TERM: | 2021-22 Winter |
COURSE NUMBER: |
BUSI 353 |
COURSE TITLE: |
Intermediate Financial Accounting I |
NAME OF INSTRUCTOR: |
Jeff Miller, MBA, BCom, CPA, CMA |
CREDIT WEIGHT AND WEEKLY TIME DISTRIBUTION: |
credits 3 (hrs lect 3 - hrs sem 0 - hrs lab 1) |
COURSE DESCRIPTION: |
This course focuses on elements of the Balance Sheet,
Capital Assets, Current and Long-term Liabilities, Partnerships,
Shareholders Equity, Investments and Cash Flow generated, and Taxes
on Corporation Income. This course is available to first year B.Com. students..
Prerequisites: BUSI 253
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REQUIRED TEXTS: |
Kieso, D. E., et al. (2019). Intermediate Accounting, 12th Canadian Edition, Volume 1. Wiley (including
WileyPLUS)
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MARK DISTRIBUTION IN PERCENT: |
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Mid Term 1 |
25% |
Mid Term 2 | 25% |
Assignments | 20% |
Final Exam | 30% | |
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100% |
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COURSE OUTCOMES |
A
combination of lectures, demonstration problems and class discussion
(using examples in the text) will be employed. Please feel free
to ask questions or make comments at any time. The main
objectives are:
- To ensure students will meet employers’ expectations as graduates.
- To
ensure students learn the skills to remain current and able to add
value to the employer's operations throughout the graduate’s career.
- To provide the student with multiple life options.
- To encourage graduates to make decisions using accounting data obtained from proper accounting information systems.
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COURSE OBJECTIVES: | - 1. Demonstrate an understanding of the conceptual framework underlying financial accounting
- Understand the nature of the development of a conceptual framework with respect to financial accounting
- Identify
and describe the objectives of financial reporting, the qualitative
characteristics of accounting information, the impact of constraints on
reporting of financial information, the basic elements of financial
statements, and the basic principles and assumptions underlying
accounting information
- Understand the use of professional judgement in accounting
- 2. Demonstrate an understanding of the accounting process; and the ability to prepare financial statements
- Demonstrate an understanding of basic accounting terminology and double entry accounting
- Identify and describe the steps in the accounting cycle
- Explain the need for adjusting entries in the accounting process and prepare such entries
- Identify
the uses and limitations of the balance sheet (statement of financial
position), statement of income (statement of profit and loss) and
comprehensive income and statement of shareholders' equity
- Prepare
the statement of income, the statement of comprehensive income, the
statement of shareholders' equity, statement of retained earnings,
balance sheet, and statement of cash flow, together with related
footnotes and earnings per share computations, in accordance with
generally accepted accounting principles and changes in estimates, and
extraordinary items (private entity GAAP only). Demonstrate how these
transactions would be disclosed in the financial statements
- Understand the predictive ability of the income statement and how it is impacted by non-recurring items
- 3. Demonstrate an understanding of the concept of revenue recognition and revenue measurement
- Demonstrate
an understanding of the earnings process, and when revenue is
recognized for accounting purposes based on criteria set out in the
revenue recognition principle
- Describe situations where revenue is recognized at delivery, before and after delivery, and based on efforts expended
- Understand and apply revenue measurement for long-term contracts
- Discuss ethical issues involving revenue recognition
- 4. Demonstrate an understanding of the accounting for current assets
- Discuss the nature of financial assets and liabilities
- Identify items considered to be cash and disclosure requirements with respect to cash
- Explain common techniques employed to provide internal control over cash
- Describe
and apply the accounting treatment for Fair Value Investments (debt and
equity) with unrealized gains/losses recognized through the statement
of profit and loss and the basis for their valuation and disclosure on
the balance sheet
- Define receivables and identify and
apply the accounting issues related to the recognition, valuation (bad
debts, and disposition of receivables
- Identify the major classifications of inventory and determine the items that are included as inventory costs
- Distinguish between periodic and perpetual inventory systems
- Identify the effects of inventory errors on financial statements
- Describe and compare the cost flow assumptions used in accounting for inventories
- Describe and apply the lower of cost flow assumptions used in accounting for inventories
- Describe and apply the lower of cost and net realizable value basis for inventory valuation
- Determine the estimated value for inventory through the gross profit method, appreciating the limitations of this method
- Discuss internal control as it relates to inventory
- Explain financial statement disclosure of current assets
- Compare the rules under IFRS to ASPE for private entities
- 5. Demonstrate an understanding of the accounting for tangible (Plant, property and equipment) and intangible assets
- Describe
the major characteristics of property, plant, and equipment,
identifying and accounting for the acquisitions costs of these assets
- Describe the characteristics of and identify the different types of intangible capital assets
- Describe and apply valuation methods that are in effect under IFRS
- Describe and apply the accounting treatment for costs incurred subsequent to acquisition of property, plant and equipment
- Describe and apply the accounting treatment for disposal of plant assets
- Describe and apply the accounting concept of depreciation of plan assets and the amortization of intangible assets
- Identify
and analyse the factors that must be considered when determining
depreciation charges, selecting depreciation methods and calculating
depreciation charges using these various methods
- Describe, explain and apply the accounting treatment required for Investment Tax credits
- Explain the issues and account for the depletion of natural resources
- Describe and apply the accounting treatment for impairment of property, plant and equipment assets and intangible assets
- Explain the conceptual issues related to goodwill and describe and apply the accounting treatment for goodwill
- Explain
the conceptual issues related to research and development (R&D)
costs and describe and apply the accounting treatment for R&D
- Discuss ethical considerations involving intangible assets
- Describe
the financial statement disclosure required for property plant and
equipment and intangible assets and their related amortization
accounts, as well as the cash flow reporting requirements for these
assets
- Compare the rules under IFRS and ASPE required for private entities
- 6. Demonstrate an understanding of the accounting for investment in shares and bonds
- Discuss and introduce the concept of financial instruments
- Explain the effect of different ownership interests on the accounting for long-term investments in shares
- Identify
investments in shares held on an available for sale basis. Identify
investments that are held as strategic investments with significant
influence
- Describe and apply the accounting treatment
for long term non-strategic investments classified as cost, amortized
cost, fair value through profit and loss and fair value through other
comprehensive income, including adjustments required to reflect the
investments at fair value on the financial statements and accounting
required on disposal of these investments
- Describe and
apply the accounting treatment for long term investments held as
strategic investments where significant influence is present using the
equity method
- Describe the financial statement disclosure and presentation required for long term investments in shares
- Review time value of money concept and basis interest concepts and complete present and future value calculations
- Describe
and apply the accounting treatment for long term investments in bonds
and other long term debt instruments that are expected to be held to
maturity and are therefore accounted for using the amortized cost model
- Describe the accounting treatment required to account for impairment in the value of investments in bonds
- Describe the financial statement disclosure and presentation required under IFRS for long-term investments in bonds
- Compare the rules for investment in shares and bonds under IFRS to ASPE required for private entities
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COURSE OUTLINE: | - Introduction
- The Canadian Financial Reporting Environment
- Measurement
- Reporting Financial Performance
- Financial Position and Cash Flows
- Revenue Recognition
- Cash and Receivables
- Inventory
- Investments
- Property, Plant, and Equipment: Accounting Model Basics
- Depreciation, Impairment, and Disposition
- Intangible Assets and Goodwill
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