ACCG59106
Intermediate Financial Reporting 1
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: ACCG53855
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 asset component 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 Generally Accepted Accounting Principles (GAAP), with an emphasis on accounting for financial assets.
 
Learning Outcomes:

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

  1. Explain the various steps in the accounting cycle.
  2. Prepare a multi-step income statement, classified balance sheet and cash flow statement in accordance with GAAP for an entity.
  3. Compare alternative revenue recognition policies and performance obligations.
  4. Determine how current and long-term assets should be reported, recognized, measured, presented and analyzed in accordance with GAAP and the conceptual framework.
  5. Identify the use of fair market values, lower of cost and net realizable value, and tests for impairment, in the valuation of assets for financial reporting purposes.
  6. Apply rules related to the de-recognition of assets.
  7. Contrast how the costs of assets (including inventory, tangible and intangible long-term assets) are charged/allocated to expense over the period of benefit.
  8. Differentiate between the valuation and income recognition methods employed to account for current and long-term investments in securities.
  9. Use appropriate financial software features to complete financial analyses.

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: IN-CLASS & ONLINE INSTRUCTION
 Quizzes (10 x 1%)10.0%
 Assignments (10 x 2%)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 1, Kieso, D., Weygandt, J., Warfield, T., Wiecek, I., McConomy, B., John Wiley & Sons Canada, Ltd: Toronto, 12th Canadian Edition, 2019
RequiredOtherCPA Handbook assigned sections, available through Sheridan Library access.

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

Module 1: The Accounting Cycle

  • Understand basic accounting terminology, double-entry rules and the accounting equation.
  • Identify the steps in the accounting cycle and the steps in the recording process.
  • Explain the reasons for and prepare adjusting entries.
  • Explain how the type of ownership structure affects the financial statements.
  • Prepare closing entries and consider other matters relating to the closing process.

Chapter Readings: Appendix C

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

Learning Outcomes: 1, 9

 

Module 2: Measurement and Reporting Financial Performance

  • Use valuation techniques to measure financial statement elements.
  • Use IFRS 13 to measure fair value.
  • Understand and apply present value concepts.
  • Understand how firms create value, manage performance, and communicate useful information to users.
  • Understand the concept of and be able to assess quality of earnings/information.
  • Understand the differing perspectives on how to measure income.
  • Measure and report results of discontinued operations.
  • Measure income and prepare the income statement and the statement of comprehensive income using various formats.
  • Prepare the statement of retained earnings and the statement of changes in equity.
  • Understand how disclosures and analysis help users of financial statements assess performance.

Chapter Readings: Chapter 3 and Chapter 4

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

Learning Outcomes: 2, 5, 9

 

Module 3: Financial Position and Cash Flows

  • Understand the statement of financial position and statement of cash flows from a business perspective.
  • Identify the uses and limitations of a statement of financial position.
  • Identify the major classifications of a statement of financial position.
  • Prepare a classified statement of financial position.
  • Identify statement of financial position information that requires supplemental disclosure.
  • Identify major disclosure techniques for the statement of financial position.
  • Indicate the purpose and identify the content of the statement of cash flows.
  • Prepare a statement of cash flows using the indirect  and direct methods.
  • Understand the usefulness of the statement of cash flows.

Chapter Reading: Chapter 5

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

Learning Outcomes: 2, 9

 

Module 4: Revenue Recognition

  • Understand the economics and legalities of selling transactions from a business perspective.
  • Identify the five steps in the revenue recognition process.
  • Identify the contract with customers.
  • Identify the separate performance obligations in the contract.
  • Determine the transaction price.
  • Allocate the transaction price to the separate performance obligations.
  • Understand how to recognize revenue when the company satisfies its performance obligation.
  • Analyze and determine whether a company has earned revenues under the earnings approach.
  • Identify other revenue recognition issues.
  • Describe presentation and disclosure regarding revenue.

Chapter Reading: Chapter 6

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

Learning Outcomes: 3, 9

 

Module 5: Cash and Receivables

  • Understand cash and accounts receivable from a business perspective.
  • Define financial assets and identify items that are considered cash and cash equivalents and how they are reported.
  • Define receivables and identify the different types of receivables from an accounting perspective.
  • Account for and explain the accounting issues related to the recognition and measurement of accounts receivable.
  • Account for and explain the accounting issues related to the impairment in value of accounts receivable.
  • Account for and explain the accounting issues related to the recognition and measurement of notes and loans receivable.
  • Account for and explain the basic accounting issues related to the de-recognition of receivables.
  • Explain how receivables and loans are reported and analyzed.
  • Explain common techniques for controlling cash.

Chapter Reading: Chapter 7 including Appendix 7A Assessment: Quiz (1%), Assignment (2%)

Learning Outcomes: 3, 4, 5, 6, 9

 

MIDTERM EXAM - (Module 1 - 5) 30%

 

Module 6: Inventory

  • Understand inventory from a business perspective.
  • Identify which inventory items should be included in ending inventory
  • Identify the effects of inventory errors on the financial statements and adjust for them.
  • Determine the components of inventory cost.
  • Distinguish between perpetual and periodic inventory systems and account for them.
  • Identify and apply GAAP cost formula options and indicate when each cost formula is appropriate.
  • Explain why inventory is measured at the lower of cost and market and apply the lower of cost and net realizable value standard.
  • Identify inventories that are or may be valued at amounts other than the lower of cost and net realizable value.
  • Apply the gross profit method of estimating inventory.
  • Identify how inventory should be presented, disclosed and analyzed

Chapter Reading: Chapter 8

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

Learning Outcomes:  4, 5, 6, 7, 9

 

Module 7: Investments

  • Understand the nature of investments including which types of companies have significant investments.
  • Explain and apply the cost/amortized cost model of accounting for investments.
  • Explain and apply the fair value through net income model of accounting for investments.
  • Explain and apply the fair value through other comprehensive income model of accounting for investments.
  • Explain and apply the incurred loss, expected loss, and fair value loss impairment models.
  • Explain the concept of significant influence and apply the equity method.
  • Explain the concept of control and when consolidation is appropriate.
  • Explain how investments are presented and disclosed in the financial statements noting how this facilitates analysis.

Chapter Reading: Chapter 9

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

Learning Outcomes: 4, 5, 6, 8, 9

 

Module 8: Property, Plant and Equipment

  • Identify the business importance and characteristics of property, plant, and equipmen and explain the recognition criteria.
  • Identify the costs to include in the measurement of property, plant, and equipment at acquisition.
  • Determine asset cost when the transaction has delayed payment terms or is a lump- sum purchase, a non-monetary exchange, or a contributed asset.
  • Identify the costs included in specific types of property, plant, and equipment.
  • Understand and apply the cost model, the revaluation model using the asset adjustment method and the fair value model.
  • Explain and apply the accounting treatment for costs incurred after acquisition.

Chapter Readings: Chapter 10

Assessment: Quiz, Assignment (2%)

Learning Outcomes:  4, 5, 6, 7, 9

 

Module 9: Depreciation, Impairment and Disposition

  • Understand the importance of depreciation, impairment, and disposition from a business perspective.
  • Explain the concept of depreciation and identify the factors to consider when determining depreciation charges.
  • Identify how depreciation methods are selected: calculate and recognize depreciation using the straight-line, decreasing charge, and activity methods.
  • Explain the accounting issues for depletion of mineral resources.
  • Explain and apply the accounting procedures for partial periods and a change in depreciation rate.
  • Explain the issues and apply the accounting standards for capital asset impairment under both IFRS and ASPE.
  • Account for derecognition of property, plant and equipment and explain and apply the accounting standards for long-lived assets that are held for sale.

Chapter Readings: Chapter 11

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

Learning Outcomes: 4, 5, 6, 7, 9

 

Module 10: Intangible Assets & Goodwill

  • Understand the importance of goodwill and intangible assets from a business perspective and describe their characteristics.
  • Identify and apply the recognition and measurement requirements for purchased intangible assets.
  • Identify and apply the recognition and measurement requirements for internally developed intangible assets.
  • Explain how intangible assets are accounted for after initial recognition.
  • Identify and explain the accounting for specific types of intangible assets.
  • Explain and account for impairment and derecognition of limited-life and indefinite-life intangible assets.
  • Explain how goodwill is measured and accounted for after acquisition.
  • Explain and account for impairment of goodwill.

Chapter Reading: Chapter 12

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

Learning Outcomes: 4, 5, 6, 7, 9

 

FINAL EXAMINATION (Cumulative) 40%

 

 



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