Accounting Analysis II: Accounting for Liabilities and Equity

Go to Course: https://www.coursera.org/learn/accounting-analysis-2-equity

Introduction

### Course Review: Accounting Analysis II: Accounting for Liabilities and Equity **Overview:** If you're looking to deepen your accounting knowledge and skills, specifically in the realm of financial reporting, "Accounting Analysis II: Accounting for Liabilities and Equity" is a course you definitely should consider. This course is the fourth in the comprehensive five-course Financial Reporting Specialization offered by Coursera. It dives into the core concepts surrounding the recognition, measurement, and reporting of various financial instruments, particularly equity, pensions, share-based compensation, and cash flows, utilizing the FASB Accounting Standards Codification among other resources. **Course Structure & Content:** The course is methodically structured, enabling learners to follow a clear path from foundational concepts to more advanced topics. Here’s a detailed breakdown of the modules: 1. **Course Introduction:** This initial module sets the groundwork for success, providing an overview of the course objectives, introducing the instructor and classmates, and guiding you through the technical skills necessary to navigate the course effectively. 2. **Module 1: Deferred Taxes Part 1:** This module introduces the complex topic of employee postretirement benefits, focusing on defined benefit plans. You will grasp the key elements of benefit obligations, plan assets, and periodic benefit costs, along with understanding how changes are recognized in comprehensive income. 3. **Module 2: Deferred Taxes Part 2:** Building on the previous module, this section continues to explore retirement benefits, covering healthcare plans, multi-employer plans, and defined contribution plans. You’ll learn critical concepts like curtailment and settlement, and discover the major differences between US GAAP and IFRS. 4. **Module 3: Equity:** Transitioning from liabilities to equity, this module teaches you to account for stock issuances, dividends, stock splits, and treasury stock transactions. Understanding preferred stock and accumulated other comprehensive income is also covered. 5. **Module 4: Share-Based Payments:** This section delves into stock options and different models for valuing equity instruments. By the end of this module, you’ll be able to assess employee stock options along with their complexities, including forfeitures and grading vesting schedules. 6. **Module 5: Earnings Per Share:** A crucial area in accounting, you will learn the intricacies of calculating both basic and diluted earnings per share (EPS). This module discusses the effects of preferred stock and options, alongside the methodologies for determining these calculations. 7. **Module 6: Accounting Changes:** This module addresses how to handle changes in accounting principles and corrections for previous errors. You’ll grasp the three adoption techniques—retrospective, modified retrospective, and prospective—that are vital to compliance. 8. **Module 7: Statement of Cash Flows:** Finally, you will be introduced to the statement of cash flows, learning how to categorize cash flows into investing, financing, or operating activities and comparing the direct and indirect methods of presentation. 9. **Module 8: Course Evaluation:** This is an essential segment where you can provide feedback on the course and your learning experience. **Course Highlights:** - **Expert Instruction:** The course is taught by experienced professionals who guide you through complex topics with clarity and depth. - **Practical Applications:** Each module builds on real-world examples, making complex theories easier to understand and applicable. - **Interactive Learning Environment:** Engaging with peers through discussions encourages knowledge sharing and collaborative learning. **Recommendation:** "Accounting Analysis II: Accounting for Liabilities and Equity" is highly recommended for accounting students, finance professionals, and anyone looking to strengthen their understanding of liability and equity accounting. The structured approach and detailed content make it suitable for both beginners and those with prior knowledge. Completing this course not only enhances your resume but also equips you to tackle advanced accounting challenges in your career. If you are keen on enhancing your financial reporting skills, don't hesitate to enroll and take the next step in your accounting education.

Syllabus

Course Introduction

In this module, you will become familiar with the course, your instructor and your classmates, and our learning environment. This orientation will also help you obtain the technical skills required to navigate and be successful in this course.

In this module, you will be introduced to the accounting by employers for employee postretirement benefits. We will explore the basic features of accounting for defined benefit plans, including benefit obligations, plan assets, and the components of net periodic benefit cost. The discussion includes accounting for changes in net pension asset or liability that are recognized in other comprehensive income.

In this module, you will continue your study of the employer's accounting for employee retirement benefits, including health care plans, multi-employer plans, and defined contribution plans. We will learn the definitions of curtailment and settlement and the impact of each on the financial statements. The module also describes defined contribution plans and multi-employer plans. The module will wrap up with a brief discussion of some of the major differences between US GAAP and IFRS.

In this module, the conversation changes from liabilities to equity. You will learn how to account for the issuance of common stock and basic transactions such as cash dividends, stock dividends, stock splits, and the purchase and reissuance of treasury stock. The module also includes a discussion of preferred stock and accumulated other comprehensive income.

In this module, you will be introduced to share-based payments, such as stock options. We will learn the different models used in valuing equity instruments. This module will begin with a simple example for the accounting of employee stock options, and will then build on that to include forfeitures and graded vesting. The module will conclude with a discussion of stock appreciation rights and restricted shares.

In this module, you will be introduced to the concept of earnings per share (EPS). You will learn how to account for basic EPS and diluted EPS. The module includes discussion of how preferred stock, options, and conversion features affect the numerator and denominator when calculating basic and diluted EPS. The module continues with the discussion of the mechanics of the if-converted and treasury stock methods, and the accounting for antidilutive securities.

In this module, you will be introduced to the accounting for changes in accounting principles, changes in accounting estimates, and correction of errors from a previous period. The module will discuss the three techniques used when a new standard is adopted: retrospective, modified retrospective, and prospective.

In this module, you will be introduced to the statement of cash flows. We will learn how to classify cash flows as investing, financing, or operating activities. The module will conclude with a comparison of the statement of cash flows prepared using the direct and indirect methods.

This module is for you to tell us what you think of the course.