Course Outline School: Department: Business Accounting Course Title: Intermediate Financial Acct. 1 Course Code: ACCT 256 Course Hours/Credits: 56 Prerequisites: ACCT 221 Co-requisites: Eligible for Prior Learning, Assessment and Recognition: Originated by: N/A Yes Joseph A Toste, Carole Clyne Creation : Winter 2013 Revised by: Ann Overton Revision : Winter 2015 Current Semester: Fall 2015 Approved by: Chairperson/Dean Students are expected to review and understand all areas of the course outline. Retain this course outline for future transfer credit applications. A fee may be charged for additional copies. This course outline is available in alternative formats upon request.
Course Description This course is part of the curriculum for the full-time Accounting diploma program. The course examines advanced financial accounting topics related to the Balance sheet, Income Statement and the Statement of Cash Flows. There is a discussion of the conceptual framework, generally accepted accounting principles, the accounting process and alternate revenue recognition methods. Balance sheet topics include cash, receivables, inventories, tangible and intangible assets and investments. The course examines the uses of earnings per share and disclosure notes to facilitate comparisons between companies and the role of accounting standards in improving the quality of earnings information available to financial statement users. Instructional strategies include lectures, class discussion and problem solving and research. Assessment methods include assignments, quizzes and tests with a focus on theory and application.instructional strategies include lectures, class discussion and problem solving. Program Outcomes Successful completion of this and other courses in the program culminates in the achievement of the Vocational Learning Outcomes (program outcomes) set by the Ministry of Training, Colleges and Universities in the Program Standard. The VLOs express the learning a student must reliably demonstrate before graduation. To ensure a meaningful learning experience and to better understand how this course and program prepare graduates for success, students are encouraged to review the Program Standard by visiting http://www.tcu.gov.on.ca/pepg/audiences/colleges/progstan/. For apprenticeship-based programs, visit http://www.collegeoftrades.ca/training-standards. Course Learning Outcomes The student will reliably demonstrate the ability to: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Appraise the environment of financial accounting and the development of accounting standards. Analyse the Conceptual Framework of accounting theory and the accounting process Prepare a Statement of Income, a Balance Sheet, a Statement of Cash Flows and a Statement of Retained Earnings in good form. Explain and apply the principles of income recognition and the impact of revenue recognition accounting choices on reported earnings and earnings per share information. State the issues involved in recording, valuing and reporting items classified as cash,inventory, accounts receivable, temporary and long-term investments, with the required disclosures. Apply various depreciation and depletion methods related to Tangible Capital Assets and revalued assets, recognizing gains & losses on the sale or exchange of Tangible Capital Assets. Summarize accounting issues and valuation problems associated with the acquisition and disposal of Tangible Capital Assets (property, plant and equipment). Examine the financial reporting environment from an Ethical, IT, Emerging Trends and the development of accounting standards. Apply principles of valuation using the revaluation model and describe accounting procedures including amortization methods related to Intangible Capital Assets Interpret financial reporting results for internal and external stakeholders. Essential Employability Skills (EES) THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 2
The student will reliably demonstrate the ability to*: 1. Communicate clearly, concisely and correctly in the written, spoken, and visual form that fulfills the purpose and meets the needs of the audience. 2. Respond to written, spoken, or visual messages in a manner that ensures effective communication. 3. Execute mathematical operations accurately. 4. Apply a systematic approach to solve problems. 5. Use a variety of thinking skills to anticipate and solve problems. *There are 11 Essential Employability Skills outcomes as per the Ministry Program Standard. Of these 11 outcomes, the following will be assessed in this course. Global Citizenship and Equity (GC&E) Outcomes N/A Text and other Instructional/Learning Materials Text Book(s): INTERMEDIATE ACCOUNTING TENTH CANADIAN EDITION, VOLUME ONE; Kieso, Weygandt, Warfield, Young, Wiecek and McConomy. John Wiley & Sons Canada Ltd. ISBN: 9781118673690 Online Resource(s): Registration Code Number WileyPlus The Registration Code is included with the purchase of the above Text (Tenth Edition). Students who acquire a previously owned textbook where the Registration Code has been used, will be required to separately purchase a Registration Code from the Bookstore or directly from the Publisher to complete any assigned online Wileyplus.com assignments or quizzes. Scheme WileyPLUS assignments: Quizzes, Exercises Hand in Assignments: Exercises/MCQ's from Text Test #1: MidTerm covering Chapters 1,2,3,4. Test #2: MidTerm covering Chapters 5,6,7,8. Test #3: All chapters covered in course CLO(s) EES GCE Outcome(s) Outcome(s) Weight/100 WileyPLUS assignments 1, 2, 3, 4, 5, 6 1, 2, 3, 4, 5 10 Hand in Assignments 1, 2, 3, 4, 5, 1, 2, 3, 4, 5 10 6, 7, 8, 9 Test #1 1, 2, 3, 4 1, 2, 3, 4, 5 20 Test #2 3, 4, 5, 9 1, 2, 3, 4, 5 20 Test #3 1, 2, 3, 4, 5, 1, 2, 3, 4, 5 40 6, 7, 8, 9, 10 Total 100% If students are unable to write a test they should immediately contact their professor or program Chair for advice. In exceptional and well documented circumstances (e.g. unforeseen family problems, serious illness, or death of a close family member), students may be able to write a make-up test. THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 3
All submitted work may be reviewed for authenticity and originality utilizing Turnitin. Students who do not wish to have their work submitted to Turnitin must, by the end of the second week of class, communicate this in writing to the instructor and make mutually agreeable alternate arrangements. When writing tests, students must be able to produce official College photo identification or they may be refused the right to take the test or test results will be void. Student Accommodation It is College Policy to provide accommodation based on grounds defined in the Ontario Human Rights Code. Accommodation may include modifications to standard practices. Students with disabilities who require academic accommodations must register with the Centre for Students with Disabilities. Students requiring accommodation based on other human rights grounds should talk with their professors as early as possible. Please see the Student Accommodation Policy. Use of Dictionaries English-Additional Language (e.g. English-Chinese) or Additional Language-English (e.g. Russian- English) dictionaries may be used in regular class work. Dictionaries may be used in tests and examinations, or in portions of tests and examinations, as long as they are non-electronic (not capable of storing information) and hard copy (reviewed by the invigilator to ensure notes are not incorporated that would affect test or examination integrity). Program or School Policies N/A Course Policies N/A College Policies Students should familiarize themselves with all College Policies that cover academic matters and student conduct. All students and employees have the right to study and work in an environment that is free from discrimination and harassment and promotes respect and equity. Centennial policies ensure all incidents of harassment, discrimination, bullying and violence will be addressed and responded to accordingly. Academic honesty is integral to the learning process and a necessary ingredient of academic integrity. Academic dishonesty includes cheating, plagiarism, and impersonation. All of these occur when the work of others is presented by a student as their own and/or without citing sources of information. Breaches of academic honesty may result in a failing grade on the assignment/course, suspension or expulsion from the college. For more information on these and other policies, please visit www.centennialcollege.ca/about- THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 4
centennial/college-overview/college-policies. Students enrolled in a joint or collaborative program are subject to the partner institution's academic policies. PLAR Process This course is eligible for Prior Learning Assessment and Recognition (PLAR). PLAR is a process by which course credit may be granted for past learning acquired through work or other life experiences. The PLAR process involves completing an assessment (portfolio, test, assignment, etc.) that reliably demonstrates achievement of the course learning outcomes. Contact the academic school to obtain information on the PLAR process and the required assessment. This course outline and its associated weekly topical(s) may not be reproduced, in whole or in part, without the prior permission of Centennial College. THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 5
Topical Outline (subject to change): Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies 1 The Accounting Chapter 3 Review the accounting cycle and apply the Lecture/discussion/incla Information System. accounting cycle to the preparation of ss financial statements Prepare adjusting entries. Examine accounting information systems Prepare financial statements with the accounting cycle and the recording process. 2 Conceptual Framework Underlying Financial Reporting Chapter 2 Chapter 2A Appendix Utilize the conceptual framework to prepare appropriate financial statements. Illustrate an understanding of the objectives and fundamental accounting concepts. Illustrate the objectives of Appraise the qualitative characteristic of accounting information. Demonstrate an understanding of the basic elements of the financial statements. Analysis the methods of measurement for accounting. Explain the difference between accrual and cash accounting. Interpret the IFRS/ASPE frameworks. 3 The Canadian Financial Reporting Environment Chapter 1 Discuss the preparation and disclosure in financial statements and the role of MD&A. Describe the essential characteristics of accounting. Explain the need for accounting standards and the meaning of GAAP., cases Quiz Chapter 3 THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 6
Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Explain the alternative GAAP for Canadian companies and the role of financial accounting and reporting in the efficient allocation of scarce resources in the capital markets (debt and equity); Discuss ethical considerations and challenges in accounting policy choices. Explain ethical professional judgement Interpret the role of IT in reporting information, including XBRL. Discuss emerging trends in accounting standards and recent updates. Identify specialized financial reporting requirements(such as Sarbanes-Oxley or SOX) Illustrate the challenges and impact of technology on accounting. Explain bias possibilities in financial reporting decisions 4-5 Reporting Financial Performance Cash Basis versus Accrual Based Earnings Chapter 4 Chapter 4A Appendix Prepare the statements in accordance with applicable standards and required accountability. Prepare Income Statement using various formats and Retained earnings including asset disposals/restructuring including discontinued operations, gains, losses and other irregular items for users and their broader needs. Calculate earnings per share and explain its relevance. Differentiate between cash and accrual accounting. Research Foreign Currency Transactions Quiz Chapters 1&2 THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 7
Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Prepare routine disclosures in the Financial Statements. Understand how users use the information in the Financial Statements about performance to make decisions. Account for errors and restate changes. 5-6 Financial Position and Cash Flows 6-7 Revenue Recognition Chapter 6 Chapter 5 including Chapter 5A Appendix(Ratio Analysis) (excluding Appendix 5B) Research and evaluate foreign currency transactions for the Financial Statements routine and non-routine transactions. Prepare the Balance Sheet and Statement of Cash Flows Identify and prepare the different sections of the cash flow statement (operating, financing and investing activities) using the direct and indirect methods. Discuss the usefulness and presentation and required disclosure of cash flow statements Interpret ratios and benchmark to provide financial statement users with an understanding of the results. Evaluate treatment for routine revenue transactions. Lecture/inclass / discussion Lecture/Inclass /Discussion Test #1 (20%) Chapters 1,2,3,4 (5A) Chapter 5 Quiz Explain revenue recognition concepts, criteria and practices for different sources of revenue. Apply revenue recognition principles under the earnings approach Apply the percentage-of-completion and completed contract method of accounting for revenue from long-term contracts (Earnings and Contract-based approaches) Explain the impact of accounting choices and alternative revenue recognition methods on the income statement and key ratios and interpreting the reported earnings. THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 8
Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Evaluate treatment for routine and nonroutine foreign currency transactions 7-8 Cash and Receivables Chapter 7 Evaluate treatment for routine cash and cash Lecture/inclass Chapter 7A Appendix equivalent transactions. /discussion Show the appropriate financial reporting of cash, cash equivalent and noncash items. Evaluate treatment for routine receivable transactions. 9-10 Inventory Chapter 8 Prepare the financial statement presentation of receivables, including classification and valuation on the balance sheet. Recognize Notes receivable and Disposition of Accounts and Notes Receivable. Cash Controls prepare reconciliation of Bank Balances Explain the recognition and accounting of short term and long term notes receivable and loans receivables Evaluate treatment for routine inventory transactions. Describe character and composition of inventory comparing the periodic and perpetual methods. Prepare the financial statement presentation of inventory Explain the effects of inventory errors. Explain and apply various cost flow methods used to value inventory Determine inventory values using lower of cost and market. Determine inventory values using the gross profit and the retail inventory methods. Demonstrate the presentation and disclosure of inventory within the notes to the financial statements Test #2 Chapters 5,6,7,8 (20%)(9B) THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 9
Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies 10-11 Investments: Chapter 9 (excluding Assignment Temporary and Long- Appendix 9A) Evaluate treatment for investment and/or Quiz Term transactions, including significant influence. Investment classification Account for Long- Term Debt Securities Account for Temporary Debt Securities and for Temporary Equity Securities. Account for Long-Term Equity Investments using the Cost, and Equity Methods. Discuss joint ventures and their accounting treatment. Demonstrate the presentation and disclosure of investments within the notes to the financial statements 11-12 Acquisition and Disposition of Tangible Capital Assets (Property, Plant and Equipment - PPE) 12-13 Amortization, Impairments and Depletion Chapter 10 (excluding Appendix 10A) Chapter 11; Chapter 11A Appendix Evaluate treatment for routine property, plant and equipment transactions. Evaluate treatment for non- routine natural resources, dismantling and restoration costs (decommissioned costs) transactions. Determine acquisition value and account for asset acquisitions including natural resources and non-cash acquisitions; Account for asset exchanges, Post-acquisition expenditures - capital versus revenue expenditures and disposals of capital assets. Apply the revaluation model of accounting for PPE. Identify the costs to include in the measurement of PPE assets at the time of acquisition Explain the cost model Explain and apply the accounting treatment for costs incurred after acquisition (expense versus capitalized costs) Evaluate the treatment for routine depreciation, amortization, impairment and disposition/ de-recognition transactions. Assignment and/or Quiz THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 10
Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Determine and apply depreciation methods using straight-line, activity and decreasing charge. Explain the concept of depreciation and factors to consider when determining depreciation methods including depreciation for revalued assets. Explain the relationship between accounting depreciation and capital cost allowance for income tax. Account for impairment of asset value 13-14 Intangible Assets and Chapter 12 Lecture, discussion and Goodwill Chapter 12A Appendix in-class. Justify the importance of intangible assets and goodwill from a business perspective. Evaluate the treatment for intangible assets and goodwill transactions. Explain financial statement presentation, character and composition of intangibles Explain and account for specific intangibles Explain, value and account for goodwill Apply the revaluation model of accounting for intangible assets. Recognise and measure a business acquisition Evaluate and calculate the purchase of a business combination. Test #3 (40%)Compre hensive - Chapters 1-12 THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 11