INTERNATIONAL ACCOUNTING SYLLABUS - SUMMER 2009

(Updated 8/12/09)

Course:        ACCT 445/646 - IBUS 445/646, All Sec. 200s, July 6-August 11.  
                    (MTWRF 12-1:35, Wehner 104)
Instructor:   Dr. L. M. Smith, CPA, Professor of Accounting.
Office:         WCBA 460D, Phone:  845-3108, E-mail: Lmsmith@tamu.edu
Office Hours: After class and other times by appointment.
Homepage:   http://acct.tamu.edu/smith
Required Textbooks:
     1. Global Accounting and Control, A Managerial Emphasis, Gray, Salter, and Radebaugh.
         John Wiley and Sons, Inc. , 2001. ISBN 0-471-12808-2. [If you order online, search by ISBN].
     2. We will also be using sections of an Excel textbook and the The Bottom Line is Betrayal, both
          of which will be made available online or in the WCL.
Prerequisites:  Acct 328 and Finc 341.
Classroom Use:
     We have beautiful and state-of-the-art classrooms in the Wehner Building.  Heep
     Center is nice, too. We want to maintain the high quality conditions of these classrooms
     for the students in future years. Thus, it is necessary for you to adhere to the established
     policy of NO BEVERAGES,FOOD, TOBACCO PRODUCTS, OR ANIMALS (unless
     approved) within the Wehner Building classrooms.

=================================================================
Date                               Assignment
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NOTE:  GSR = Gray, Salter, & Radebaugh textbook; Q=text discussion questions;
MS=spreadsheet assignments using Microsoft Excel; BL=assignments from
Botttom Line.

"We few, we happy few, we band of brothers,
For he to-day that sheds his blood with me
Shall be my brother."
(Shakespeare, Henry V, Act IV, Scene 3).

July          6    Get acquainted. Discuss course requirements.
July          7    Assign Teams.
                       Overview of International Accounting.
                       GSR Chap 1; Q1-1,2,3,4,5.
July          8    Film:  Going International.
                       Bring to class: one-page report about an interesting cultural experience
                       you'vehad (could be another country or another part of the USA).
July         9    Quiz #1        
                      (Don't forget your scantron form)
                      Auditing the global firm.
                      GSR Chap 10: International Auditing; Q10-2,3,5,9.
July       10    The global marketplace.
                       Meet with your team; prepare a list of non-US-made products owned by
                       by team members. Prepare a list of countries and products made in that
                       country. Bring the products and/or photos (team member must be in photo with
                       product) to class. The team with most products and countries wins (2 points
                       for each country and 1 point for each product).

"You are beaten...It is useless to resist...Come with me...It is the only way" [D. Vader].  ..."Never" [L. Skywalker].  (dialogue from The Empire Strikes Back, 1980).

July       13   Guest Lecture on International Business in the Oil Industry, Bo Cribbs, ChevronTexaco.
July       14    Financial reporting outside the USA.
                      GSR Chap 3: Global Organization, Coordination, & Control, Q3-2,5,9.
                      Read the following papers and prepare a 1/2-page summary for each .
                      Available on reserve in the library or on the Web:
                 Continuous Auditing: An Effective Tool for Internal Auditors
                  
Going International: Accounting and Auditing Standards
 
 Audit Committee Effectiveness: Did the Blue Ribbon Committee Recommendations Make a Difference?
July      15    Guest Lecture on Auditing under the FCPA, Jerry Hays, CPA.
July      16    Quiz #2
                     GSR Chapter 5: Planning & Performance Evaluation in MNEs, Q5- 1,3,4,6.
                      Financial disclosure--segmental, social, environmental, and other disclosure
                      items.
                       Please prepare a 1/2-page summary for the following papers.
                      Available on reserve in the library or on the Web:
                      Tax Complexity and Compliance Costs of U.S. Multinational Corporations
                      International Transfer Pricing Issues and Strategies for the Global Firm
July      17    No class: Meet with team and work on team project.
                     *Begin work on role-play outline or country study report outline. Turn in outline
                      at next class.*

"No one in the world can change Truth.  What we can do and should do is to seek truth and to serve it when we have found it. The real conflict is the inner conflict. Beyond armies of occupation and the hecatombs [e.g. the sacrifice of many victims] of extermination camps, there are two irreconcilable enemies in the depth of every soul: good and evil, sin and love. And what use are the victories on the battlefield if we ourselves are defeated in our innermost personal selves?" (Fr. Maximilian Kolbe, d.Auschwitz 1941).

July     20     Accounting ethics.
                     Please prepare a 1/2-page summary for each of the following papers.
                     Available on reserve in the library or on the Web:
              
The Once and Future Accountant: Ethics and the Future Outlook of the US Accounting Profession
                 
A Fresh Look at Accounting Ethics (or Dr. Smith Goes to Washington)
                      *Turn in  role-play outline or country study report outline.*
July      21    Test Number 1: Lectures, GSR chapters 1,3,5, & 10, BL chapters 1-6.
July      22    Go over Test 1.
                     Cultural issues.  
                     Film:  The Colonel Comes to Japan.
                     *"Aggie Culture" Assignment: Visit the Aggie Bonfire Memorial. Even before the
                      tragedy, there was debate whether A&M should have a bonfire, but there's no
                      debate that some great people attend Texas A&M. That's evident by the
                      inscriptions at the Memorial. After reading about the Aggies commemorated here,
                      what traits of these students representAggie culture? Briefly describe 4 or 5 traits
                      that you regard as key parts of Aggie culture. Please use quotes from the
                      Memorial in your descriptions.
July      23    Guest Lecture on CPA Profession, Texas Society of CPAs, and ACAN program,
                     Craig Nauta, TSCPA.
July      24     Quiz #3.
                      GSR Chapter 8: Global Transparency & Disclosure.
                      Please prepare a 1/2-page summary for each of the following papers.
                      Available on reserve in the library or on the Web:
              
An Inconsistency in the Method of Accounting for Changes in Estimate: Variable Stock Plans
                 
How Different GAAPs Affect Performance of Valuation Models: Evidence from Asia-Based Companies Cross-Listed in the U.S.
                    **This is the last day that you can submit an outline and obtain approval to do the
                     extra credit project.**

"But you were always a good man of business, Jacob," faltered Scrooge, who now began to apply this to himself. "Business!" cried the Ghost, wringing its hands again. "Mankind was my business. The common     welfare was my business; charity, mercy, forbearance, and benevolence, were, all, my business. The dealings of my trade were but a drop of water in the comprehensive ocean of my business!" (Dickens, C. 1843. A Christmas Carol).

July       27   Quiz #4.
                     GSR Chapter 6: Tax treaties, tax havens, quotas, and tariffs.
                      MS 67-71. Import quotas and tariffs. Examples of both
                      the quota and tariff analyses are on the Web].
July      28     Test Number 2: Lectures, GSR chapters 6 & 8, BL chapters 7-12.
July      29     Quiz #5.
                      GSR Chapter 2: FC & Exchange Risk Management, Q2-1,2.
                      An intro to foreign exchange markets; terminology; basic calculations.
                      MS 61-62, 65-66. Foreign Currency Translation. MS61started & MS65started.
                      An example of the temporal rate method is on the Web.
July      30    International Consolidation Problem:
                     Assignment
                     Worksheet
                     Example Worksheet
                     GSR Chapter 4: Management Accounting, Q4-2,3.
                     GSR Chapter 7: Global Financial Statement Analysis.
                     Please prepare a 1/2-page summary for the following papers.
                     Available on reserve in the library or on the Web:
                     Understanding and Preventing Money Laundering
                     The Perpetration and Prevention of Cybercrimes
July      31    Quiz #6.
                      GSR Chapter 9: FC Acct & Exchange Rate Changes, E9-3.
                      Film:  A Billion Dollar Day.

"Mine eyes have seen the glory of the coming of the Lord;  He is trampling out the vintage where the grapes of wrath are stored; He hath loosed the fateful lightning of His terrible swift sword; His truth is marching on.  ...He is wisdom to the mighty, He is honor to the brave;...  (Battle Hymn of the Republic).

Aug        3    Guest Lecture on the COSO Framework, Jerry Hays, CPA.
Aug        4    No lecture: Meet with team and work on team project.
Aug        5    No lecture: Meet with team and work on team project.
Aug        6    All Team Project Presentations are Due Today: Country Report or Role-Play.
                     Be sure to stick to the 10-minute time limit (going longer will result in a penalty).
                     Bring PPT file or role-play video recordings. Be sure to use a format that will play
                     on our classroom equipment. We have a DVD player and Windows Media Player
                     on the PC. Turn in printout and CD or DVD with project.
                     *Today in class is the last chance to turn in late homework.*
                     **Extra credit paper is due by class time today.**
Aug        7    Test Number 3: Lectures, GSR chapters 2,4,7, & 9, BL chapters 13-18. Results.

"...It is rather for us to be here dedicated to the great task remaining before us--that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion; that we here highly resolve that these dead shall not have died in vain; that this new nation, under God, shall have a new birth of freedom; and that government of the people, by the people, and for the people, shall not perish from the earth"  (The Gettysburg Address, President Lincoln, November 18, 1863).

Aug       10    No Class: Study for Final Exam.
Aug       11    Comprehensive Final Exam, 1-3 pm (NOTE: NEW TIME). Results.

PowerPoint Files for Textbook Chapters on Test Number 1:
Chap1
Chap3
Chap5
Chap10
PowerPoint Files for Textbook Chapters on Test Number 2:
Chap6
Chap8
PowerPoint Files For Textbook Chapters on Test Number 3:
Chap2
Chap4
Chap7
Chap9

COURSE POLICIES for International Accounting

Course Description and Learning Objectives:
       Accounting is a demanding field of work that requires integrity, intelligence, fortitude, dedication, and interpersonal skills.  To succeed in this course will require the same.  You should expect extensive reading and homework assignments.  For college classes in general, for each hour of class time, two hours of outside preparation time should be anticipated.
       Business firms in the 21st Century compete in a global marketplace. Understanding international issues is critical to the education of a well rounded, competent business student. International accounting (Acct 445/646) introduces and examines accounting issues unique to multinational enterprises and international business activity. Specific course topics include International Financial Reporting Standards (IFRS), auditing the global firm; financial reporting outside the USA; international financial disclosure issues such as segmental social, and environmental; accounting harmonization; ethics; taxation; foreign exchange; and cultural issues.
     As technology is increasingly important to successful business operations, some assignments will require use of the computer, such as searching the Web for accounting information and using Microsoft Excel spreadsheet software for financial analysis. In virtually all business firms, employees are often required to work with others on team projects. To  foster development of interpersonal and presentation skills, team projects are assigned. To further enhance appreciation of contemporary business practice, an accounting novel is assigned which includes pertinent international business topics and issues.
     Learning objectives include the following:
* To be able to explain key elements of IFRS.
* To be able to integrate aspects of international operations with auditing concepts.
* To relate how international operations affect accounting and business activities.
* To relate how culture affects accounting and business activities.
* To use Internet resources to solve international accounting problems.
* To use spreadsheet software to solve international accounting problems.
* To develop effective presentations.
* To work effectively in a team.
Grading Structure:
 Four tests @ 100 points each, includes final exam                                          400
Quizzes, 6 @ 10 points each                                                                                 60
Homework, In-Class Work, Participation                                                            30
Team Project: Country Study PPT or Role-Play Presentation                           60
Total points possible                                                                                           550

Grading Scale: 90-100% = A; 80-89% = B; 70-79% = C; 60-69% = D. Below 60% = F.

Please note, an extra credit project is available. If you think you will need those extra points, then do the
project.
 
Homework and Class Participation:
Homework is generally graded on effort; thus, you do not always have to get every answer exactly right to get some credit. This applies to all assignments, including end-of-chapter questions, reports, case studies, and Excel assignments. The grading scale is as follows:
U - Unsatisfactory or missing - no credit.
S - Satisfactory - 100 percent credit: Short, but complete answers based on textbook material.
Class participation involves making positive contributions in the classroom. During my 20 plus years of college teaching, I have noted that coming to class prepared (e.g. having homework done) is closely linked to a student's ability to make a positive contribution. Furthermore, prior research has shown that class attendance is the only factor significantly correlated to grades. In other words, coming to class should result in your making a better score on tests and quizzes, and ultimately on your final grade.

Make-Up Policy:
Any missed assignments can be turned in late until the next to last week of classes. Assignments turned in late will receive partial credit.

Writing Assignments:
Written assignments include individual and group assignments. Written assignments consist of end-of-chapter  textbook questions, short reports, and other assignments e.g. a group project report. Late assignments will be penalized but can be submitted until the last day to turn in late assignments shown on the syllabus. Feedback will be provided in three forms: written grade on the returned assignment, discussions in class, and if necessary, one-on-one meetings with the instructor. For writing help, visit the University Writing Center (http://writingcenter.tamu.edu/ ). In all your writing, be careful to avoid plagiarism. The Texas A&M University Student Rule 20, defines plagiarism as follows: "The appropriation of another person's ideas, processes, results, or words without giving appropriate credit." You should read the following article, " Avoiding Plagiarism: The How's and Why's ."

Extra Credit:
 By preparing a term paper, you may earn up to 5 points of extra credit (bonus points). You must get approval from Dr. Smith in advance before starting this assignment (no later than midway through the course).
Requirements: (1) Thoroughly research an international topic -- the topic must be approved by your instructor. (2) Possible topic areas include use of new technology by multinational firms, international accounting standards, and money laundering. (3) The report should include an introduction, major points, analysis, and conclusion. (4) The report must include 8 to 10 pages of double-spaced text, 2 to 3 tables/exhibits, a references page of at least 12 references (journal articles, books, and Web sites referred to in the paper). (5) The paper must be prepared in good form (The Accounting Review style). You can follow the format for journal articles, online articles, and books shown in the example paper .

Ethics and Scholastic Dishonesty:
The accounting profession has a long-established reputation for its high level of ethical conduct.  The reputation reaches into the academic arena where the profession’s future leaders are being prepared.  Consequently, accounting students are expected to conduct themselves in a manner that is above reproach in their own course-related actions.  Scholastic dishonesty is discussed in Honor Council Rules and Procedures. Dishonest acts include, but are not limited to: copying, sharing, or obtaining information from any unauthorized source during examinations, quizzes, or other assignments; attempting to take credit for the intellectual creation of another person; falsifying information; giving information about a test, quiz or assignment to students in the same or other sections of the course. I believe in the Aggie honor code:

                            An Aggie does not lie, cheat or steal
                            or tolerate those who do.

Unless otherwise specified, all work is to be done individually.  Scholastic dishonesty will not be tolerated.  The full consequences of scholastic dishonesty will be pursued, consistent with university policy as it appears in the Honor Council Rules and Procedures ( http://www.tamu.edu/aggiehonor ).

For all assignments, I expect each student to be able to sign the following statement:

"On my honor, as an Aggie, I have neither given nor received unauthorized aid on this academic work."

                                                        ______________________________
                                                        Signature of student
Other Policies:
ADA statement: The Americans with Disabilities Act (ADA) is a federal anti-discrimination statute that provides comprehensive civil rights protection for persons with disabilities. Among other things, this legislation requires that all students with disabilities be guaranteed a learning environment that provides for reasonable accommodation of their disabilities. If you believe you have a disability requiring an accommodation, please contact Disability Services, visit http//disability.tamu.edu ( http://disability.tamu.edu/ ) , call 845-1637 or go to Cain Hall, Room B118. Please let me know if I can be of assistance with any special needs; I will do everything that I can to help all my students with their educational process.

Final exams: When a student is scheduled for three final examinations in one day, the student may request rescheduling of one of the three examinations.  The dean, department head, and faculty member will make every effort to accommodate the student when a request is made.

TEAM PRESENTATION PROJECT: ROLE PLAY AND COUNTRY STUDY

ROLE-PLAY VIDEO PRESENTATION ASSIGNMENT:

Role-Playing Video Presentation: Teams of 6 to 10 students will be assigned to develop an 8 to 10 minute role-playing presentation based on characters, concepts, or situations related to international accounting (you may base the presentation on a scene from the book The Bottom Line is Betrayal.  The students will be required to submit a typed report and video recording of their presentation.  If obtaining a video camera for filming is a problem, please see your instructor for special arrangements.  Your typed report should include the following: 1. aworking title of the presentation (e.g. "The Overseas Assignment Disaster"), 2. the group number and names of group members, 3. a "screen play" of the presentation (including props to be used),4. the goals of the presentation (e.g. to show how an interview should be conducted and what to watch for, how an expert system works, the effects of subliminal persuasion, etc.), and 5. how these goals were achieved by the presentation.

The key to effectively completing this assignment is proper planning. Before the group begins filming, the script should be prepared and rehearsed.  Any necessary props should be obtained and on-hand.  Each member of the group should conscientiously fulfill his or her part of the assignment.  When filming, be sure to include the title of the presentation and names of the group members at the beginning of the film (you can write this information on paper and film it for 8 or10 seconds). Filming tips: Keep your light source above or behind your subject. For better sound, avoid zooming in; instead, bring your camera close to subjects. This will also highlight action and facial expressions.

Prior to submission of the report and tape, an outline of the presentation must be submitted.  The date the outline is due is shown on your syllabus.  The outline should follow the same format as the report, except the screen play does not have to be in a word-for-word format but only in anoutline format. The report and video will be graded by Dr. Smith.  Also, the class will view and evaluate the tape.  Both report and video will be evaluated for originality, creativity, drama/humor, technical accuracy(can you hear it? can you see it?), and educational merit. The presentation should stimulate interest in the subject matter through a more captivating format than a simple lecture.

A final note:  The film should receive a "G" or "PG" rating. Humor (inoffensive) and actionare highly encouraged.  Do not clip scenes from TV programs or movies.  Do not use names of real people (that includes Dr. Smith); use only fictional characters.

COUNTRY STUDY REPORT AND POWERPOINT PRESENTATION:

Teams of 6 to 10 students will be assigned to prepare a 10 minute class presentation on a country (listed below) using Microsoft Powerpoint.  You must also submit a printed report. The report should include a title page, "About the Authors" page (showing name, major, hometown, and career interest of each author), abstract, 8 to 12 pages in the body, a reference page, and 2 or more exhibits. Use the format, including references style and headings style, of the example paper . Failure to follow this format will result in points off. Countries that might be selected for your presentation and report include: Australia, Austria, Belgium, Canada, China, Denmark, Egypt, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Hungary, Luxembourg, Mexico, Netherlands, Portugal, Singapore, Spain, Sweden, Switzerland, Turkey, United Kingdom, or other (if approved by your instructor).

The report and presentation must include the following information, at a minimum:
 a. Brief history of the country and its cultural heritage.
 b. Natural resources.
 c. Form of government.
 d. Major industries.
 e. Exports and imports.
 f. General relationship with the U.S.
g. Accounting and taxation issues, such as: 
     (1) What is the country's primary source of GAAP (In the U.S., it's FASB).
     (2) The country's attitude/record on corporate financial disclosure. How would
           you compare it to the US attitude/record?
    (3) Based on an examination of annual reports of business firms or of accounting
          articles on the subject, what social, employment, or environmental disclosures
          does the country require?
    (4) What is the status of the auditing profession in the country, e.g. how are
          auditors trained and regulated?

Sources for your report and presentation can be obtained from books, journal articles,newspapers, CD-ROM databases available in the WCL, and information obtained from on-line sources accessible via the Internet.  Prior to submission of the report and Powerpoint file, an outline of the presentation must be submitted.  The date the outline is due is shown on your syllabus.  The report and Powerpoint presentation will be graded by Dr. Smith.  Also, the class will view and evaluate the presentation.  Both report and presentation will be evaluated for originality, creativity, presentation quality, technical accuracy, and educational merit.  The presentation should stimulate interest in the subject matter through a more captivating format than a simple lecture.

STUDENT INFORMATION FORM (Optional), Word File :

1. Name:

2. What's your background?  (e.g. Where are you from?  or Why did you pick Texas A&M?)
 
 

3. Work Experience:
 a. Auditing Internship?          Yes      No
 b. Accounting work experience:  (Briefly describe)
 

 c. Other work experience:  (Briefly describe)
 
 

4. Overall GPR: __________
 

5. Member of Beta Alpha Psi: Yes     No

6. Career Interests:
 
 
 

7. Who's someone you admire?  Why?
 
 

8. What's a movie or book you like?  Why?
 
 

9. How do you define success?
 
 

10. Anything else you would like to tell me:

WHAT IS SUCCESS?

 A popular story recounts a meeting that took place at the Edgewater Beach Hotel in Chicago in 1923. Attending this meeting were nine of the richest men in the world at that time: (1) Charles Schwab, President of the world's largest independent steel company; (2) Samuel Insull, President of the world's largest utility company; (3) Howard Hopson, President of the largest gas firm; (4) Arthur Cutten, the greatest wheat speculator; (5) Richard Whitney, President of the New York Stock Exchange; (6) Albert Fall, member of the President's Cabinet; (7) Leon Frazier, President of the Bank of International Settlements; (8) Jessie Livermore, the greatest speculator in the Stock Market; and (9) Ivar Kreuger, head of the company with the most widely distributed securities in the world.

Twenty-five years later, (1) Charles Schwab had died in bankruptcy, having lived on borrowed money for five years before his death. (2) Samuel Insull had died virtually penniless after spending some time as a fugitive from justice. (3) Howard Hopson was insane. (4) Arthur Cutten died overseas, broke. (5) Richard Whitney had spent time in Sing-Sing. (6) Albert Fall was released from prison so he could die at home. (7) Leon Fraizer, (8) Jessie Livermore, and (9) Ivar Kreuger each died by suicide. Measured by wealth and power these men achieved success, at least temporarily. Making a lot of money may be an acceptable goal, but money most assuredly does not guarantee a truly successful life.

Many people think of fame and fortune when they measure success. However, at some point in life, most people come to realize that inner peace and soul-deep satisfaction come not from fame and fortune, but having lived a life based on integrity and noble character. President Lincoln put it this way: “Honor is better than honors.” At a Congressional Hearing on ethics in July 2002, Truett Cathy, founder of Chik-Fil-A, quoted Proverbs 22:1: "A good name is more desirable than great riches; to be esteemed is better than silver or gold." In the final analysis, living an honorable life really is more satisfying than fame and fortune. How do you measure success?
©June 21, 2003 (To use this short essay or refer to this Web page, please cite the original article from which this essay was a part, " Business and Accounting Ethics " by Dr. Katherine T. Smith and Dr. L. Murphy Smith. On August 1, 2007, this article was the first website listed, out of several million, after a Google search for "accounting ethics." ).