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COURSE NUMBER: BUSI 353
COURSE TITLE: Intermediate Financial Accounting I
NAME OF INSTRUCTOR: Dwayne O'Coin
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
REQUIRED TEXTS: Kieso, Intermediate Accounting, Eleventh Canadian Edition, Volume 1
MARK DISTRIBUTION IN PERCENT:
Mid Term 1 15%
Mid Term 220%
Lab Assignments25%
Final Exam40%
100%
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.
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
COURSE OUTLINE:
  • Introduction, Syllabus
  • Review of Intro Financial Accounting
  • Why Accounting?
  • Financial Reporting
  • Financial Reports - SFP and SCF
  • Revenue
  • Cash and Receivables
  • Inventory
  • Intercorporate Investments
  • Property, Plant and Equipment
  • Depreciation, Impairment, Derecognition
  • Intangible Assets and Goodwill


Required texts, assignments, and grade distributions may vary from one offering of this course to the next. Please consult the course instructor for up to date details.

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