Readings

In addition to the bibliography of readings used in the course, see the readings by session below.

Required Text

Pratt, J. Financial Accounting in an Economic Context. 5th ed. Cincinnati, Ohio: John Wiley & Sons, 2003. ISBN: 0470000465. (Hereafter cited as "Pratt")

Required Case Packet

Includes supplemental readings and Harvard Business School cases. (Hereafter cited as "CP")

Required case studies are:

Wilson, David A.  "Chemalite, Inc." Boston, MA: Harvard Business School, 1976.  Case No. 9-177-078.

Bruns, William J., Jr. and Susan S. Harmeling.  "Circuit City Stores, Inc. (A)." Boston, MA: Harvard Business School, 1990. Case No. 9-191-086, 1-11.

Bruns, William J., Jr. and Eric J. Petro.  "Depreciation at Delta and Pan Am." Boston, MA: Harvard Business School, 1989. Case No. 9-190-035.

Bruns, William J., Jr. and Susan S. Harmeling.  "Accounting for Frequent Fliers." Boston, MA: Harvard Business School, 1991. Case No. 9-192-040.

Bruns, William J., Jr.  "Brief Introduction to Cost Accounting." Boston, MA: Harvard Business School, 1991. Case No. 9-192-068.

Bruns, William J., Jr.  "Activity Accounting - Another Way to Measure Costs." Boston, MA: Harvard Business School, 1992. Case No. 9-193-044.

Cooper, Robin, Peter B. B. Turney, and Christopher D. Ittner. "Seligram, Inc. Electronic Testing Operations." Boston, MA: Harvard Business School, 1988. Case No. 9-189-084.

Merchant, Kenneth A. and Lourdes Ferreira.  "Scovill, Inc. NuTone Housing Group." Boston, MA: Harvard Business School, 1985. Case No. 9-186-136.

Kerr, Steven. "An Academy Classic: On the Folly of Rewarding A, While Hoping for B. (1992)" Academy of Management Executive 9, no. 1 (1995).

Bruns, William J., Jr.  "Destin Brass." Boston, MA: Harvard Business School, 1989. Case No. 9-190-089.

Supplementary Texts

Stickney, C., and R. Weil. Financial Accounting: An Introduction to Concepts, Methods, and Uses. 8th ed. Fort Worth: The Dryden Press, 1997.  ISBN: 9780030182686.

Bazley, J. S., L. A. Nikolai, and H. B. Grove. Financial Accounting: Concepts and Uses. 3rd ed. Cincinnati, Ohio: South-Western College Publishers, 1995.  ISBN:  0538839228.

Hoskin, R. Financial Accounting: A User Perspective. 2nd ed. Toronto: John Wiley & Sons, 1997.  ISBN: 0471172359.

Kieso, D., and J. Weygandt. Intermediate Accounting. 9th ed. New York: John Wiley & Sons, 1998.  ISBN:  0471641839.

Readings by Session

Note on text problems: "Do" are problems that will help you prepare for class; but they do not have to be submitted. "Opt" are problems that you could optionally do if you want more material to study.

LEC # TOPICS READINGS
1 Overview of the course, Administrative matters, Discussion of Accounting Framework Pratt: skim Ch. 1, incl. Appendix 1A
2 The Balance Sheet and the Recording of Transactions Pratt: Ch. 2 and 3, skim Ch. 5

Do: P2-1, E3-3

Opt: P2-3, P2-4, P2-9
3 The Income Statement and Principles of Accrual Accounting Pratt: Ch. 2 and 3, skim Ch. 3

Do: P2-2, E2-4

Opt: E2-12, ID2-7
4 The Income Statement and Principles of Accrual Accounting (cont.) Pratt: Ch. 3 and 4, skim Appendix 4A

Do: P3-7, E4-19, E4-2

Opt: E4-5, E4-16
5 The Accounting Process Case: Chemalite, Inc.
6 Revenue Recognition Pratt: Ch. 3 (pp. 83-85) and Ch. 6

Do: E6-6, E6-8

Opt: P6-7
7 Revenue Recognition (cont.) Case: Circuit City

Pratt: Ch. 6

Do: P6-3, P6-4

Opt: P6-10
8 Inventory/Cost of Goods Sold Pratt: Ch. 7

Do: P7-4, P7-9

Opt: P7-6
9 Statement of Cash Flow Pratt: Ch. 14

Do: P14-2, E14-8

Opt: E14-7
10 More on the Statement of Cash Flows/Exam Review Do: E14-9, E14-10
11 First Exam  
12 Long-term Assets/Depreciation (Deferred Taxes) Pratt: Ch. 9, incl. App. 9A and 10B, pp. 439-442

Do: E9-5, E9-18, E10-11

Opt: ID9-7, BE9-3, P10-8
13 Matching Principle for PP&E Case: Depreciation at Delta and Pan Am
14 Marketable Securities (Deferred Taxes) Pratt: Ch. 8 (through p. 332)

Do: E8-2, E8-5, P8-6

Opt: P8-5
15 Marketable Securities, Time Value of Money Pratt: Appendix B

Do: EB-11, EB-14
16 Long Term Debt Pratt: Ch. 11 through p. 476 Appendix 11A

Do: E11-5, E11-9

Opt: E11-3, E11-18
17 Leases and Off-Balance Sheet Financing Pratt: Ch. 11 (p. 483 to end)

Do: P11-13, P11-14

Opt: ID11-6
18 Current Liabilities and Contingencies Case: Accounting for Frequent Fliers

Pratt: Ch. 10

Do: E10-9, P10-2

Opt: P10-5, ID10-1, ID10-3
19 Midterm 2 Review  
20 Second Exam  
21 Intangibles and Business Combinations Pratt: Ch. 8, pp. 332-339

Do: P8-10, P8-14
22 Introduction to Cost Concepts CP: A Brief Introduction to Cost Accounting; Activity Accounting: Another Way to Measure Costs; On the Folly of Rewarding A, While Hoping for B
23 Indirect Allocation of Costs, Destin Brass Case: Destin Brass Products
24 ABC, Destin Brass Case: Destin Brass Products
25 Managerial Accounting Wrap-up, Seligram Discussion Case: Seligram Inc. Electronic Testing Operations
26 Course Review/Wrap-up  
  Final Exam