This is an archived copy of the 2012-2013 catalog. To access the most recent version of the catalog, please visit http://catalog.iastate.edu.

Accounting

Undergraduate Study

For undergraduate curriculum in business, major in accounting.

The curriculum in accounting is accredited by AACSB International, the Association to Advance Collegiate Schools of Business, the international business accrediting agency.

The primary purpose of accounting is to provide relevant information to both internal users (management) and external users such as investors, creditors, government, and the general public. Accounting is an integral part of the management of business and public organizations. Accountants, therefore, participate in planning, evaluating, controlling, and reporting the activities of the firm. Accounting is needed by external users in order to make investment decisions, grant or withhold credit, and, in the case of government, to collect revenue and gather statistical information. In order to provide useful information, accountants collect, analyze, synthesize, and report data in an understandable manner.

The instructional objective of the Accounting Program is to provide a well-rounded professional education in accounting. Such an education should provide the student with:

a mastery of basic accounting concepts
an ability to think critically and creatively about accounting problems
an ability to communicate effectively and work with others as a member of a team
an awareness and sensitivity for dealing with ethical concerns.

The major in accounting is designed to give students a conceptual foundation as well as to provide a wide range of basic skills and analytical tools for use in reporting for both public and private concerns. Students who complete the accounting major are well prepared to accept positions in industry, government, and the public accounting profession.

The requirements for the accounting major are met by successful completion of the following courses:

ACCT 383	Intermediate Managerial Accounting	arr †
ACCT 384	Accounting Information Systems	arr †
ACCT 386	Intermediate Accounting I	arr †
ACCT 387	Intermediate Accounting II	arr †
ACCT 485	Principles of Federal Income Tax	arr †
ACCT 497	Introduction to Auditing	arr †
Three credit hours of electives chosen from the following:		arr †
ACCT 483	Advanced Managerial Accounting
ACCT 484	Advanced Accounting Information Systems
ACCT 487	Volunteer Income Tax Assistance
ACCT 488	Governmental and Non-profit Institution Accounting
ACCT 495	Advanced Accounting Problems
ACCT 496	International Accounting
† Arranged with instructor.

See the CPA note below for the 150-hour education requirement for CPA certification in Iowa.

In addition, it is highly recommended that an accounting major include ACCT 316 Business Law. The Department of Accounting should be consulted for information on specific alternative plans of study.

The department also offers a minor for College of Business students with a different major. They are required to take 15 credits from a list of approved courses, of which 9 credits need to stand alone.

CPA Note: The accounting major requires 22 credits of accounting beyond principles. Candidates for the CPA exam must complete at least two additional credit hours for a total of 24 hours of accounting beyond principles. Students may use the electives shown above or petition to take graduate courses to fulfill the additional two hours. ACCT 316 Business Law is also highly recommended; please note this class does not count towards the aforementioned 24 hours required to sit for the exam. While students may sit for the CPA exam after completing the required accounting course work and earning a bachelors degree, in order to be certified or licensed to practice in Iowa, students must complete a total of 150 credits. Qualified students should consider taking the masters of accounting to satisfy the 150-credit requirement. Juniors and seniors in accounting who are interested in graduate study should contact the Coordinator of the M.Acc. Program as early as possible to complete their graduate degree in an efficient manner. Students planning certification outside Iowa should check local rules, as each state determines its own licensing requirements.

Graduate Study

The department offers a graduate degree, the masters of accounting (M.Acc.). This is a 30-hour degree. The program requires 15 hours of graduate accounting courses, at least 9 hours of non-accounting graduate electives, a communications course and an international course from an approved list. Included in the 15 required hours of graduate accounting courses is a 3-credit required course, ACCT 598 Financial Accounting: Theory and Contemporary Issues.

The M.Acc. is appropriate for accounting undergraduate students wanting to pursue a variety of accounting careers. The M.Acc. program is an efficient way for qualified candidates to meet the 150-hour education requirement for CPA certification in Iowa. Students without an accounting degree will be required to complete a substantial amount of accounting coursework prior to being considered for admission to the M.Acc. Contact the coordinator of M.Acc. program for details.

The department participates in the full-time and part-time Master of Business Administration (M.B.A.) program. The M.B.A. is a 48-credit, non-thesis, non-creative component curriculum. Thirty of the 48 credits are core courses and the remaining 18 are graduate electives. Within the M.B.A. program, students may develop an area of specialization in accounting. The specialization is designed to help meet the education requirement for CPA certification in Iowa.

Courses

Courses primarily for undergraduates:

ACCT 215. Legal Environment of Business.

(3-0) Cr. 3. F.S.SS. Prereq: Sophomore classification
General history, structure, and principles of law. The legal system, as an agency of social control; good business practices, and tool for change. The court systems, Constitution, torts, contracts, administrative agencies, and agency law.

ACCT 284. Financial Accounting.

(3-0) Cr. 3. F.S.SS. Prereq: not open to first term freshmen
Introduction to the basic concepts and procedures of financial accounting from a user perspective. The course examines the accounting cycle, business terminology, basic control procedures, and the preparation and evaluation of financial reports, with an emphasis on financial statement analysis.

ACCT 285. Managerial Accounting.

(3-0) Cr. 3. F.S.SS. Prereq: ACCT 284
Understanding of fixed and variable costs and their role in planning, control and performance evaluation. Examination of alternative costing methods. Making decisions by identifying and developing relevant information. Development of spreadsheet skills.

ACCT 301. The Accounting Cycle.

(1-0) Cr. 1. F.S.SS. Prereq: ACCT 284
Interactive computer-based analysis of the accounting cycle including transactions and financial statements. Preparation of journal entries and adjusting entries and completion of the closing process. Nonmajor graduate credit.

ACCT 316. Business Law.

(3-0) Cr. 3. F.S. Prereq: ACCT 215
Continuation of 215. Sales under the Uniform Commercial Code, negotiable instruments, secured transactions, property transactions, partnerships, and wills and estates.

ACCT 383. Intermediate Managerial Accounting.

(3-0) Cr. 3. F.S. Prereq: ACCT 285 or ACCT 501 and ACCT 301
Generation, communication and use of information to assist management with planning, control, and decision making in manufacturing and service organizations. Includes cost concepts and relevance to decision situations, operational and capital budgeting, and performance evaluation. Emphasis on developing effective teamwork skills as well as spreadsheet capabilities.

ACCT 384. Accounting Information Systems.

(3-0) Cr. 3. Prereq: ACCT 285 or ACCT 501; and ACCT 301
Analysis of concepts and procedures underlying the automated accumulation and processing of accounting data. EDP internal control and audit techniques. Trends in accounting information systems.

ACCT 386. Intermediate Accounting I.

(3-0) Cr. 3. F.S. Prereq: ACCT 285 or ACCT 501 and ACCT 301
The conceptual framework of financial accounting. Communication of financial information on the income and retained earnings statements, statement of cash flows, and the balance sheet. Accounting concepts relating to current and operational assets of the firm. Identification of material differences between US GAAP and International Accounting Standards.

ACCT 387. Intermediate Accounting II.

(3-0) Cr. 3. F.S. Prereq: ACCT 386
Financial accounting and reporting practices for business entities. Generally accepted accounting principles (GAAP) relative to firm liabilities, equity, income, taxes, employee benefits, leases, accounting changes and cash flows. Identification of material differences between US GAAP and International Accounting Standards . Discussion of current issues in financial accounting. Focus on written communication.

ACCT 483. Advanced Managerial Accounting.

(Dual-listed with 583). (3-0) Cr. 3. Prereq: ACCT 383 or ACCT 581
Business simulation focusing on generation and communication of information to assist management with financial decision-making. Emphasis on developing teamwork, written communication, and oral presentation skills. Nonmajor graduate credit.

ACCT 484. Advanced Accounting Information Systems.

(Dual-listed with 584). (3-0) Cr. 3. Prereq: ACCT 384
Advanced accounting information systems concepts; database design and information retrieval, internal controls within computerized accounting information systems, financial reporting in electronic environment. Nonmajor graduate credit.

ACCT 485. Principles of Federal Income Tax.

(3-0) Cr. 3. F.S. Prereq: ACCT 386 or ACCT 501
Introduction to the fundamentals of federal income taxation and concepts applicable to all tax entities. Addresses issues related to the measurement and recognition of income, deductions, gains, and losses, taxation of property transactions, and basis / cost recovery concepts. Includes coverage of tax law policy objectives, tax implications of business and investment decisions, tax versus financial reporting treatment of common business transactions, and ethical issues related to tax compliance and planning. Nonmajor graduate credit.

ACCT 487. Volunteer Income Tax Assistance.

(Dual-listed with 587). (0-2) Cr. 1. Repeatable, maximum of 3 credits. S. Prereq: ACCT 285 or ACCT 501
Introduction to and field work in the preparation of individual income tax returns (state and federal). Basic coverage of filing and residency status, taxable income, exemptions, deductions, and credits. Tax software usage and online filing.

ACCT 488. Governmental and Non-profit Institution Accounting.

(Dual-listed with 588). (3-0) Cr. 3. Prereq: ACCT 387
Accounting and financial reporting principles of local and state governments, including universities, schools, and hospitals. In addition, accounting and financial reporting of non-profit organizations will be addressed. Financial statements of local governmental units and the university are explored. Nonmajor graduate credit.

ACCT 490. Independent Study.

Cr. 1-3. Repeatable. F.S.SS. Prereq: ACCT 285, senior classification, permission of instructor

ACCT 495. Advanced Accounting Problems.

(Dual-listed with 595). (3-0) Cr. 3. Prereq: ACCT 387
Accounting for business combinations and affiliated companies, intercompany transactions, and consolidated financial statements; Partnership accounting; Segment and Interim Reporting; Multinational accounting. Nonmajor graduate credit.

ACCT 496. International Accounting.

(Dual-listed with 596). (3-0) Cr. 3. Prereq: ACCT 386 or ACCT 501
Financial reporting issues in a global environment, including introduction to International Financial Reporting Standards (IFRS) and the potential for the use of IFRS in the U.S. Accounting and managerial issues faced by multinational corporations. Technical issues such as transfer pricing, inflation accounting and taxation will be discussed. Nonmajor graduate credit.

ACCT 497. Introduction to Auditing.

(3-0) Cr. 3. F.S. Prereq: ACCT 384, ACCT 387 and STAT 326
The conceptual framework of auditing. Professional ethics. External reporting concepts. Audit methodology including risk analysis, internal control, procedures for gathering evidence and the role of statistical sampling in auditing. Nonmajor graduate credit.

Courses primarily for graduate students, open to qualified undergraduates:

ACCT 501. Financial Accounting.

(3-0) Cr. 3. Prereq: Enrollment in MBA program or departmental permission
A general introduction to financial accounting information. Topics covered include the use and analysis of financial information, the regulatory environment, the role of International Financial Reporting Standards (IFRS), and the use of the internet and electronic spreadsheets as a means of accessing and analyzing financial data.

ACCT 581. Accounting for Decision Making.

(3-0) Cr. 3. Prereq: ACCT 501 or equivalent
Decision analysis applied to managerial accounting issues. Generation of information for management decision making and control. Responsibility accounting and non-recurring decisions.

ACCT 582. Corporate Governance and Top Management.

(Cross-listed with MGMT). (3-0) Cr. 3. Prereq: MGMT 503 or permission
Duties, structure, and functioning of top management teams and corporate boards of directors. CEO/board tenure and succession planning, top management compensation, board committee composition, assessment of CEO and board performance, theories of corporate governance, management of the corporate strategic agenda, governance codes, international governance, and chairman/CEO duality. Case studies and contemporary issues discussed.

ACCT 583. Advanced Managerial Accounting.

(Dual-listed with 483). (3-0) Cr. 3. Prereq: ACCT 383 or ACCT 581
Business simulation focusing on generation and communication of information to assist management with financial decision-making. Emphasis on developing teamwork, written communication, and oral presentation skills.

ACCT 584. Advanced Accounting Information Systems.

(Dual-listed with 484). (3-0) Cr. 3. Prereq: ACCT 384
Advanced accounting information systems concepts; database design and information retrieval, internal controls within computerized accounting information systems, financial reporting in electronic environment.

ACCT 585. Taxes and Business Strategy.

(3-0) Cr. 3. Prereq: ACCT 485
Integration of concepts from accounting, finance, and economics to determine how taxes affect business decisions. Provides students with a conceptual framework for thinking about business tax planning and applies it to various common business decisions.

ACCT 586. Advanced Federal Taxation.

(3-0) Cr. 3. Prereq: ACCT 485
Advanced coverage of federal taxation including issues related to the taxation of corporations, partnerships, estates and trusts, and their owners. Includes coverage of rules, concepts, background, and planning opportunities related to a number of common transactions involving these entities.

ACCT 587. Volunteer Income Tax Assistance.

(Dual-listed with 487). (0-2) Cr. 1. Repeatable, maximum of 3 credits. Prereq: ACCT 285 or ACCT 501
Introduction to and field work in the preparation of individual income tax returns (state and federal). Basic coverage of filing and residency status, taxable income, exemptions, deductions, and credits. Tax software usage and online filing.

ACCT 588. Governmental and Non-profit Institution Accounting.

(Dual-listed with 488). (3-0) Cr. 3. Prereq: ACCT 387
Accounting and financial reporting principles of local and state governments, including universities, schools, and hospitals. In addition, accounting and financial reporting of non-profit organizations will be addressed. Financial statements of local governmental units and the university are explored.

ACCT 590. Special Topics.

Cr. 1-3. Repeatable. F.S.SS. Prereq: Permission of instructor
For students wishing to do individual research in a particular area of accounting.

ACCT 591. Fraud Examination and Prevention.

(3-0) Cr. 3. Prereq: ACCT 497 or ACCT 501
Principles and methodology of fraud detection and deterrence. Addresses the following: Causes and elements of fraud, costs to society, asset theft, financial statement representation, internal controls for fraud prevention, evidence gathering, and legal aspects of fraud.

ACCT 592. Financial Statement Analysis.

(3-0) Cr. 3. Prereq: ACCT 284 or ACCT 501
The presentation and analysis of financial statement information from the point of view of the primary users of such data: owners and creditors. Topics covered will include the financial reporting system, the primary financial statements, and effects of accounting method choice on reported financial data, and firm valuation.

ACCT 594. Business Valuation.

(3-0) Cr. 3. Prereq: ACCT 387 or ACCT 592
Using financial statement analysis to value the firm. Topics covered include assessing how well a firm's financial statements reflect the economic effects of its resource management strategies and constructing proforma financial information that will serve as inputs to valuation models.

ACCT 595. Advanced Accounting Problems.

(Dual-listed with 495). (3-0) Cr. 3. Prereq: ACCT 387
Accounting for business combinations and affiliated companies, intercompany transactions, and consolidated financial statements; Partnership accounting; Segment and Interim Reporting; Multinational accounting.

ACCT 596. International Accounting.

(Dual-listed with 496). (3-0) Cr. 3. Prereq: ACCT 386 or ACCT 501
Financial reporting issues in a global environment, including introduction to International Financial Reporting Standards (IFRS) and the potential for the use of IFRS in the U.S. Accounting and managerial issues faced by multinational corporations. Technical issues such as transfer pricing, inflation accounting and taxation will be discussed.

ACCT 597. Advanced Auditing and Assurance Services.

(3-0) Cr. 3. Prereq: ACCT 497
A study of advanced auditing and assurance issues. Topics include risk analysis, internal control, fraud detection, analytical procedures, evaluating operational and strategic objectives, and reporting and implementing audit findings.

ACCT 598. Financial Accounting: Theory and Contemporary Issues.

(3-0) Cr. 3. F. Prereq: ACCT 386 or ACCT 501
Theoretical discussion of the financial accounting and reporting environment. The usefulness of financial accounting information for decision making. Current financial accounting issues, the financial accounting standard setting process, FASB Standards Codification, and the role of the SEC in financial reporting.

ACCT 599. Creative Component.

Cr. 2. Prereq: Admission to the Master of Accounting Program
This course prepares students to complete their creative component project option in the Master of Accounting degree.