Accounting Analysis I: Measurement and Disclosure of Assets from Coursera

**NOTE: You should complete the Accounting Analysis I: The Role of Accounting as an Information System course or be familiar with the concepts taught there before beginning this course.**

This course is the second course in a five-course Financial Reporting Specialization that covers the collection, processing, and communication of accounting information (via financial reports) about economic entities to interested parties (i.e., managers and external stakeholders such as stockholders and creditors). To gain the most relevant knowledge from these courses, learners should have taken a basic accounting course prior to this Specialization (which can be done through Coursera courses, such as any accounting course from the Fundamentals of Accounting Specialization: https://www.coursera.org/specializations/accounting-fundamentals). This Specialization focuses on accounting concepts, principles and theory with an emphasis on problems that arise in applying these concepts for external reporting purposes. Specific emphasis is placed on measurement of assets, liabilities, equities and income, as well as disclosure of additional information that may assist users understand the financial reports.

In this course, we will begin our review of key asset categories underlying the Balance Sheet concepts that were introduced in the previous course. We will begin our trek down the Balance Sheet by reviewing cash and receivables, which are normally the two assets listed first. We will continue our trek down the Balance Sheet by looking at inventory and long-lived assets, which are normally two of the largest asset values. We will review the measurement and reporting issues involving Inventories and the corresponding cost of goods sold expense in the Income Statement. In the latter half of this course we will conclude our review of key asset categories by looking at both tangible and intangible long-lived assets that are so vital to the production of goods and services. This will entail discussion of both acquisition and disposition of property, plant and equipment as well as cost allocation. Next, we will discuss possible impairment of these assets as well as the proper treatment of expenditures made after acquisition. Lastly, we will review how to identify and account for debt and equity investments.

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What's inside

Syllabus

Course Orientation

You will become familiar with the course, your classmates, and our learning environment. The orientation will also help you obtain the technical skills required for the course.

Module 1: Cash & Accounts Receivable

We will learn about internal controls, including bank reconciliations, as well as restrictions over cash. Next, we will introduce the approaches to estimate bad debt expense related to accounts receivable. Lastly, we will discuss notes receivable and various methods of financing with receivables.

Module 2: Inventory - Measurement

We will learn about the types of inventory systems, as well as the costs that should be included in inventory. Next, we will understand the various inventory costing methods, as well as key factors on choice of these methods. Lastly, we will discuss inventory ratio analysis, as well as methods of simplifying LIFO.

Module 3: Inventory - Additional Issues

We will learn about the subsequent measures of inventory such as LCNRV and LCM. Next, we will understand the various inventory estimation methods when we are unable to take a physical count. Then, we will discuss the various types of inventory cost flow methods. Lastly, we will discuss how to handle changes in inventory methods as well as inventory errors.

Module 4: PP&E and Intangible Assets: Acquisition

We will learn about the types of long-lived assets, as well as the basic costs to be capitalized. Next, we will understand the various complex issues of determining capitalized costs as well as discuss asset dispositions and exchanges. Lastly, we will learn about the costs associated with self-constructed assets and R&D.

Module 5: PP&E and Intangibles - Utilization & Impairment

We will learn about the various cost allocation methods, as well as key factors on the decision maker's perspective on selecting a depreciation method. Next, we will understand depletion of natural resources and amortization of intangible assets. Lastly, we will discuss how to account for expenditures after asset acquisition, and ratio analysis.

Module 6: Debt Investments

We will discuss recognition, measurement, and disclosure of debt investments.

Module 7: Equity Investments

We will learn about Equity Investments. Next, we will understand how to recognize, measure, and disclose the two types of Equity Investments. Lastly, we will discuss fair value adjustments for investments.

Module 8: Course Wrap-Up & Case Study

If you would like to earn an Honors badge on your certificate for this course, you must complete a peer-reviewed case study that will serve as a cumulative recap of the concepts you have learned throughout this course. The case study will involve a review of a letter to shareholders in which you will discuss key topics covered in this course that are mentioned in the letter.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Emphasizes measurement of assets, liabilities, equities and income, which are core concepts in financial reporting

Develops understanding of tangible and intangible long-lived assets, which are essential for production of goods and services

Requires familiarity with basic accounting concepts and may be challenging for beginners

Course is part of a five-course specialization in Financial Reporting

Covers acquisition and disposition of property, plant, and equipment, which are important topics in accounting

Instructors are experienced in accounting, providing valuable insights

Reviews summary

Accounting concepts: understanding assets

Learners say this well received course provides engaging assignments that help reinforce material. Students appreciate the excellent instructor's clear explanations and feel that the course is well-paced and structured. Learners should be aware that some find exams difficult and a few have issue with the peer-graded assignment system. Overall, students who took this course recommend it.

Assignments help reinforce course material and are found to be engaging by students.

"some exams don't explained in ppt"

"The concept covered are good and the test your knowledge section helps to revise and the course material is of good quality."

"Excellent teacher, excellent course!"

Concepts are explained in a clear and organized manner.

"the subject matter is very continuous with the current era so it is easy to understand."

"It was really helpful as it teaches us the basics of financial statements ."

"The instructor patiently explained the subject of balance sheet assets, its measurement and accounting in a very clear and systematized way."

Some students have a negative experience with the peer-graded assignment system.

"Very well, but I think I don't really like peer graded assignment system. It's really takes time waiting for review"

Some exams in the course are reported to be difficult by students.

"The only reason for not giving 5th star is the 7th week instructor. He was not at all an effective insturctor during that session."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Accounting Analysis I: Measurement and Disclosure of Assets with these activities:

Review fundamental accounting principles and concepts

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Refreshing your understanding of fundamental concepts will strengthen your foundation and enhance your ability to comprehend the more advanced topics covered in the course.

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Review your notes or textbooks from previous accounting courses.
Complete practice problems or quizzes to test your understanding.
Attend a refresher course or workshop to solidify your knowledge.

Identify and seek guidance from a mentor in the accounting field

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Establishing a mentor relationship can provide you with valuable guidance, insights, and support throughout your learning journey.

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Identify professionals in the accounting field who have the expertise and experience you are seeking.
Reach out to potential mentors and introduce yourself, expressing your interest in their guidance.
Meet with your mentor regularly to discuss your progress, seek advice, and gain insights into the field.

Read and review the textbook for the course

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Reviewing the textbook for this course will introduce you to the key concepts of accounting that are essential for understanding the course material.

View Introduction to Financial Accounting on Amazon

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Read the introduction to the textbook to familiarize yourself with the structure and content of the book.
Review the chapter summaries at the end of each chapter to understand the key takeaways from the material.
Complete the end-of-chapter exercises to test your understanding of the concepts covered in each chapter.

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Complete practice problems related to accounting concepts

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Completing practice problems designed to test your understanding of accounting concepts will enhance your recall and aid in reinforcement.

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Review the lecture notes and textbook material for the relevant topic.
Attempt to solve the practice problems on your own.
Compare your answers to the provided solutions.
Review the solutions and identify areas where you need further understanding.

Participate in a peer study group to discuss course concepts

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Engage with fellow students to reinforce your understanding, enhance your critical thinking skills, and identify areas where you may need additional support.

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Identify classmates who are interested in forming a study group.
Meet regularly to discuss course material, solve problems, and share insights.
Take turns leading the discussions and presenting your understanding of the material.

Create a visual representation of the accounting cycle

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Creating a visual representation will help you visualize the flow of data and understand the interconnectedness of the different stages of the accounting cycle.

Browse courses on Accounting Cycle

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Gather information about the different stages of the accounting cycle.
Choose a visual format for your representation, such as a flowchart, diagram, or infographic.
Organize the information into a logical and easy-to-understand format.
Review and revise your representation to ensure clarity and accuracy.

Participate in accounting competitions or case study challenges

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Participating in competitions or case study challenges will test your knowledge, improve your problem-solving skills, and expose you to real-world scenarios.

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Research available accounting competitions or case study challenges.
Identify the eligibility criteria and requirements.
Form a team or work individually to prepare for the competition.
Participate in the competition and present your findings or solutions.

Contribute to open-source accounting projects

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Engaging in open-source projects allows you to apply your knowledge in a practical setting, contribute to the community, and gain valuable experience.

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Identify open-source accounting projects that align with your interests.
Contact the project maintainers to express your interest in contributing.
Review the project documentation and codebase to understand the project's goals and coding standards.
Make contributions to the project, such as fixing bugs, adding features, or improving documentation.

Career center

Learners who complete Accounting Analysis I: Measurement and Disclosure of Assets will develop knowledge and skills that may be useful to these careers:

Accountant

Accountants prepare and examine financial records, ensuring accuracy and compliance with regulations. This course is a great starting point for Accountants, as it provides a comprehensive overview of asset measurement and disclosure. Specifically, the course covers topics such as cash reconciliation, bad debt estimation, inventory costing methods, and long-lived asset valuation. Moreover, the course provides insights into the recognition, measurement, and disclosure of debt and equity investments, which are essential for Accountants involved in financial reporting and analysis.

See salaries and explore the career path for Accountant

Auditor

Auditors examine and evaluate financial records to ensure accuracy and compliance with regulations. This course provides a valuable foundation for Auditors, as it covers the measurement and disclosure of assets according to GAAP and IFRS. The course focuses on key asset categories such as cash, receivables, inventory, and long-lived assets, which are critical for understanding a company's financial health. Additionally, the course covers the identification and accounting for debt and equity investments, which are essential for Auditors assessing a company's investment strategy.

See salaries and explore the career path for Auditor

Portfolio Manager

Portfolio Managers manage investment portfolios for clients, making decisions on asset allocation and investment strategies. This course can be beneficial for Portfolio Managers, as it provides a strong foundation in asset measurement and disclosure. The course covers key asset categories like cash, receivables, inventory, and long-lived assets, which are essential for understanding the risk and return characteristics of different investments. Additionally, the course provides insights into the identification and accounting for debt and equity investments, which are critical for Portfolio Managers constructing and managing diversified portfolios.

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Financial Manager

Financial Managers oversee the financial activities of organizations and make strategic decisions regarding investments and resource allocation. This course can be beneficial for Financial Managers, as it provides a comprehensive understanding of asset measurement and disclosure. The course covers key asset categories such as cash, receivables, inventory, and long-lived assets, which are essential for understanding a company's financial health and making sound investment decisions. Additionally, the course covers the identification and accounting for debt and equity investments, which are essential for Financial Managers involved in capital budgeting and financial planning.

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Financial Analyst

Financial Analysts study economic and financial data to make sound business decisions for companies and organizations. This course helps to build a foundation for Financial Analysts by teaching students how to measure and disclose assets using Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). The course covers key asset categories like cash, receivables, inventory, and long-lived assets, which are essential for understanding a company's financial health. Additionally, the course provides insights into how to identify and account for debt and equity investments, which are critical for evaluating a company's investment strategy.

See salaries and explore the career path for Financial Analyst

Forensic Accountant

Forensic Accountants investigate financial records to uncover fraud and other financial crimes. This course may be useful for Forensic Accountants, as it provides a foundation in the measurement and disclosure of assets for fraud detection and investigation purposes. Specifically, the course covers topics such as cash reconciliation, bad debt estimation, inventory costing methods, and long-lived asset valuation.

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Loan Officer

Loan Officers evaluate loan applications and determine the creditworthiness of borrowers. This course may be useful for Loan Officers, as it provides insights into the measurement and disclosure of assets for credit risk assessment purposes. Specifically, the course covers topics such as inventory estimation methods, long-lived asset valuation, and the recognition, measurement, and disclosure of debt and equity investments.

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Investment Banker

Investment Bankers provide financial advice to companies and governments on mergers, acquisitions, and other financial transactions. This course may be helpful for Investment Bankers, as it provides insights into the measurement and disclosure of assets for due diligence and valuation purposes. Specifically, the course covers topics such as inventory costing methods, long-lived asset valuation, and the recognition, measurement, and disclosure of debt and equity investments.

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Financial Planner

Financial Planners help individuals and families manage their finances and plan for their financial future. This course may be helpful for Financial Planners, as it provides insights into the measurement and disclosure of assets for financial planning and wealth management purposes. Specifically, the course covers topics such as inventory costing methods, long-lived asset valuation, and the recognition, measurement, and disclosure of debt and equity investments.

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Credit Analyst

Credit Analysts assess the creditworthiness of borrowers to determine their ability to repay loans and other financial obligations. This course may be useful for Credit Analysts, as it provides insights into the measurement and disclosure of assets for credit risk assessment purposes. Specifically, the course covers topics such as inventory estimation methods, long-lived asset valuation, and the recognition, measurement, and disclosure of debt and equity investments.

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Budget Analyst

Budget Analysts develop and manage budgets for organizations, ensuring efficient use of financial resources. This course may be helpful for Budget Analysts, as it provides a foundation in the measurement and disclosure of assets for budget planning and control purposes. Specifically, the course covers topics such as inventory costing methods, long-lived asset valuation, and the recognition, measurement, and disclosure of debt and equity investments.

See salaries and explore the career path for Budget Analyst

Management Consultant

Management Consultants provide advice to organizations on improving their operations and achieving their goals. This course may be helpful for Management Consultants, as it provides insights into the measurement and disclosure of assets for business valuation and strategic planning purposes. Specifically, the course covers topics such as inventory costing methods, long-lived asset valuation, and the recognition, measurement, and disclosure of debt and equity investments.

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Insurance Analyst

Insurance Analysts assess risks and determine insurance premiums for individuals and businesses. This course may be helpful for Insurance Analysts, as it provides insights into the measurement and disclosure of assets for risk assessment and insurance pricing purposes. Specifically, the course covers topics such as inventory estimation methods, long-lived asset valuation, and the recognition, measurement, and disclosure of debt and equity investments.

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Tax Accountant

Tax Accountants specialize in tax laws and regulations to help businesses and individuals minimize their tax liabilities. This course may be helpful for Tax Accountants, as it provides insights into the measurement and disclosure of assets for tax purposes. Specifically, the course covers topics such as bad debt estimation, inventory costing methods, and long-lived asset valuation. Additionally, the course provides an overview of the recognition, measurement, and disclosure of debt and equity investments, which are essential for Tax Accountants involved in tax planning and compliance.

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Risk Manager

Risk Managers identify, assess, and manage risks that could impact an organization's financial health. This course may be useful for Risk Managers, as it provides insights into the measurement and disclosure of assets for risk assessment purposes. Specifically, the course covers topics such as inventory estimation methods, long-lived asset valuation, and the recognition, measurement, and disclosure of debt and equity investments.

See salaries and explore the career path for Risk Manager