGAR database. You can enter a company name and obtain a listing of all reports filed by that company. Annual reports are included in 10-K filings. Another source of annual reports is the company’s web-site.

Student Portfolio Assignment #3
Due Date: Wednesday, April 26 – 10 points

After Chapter 21 Research Case 1 has been graded and returned to you, this assignment is to be entered into your student portfolio. In addition to your responses to the case requirements, include a one or two sentence description of how you obtained the financial statement information that you used in the case. Also include a link to either the SEC web site or any other site you used in your research.

Case Assignment #5: Cable Counting Caper – FARS case
Due Date: Monday, May 1 – 50 points

FARS Research Case Instructions
For Case Assignments #2, #3 and #5

Solutions to the FARS research cases should be presented as described below. Your write-up of the case will have four distinct parts.

1. The first part of the report is the Problem Statement. In this section, you must identify the accounting problem. Be brief but specific. The problem statement should not exceed two sentences.

2. The second part of the write-up is the Solution. In this section, you must clearly communicate your proposed solution to the accounting problem or issue that you identified in the problem statement. Your solution should be clear and concise so that the reader does not have to read or refer to the authoritative citations in order to understand it.

3. The third part of the report is the Authoritative Citation(s). In this section you must identify the exact citation(s) from the professional accounting literature upon which you based the solution.

The three sections of the typed research report described above should not exceed one single-spaced page.

4. In addition to the three parts of the research report described above, attach copies of your authoritative citation(s) to your report.

Accounting 232
Spring 2006
Case Assignments – FARS Cases

Case Assignment #2: FARS – Investment Accounting
Due Date: Monday, February 20

Alonzo Incorporated does not carry at current market value its investments in marketable securities that it classifies as trading. This decision is based on the fact that the investments are in securities that are traded only on the Taiwan stock exchange.

Case Assignment #3: FARS – Income Tax Accounting
Due Date: Wednesday, March 22

As an incentive to get Robust Manufacturing to locate near Indianapolis, the county provided a potential moratorium on property taxes for Robust Manufacturing. The incentive agreement requires Robust to pay property taxes on all real estate but to be able to apply for a refund of those property taxes if the company is employing more than 1,000 people within the next three years. Robust Manufacturing reports the real estate taxes as an expense on both its financial statements and its federal income tax return but recognizes a deferred tax asset arising from the expected refund of the property taxes in the next year or so.