Program(s): Business Admin Accounting
Program Coordinator(s): Sally Mitzel
Course Leader or Contact: Sally Mitzel
Version: 16.0
Status: Approved - Under Rev (AREV)

Section I Notes: A minimum grade of "B" in this course together with a minimum grade or "B" in ACCG21646 qualifies the student for exemption toward the Certified General Accountant course FA2. Allowable calculator: Texas Instrument BAII Plus

Detailed Description
This course focuses on the study of the rationale behind the accounting and reporting of business transactions. Students learn the conceptual framework upon which financial statements are produced and apply the principles of this framework to prepare financial statements that meet professional accounting standards. Using lectures, demonstrations and in-class problem solving activities students learn how to account for and report business transactions in the context of the Canadian financial reporting environment.

Program Context

 Critical Performance
By the end of this course, students will have demonstrated the 
ability to report business transactions by applying the principles of 
the underlying conceptual framework in the context of the Canadian 
financial reporting environment.
   
Learning Outcomes
To achieve the critical performance, students will have demonstrated 
the ability to: 
 
1. Explain the objectives of financial reporting and the need for 
   generally accepted accounting principles.
2. Define the basic elements of financial statements.
3. Describe the basic foundational concepts and constraints in 
   accounting.
4. Explain the steps of the accounting cycle.
5. Prepare a single-step and multiple-step income statement with 
   irregular items and discontinued operations.
6. Prepare a retained earnings statement and explain how 
   comprehensive income is reported.
7. Explain the difference between the cash basis of accounting and 
   the accrual basis of accounting.
8. Prepare a classified balance sheet and identify information that 
   requires supplemental disclosure.
9. Prepare the operating activities section of the cash flow 
   statement.
10.Analyze financial performance using ratios.
11.Apply the revenue recognition principle to various types of sales 
   and service contracts.

Homework assignments (5 at 2% each)     10%

Quizzes (best 5 of 6 at 2% each)        10%

Midterm Examination (Chapter 1, 2, 3)   40%
        
Final Examination (Comprehensive)       40%

Total                                  100%

Keiso, Weygandt et al., Intermediate Accounting, Volume 1, Tenth 
Canadian Edition with Wiley Plus, John Wiley & Sons Canada Ltd. 

Study Guide (Volume 1) to accompany text (optional).

Module 1 - The Canadian Financial Reporting Environment
- The role of financial reporting
- Objectives of financial reporting
- Standard setting and alternative sets of GAAP
- Generally accepted accounting principles (GAAP)
- Ethics in Accounting
- Challenges facing financial reporting using a simple case analysis

Text Reference: Chapter 1

Quiz #1
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Module 2 - Conceptual Framework Underlying Financial Reporting
- The usefulness of the conceptual framework
- Underlying assumptions and qualitative characteristics of  
  accounting information
- Fundamental Concepts for measurement and recognition of the basic 
  elements of the financial statments
- Foundational principles and conventions
- Financial reporting issues and the exercise of professional judgment
- IFRS/Private GAAP comparison
- Fair value measurement

Text Reference: Chapter 2, Homework Assignment

Quiz #2
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Module 3 - The Accounting Information System
- Accounting Information System
- The accounting cycle
- Using a worksheet
- Using reversing entries

Text Reference: Chapter 3, Homework Assignment

Quiz #3
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Mid Term Exam - 40% (Chapters 1-3)
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Module 4 - Reporting Financial Performance
- Income statement usefulness and limitations
- Access the Quality of Earnings and the ethical considerations of
  earnings management 
- Format of the income statement and statement of Comprehensive   
  Income; Retained Earnings Statement and Statement of Shareholders'  
  Equity
- Reporting irregular items including discontinued operations and
  unusual items
- Special reporting issues including Intra period tax allocations and 
  earnings per share
- IFRS/Private GAAP comparison
- Cash Basis versus Accrual Basis of Accounting

Text Reference: Chapter 4, Homework Assignment

Quiz #3
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Module 5 - Financial Position and Cash Flows
- Balance sheet usefulness and limitations
- Statement of Cash Flows - purpose,format and content
- Clarifications and format of the balance sheet
- Supplemental Balance Sheet disclosure 
- IFRS/Private GAAP comparison
- Ratio Analysis to assess operating performance

Text Reference: Chapter 5, Homework Assignment

Quiz #4
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Module 6 - Revenue Recognition
- Economics and legality of business transaction
- Accounting for a variety of sales transactions - recognition and
  measurement
- Account for Consignment Sales
- Apply the percentage of completion method of accounting for revenue
  from long-term contracts
- Accounting - Presentation and disclosure
- IFRS/Private Entity GAAP comparison


Text Reference, Chapter 6

Quiz #5
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FINAL EXAM - 40%  (Chapters 1-6)
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