Course Name (short): Intermediate Accounting 2
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 which forms the basis for current financial accounting standards and its application to specific financial statement components using generally accepted accounting principles with a focus on the liability and shareholders' equity components of the balance sheet.

Typical Instructional Format

Courses may be offered in other formats.

Section I Notes: This course will be delivered in hybrid format.

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 using generally accepted accounting principles with a focus on the liability and shareholders' equity components of the balance sheet. Topics include current and long-term liabilities, leases, pensions and post-employment benefits, corporate income taxes, shareholders' equity, complex debt and equity instruments, earnings per share, accounting changes, cash flow statement, financial statement analysis, as well as any related income statement effects. A combination of interactive lectures, classroom problem solving and case study assignments will be employed to facilitate student learning.

Program Context

 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 a specific emphasis on accounting for
liabilities and shareholders' equity.

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

1.  Identify differences in financial reporting for public and  
    private entities.
2.  Demonstrate how various liabilities (debt) and equities are 
    reported in accordance with generally accepted accounting 
    principles.
3.  Distinguish debt from equity, current liabilities from long-term 
    liabilities and financial from non-financial liabilities.
4.  Apply present value concepts and effective interest amortization 
    methods to various long-term liabilities.
5.  Explain the accounting treatment for various transactions 
    affecting shareholders equity.
6.  Describe the accounting for compensatory stock option plans.
7.  Prepare appropriate accounting entries, supporting calculations 
    and financial statement presentations for earnings per share, 
    corporate income taxes and defined benefit pension plans.
8.  Differentiate the accounting treatment of capital vs operating 
    leases by a lessee and financing vs. sale-type leases by a lessor.
9.  Contrast the accounting treatment applied to changes in 
    accounting policy and correction of prior-year accounting errors, 
    with the treatment of changes in accounting estimates.
10. Prepare a cash flow statement in both direct and indirect format 
    and provide appropriate supporting computations.
11. Identify the appropriate accounting treatment of other disclosure 
    issues related to segmented information, interim financial 
    reporting, related-party transactions and subsequent events.
12. Demonstrate professional behaviours including:
    a.	work effectively in a team environment
    b.	meet due dates
    c.	produce professional quality assignments
    d.	use reference materials responsibly

Evaluation Plan
Students demonstrate their learning in the following ways:

Quizzes* (10 @ 1%)              10%
Assignments* (10 x 2)	        20%
Midterm Exam*	                35%
Final Exam* (Cumulative)        35%
Total                          100%

*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.

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.

Study Guide to accompany Volume 2 (optional).

Note: Learning Outcomes 1 and 12 will be inherent and apparent within
each evaluation.

Module 1: Non-Financial and Current Liabilities
1.  Understand the importance of non-financial and current 
    liabilities from a business perspective.
2.  Define liabilities, distinguish financial liabilities from other 
    liabilities, and identify how they are measured.
3.  Define current liabilities and identify and account for common 
    types of current liabilities.
4.  Identify and account for the major types of employee-related 
    liabilities.
5.  Explain the recognition, measurement, and disclosure requirements 
    for decommissioning and restoration obligations.
6.  Explain the issues and account for unearned revenues.
7.  Explain the issues and account for product guarantees and other 
    customer program obligations.
8.  Explain and apply two approaches to the recognition of 
    contingencies and uncertain commitments, and identify the 
    accounting and reporting requirements for guarantees and 
    commitments.
9.  Indicate how non-financial and current liabilities are presented 
    and analyzed.
Assessments:  quiz 1% and assignment 2%
Learning Outcome: 2, 3

Module 2: Long-Term Financial Liabilities 
1.  Understand the nature of long-term debt financing arrangements.
2.  Understand how long-term debt is measured and accounted for.
3.  Understand when long-term debt is recognized and derecognized, 
    including how to account for troubled debt restructurings.
4.  Explain how long-term debt is presented on the statement of 
    financial position.
5.  Identify disclosure requirements.
6.  Calculate and interpret key ratios related to solvency and 
    liquidity.
Assessments:  quiz 1% and assignment 2%
Learning Outcomes: 2, 3, 4

Module 3: Shareholders¿ Equity
1.  Discuss the characteristics of the corporate form of 
    organization, rights of shareholders, and different types of 
    shares.
2.  Explain how to account for the issuance, reacquisition, and 
    retirement of shares, stock splits, and dividend distribution.
3.  Understand the components of shareholders' equity and how they 
    are presented.
4.  Understand capital disclosure requirements.
5.  Calculate and interpret key ratios relating to equity.
Assessment: quiz 1% and assignment 2%
Learning Outcomes: 2, 3, 5

Module 4: Complex Financial Instruments
1.  Understand what derivatives are and how they are used to manage 
    risk.
2.  Understand how to account for derivatives.
3.  Analyze whether a hybrid/compound instrument issued for financing 
    purposes represents a liability, equity, or both.
4.  Explain the accounting for hybrid/compound instruments. 
5.  Describe the various types of stock compensation plans.
6.  Describe the accounting for compensatory stock option plans.
Assessment: quiz 1% and assignment 2%
Learning Outcomes: 2, 3, 5, 6

Module 5: Earnings Per Share (EPS)
1.  Understand why earnings per share (EPS) is an important number.
2.  Understand when and how EPS must be presented.
3.  Calculate earnings per share in a simple capital structure.
4.  Calculate earnings per share in a complex capital structure.
Assessment: quiz 1% and assignment 2%
Learning Outcomes: 7

MIDTERM EXAM (Modules 1 - 5) 35%

Module 6: Income Taxes 
1.  Understand the importance of income taxes from a business    
    perspective.
2.  Explain the difference between accounting income and taxable 
    income, and calculate taxable income and current income taxes.
3.  Explain what a taxable temporary difference is, determine its 
    amount, and calculate deferred liabilities.
4.  Explain what a deductible temporary difference is, determine its 
    amount, and calculate deferred tax assets.
5.  Prepare analyses of deferred tax balances and record deferred tax 
    expense.
6.  Explain the effect of multiple tax rates and tax rate changes on 
    income tax accounts, and calculate current and deferred tax 
    amounts when there is a change in substantively enacted tax rates.
7.  Account for a tax loss carryback.
8.  Account for a tax loss carryforward, including any note 
    disclosures.
9.  Explain why the Deferred Income Tax asset is reassessed at the 
    statement of financial position date, and account for the 
    deferred tax asset with and without a valuation allowance account.
10. Identify and apply the presentation and disclosure requirements 
    for income tax assets and liabilities, and apply intraperiod tax 
    allocation.
Assessment: quiz 1% and assignment 2%
Learning Outcome: 2, 3, 7

Module 7: Pensions and Other Employee Future Benefits  
1.  Understand the importance of pensions from a business perspective.
2.  Identify and account for a defined contribution plan.
3.  Identify and explain what a defined benefit plan is and the 
    related accounting issues.
4.  Explain what the employer's benefit obligation is, identify 
    alternative measures for this obligation, and prepare a 
    continuity schedule of transactions and events that change its 
    balance.
5.  Identify transactions and events that change the benefit plan 
    assets, and calculate the balance of the assets.
6.  Explain what a benefit plan's funded status is, calculate it, and 
    identify what transactions and events change its amount.
7.  Identify the components of pension expense, and account for a 
    defined benefit pension plan under the immediate recognition 
    approach.
8.  Account for defined benefit plans with benefits that vest or 
    accumulate other than pension plans.
9.  Identify the types of information required to be presented and 
    disclosed for defined benefit plans, prepare basic schedules, and 
    be able to read and understand such disclosures.
Assessment: quiz 1% and assignment 2%
Learning Outcomes: 2, 3, 4, 7

Module 8: Leases
1.  Understand the importance of leases from a business perspective.
2.  Explain the conceptual nature, economic substance, and advantages 
    of lease transactions.
3.  Identify and apply the criteria that are used to determine the 
    type of lease for accounting purposes for a lessee under the 
    classification approach.
4.  Calculate the lease payment that is required for a lessor to earn 
    a specific return.
5.  Account for a lessee's basic capital (finance) lease.
6.  Determine the effect of, and account for, residual values and 
    bargain purchase options in a lessee's capital (finance) lease.
7.  Account for an operating lease by a lessee and compare the 
    operating and capitalization methods of accounting for leases.
8.  Determine the statement of financial position presentation of a 
    capital (finance) lease and identify other disclosures required. 
9.  Identify and apply the criteria that are used to determine the 
    type of lease for a lessor under the classification approach.
10. Account for and report basic financing and sales-type leases by 
    the lessors.
11. Account for and report financing and sales-type leases with 
    guaranteed values or a bargain purchase option by a lessor.
12. Account for and report an operating lease by a lessor.
Assessment: quiz 1% and assignment 2%
Learning Outcomes: 2, 3, 4, 8

Module 9: Statement of Cash Flows
1.  Understand the importance of cash flows from a business 
    perspective.
2.  Describe the purpose and uses of the statement of cash flows.
3.  Define cash and cash equivalents.
4.  Identify the major classifications of cash flows and explain the 
    significance of each classification.
5.  Prepare a statement of cash flows using the direct method.
6.  Prepare a statement of cash flows using the indirect method.
7.  Identify the financial reporting and disclosure requirements for 
    the statement of cash flows.
8.  Read and interpret a statement of cash flows.
Assessment: quiz 1% and assignment 2%
Learning Outcomes: 10

Module 10: Accounting Changes, Error Analysis and Other Measurement
and Disclosure Issues
1.  Identify and differentiate among the types of accounting changes.
2.  Explain alternative methods of accounting for accounting changes 
    and identify the accounting standards for each type of accounting 
    change under ASPE and IFRS.
3.  Apply the retroactive application method of accounting for a 
    change in accounting policy and identify the disclosure 
    requirements.
4.  Apply retrospective restatement for the correction of an 
    accounting error and identify the disclosure requirements. 
5.  Apply the prospective method for an accounting change and 
    identify the disclosure requirements for a change in an 
    accounting estimate.
6.  Identify economic motives for changing accounting methods and 
    interpret financial statements where there have been 
    retrospective changes to previously reported results.
7.  Understand the importance of disclosure from a business 
    perspective.
8.  Explain the use of accounting policy notes in financial statement 
    preparation.
9.  Describe the disclosure requirements for major segments of a 
    business.
10. Describe the accounting problems associated with interim 
    reporting.
11. Discuss the accounting issues related to related party 
    transactions.
12. Identify the difference between the two types of subsequent 
    events.
13. Identify the major disclosures found in the auditor's report.
14. Describe methods used for basic financial statement analysis and 
    summarize the limitations of ratio analysis.
Assessment: quiz 1% and assignment 2%
Learning Outcomes: 9, 11

FINAL EXAM  (Modules 1 - 10)  35%