Course Name (short): Consolidatns & Adv Acctg Top
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: 1.02
Status: Approved (APPR)

Calendar Description
Students examine the mechanics of accounting for complex financial accounting transactions. Topics include financial instruments and their tax allocation, inter-corporate investments, consolidations, joint ventures, foreign currency translation, and hedge accounting.

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 mechanics of accounting for complex financial accounting transactions. Topics include financial instruments and their tax allocation, inter-corporate investments, consolidations, joint ventures, foreign currency translation, and hedge accounting. Students develop their professional judgment and technical competencies through interactive lectures, in-class analysis and problem-solving exercises, identifying the underlying issues and using the conceptual framework to assist in arriving at solutions.

Program Context

 Critical Performance
By the end of this course, students will have demonstrated the ability
to record complex financial accounting transactions using analytical
tools and techniques.

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

1. Present financial instruments in accordance with current handbook 
   requirements.	
2. Recognize intercompany investments using the equity method.
3. Apply consolidation techniques for investments in subsidiaries.
4. Determine the appropriate accounting procedures for investments in 
   joint ventures.
5. Evaluate methods for translating foreign currency transactions.
6. Assess accounting treatment options for hedge transactions.
7. Apply the foreign currency transaction approach to the translation 
   of foreign subsidiary financial statements.
8. 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

Students demonstrate their learning in the following ways:

Quizzes (10 x 1.5%)     	15%
Group Assignments (2 x 7.5%) 	15%
Midterm Exam (Module 1 - 6)	30%
Final Exam (Cumulative)	        40%
		               100%
	
The delivery approach for this course requires you to be prepared for
each module before coming to class. The course requires higher level
preparation outside the classroom. The relevant chapters of the
textbook and that of the CPA handbook should be read before class.
Each week, videos, lesson tutorials and quizzes will be assigned.
Grades for these activities will be lost if the work is undone.

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): 
Hilton, M. & Herauf, D. (2010). Modern Advanced Accounting in Canada,
Sixth Canadian Edition. McGraw-Hill Ryerson: Toronto.

Recommended Reading:
CPA Handbook - Part 1, 2, 3 (available online via Sheridan library
services database collection)
CPA Canada Public Section Accounting Handbook (online via Sheridan
Library database)
Selected CA Magazine articles: The Gate Keeper; Municipalities on the Move

Description:
Note: Learning Outcome 9 will be inherent and apparent within each
evaluation.

Module 1:  Introduction
1. The development of International Financial Reporting Standards 
   (IFRS)
2. International accounting standards and the Canadian approach
3. Standards for comprehensive income and equity
Learning Outcome: 1
Quiz - 1.5%

Module 2: Accounting for Strategic Equity Investments & Financial
Instruments
1. Equity Investment
   a. Classification 
   b. Measurement (fair value)
   c. Reporting (cost vs equity method)
   d. Journal entries for cost & equity methods
   e. Presentation and disclosure requirements
   f. IFRS vs Accounting Standards for Private Enterprises (ASPE) 
      differences in equity investment accounting
Learning Outcome: 2
Quiz - 1.5%

Module 3: Accounting for Strategic Equity Investments & Financial
Instruments
1. Financial Instruments
   a. Accounting after initial recognition 
   b. Special issues: 
      i. Loans and receivables, 
      ii. Related party transactions 
      iii. Low-interest & interest-free loans
   c. Derivatives, embedded derivatives and non-financial instruments
   d. Impairments in value
   e. Reclassification and subsequent measurement
   f. Presentation and disclosure
Learning Outcome: 2
Quiz - 1.5%

Module 4:  Accounting for Business Combinations
1. Basic forms of business combination
2. Control and significant influence 
3. Methods of accounting for business combination 
4. Consolidation of wholly owned subsidiaries
5. Using the acquisition method
6. Preparation of consolidated financial statement
7. Goodwill calculation & allocation of acquisition differential
8. Recording business acquisition (the equity method)
9. Reverse takeovers
Learning Outcome: 2
Quiz - 1.5%
Group Assignment 1 (7.5%) 	

Module 5: Consolidation at Acquisition
1. Consolidation of partially owned subsidiaries
2. Theories of consolidation (proprietary, parent company, and entity 
   theories) 
   a. Direct approach
   b. Working paper approach
3. Negative goodwill (bargain purchase)
4. Negative acquisition differential
5. Contingent consideration
Learning Outcome: 3
Quiz - 1.5%

Module 6: Consolidation Subsequent to Acquisition Date
1. Methods of accounting for investments in a subsidiary
2. Accounting for Goodwill & testing for impairments
3. Consolidated Income & Retained Earnings Statements
4. Consolidation of 100% owned subsidiary 
   a. Consolidated financial statements
   b. end of year 1
   c. end of year 2
5. Consolidation of an 80% owned subsidiary 
   a. Consolidated financial statements
   b. end of year 1
   c. end of year 2
6. Acquisition differential amortization
7. Intercompany receivables & payables
Learning Outcome: 3

MID-TERM EXAM (Cumulative) 30%

Module 7: Intercompany transactions
1. Intercompany revenue & expenses
2. Downstream & upstream sales
3. Intercompany inventory profit
4. Realized & unrealized profit from intercompany inventory sales
5. Intercompany profit from sale of Land and depreciable assets
Learning Outcome: 3
Quiz - 1.5%

Module 8: Consolidated Cash Flows and Ownership
1. Consolidated cash flow statement preparation
2. Changes in parent¿s ownership interest
   a. Purchase of additional subsidiary share by parent
   b. Selling of share  subsidiary share by parent
   c. Subsidiary issue additional common share to the public
   d. Subsidiary purchase some non-controlling share interest
   e. Subsidiary with preferred shares outstanding
   f. Indirect shareholdings
Learning Outcome: 3
Quiz - 1.5%

Module 9: Joint Venture Interest
1. Special purpose entities (SPEs)
   a. Initial measurement & consolidation of SPEs
   b. Joint arrangements
   c. Accounting for joint operations
   d. Accounting for an interest in joint venture
   e. Contributions to the joint venture
   f. Deferred income taxes and joint venture
   g. Operating loss carry-forwards
   h. Segment reporting and disclosure requirements
Learning Outcome: 4
Quiz - 1.5%

Module 10: Foreign Currency Transactions
1. Currency exchange rates
2. Accounting for foreign currency transactions
3. Import/Export transactions denominated in foreign currency
4. Speculative foreign exchange contracts	
Learning Outcome: 5

Module 11: Hedge Accounting
1. Types of hedges
2. Hedging accounting
   a. Fair value hedge
   b. Cash-flow hedge
Learning Outcome: 6
Quiz - 1.5%

Module 12: Translation & Consolidation of Foreign Operations
1. Financial statement translation and consolidation
2. Translation methods
   a. Temporal
   b. Current rate
3. Foreign currency exposures
   a. Translation Exposure
   b. Transaction Exposure
   c. Economic Exposure
4. Translation and consolidation subsequent to acquisition
   a. Integrated operation
   b. Self-sustaining foreign operation
5. Foreign subsidiary consolidation with acquisition differential
Learning Outcome: 7
Quiz - 1.5%
Group Assignment 2 (7.5%)

Module 13: Financial Accounting for Not¿for¿Profit (NFP) Organizations 
1. Objectives of government reporting and major reporting issues
2. Internal and external users of government accounting information 
   and the uses of that information
3. Identifies financial reporting needs for the public sector
   a. Fund accounting
   b. Capital assets, and donated goods and services
   c. Contributions and restrictions
4. Unique concepts in the Public Sector Accounting Board (PSAB) 
   Handbook
Learning Outcome: 8

FINAL EXAM (Cumulative) 40%