ACAF70042
Intermediate Financial Reporting 1
Sheridan
 
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
 

Land Acknowledgement

Sheridan College resides on land that has been, and still is, the traditional territory of several Indigenous nations, including the Anishinaabe, the Haudenosaunee Confederacy, the Wendat, and the Mississaugas of the Credit First Nation. We recognize this territory is covered by the Dish with One Spoon treaty and the Two Row Wampum treaty, which emphasize the importance of joint stewardship, peace, and respectful relationships.

As an institution of higher learning Sheridan embraces the critical role that education must play in facilitating real transformational change. We continue our collective efforts to recognize Canada's colonial history and to take steps to meaningful Truth and Reconciliation.


Section I: Administrative Information
  Total hours: 63.0
Credit Value: 4.5
Credit Value Notes: N/A
Effective: Winter 2020
Prerequisites: ACAF70040
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: N/A

Program(s): Adv Cert Accounting & Finance
Program Coordinator(s): N/A
Course Leader or Contact: N/A
Version: 20200106_00
Status: Approved (APPR)

Section I Notes: Students are expected to have completed ACAF70040 or equivalent before registering for this course. This course is offered in two formats - online (OntarioLearn) and blended (on-campus and Slate). For the blended section, there will be an on-campus session each week along with online sessions. The online portion of the blended course is offered through Sheridan's Learning and Teaching Environment (SLATE). Online learning often involves assigned weekly readings, research, assignments, quizzes, journal writing and discussion boards. Some courses may include live online class sessions that allow students and the instructor to engage and share resources as a group. A laptop computer is required for this course. Students will need reliable access to the internet. A Texas Instruments BAII Plus (Business Analyst) or equivalent calculator is required for this course. To be considered for the Advanced Certificate in Accounting and Finance (ACAF) National Examination eligibility, students must earn a minimum grade of 60% in the ACAF Intermediate Financial Reporting 1 course and meet the additional standards of achievement as required by CPA Ontario's National Examination Policies.

 
 
Section II: Course Details

Detailed Description
Students build on their introductory financial accounting skills and focus primarily on the asset section of the statement of financial position. Students explore general financial statement presentation (statement of financial position, income statement, cash flow statement), revenue and expense recognition and specific components of the asset side of the statement of financial position (cash, receivables, notes receivable, temporary and long-term investments in debt and equity securities, inventory and capital assets), as well as their related Income statement effects. Through a combination of various learning techniques including interactive lectures, inquiry based learning and in-class problem solving students develop the ability to prepare external financial statement components and disclosure consistent with Canadian generally accepted accounting principles.

Program Context

 
Adv Cert Accounting & Finance Program Coordinator(s): N/A
This course is part of the ACAF cluster of course offerings.


Course Critical Performance and Learning Outcomes

  Critical Performance:
By the end of this course students will have demonstrated the ability to prepare external financial statement components and disclosures consistent with financial accounting theory, and generally accepted accounting principles, with an emphasis on accounting for financial assets.
 
Learning Outcomes:

To achieve the critical performance, students will have demonstrated the ability to:

  1. Describe the essential characteristics of accounting, the objective of financial reporting and the standard setting process in Canada.
  2. Define the elements of the conceptual framework for financial reporting.
  3. Explain the various steps in the accounting cycle.
  4. Prepare a multi-step income statement, classified balance sheet and cash flow statement in accordance with generally accepted accounting principles for an entity.
  5. Compare various alternative revenue recognition policies and performance obligations in a contract.
  6. Determine how various current and long-term assets should be reported, recognized, measured, presented and analyzed in accordance with generally accepted accounting principles and the conceptual framework.
  7. Identify the use of fair market values, lower of cost and net realizable value, and tests for impairment, in the valuation of various assets for financial reporting purposes.
  8. Apply rules related to the de-recognition of various assets.
  9. Contrast how the costs of various assets (including inventory, tangible and intangible long-term assets) are charged/allocated to expense over the period of benefit.
  10. Differentiate between the valuation and income recognition methods employed to account for various current and long-term investments in securities.

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: IN-CLASS & ONLINE INSTRUCTION
 Quizzes (10x1%)10.0%
 Assignments (10x2%)20.0%
 Midterm30.0%
 Comprehensive Final Exam40.0%
Total100.0%



Evaluation Plan: ONLINE
 Quizzes (10x1%)10.0%
 Assignments (10x2%)20.0%
 Midterm30.0%
 Comprehensive Final Exam40.0%
Total100.0%

Evaluation Notes and Academic Missed Work Procedure:
TEST AND ASSIGNMENT PROTOCOL The following protocol applies to every course offered by the Faculty of Continuing and Professional Studies 1. Students are responsible for staying abreast of test dates and times, as well as due dates and any special instructions for submitting assignments and projects as supplied to the class by the instructor. 2. Students must write all tests at the specified date and time. Missed tests, in-class/online activities, assignments and presentations are awarded a mark of zero. The penalty for late submission of written assignments is a loss of 10% per day for up to five business days (excluding Sundays and statutory holidays), after which, a grade of zero is assigned. Business days include any day that the college is open for business, whether the student has scheduled classes that day or not. An extension or make-up opportunity may be approved by the instructor at his or her discretion.

Provincial Context
The course meets the following Ministry of Colleges and Universities requirements:


 

Prior Learning Assessment and Recognition
PLAR Contact (if course is PLAR-eligible) - Office of the Registrar

  • Not Eligible for PLAR

 
 
Section III: Topical Outline
Some details of this outline may change as a result of circumstances such as weather cancellations, College and student activities, and class timetabling.
Instruction Mode: In-class & Online Instruction
Professor: N/A
Resource(s):
 TypeDescription
RequiredTextbookIntermediate Accounting, Volume 1 with WileyPlus, Kieso, D., Weygandt, J., Warfield, T., Young, N., Wiecek, I., McConomy, B., John Wiley & Sons Canada, 12th Canadian Edition, ISBN 9781119598602
RequiredTextbookCPA Handbook (Available Through Library)

Applicable student group(s): CAPS Students
Course Details:
Module 1: The Canadian Financial Reporting Environment and the Conceptual Framework Underlying Financial Reporting
Explain how accounting makes it possible to use scarce resources more efficiently.
Explain the meaning of “stakeholder” and identify key stakeholders in financial reporting, explaining what is at stake for each one.
Identify the objective of financial reporting.
Explain how information asymmetry and bias interferes with the objective of financial reporting.
Explain the need for accounting standards and identify the major entities that influence standard setting and financial reporting.
Explain the meaning of generally accepted accounting principles (GAAP) and the significance of professional judgement in applying GAAP.
Discuss some of the challenges and opportunities for accounting.
Indicate the usefulness and describe the main components of a conceptual framework for financial reporting.
Identify the qualitative characteristics of accounting information.
Define the basic elements of financial statements.
Describe the foundational principles and constraints of accounting.
Explain the factors that contribute to choice and/or bias in financial reporting decisions.
Discuss current trends in standard setting for the conceptual framework.
 
Quiz #1 (1%)
Learning Outcomes: 1, 2
 
Module 2: The Accounting Information System 
Understand basic accounting terminology and explain double-entry rules.
Explain how transactions affect the accounting equation.
Identify the steps in the accounting cycle and the steps in the recording process.
Explain the reasons for and prepare adjusting entries.
Explain how the type of ownership structure affects the financial statements.
Prepare closing entries and consider other matters relating to the closing process.
Use valuation techniques to measure financial statement elements.
Use IFRS 13 to measure fair value.
Quiz #2 (1%), Assignment #1 (2%)
Learning Outcome: 3
 
Module 3: Reporting Financial Performance
Understand how users use information about performance to make decisions.
Understand the concept of and be able to assess quality of earnings/information.
Understand the differing perspectives on how to measure income.
Measure and report results of discontinued operations.
Measure income and prepare the income statement and the statement of comprehensive income using various formats.
Prepare the statement of retained earnings and the statement of changes in equity.
Understand how disclosures and analysis help users of financial statements assess performance.
 
Quiz #3 (1%), Assignment #2 (2%)
Learning Outcomes: 1, 2, 4
 
Module 4: Financial Position and Cash Flows
Understand the statement of financial position and statement of cash flows from a business perspective.
Identify the uses and limitations of a statement of financial position.
Identify the major classifications of a statement of financial position.
Prepare a classified statement of financial position.
Identify statement of financial position information that requires supplemental disclosure. 
Identify major disclosure techniques for the statement of financial position.
Indicate the purpose and identify the content of the statement of cash flows.
Prepare a statement of cash flows using the indirect method.
Understand the usefulness of the statement of cash flows.
Quiz #4 (1%), Assignment #3 (2%)
Learning Outcomes: 2, 4
 
Module 5: Revenue Recognition
Understand the economics and legalities of selling transactions from a business perspective.
Identify the five steps in the revenue recognition process.
Identify the contract with customers.
Identify the separate performance obligations in the contract.
Determine the transaction price.
Allocate the transaction price to the separate performance obligations.
Understand how to recognize revenue when the company satisfies its performance obligation.
Analyze and determine whether a company has earned revenues under the earnings approach.
Identify other revenue recognition issues.
Describe presentation and disclosure regarding revenue.
 
Quiz #5 (1%), Assignment#4 (2%), Midterm (Module 1 - 5) (30%)
Learning Outcomes: 5
 
Module 6: Cash and Receivables
Understand cash and accounts receivable from a business perspective.
Define financial assets, and identify items that are considered cash and cash equivalents and how they are reported
Define receivables and identify the different types of receivables from an accounting perspective.
Account for and explain the accounting issues related to the recognition and measurement of accounts receivable.
Account for and explain the accounting issues related to the impairment in value of accounts receivable.
Account for and explain the accounting issues related to the recognition and measurement of short-term notes and loans receivable.
Account for and explain the accounting issues related to the recognition and measurement of long-term loans and loans receivable.
Account for and explain the basic accounting issues related to the derecognition of receivables.
Explain how receivables and loans are reported and analyzed.
 
Quiz #6 (1%), Assignment #5 (2%)
Learning Outcomes: 5, 6, 7, 8
 
Module 7: Inventory
Understand inventory from a business perspective.
Define inventory from an accounting perspective.
Identify which inventory items should be included in ending inventory
Identify the effects of inventory errors on the financial statements and adjust for them.
Determine the components of inventory cost.
Distinguish between perpetual and periodic inventory systems and account for them.
Identify and apply GAAP cost formula options and indicate when each cost formula is appropriate.
Explain why inventory is measured at the lower of cost and market, and apply the lower of cost and net realizable value standard.
Identify inventories that are or may be valued at amounts other than the lower of cost and net realizable value.
Apply the gross profit method of estimating inventory.
Identify how inventory should be presented and the type of inventory disclosures required by ASPE and IFRS.
Explain how inventory analysis provides useful information and apply ratio analysis to inventory.
 
Quiz #7 (1%), Assignment #6 (2%)
Learning Outcomes: 6, 7, 8, 9
 
Module 8: Investments
Understand the nature of investments including which types of companies have significant investments.
Explain and apply the cost/amortized cost model of accounting for investments.
Explain and apply the fair value through net income model of accounting for investments.
Explain and apply the fair value through other comprehensive income model of accounting for investments.
Explain and apply the incurred loss, expected loss, and fair value loss impairment models.
Explain the concept of significant influence and apply the equity method.
Explain the concept of control and when consolidation is appropriate.
Explain how investments are presented and disclosed in the financial statements noting how this facilitates analysis.
 
Quiz #8, Assignment #7
Learning Outcomes: 6, 7, 8, 9, 10
 
Module 9: Property, Plant and Equipment, Depreciation, Impairment and Disposition
Identify the business importance and characteristics of property, plant, and equipment and explain the recognition criteria.
Identify the costs to include in the measurement of property, plant, and equipment at acquisition.
Determine asset cost when the transaction has delayed payment terms or is a lump-sum purchase, a non-monetary exchange, or a contributed asset.
Identify the costs included in specific types of property, plant, and equipment
Understand and apply the cost model.
Understand the revaluation model and apply it using the asset adjustment method
Understand and apply the fair value model
Explain and apply the accounting treatment for costs incurred after acquisition.
Understand the importance of depreciation, impairment, and disposition from a business perspective.
Explain the concept of depreciation and identify the factors to consider when determining depreciation charges.
Identify how depreciation methods are selected.
Calculate and recognize depreciation using the straight-line, decreasing charge, and activity methods.
Explain the accounting issues for depletion of mineral resources.
Explain and apply the accounting procedures for partial periods and a change in depreciation rate.
Explain the issues and apply the accounting standards for capital asset impairment under both IFRS and ASPE.
Account for derecognition of property, plant and equipment and explain and apply the accounting standards for long-lived assets that are held for sale.
Describe the types of disclosures required for property, plant, and equipment.
Analyze a company’s investments in assets.
 
Quiz #9 (1%), Assignment #8 (2%), Assignment #9 (2%)
Learning Outcomes: 6, 7, 8, 9
 
Module 10: Intangible Assets & Goodwill
Understand the importance of intangible assets and goodwill from a business perspective and describe their characteristics.
Identify and apply the recognition and measurement requirements for purchased intangible assets.
Identify and apply the recognition and measurement requirements for internally developed intangible assets.
Explain how intangibles are accounted for after initial recognition.
Identify and explain the accounting for specific types of intangible assets.
Explain and account for impairments of limited-life and indefinite-life intangible assets.
Explain the concept of goodwill and how it is measured and accounted for after acquisition.
Explain and account for impairment of goodwill.
Identify the types of disclosure requirements for intangible assets and goodwill and explain the issues in analyzing these assets.
 
Quiz #10 (1%), Assignment #10 (2%), Comprehensive Final Exam 40%
Learning Outcomes: 6, 7, 8, 9
 


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Course Outline Changes: The information contained in this Course Outline including but not limited to faculty and program information and course description is subject to change without notice. Nothing in this Course Outline should be viewed as a representation, offer and/or warranty. Students are responsible for reading the Important Notice and Disclaimer which applies to Programs and Courses.


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