Instruction Mode: In-class & Online Instruction
Professor: N/A
Resource(s): | Type | Description | Required | Textbook | Intermediate 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 |
Required | Textbook | CPA 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