ACCG30352
Advanced Financial Reporting
Sheridan
 
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
 
Section I: Administrative Information
  Total hours: 42.0
Credit Value: 3.0
Credit Value Notes: N/A
Effective: Winter 2021
Prerequisites: ACCG21646
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: N/A

Program(s): Business Admin. Accounting
Program Coordinator(s): Jennifer Peterson
Course Leader or Contact: Irene Plavcic
Version: 20210118_00
Status: Approved (APPR)

Section I Notes: A Texas Instruments BAII Plus calculator is permitted for this course.

 
 
Section II: Course Details

Detailed Description
Students examine the mechanics of accounting for complex financial accounting transactions. Topics include financial instruments, inter-corporate investments, consolidations, joint ventures, foreign currency translation, not-for profit organizations and government accounting. Students develop their professional judgment and technical competencies by analyzing problems, identifying the underlying issues and using the conceptual framework to arrive at solutions.

Program Context

 
Business Admin. Accounting Program Coordinator(s): Jennifer Peterson
This course is an optional elective in the three year Business Administration Accounting program.


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. Evaluate 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. Apply methods for translating foreign currency transactions.
  7. Assess accounting treatment options for hedge transactions.
  8. Apply the foreign currency transaction approach to the translation of foreign subsidiary financial statements.
  9. Identify differences in financial reporting for not-for-profit and government organizations.

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: IN-CLASS
 Quizzes (10x1%)10.0%
 Assignments (best 10 of 11 x 2%)20.0%
 Midterm30.0%
 Final Exam Comprehensive40.0%
Total100.0%

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


 

Essential Employability Skills
Essential Employability Skills emphasized in the course:

  • Communication Skills - Communicate clearly, concisely and correctly in the written, spoken, visual form that fulfills the purpose and meets the needs of the audience.
  • Communication Skills - Respond to written, spoken, or visual messages in a manner that ensures effective communication.
  • Numeracy - Execute mathematical operations accurately.
  • Critical Thinking & Problem Solving - Apply a systematic approach to solve problems.
  • Critical Thinking & Problem Solving Skills - Use a variety of thinking skills to anticipate and solve problems.
  • Interpersonal Skills - Show respect for the diverse opinions, values, belief systems, and contributions of others.
  • Interpersonal Skills - Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals.

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
Professor: N/A
Resource(s):
 TypeDescription
RequiredTextbookModern Advanced Accounting in Canada, Herauf/Hilton (CDN), McGraw-Hill Ryerson Limited: Canada., ISBN 9781259654695, 2019
OptionalOtherCPA Handbook - Part 1, 2, 3 (available online via Sheridan library services database collection)
OptionalOtherCPA Canada Public Sector Accounting Handbook (online via Sheridan Library database).

Applicable student group(s): Business Administration- Accounting
Course Details:

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

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

Learning Outcome: 1, 2

Chapter 1 & 2

Assessment: Assignment - 2%

 

Module 2: Business Combinations (Subsidiaries)

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

Learning Outcome: 3

Chapter 3

Assessment: Quiz- 1%, Assignment - 2%

 

Module 3: Consolidation of Non-Wholly Owned Subsidiaries

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

Learning Outcome: 3

Chapter 4 (including 4A)

Assessment – Quiz - 1% Assignment - 2%

 

Module 4: Consolidation Subsequent to Acquisition Date

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

Learning Outcome: 3, 2

Chapter 5 (including 5A, 5B)

Assessments: Quiz- 1%, Assignment-2%

 

Module 5: Intercompany Balances and Profits – Land and Inventory

  1. 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)
  2. Adjustments in the year of the sale, subsequent years, downstream vs. upstream

Learning Outcome: 3, 2

Chapter 6

Assessments: Quiz- 1%, Assignment-2%

 

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

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

Learning Outcome: 3, 2

Chapter 7

Assessments: Quiz- 1%, Assignment-2%

MIDTERM – 30%

 

Module 7: Consolidated Cash Flows and Changes in Ownership

  1. Consolidated Cash Flow Statement
  2. 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
  3. Differences in the standards for private enterprises

Learning Outcome: 3

Chapter 8

Assessments: Quiz- 1%, Assignment-2%

 

Module 8: Other Consolidation Reporting Issues

  1. Accounting for joint arrangements & other
  2. Deferred income taxes arising on acquisition
  3. Operating segments
  4. Differences in the standards for private enterprises

Learning Outcome: 4, 5

Chapter 9

Assessments: Quiz- 1%, Assignment-2%

 

Module 9: Foreign Currency Transactions & Hedges

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

Learning Outcome: 6, 7

Chapter 10

Assessments: Quiz- 1%, Assignment-2%

 

Module 10: Reporting Foreign Operations / Foreign Currency Translation

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

Learning Outcome: 8

Chapter 11

Assessments: Quiz- 1%, Assignment-2%

 

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

  1. Characteristics and users of Not-for-Profit Organizations (NFPOs)
  2. 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)
  3. Differences in the standards for private enterprises 

Learning Outcome: 9

Chapter 12 (including 12A, 12B)

Assessments: Quiz- 1%, Assignment-2%

 

Module 12: Public Sector Financial Reporting

  1. Nature of government, users and uses of public sector accounting
  2. Financial reporting for government – PSA Handbook
  3. Objectives and major reporting issues 

Learning Outcome: 9

Chapter 12 (including 12C)

FINAL EXAM (Comprehensive): 40%



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