This course will discuss how to prepare required disclosures associated with pensions and how to understand the accounting treatment for pension settlements and curtailments. Equity financing, identifying the rights associated with ownership of common and preferred stock are discussed. Treasury stock cost and par value methods are explained. Employee stock options and dividends are included. Earnings per Share and knowing the difference between a simple and a complex capital structure are included.
Students will Learn:
- To understand the nature and characteristics of pension plans.
- To identify the rights associated with common and preferred stock.
- To record the issuance of stock.
- To use various methods to account for stock purchases.
- To account for the issuance of stock rights and warrants.
- To compute basic earnings per share.
Module 1 – Pension Plans
Pension Plans – Worksheet
- Learning Objective: Develop knowledge regarding the nature of pension plans, define the various forms of pension plans and demonstrate ability to solve for pension plans using a pension worksheet.
Pension Plans – Gains/Losses, Costs, & Reporting
- Learning Objective: Compute and demonstrate ability to differentiate between gains and losses, analyze the nature of prior service costs, and prepare financial statement reporting pension plans.
Module 2 – Pension Plans & Equity Financing
Pension Plans – Erisa
Learning Objective: Analyze the components of ERISA, pension settlements and curtailments, and post-retirement benefits, demonstrate ability to account for pension plans.
Equity Financing – Stock Issue
- Learning Objective: Assess the corporate form of organization, identify the classifications of paid in capital, analyze and demonstrate ability to differentiate between common stock and preferred stock.
Module 3 – Equity Financing (continued)
- Learning Objective: Develop knowledge on the facets of treasury stock, construct journal entries for computing the purchase and sale of stock, demonstrate ability to account for retired share, prove ability to compare and contrast share retirement and treasury stock accounting.
Equity Financing (continued)
- Learning Objective: Recognize and evaluate the basic stock options for a compensation expense, develop skills on performance-based stock option plans, demonstrate ability to compute compensation expense and cash settlement awards.
Module 4 – Equity Financing (continued).
- Learning Objective: Engage in reporting equity-related items as liabilities, calculate mandatorily redeemable preferred shares, evaluate stock conversion’s impact on retained earnings, and ascertain the various factors that impact the retained earnings balance.
Equity Financing (continued)
- Learning Objective: Master the elements of cash dividends: dividend policy, important dates, and journal entries, assess and differentiate the components of property dividends and liquidating dividends, test accounting skills for reporting stock dividends, and stock splits, present statement of stockholders’ equity.
Module 5 – Earnings per Share
Earnings per Share
- Learning Objective: Compute earnings per share, develop knowledge on simple and complex capital structures, understand the implications and differentiate between dilutive and antidilutive securities, compute weighted average number of shares, show ability to calculate stock dividends, stock splits, earnings per share using the complex capital structure, and preferred stock & net loss.
Earnings per Share (continued
- Learning Objective: Analyze dilutive earnings per share and its facets: options, warrants, rights, multiple securities, understand the importance of reporting disclosure statements.
- Business undergraduates or MBA students with an accounting or finance focus.