Business 380 Intermediate Accounting I

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Business 380Intermediate Accounting I

• Bruce Roberts. CPA, MBA
• Assistant Professor
• Edgewood College

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BRUCE J. ROBERTS, CPA, MBAAssistant
ProfessorEdgewood College

• Current positionsince 1997
• B380/703Intermediate Acctg I
• B481/706Auditing
• B501(Grad)Business Concepts (Acctg)
• B602 (Grad)Acctg for Managers
• Guest lecturer
• B120Intro to Business (acctg)
• CS 302Computer Science (Internal Control/Acctg)
• Assisted in EC compliance with CPA 150 credit
  rule
• Serves as EC representative to WFIC for potential
  EC insurance curriculum

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• Current professional activities
• Center for Professional Education (CPE, Inc.)
• Course updates and instruction for Overview of
  Property Casualty Ins Acctg
• Becker/Conviser CPA Review
• Teaches various Audit Financial Acctg
  Reporting classes
• Wisconsin Mutual Insurance Company
• Board of Directors
• Bruce Roberts, MBA, CPA CPA/consulting practice
• Compile regulatory Annual Statement and prepare
  Federal Form 990 for Western WI town mutual
  insurance company
• Select software and design acctg system for
  not-for-profit educational foundation
• Other selected consulting engagements re revenue
  recognition issues licensing Ins Co in Indiana
  develop document Disaster Recovery Plan and
  Procedures Manual for insurance company

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• Past experience
• Partner, McGladrey Pullen (formerly Fitzpatrick
  Roberts) National ins co audit practice
• Developed and taught Insurance Industry Seminar
  Series
• Controller, Rural Mutual Ins Co
• Monthly and annual financial statements,
• Budgets and monthly reporting
• Installed monthly voucher payable system
  contribution margin financial reporting system by
  product line
• Instructor of Acctg, UWWhitewater
• Taught managerial acctg, auditing, advanced
  auditing
• Served as Whitewater contact for UWMadison
  MBA/minority recruiting program
• Current Professional Development
• CPE, Inc seminars re SEC, FASB AICPA acctg
  and auditing updates
• Sarbanes-Oxley seminars and updates
• Special Section 404 Sarbanes-Oxley Internal
  Controls seminars including auditing implications
  
• Current technology updates at EC for FrontPage,
  PowerPoint, Excel, Access, etc.

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Ch 1Financial Accounting Accounting Standards
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Objectives of Financial Reporting

• Financial Reportingshould provide information
  that is useful to users
• To evaluate investment and credit decisions
• To assess future cash flow
• To provide information about economic resources
  claims to those resources
• All in allto assist in proper free market
  allocation of capitalworld wide

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Financial vs Managerial Accounting

• Financial Accounting
• External users
• Complete classified F/S
• General purpose information for all users
• Generally condensed information
• GAAP basis
• Annually audited by and independent CPA Firm

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Financial vs Managerial Accounting

• Managerial Accounting
• Internal use
• Monthly or as needed
• Much special purpose information
• May be very detailed
• Not only acctg info but various statistical info
• Not necessarily GAAP
• Includes cost acctg systems related pricing
  info
• Budgets and reporting thereof
• Profitability analysis
• Unaudited

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ILLUSTRATION 1-2 HOUSE OF GAAP
Source Kieso, Weygandt, and Warfield,
Intermediate Accounting, 10th Edition
SEC
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ILLUSTRATION 1-3 ORGANIZATIONAL STRUCTURE FOR
SETTING ACCOUNTING STANDARDS
Source Kieso, Weygandt, and Warfield,
Intermediate Accounting, 10th Edition
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ILLUSTRATION 1-4 STEPS TAKEN IN THE EVOLUTION OF
A FASB STATEMENT OF THE FINANCIAL ACCOUNTING
STANDARDS BOARDS
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ILLUSTRATION 1-5 USER GROUPS THAT INFLUENCE THE
FORMULATION OF ACCOUNTING STANDARDS
Source Kieso, Weygandt, and Warfield,
Intermediate Accounting, 10th Edition
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International Accounting Standards

• Many countries-- have their own GAAP vs US GAAP
• Globalization and internationalization of
  business and capital markets-- creates a need for
  more uniformity in financial reporting
• International Accounting Standards Board
  (IASB)--London
• Formed in 1973
• Represented by 89 countries, including the US
• Attempts to narrow national acctg standards
  divergence
• Objective To work generally for the
  improvement harmonization of acctg standards
  related to the presentation of F/S
• Issues international acctg reporting standards
• NYSE accepts F/S presented under IASB standards

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Ethics in the Financial Acctg Environment

• Very important to have proper correct financial
  reportingto result in proper allocations of
  capital
• Necessary for public confidence in the capital
  markets
• Often borderline situations
• Both the CPA CMA professions have a Code of
  Ethics
• CPA FirmEthics character are the most
  important criteria to accept a client

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Sample Annual Report.

• Report to external users
• Our reference report
• Walk through