ACCG54899
Consolidations & Advanced Financial Reporting
Sheridan
 
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
 

Land Acknowledgement

Sheridan College resides on land that has been, and still is, the traditional territory of several Indigenous nations, including the Anishinaabe, the Haudenosaunee Confederacy, the Wendat, and the Mississaugas of the Credit First Nation. We recognize this territory is covered by the Dish with One Spoon treaty and the Two Row Wampum treaty, which emphasize the importance of joint stewardship, peace, and respectful relationships.

As an institution of higher learning Sheridan embraces the critical role that education must play in facilitating real transformational change. We continue our collective efforts to recognize Canada's colonial history and to take steps to meaningful Truth and Reconciliation.


Section I: Administrative Information
  Total hours: 56.0
Credit Value: 4.0
Credit Value Notes: N/A
Effective: Spring/Summer 2023
Prerequisites: ACCG59106
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: N/A

Program(s): Professional Accounting Grad
Program Coordinator(s): Lorraine Alyea
Course Leader or Contact: Irene Plavcic
Version: 20230508_00
Status: Approved (APPR)

Section I Notes: Allowable calculator: Texas Instruments BAII Plus.

 
 
Section II: Course Details

Detailed Description
Students examine the mechanics of 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 professional judgment and technical competencies by evaluating problems, identifying the underlying issues and using a conceptual framework to assist in arriving at solutions. Students learn through interactive lectures, computer exercises and classroom activities.

Program Context

 
Professional Accounting Grad Program Coordinator(s): Lorraine Alyea
This course is a required course in the Professional Accounting Ontario College Graduate Certificate.


Course Critical Performance and Learning Outcomes

  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. Identify the required segmented information and entity wide disclosures for reporting purposes.
  6. Evaluate methods for translating foreign currency transactions, balances and financial statements.
  7. Formulate accounting treatment options for hedge transactions.
  8. Apply the foreign currency transaction approach to the translation of foreign subsidiary financial statements.
  9. Assess accounting treatment options for not for profit and public/government entities.
  10. Analyze financial information using a variety of software tools.

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: IN-CLASS & ONLINE INSTRUCTION
 Quizzes (10x1%)10.0%
 Assignments (best 10 of 11x2%)20.0%
 Midterm Exam30.0%
 Final Exam Comprehensive40.0%
Total100.0%

Evaluation Notes and Academic Missed Work Procedure:
Late submissions are not permitted. Modifications for exceptional circumstances (to be determined at the discretion of the instructor) may allow for changes to the implementation of this procedure. Note: work/personal conflicts and/or commitments & computer related problems are not valid reasons for missed work.

Provincial Context
The course meets the following Ministry of Colleges and Universities requirements:


 

Prior Learning Assessment and Recognition
PLAR Contact (if course is PLAR-eligible) - Office of the Registrar

  • Not Eligible for PLAR

 
 
Section III: Topical Outline
Some details of this outline may change as a result of circumstances such as weather cancellations, College and student activities, and class timetabling.
Instruction Mode: In-class & Online Instruction
Professor: Multiple Professors
Resource(s):
 TypeDescription
RequiredTextbookModern Advanced Accounting in Canada, Herauf & Mbagwu, McGraw-Hill, 10th Cdn. Ed., ISBN 97812596546959781265106294, 2022, Connect w/Print ISBN13: 9781265161637
RequiredOtherCPA Canada Handbook ? Accounting (available online via Sheridan library services database collection)
RequiredOtherCPA Canada Handbook - Public Sector Accounting (available online via Sheridan library services database collection)

Applicable student group(s): Professional Accounting Ontario College Graduate Certificate
Course Details:

Module 1: Introduction to Advanced Accounting & Investments in Equity Securities

  • Conceptual framework for financial reporting
  • Accounting standards in Canada
  • Equity investments –overview
  • Accounting for significant influence and investments in associates (cost and equity methods of accounting)
  • Reporting complexities associated with the equity method
  • Differences in the standards for private enterprises

Textbook Reference: Chapters 1 & 2
Assessment: Assignment 2%
Learning Outcomes: 1, 2

Module 2: Business Combinations (Subsidiaries)

  • Business combinations concepts
  • Forms of business combinations (purchase of net assets, purchase of shares, contractual arrangement)
  • Accounting for business combinations (acquisition method)
  • Consolidated financial statements (year of acquisition) using the direct and worksheet approaches
  • Differences in the standards for private enterprises

Textbook Reference: Chapter 3
Assessments: Quiz 1%, Assignment 2%
Learning Outcome: 3

Module 3: Consolidation of Non-Wholly Owned Subsidiaries

  • Consolidation methods (FVE and identifiable net assets methods)
  • Other consolidation issues (including bargain purchases, contingent consideration, other)

Textbook Reference: Chapter 4 (including 4A)
Assessments: Quiz 1% Assignment 2%
Learning Outcome: 3

Module 4: Consolidation Subsequent to Acquisition Date

  • Methods of accounting for an investment in a subsidiary (including cost and equity methods)
  • Consolidated Income and Retained Earnings Statements
  • Consolidation subsequent to acquisition date (wholly and non-wholly owned subsidiary) using the direct and working paper approaches
  • Other consolidation reporting topics (impairment, other)
  • Differences in the standards for private enterprises

Textbook Reference: Chapter 5 (including 5A, 5B)
Assessments: Quiz 1%, Assignment 2%
Learning Outcome: 2, 3, 10

Module 5: Intercompany Balances and Profits –Land and Inventory

  • Accounting for intercompany transactions (balances, revenues and expenses), including how to account for realized and unrealized profits in intercompany transactions (non- depreciable assets such as land, inventory)
  • Adjustments in the year of the sale, subsequent years, downstream vs. upstream

Textbook Reference: Chapter 6
Assessments: Quiz 1%, Assignment 2%
Learning Outcomes: 2, 3, 10

Module 6: Intercompany Balances and Profits – Depreciable Assets &Other

  • Accounting for intercompany transactions, including how to account for realized and unrealized profits in intercompany transactions (depreciable assets and other)
  • Adjustments in the year of the sale, subsequent years, downstream vs. upstream
  • Differences in the standards for private enterprises

Textbook Reference: Chapter 7
Assessments: Quiz 1%, Assignment 2%
Learning Outcomes: 2, 3, 10

Mid-Term Exam (30%)

Module 7: Consolidated Cash Flows and Changes in Ownership

  • Consolidated Cash Flow Statement
  • Accounting for various ownership structures including a change in the parent's ownership interests, subsidiary issues additional shares to public, subsidiary with preferred shares outstanding, indirect shareholdings
  • Differences in the standards for private enterprises

Textbook Reference: Chapter 8
Assessments: Quiz 1%, Assignment 2%
Learning Outcome: 3

Module 8: Other Consolidation Reporting Issues

  • Accounting for joint arrangements & other
  • Deferred income taxes arising on acquisition
  • Operating segments
  • Differences in the standards for private enterprises

Textbook Reference: Chapter 9
Assessments: Quiz 1%, Assignment 2%
Learning Outcomes: 4, 5

Module 9: Foreign Currency Transactions &Hedges

  • Concepts of foreign currency transactions
  • Accounting for foreign currency transactions
  • Hedging foreign currency exposure (forward contracts) –no hedge accounting
  • Hedge accounting (including fair value and cash flow hedges, and hedges of a net investment in foreign operations)
  • Differences in the standards for private enterprises

Textbook Reference: Chapter 10
Assessments: Quiz 1%, Assignment 2%
Learning Outcomes: 6, 7, 10

Module 10: Reporting Foreign Operations / Foreign Currency Translation

  • Accounting exposure vs. economic exposure
  • Foreign operations –functional vs. presentation currency
  • Translation methods and translated financial statements
  • Other foreign reporting issues (acquisition differential)
  • Differences in the standards for private enterprises

Textbook Reference: Chapter 11
Assessments: Quiz 1%, Assignment 2%
Learning Outcome: 8

Module 11: Financial Reporting for Not-for-Profit Organizations

  • Characteristics and users of Not-for-Profit Organizations (NFPOs)
  • Accounting standards for Not-for-Profit Organizations (NFPO) –financial statements, fund accounting, types of contributions, revenue recognition of contributions (deferral method and restricted fund method), other considerations (capital assets, donated goods and services, other)
  • Differences in the standards for private enterprises

Textbook Reference: Chapter 12 (including 12A, 12B)
Assessments: Quiz 1%, Assignment 2%
Learning Outcome: 9

Module 12: Public Sector Financial Reporting

  • Nature of government, users and uses of public sector accounting
  • Financial reporting for government –PSA Handbook
  • Objectives and major reporting issues

Textbook Reference: Chapter 12 (including 12C)
Learning Outcome: 9

Final Exam - Comprehensive (40%)



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It is recommended that students read the following policies in relation to course outlines:

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All Sheridan policies can be viewed on the Sheridan policy website.

Appropriate use of generative Artificial Intelligence tools: In alignment with Sheridan's Academic Integrity Policy, students should consult with their professors and/or refer to evaluation instructions regarding the appropriate use, or prohibition, of generative Artificial Intelligence (AI) tools for coursework. Turnitin AI detection software may be used by faculty members to screen assignment submissions or exams for unauthorized use of artificial intelligence.

Course Outline Changes: The information contained in this Course Outline including but not limited to faculty and program information and course description is subject to change without notice. Nothing in this Course Outline should be viewed as a representation, offer and/or warranty. Students are responsible for reading the Important Notice and Disclaimer which applies to Programs and Courses.


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