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Credit Value: 3.0
Credit Value Notes: N/A
Effective: Winter 2015
Prerequisites:
(ACCG12000D)
Corequisites:
N/A
Equivalents:
N/A
Pre/Co/Equiv Notes: N/A |
Course
Name (short): Intermediate Accounting 1
School: Business
Program(s):
Bach Bus Admin Market Manage, Bach Business Admin Accounting, Bach Business Admin Finance, Bach Human Resources, BachBus Admin Spply Chain Mgmt
Program Coordinator(s):
Tba
Course Leader or Contact: Tba
Originator: Lynn Easson-Irvine
Designate: Jessica MacDougall
Version: 1.01
Status: Approved (APPR)
Calendar Description
Students examine the financial accounting theory for current financial
accounting standards and its application to specific financial
statement components. Topics include general financial statement
presentation, revenue and expense recognition and specific components
of the asset side of the Statement of Financial Position, as well as
their related Income Statement effects.
Typical Instructional Format
Lecture
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28.0 |
Other
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14.0 |
Total hours: |
42.0 |
Courses may be offered in other formats.
Section I Notes:
This course will be delivered in hybrid format.
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Detailed Description
Students examine the financial accounting theory which forms the basis
for current financial accounting standards and its application to
specific financial statement components. Topics include 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. A
combination of interactive lectures, classroom problem-solving
activities and case-study assignments will be employed to facilitate
student learning.
Program Context
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Bach Bus Admin Market Manage |
Program Coordinator: Tba |
See Program Context for
Accounting.
Bach Business Admin Accounting |
Program Coordinator: Tba |
This is a required course
within the Bachelor of
Business Administration (BBA)
Accounting program and an
elective course in BBA
Finance, BBA Human Resources,
BBA Marketing and BBA Supply
Chain Management. It provides
an introduction to financial
accounting theory and begins
the detailed study of its
application to external
financial reporting as
required under GAAP. As such,
it provides a foundation for
subsequent courses and is
designed to meet the
requirements of the
professional program of study.
The outcomes and learning
experiences derived from
successful completion of this
course will contribute to the
students' Creative Learning
Portfolio.
Bach Business Admin Finance |
Program Coordinator: Tba |
See Program Context for
Accounting.
Bach Human Resources |
Program Coordinator: Tba |
See Program Context for
Accounting.
BachBus Admin Spply Chain Mgmt |
Program Coordinator: Tba |
See Program Context for
Accounting.
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Course Critical Performance and Learning Outcomes
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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 and objectives 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. Identify differences in financial reporting for public and
private entities.
5. Prepare a multi-step income statement, classified statement of
financial position and cash flow statement in accordance with
generally accepted accounting principles.
6. Compare various alternative revenue recognition policies.
7. Demonstrate how various current and long-term assets are
reported, recognized, measured, presented and analyzed in
accordance with generally accepted accounting principles and the
conceptual framework.
8. Identify the use of fair market values, lower of cost & net
realizable value and tests for impairment, in the valuation of
various assets for financial reporting purposes.
9. Apply rules related to the de-recognition of various assets.
10. Contrast how the costs of various assets (including inventory,
tangible and intangible long-term assets) are charged/allocated
to expenses over the period of benefit.
11. Differentiate the valuation and income recognition methods
employed to account for various current and long-term investments
in securities.
12. Demonstrate professional behaviours including:
a. meet due dates
b. produce professional quality assignments
c. use reference materials responsibly
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Evaluation Plan
Students demonstrate their learning in the following ways:
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Students demonstrate their learning in the following ways:
Quizzes (10 x 1%, best 10 of 11) 10%
Assignments (10 x 2%, best 10 of 11) 20%
Midterm Exam (Module 1 - 5) 35%
Final Exam (Module 1 - 10) 35%
Total 100%
Assignments are to be completed in small groups. All other evaluations
are on an individual basis.
In addition to achieving a minimum 50% overall grade, a student must
have a combined average of at least 50% on the non-group components of
the evaluation plan in order to receive credit for this course.
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Provincial Context
The course meets the following Ministry of Training, Colleges and Universities requirements:
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Essential Employability
Skills
Essential Employability Skills emphasized in the course:
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Communication
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Critical Thinking & Problem Solving
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Interpersonal
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Numeracy |
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Information
Management |
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Personal
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Notes: N/A
Prior Learning Assessment and Recognition
PLAR Contact: Multiple PLA Contacts
Students may apply to receive credit by demonstrating achievement
of the course learning outcomes through previous life and work experiences.
This course is eligible for challenge through the following
method(s):
Challenge Exam |
Portfolio |
Interview |
Other |
Not Eligible for PLAR |
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X |
Notes: N/A
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Some details of this outline may change as a result of circumstances such as weather cancellations, College and student activities, and class timetabling.
Effective term: Winter 2015
Professor: Multiple Professors
Textbook(s): Textbook(s): Kieso, D., Weygandt, J., Warfield, T., Young, N., Wiecek,
I., McConomy, B. (2013). Intermediate Accounting, Volume 1, Tenth
Canadian Edition. John Wiley & Sons Canada, Ltd: Toronto.
Student guide to accompany Volume 1 (optional).
Recommended Reading: CPA Handbook assigned sections, available through
Sheridan Library access.
Applicable student group(s): Bachelor of Business Administration
Course Details:Module 1: The Canadian Financial Reporting Environment and the
Conceptual Framework Underlying Financial Reporting
1. Explain how accounting makes it possible to use scarce resources
more efficiently.
2. Explain the meaning of "stakeholder" and identify key
stakeholders in financial reporting, explaining what is at stake
for each one.
3. Identify the objective of financial reporting and explain how
information asymmetry and bias interferes with the objective of
financial reporting.
4. Indicate the usefulness and describe the main components of a
conceptual framework for financial reporting.
5. Identify the qualitative characteristics of accounting
information.
6. Define the basic elements of financial statements.
7. Describe the foundational principles and constraints of
accounting.
8. Explain the factors that contribute to choice and/or bias in
financial reporting decisions.
Assessments: 1 quiz- 1% and 1 assignment 2%
Learning Outcome: 1, 2
Module 2: The Accounting Information System
1. Understand basic accounting terminology.
2. Explain double-entry rules.
3. Explain how transactions affect the accounting equation.
4. Identify the steps in the accounting cycle and the steps in the
recording process.
5. Explain the reasons for and prepare adjusting entries.
6. Explain how the type of ownership structure affects the financial
statements.
7. Prepare closing entries and consider other matters relating to the
closing process.
8. Prepare a 10-column work sheet and financial statements.
Assessments: 1 quiz- 1% and 1 assignment 2%
Learning Outcomes: 3
Module 3: Reporting Financial Performance
1. Understand how users use information about performance to make
decisions.
2. Understand the concept of and be able to assess quality of
earnings/information.
3. Understand the differing perspectives on how to measure income.
4. Measure and report results of discontinued operations.
5. Measure income and prepare the income statement and the statement
of comprehensive income using various formats.
6. Prepare the statement of retained earnings and the statement of
changes in equity.
7. Understand how disclosures and analysis help users of financial
statements assess performance.
Assessment: 1 quiz- 1% and 1 assignment 2%
Learning Outcomes: 2, 4, 5
Module 4: Financial Position and Cash Flows
1. Understand the statement of financial position and statement of
cash flows from a business perspective.
2. Identify the major classifications of a statement of financial
position.
3. Prepare a classified statement of financial position.
4. Identify statement of financial position information that
requires supplemental disclosure.
5. Identify major disclosure techniques for the statement of
financial position.
6. Indicate the purpose and identify the content of the statement of
cash flows.
7. Prepare a statement of cash flows using the indirect method.
8. Understand the usefulness of the statement of cash flows.
Assessment: 1 quiz- 1% and 1 assignment 2%
Learning Outcomes: 2, 4, 5
Module 5: Revenue Recognition
1. Understand the economics and legalities of selling transactions
from a business perspective.
2. Analyze and determine whether a company has earned revenues.
3. Discuss issues relating to revenue measurement and revenue
measurement with uncertainty.
4. Understand how to account for sales where there is collection
uncertainty.
5. Prepare journal entries for consignment sales and long-term
contracts.
6. Understand how to present sales transactions in the income
statement and prepare basic disclosures.
7. Discuss current trends in standard setting for revenue recognition
including the contract based-approach.
Assessment: 1 quiz- 1% and 1 assignment 2%
Learning Outcomes: 4, 6
MIDTERM EXAM - (Module 1 - 5) 35%
Module 6: Cash and Receivables
1. Understand cash and accounts receivable from a business
perspective.
2. Define financial assets, and identify items that are considered
cash and cash equivalents and how they are reported.
3. Define receivables and identify the different types of
receivables from an accounting perspective.
4. Account for and explain accounting issues related to the
recognition and measurement of accounts receivable.
5. Account for and explain accounting issues related to the
impairment in value of accounts receivable.
6. Account for and explain the accounting issues related to the
recognition and measurement of short-term notes and loans
receivable.
7. Account for and explain the accounting issues related to the
recognition and measurement of long-term loans and loans
receivable.
8. Account for and explain the basic accounting issues related to
the de-recognition of receivables.
a. Secured borrowing
b. securitization
9. Explain how receivables and loans are reported and analyzed.
Assessment: 1 quiz- 1% and 1 assignment 2%
Learning Outcome: 4, 7, 8, 9
Module 7: Inventory
1. Understand inventory from a business perspective.
2. Define inventory from an accounting perspective.
3. Identify which inventory items should be included in ending
inventory.
4. Identify the effects of inventory errors on the financial
statements and adjust for them.
5. Determine the components of inventory cost.
6. Distinguish between perpetual and periodic inventory systems and
account for them.
7. Identify and apply GAAP cost formula options and indicate when
each cost formula is appropriate.
8. Explain why inventory is measured at the lower of cost and market,
and apply the lower of cost and net realizable value standard.
9. Identify inventories that are or may be valued at amounts other
than the lower of cost and net realizable value.
10. Apply the gross profit method of estimating inventory.
11. Explain how inventory analysis provides useful information and
apply ratio analysis to inventory.
Assessment: 1 quiz- 1% and 1 assignment 2%
Learning Outcomes: 4, 7, 8, 10
Module 8: Investments
1. Understand the nature of investments including which types of
companies have significant investments.
2. Explain and apply the cost/amortized cost model of accounting for
investments.
3. Explain and apply the fair value through net income model of
accounting for investments.
4. Explain and apply the fair value through other comprehensive
income model of accounting for investments.
5. Explain and apply the incurred loss, expected loss, and fair
value loss impairment models.
6. Explain the concept of significant influence and apply the equity
method.
7. Explain the concept of control and when consolidation is
appropriate.
8. Explain how investments are presented and disclosed in the
financial statements noting how this facilitates analysis.
Assessment: 1 quiz- 1% and 1 assignment 2%
Learning Outcomes: 4, 7, 8, 11
Module 9: Property, Plant and Equipment, Depreciation, Impairment and
Disposition
1. Understand the importance of property, plant, and equipment from
a business perspective.
2. Identify the:
a. Characteristics of property, plant, and equipment assets.
b. Recognition criteria for property, plant, and equipment.
c. Costs to include in the measurement of property, plant, and
equipment assets at acquisition.
d. Cost included in specific types of property, plant and
equipment
3. Determine asset cost when the transaction has delayed payment
terms or is a lump-sum purchase, a non-monetary exchange, or a
contributed asset including government assistance.
4. Understand and apply the cost model.
5. Understand the revaluation model and apply it using the asset
adjustment method.
6. Understand and apply the fair value model.
7. Explain and apply the accounting treatment for costs incurred
after acquisition.
8. Explain the concept of depreciation and identify the factors to
consider when determining depreciation charges.
9. Identify how depreciation methods are selected.
10. Calculate depreciation using the straight-line, decreasing
charge, and activity methods and recognize the effects of using
each.
11. Explain the accounting issues for depletion of mineral resources.
12. Explain and apply the accounting procedures for partial periods
and a change in depreciation rate.
13. Explain and apply the accounting standards for long-lived assets
that are held for sale.
14. Account for de-recognition of property, plant, and equipment.
Assessment: 2 quizzes- 1% each and 2 assignments 2% each
Learning Outcomes: 4, 7, 8, 10
Module 10: Intangible Assets & Goodwill
1. Define and describe the characteristics of intangible assets.
2. Identify and apply the recognition and measurement requirements
for purchased intangible assets.
3. Identify and apply the recognition and measurement requirements
for internally developed intangible assets.
4. Explain how intangibles are accounted for after initial
recognition.
5. Identify and explain the accounting for specific types of
intangible assets.
6. Explain and account for impairments of limited-life and
indefinite-life intangible assets.
7. Explain the concept of goodwill and how it is measured and
accounted for after acquisition.
8. Identify the types of disclosure requirements for intangible
assets and goodwill and explain the issues in analyzing these
assets.
Assessment: 1 quiz- 2% and 1 assignment 2%
Learning Outcomes: 4, 7, 8, 10
FINAL EXAMINATION (Cumulative) 35%
Academic Honesty
The principle of academic honesty requires that all work submitted for evaluation and course credit be the original,
unassisted work of the student. Cheating or plagiarism including borrowing, copying, purchasing or collaborating on
work, except for group projects arranged and approved by the faculty member, or otherwise submitting work that is not
the student's own violates this principle and will not be tolerated. Instances of academic dishonesty, including
assisting another student to cheat, will be penalized as detailed in the Student Handbook.
Students who have any questions regarding whether or not specific circumstances involve a breach of academic
honesty are advised to discuss them with the faculty member prior to submitting the assignment in question.
Discrimination and Harassment
Sheridan is committed to provide a learning environment that respects the dignity, self esteem and fair treatment
of every person engaged in the learning process. Behaviour which is inconsistent with this principle will
not be tolerated. Details of Sheridan's policy on Harassment and Discrimination are available in the Student Handbook.
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