ACCG55325
Intermediate Financial Reporting 2
Sheridan
 
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
 
Section I: Administrative Information
  Total hours: 56.0
Credit Value: 4.0
Credit Value Notes: N/A
Effective: Winter 2021
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: Lorraine Alyea
Version: 20210118_00
Status: Approved (APPR)

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

 
 
Section II: Course Details

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 Canadian Generally Accepted Accounting Principles (GAAP). This course focuses on the liability and shareholders' equity components of the balance sheet. 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 prepare external financial statement components and disclosures consistent with financial accounting theory, and Canadian GAAP, with a specific emphasis on accounting for the liability and shareholders' equity components of the balance sheet.
 
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. Report liabilities (debt) and equities in accordance with GAAP.
  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 long-term liabilities.
  5. Explain the accounting treatment for 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. Identify the appropriate accounting treatment of other disclosure issues related to segmented information, interim financial reporting, related-party transactions and subsequent events.

Evaluation Plan
Students demonstrate their learning in the following ways:

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

Evaluation Notes and Academic Missed Work Procedure:
In addition to achieving a minimum 50% overall grade, a student must achieve a grade of at least 50% on the final comprehensive exam in order to receive credit for this course.

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: N/A
Resource(s):
 TypeDescription
RequiredTextbookIntermediate Accounting, Volume 2, Kieso, D., Weygandt, J., Warfield, T., Young, N., Wiecek, I., McConomy, B., John Wiley & Sons Canada, Ltd: Toronto, 12th Canadian Edition, ISBN 9781119600152, 2019
RequiredOtherCPA Handbook assigned sections, available through Sheridan Library access.

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

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 product guarantees, other customer program obligations, and unearned revenues.
  7. Explain and apply two approaches to the recognition of contingencies and uncertain commitments and identify the accounting and reporting requirements for guarantees and commitments.

Text Reference: Chapter 13

Assessments: Quiz (1%), Assignment (2%)

Learning Outcomes: 1, 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 disclosed and analyzed.

      Text Reference: Chapter 14

      Assessments: Quiz (1%), Assignment (2%)

Learning Outcomes: 1, 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 how shareholders' equity is presented, disclosed, and analyzed.

Text Reference: Chapter 15

Assessment: Quiz (1%), Assignment (2%)

Learning Outcomes: 1, 2,  5

 

Module 4: Complex Financial Instruments

  1. Understand what derivatives are and how they are used to manage risks and how to account for them.
  2. Analyze and account for hybrid/compound instruments from an issuer perspective.
  3. Describe and account for share-based compensation.

Text Reference: Chapter 16

Assessment: Quiz (1%), Assignment (2%)

Learning Outcomes: 1, 2, 3, 4, 5, 6

 

Module 5: Earnings Per Share (EPS)

  1. Understand why earnings per share (EPS) is an important number and how it should be presented, disclosed and analyzed.
  2. Calculate basic earnings per share.
  3. Calculate diluted earnings per share.

Text Reference: Chapter 17

Assessment: Quiz (1%), Assignment (2%)

Learning Outcomes: 1, 7

 

MIDTERM EXAM (Modules 1-5) –30%

 

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 and deferred tax assets.
  4. Prepare analyses of deferred tax balances and record deferred tax expense.
  5. 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.
  6. Account for tax loss carryover benefits, including any note disclosures.
  7. 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.
  8. Identify and apply the presentation and disclosure requirements for income tax assets and liabilities and apply intraperiod tax allocation.

Text Reference: Chapter 18

Assessment: Quiz (1%), Assignment (2%)

Learning Outcome: 1, 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 and distinguish between defined contribution and defined benefit plans.
  3. 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.
  4. Identify transactions and events that change benefit plan assets and a benefit plan surplus or deficit, and calculate the balance of the plan assets and the plan surplus or deficit.
  5. Identify the components of pension expense, and account for a defined benefit pension plan under IFRS and ASPE.
  6. Account for defined benefit plans with benefits that vest or accumulate other than pension plans.
  7. 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.

Text Reference: Chapter 19

Assessment: Quiz (1%), Assignment (2%)

Learning Outcomes: 1, 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. Calculate the lease payment that is required for a lessor to earn a specific return.
  4. Identify and apply the factors that are used to determine if a contract is or contains a lease under IFRS 16 and whether leases are capital or operating leases under the ASPE classification approach.
  5. Account for right-of-use assets by lessees under IFRS 16 and capital leases under ASPE.
  6. Determine the effect of, and account for, residual values and purchase options for a lessee's right-of-use asset (IFRS) or a capital lease (ASPE).
  7. Account for operating leases by lessees under ASPE (and short-term leases and low- value leases under IFRS 16) and compare the operating and capitalization methods of accounting by lessees.

Text Reference: Chapter 20

Assessment: Quiz (1%), Assignment (2%)

Learning Outcomes: 1, 2, 3, 4, 8

 

Module 9: Accounting Changes, Error Analysis

  1. Identify the types of accounting changes and explain how to account for them.
  2. Identify economic motives for changing accounting methods and interpret financial statements where there have been retrospective changes to previously reported results.
  3. Identify the differences between ASPE and IFRS related to accounting changes.

Text References: Chapter 21

Assessment: Quiz (1%), Assignment (2%)

Learning Outcomes: 1, 9

 

Module 10: Other Measurement and Disclosure Issues

  1. Understand the importance of disclosure from a business perspective.
  2. Review the full disclosure principle and how it is implemented and explain how companies use accounting policy notes.
  3. Describe the disclosure requirements for major segments of a business.
  4. Describe the requirements and accounting problems associated with interim reporting.
  5. Discuss the accounting issues related to related party transactions.
  6. Identify the accounting issues relating to subsequent events and those faced by unincorporated businesses.
  7. Identify the major considerations relating to bankruptcy and receivership.
  8. Identify the major disclosures found in the auditor's report.
  9. Describe methods used for basic financial statement analysis and summarize the limitations of ratio analysis.

Text References: Chapter 23

Assessment: Quiz (1%), Assignment (2%)

Learning Outcomes: 1, 10

 

FINAL EXAM (Cumulative): 40%

 



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