FAa2IiII
FAa2IiII
Spring 2010
Class Schedule:
Monday – Friday 9:00 AM – 4:00 PM
Apr. 19 – May 14, 2010
Instructor Information:
David Adams, BBA, MBA, CA, CPA, CMA (Hon.)
Albert M. Ferris, FCA, M. Econ., CFP
Office: L2055
Office Phone: 410-2000 ext. 6912
Email Address: dadams@ambrose.edu, albertf@islandtelecom.com
Calendar Description:
This course examines current accounting standards with a particular emphasis on the liability/equity
side of the balance sheet and some specialized areas of financial statement presentation. Specific
topics include short and long-term liabilities, statement of changes in financial position, pensions,
leases, income taxes, earnings per share, and accounting changes and error corrections. (Prerequisite
ACC 301)
ACC 302 is the second part of intermediate financial accounting designed for those students who
have successfully completed an introductory financial accounting course and the first part of
intermediate accounting. ACC 301 and ACC 302 together provide a comprehensive study of
financial accounting and reporting and are the courses that cover most of the sections contained in
the CICA Accounting Handbook which prescribes accounting standards to be used for financial
reporting in Canada. There is a vast body of knowledge that must be mastered before you can
account for the activities of an enterprise. Intermediate accounting is the essential course for
gaining the technical skills and judgement you need to succeed. Although a few topics are covered
in greater depth in advanced accounting courses, virtually every important corporate reporting topic
is included in an intermediate accounting course. Mastery of the content of intermediate accounting
is crucial for anyone who hopes to either use or prepare accounting information.
ACC 302 consists of more specialized topics. Debt and shareholders’ equity issues are covered in
Chapters 12-14. Accounting for income tax is covered in Chapters 15 & 16, with leases being the
topic of Chapter 17. Pensions and post-retirement benefits are covered in Chapter 18, and Chapter
1
19 covers earnings per share material. Chapter 20 reviews accounting policy changes and error
corrections that require restatement of one or more prior years’ financial statements. Chapter 21
concludes with a review of financial statement analysis, and emphasizes the importance of
accounting policy choice and disclosure in the analysis of published financial statements. The Cash
Flow Statement is also again reviewed. The objectives for the course are as follows:
1. Students will understand and apply Canadian accounting principles to record, report and
disclose financial information on liabilities and shareholders’ equity including complex
debt and equity instruments.
2. Students will understand and apply Canadian accounting principles to record, report and
disclose financial information on corporate income taxes, tax losses, and leases.
4. Students will be able to understand and calculate earnings per share (dilutive and non-
dilutive) for Canadian corporations.
Intermediate Accounting, Beechy & Conrod, 4th Edition. McGraw-Hill Ryerson, Volume 2
http://highered.mcgraw-hill.com/sites/0070978859/student_view0/index.html
http://edu.knotia.ca
The course combines lectures and in-class problem solving. To effectively work on problems in
class you will need to read the assigned chapter prior to class. Class attendance and keeping up to
date on the material is critical to be successful in this course. Assigned problems are required to
be passed in for each chapter. To learn and understand the material you need to read each chapter
thoroughly and complete the assigned problems. Additional solved problems are found at the end of
each chapter and on the Online Learning Centre.
2
The midterm and final exams will be designed to test the conceptual understanding and procedural
application of the material covered during the course, and will be patterned after the in-class and
assigned exercises and problems. The following is a summary of all evaluation methods and relative
weights for the course:
Note: A minimum of 40% on the Final Exam is a requirement for successful completion of
each course.
Examinations:
Graded final examinations will be available for supervised review at the request of the student.
Grading Scale:
Other Information:
It is the responsibility of all students to become familiar with and adhere to the academic policies as
stated in the current Student Handbook and Academic Calendar. In particular, students are to note
academic regulation #34 - Academic Dishonesty.
Personal information, that is information about an individual that may be used to identify that
individual, may be collected as a requirement as part of taking this class. Any information collected
will only be used and disclosed for the purpose for which the collection was intended. For further
information contact the Privacy Compliance Officer at privacy@ambrose.edu.
3
Summary of Material to be Covered:
Chapter Topic
12 Liabilities
Theoretical foundation
Contingencies and estimated liabilities
Environmental liabilities
Current liabilities
Long-term debt and bonds payable
Calculating bond prices (review of PV concepts)
Subsequent changes in interest rates
Bond premiums and discounts
Preparing a bond amortization schedule
Debt retirement
Defeasance
Foreign-currency denominated debt and other comprehensive income
Disclosure, cash flow statement, international aspects
13 Shareholders’ Equity
Theoretical foundation
Moral foundation of a corporation
Issuance of share capital
Retirement of share capital and treasury stock
Retained earnings
Dividend distribution
Stock dividends and stock splits
Other equity components, disclosures, and cash flow statement
Partnership Equity (handout)
o Nature of a partnership
o Creation and termination of a partnership
o General and limited partnership
o Partnership contribution and profit distribution
o Admission, retirement, and withdrawal or death of a partner
o Liquidation of a partnership
o Financial statement presentation
4
14 Complex Debt and Equity Instruments
Classification issues
Debt convertible at the investor’s option
Debt convertible at the issuer’s option
Accounting for stock options
Deferred compensation agreements
F/S Disclosures including accumulated other comprehensive income
Cash flow statement considerations
20 Restatements
Theoretical foundation
Accounting for changes
All-inclusive earnings versus current operating performance
Retroactive treatment with restatement
Retroactive treatment without restatement
Prospective approach
Disclosure & Cash flow statement effects