Kieso Weygandt Warfield Young Wiecek. (2016) Intermediate Accounting (Volume 2), 11th Canadian Edition, Mississauga: John Wiley & Sons Canada Limited Kieso Weygandt Warfield Young Wiecek. (2016) Study Guide to Accompany Intermediate Accounting (Volume 2), 11th Canadian Edition, Mississauga: John Wiley & Sons Canada Limited

CPA Standards and Guidance Collection, Assurance Handbook, most recent edition. Available via McMaster Library

ACC 927 Intermediate Financial Accounting II is the second of two intermediate financial accounting courses that expand on the knowledge acquired in the Introductory Accounting course. Students will study and review the accounting process, function, and reporting as it relates to the significant liability and equity accounts of the balance sheet, and related significant income statement accounts.  

This course will focus on the current financial reporting requirements and practices for liabilities and shareholders’ equity for companies reporting under IFRS and PE GAAP (ASPE) standards.  Financial accounting focuses on providing information useful to external decision makers, primarily investors and creditors. As you progress through the course, keep in mind how the topic being covered promotes this goal. If the financial information provided by accountants loses this focus, financial information is rendered useless. Financial standards help guide the preparer in providing useful information. By January 2011 publicly traded companies are required to follow International Financial Reporting Standards (IFRS). These standards are included in the new five part CICA Handbook, specifically under Part I. The text used in this course embodies these standards and also compares them to the accounting standards for private enterprises (ASPE). Private enterprises will follow a simpler, but similar, set of standards as outlined in the CICA Handbook, Part II. Intermediate Financial Accounting II focuses primarily on public companies, though we will occasionally point out requirements for private companies as well when appropriate. Over the last several years, many of the standards in the CICA Handbook (included for the time being as Part V of the CICA Handbook) have been converging with IFRS so the impact of the new standards is not as great as you might expect.

Each of the chapters in your text compares IFRS and private enterprise GAAP as well as outlines accounting issues still expected to be undergoing changes. Understanding this section will help keep you aware of changes in accounting standards, why they are being proposed, and problems in implementation.

For your information, the remaining two parts of the new CICA Handbook cover Accounting for Pensions and Accounting for Not for Profits. These parts will not be studied in this course, but you will explore them in subsequent courses.

ACC 927 Intermediate Financial Accounting II concentrates on four major topic areas:

1. Liabilities and Equity
2. Income Taxes and Earnings per Share
3. Pensions and Leases
4. Cash Flow Statement and Other Accounting Issues

Liabilities and Equity reviews the basic definitions, classification, and accounting of liability and equity accounts. Basic types of liabilities are reviewed, and the accounting for contingent and non-financial liabilities is covered in depth. The student will study the valuation, classification, and derecognition of long term debt. The corporate form of business organization is reviewed and accounting for issues involving shareholders equity, including its presentation, share transactions, and dividend payments is explored. Students will be introduced to complex financial instruments and stock option plans.

In the topics on Earnings per Share (EPS), the usefulness and calculation of EPS and diluted EPS will be studied for simple and complex capital structures respectively.  In the study of Income Taxes, the student will be introduced to the differences between accounting net income and taxable income and how to accurately calculate tax expenses, assets and liabilities based on these differences. Other tax issues, such as loss carry overs and intraperiod tax allocation reporting are also introduced.

The topic on Pensions and Leases will introduce students to reporting and accounting for liabilities that require considerable professional judgment to report accurately. Issues regarding the measurement, recording, classification, presentation, and disclosure related to these two liabilities are explored at length. Students will focus primarily on defined benefit plans for pensions, and on the differences between operating and capital leases for both the lessor and the lessee.

The Cash Flow Statement (also called the Statement of Cash Flows) and its usefulness will be studied using both the direct and indirect method. Changes in accounting policy, changes in accounting estimates, and a correction of an error in a prior period and the effect of these changes or errors on financial statements will be explored. A variety of other measurement and disclosure issues, such as those related to subsequent events and related party transactions, will be discussed.

Lecture notes are provided in each module to supplement the text reading.  Read only those text pages referenced in the notes because not all topics or appendixes in the text are included.  Examples to supplement your understanding of the concepts studied in the course are found in The Study Guide to Accompany Intermediate Accounting and you will be directed to complete specific examples in the Guide. However, the Guide provides other examples, tools, hints and suggestions that you will find useful in your study of Intermediate Financial Accounting.

Examine and assess the current financial accounting reporting applications under private entity GAAP and IFRS as it relates to valuation of liabilities and equity. Specific course objectives are:

1. Describe the basic principles underlying the accounting and reporting practices for common current liabilities and several non-financial liabilities
2. Explain the accounting issues related to long term debt and financial liabilities given their growing importance in capital markets
3. Explain accounting issues for share and equity instruments, retained earnings and other shareholders equity components
4. Describe compound and hybrid debit and equity instruments , including stock options
5. Calculate basic and diluted earnings per share
6. Discuss basic guideline sunder IFRS and PE GAAP for reporting income taxes
7. Account for pensions under IFRS and PE GAAP standards
8. Prepare a statement of cash flow
9. Account for leases under IFRS and PE GAAP standards

Students will demonstrate knowledge and an understanding of the accounting concepts covered in Intermediate Financial Accounting II by completing four (4) formal credit assignments and a final examination.  This works out to one assignment per unit, which you will find to be a manageable workload.

The due dates are listed in your course package and assignment schedule.

Distribution of course marks will be as follows:

Assignments 40%
Final Examination   60%

NOTE:  A passing grade on the final examination is required to pass the course.

The final exam must be written on or before your course end date/final exam date. Students who have submitted all assignments ahead of schedule may opt to write their final examination prior to the posted examination/course end date. Although students are permitted to accelerate through course material, no student will be permitted to schedule/sit the final examination earlier than two (2) months post course start date. After the final exam is written no further assignment submissions will be accepted. 

ACC 927 consists of (4) units of study.  These areas will be more fully described in the Course Outline/Module Expectations section of this package.  Each unit/module contains learning objectives/expectations, text readings, course notes (A2L), review activities and suggested learning strategies and resources.  

It is expected that the recommended activities which include practice exercises/quizzes/problems, discussion topics, be completed prior to attempting formal credit assignments.  Each formal credit assignment relates to the materials covered in each module and will be less difficult if the suggested review activities are completed.  In addition, completing text readings, reviewing suggested resources and completing suggested review activities will enable the student to study more easily for the final exam.  You can expect to see material on the final examination of similar level of difficulty to that of the formal credit assignments.

Course assignments are submitted to the appropriate A2L Assignment folder by the specified due date

Late assignments will be subject to a 2% per day late penalty (includes weekends and holidays) for up to seven (7) days. After this date, no assignments will be accepted and a grade of zero (0) will be applied. Extensions for course work must be approved by the instructor before the due date (see Academic Regulations below), and will be granted for illness or emergencies only. Students may be asked to submit supporting documentation for an extension request.  NOTE:  This policy applies to assignments and other hand in type coursework only.  This policy does not apply to discussion board topics/postings which do not allow for late postings/contributions.

In accordance with McMaster University’s General Academic Regulations, “it is imperative that students make every effort to meet the originally scheduled course requirements and it is a student’s responsibility to write examinations as scheduled.” Therefore, all students are expected to attend and complete the specific course requirements (i.e. attendance, assignments, and tests/exams) listed in the course outline on or by the date specified.  Students who need to arrange for coursework accommodation, as a result of medical, personal or family reasons, must contact the course instructor within 48 hours of the originally scheduled due date. It is the student’s responsibility to contact the Program Manager/Program Associate to discuss accommodations and procedures related to deferred tests and/or examinations within 48 hours of the originally scheduled test/exam, as per policy.  Failure to contact the course instructor, in the case of missed coursework, or the Program Manager/Program Associate, in the case of a missed test/examination, within the specified 48 hour window will result in a grade of zero (0) on the coursework/exam and no further consideration will be granted.  

*Note: Supporting documentation will be required but will not ensure approval of accommodation(s).

(Please note that CCE will adhere to a zero tolerance application of the policy)

You are expected to exhibit honesty and use ethical behaviour in all aspects of the learning process. Academic credentials you earn are rooted in principles of honesty and academic integrity.  Academic dishonesty is to knowingly act or fail to act in a way that result or could result in unearned academic credit or advantage. This behaviour can result in serious consequences, e.g. the grade of zero on an assignment, loss of credit with a notation on the transcript (notation reads: “Grade of F assigned for academic dishonesty”), and/or suspension or expulsion from the university.

It is your responsibility to understand what constitutes academic dishonesty. For information on the various types of academic dishonesty please refer to the Academic Integrity Policy, located at www.mcmaster.ca/academicintegrity.

The following illustrates only three forms of academic dishonesty:

1. Plagiarism, e.g. the submission of work that is not one’s own or for which other credit has been obtained, including copying solution sets.
2. Improper collaboration in group work.
3. Copying or using unauthorized aids in tests and examinations.

Students who require academic accommodation should contact Student Accessibility Services (SAS).  Staff at SAS will evaluate your learning needs and, if required, will provide a letter for the course instructor. It is the student’s responsibility to inform the instructor and Program Manager of any accommodation requirements at the start of the course.  For more information, contact SAS at ext. 28652 or visit http://sas.mcmaster.ca

Material for this course may be accessed through McMaster’s learning system, Avenue to Learn. Your instructor will notify you if, or when, you will be required to log in and use the tools and materials available through this on-line system. Computers are available for use in various locations across McMaster main campus including all libraries, computer labs, and CCE’s Student Lounge. To access Avenue to Learn go to: http://avenue.mcmaster.ca You will be required to enter your MAC ID (login and password). To activate your MAC ID, contact University Technology Services.


Accessing the CPA Handbook:
CPA Handbook (available through the McMaster University Library System)

To access the CPA Handbook, please follow these steps:

Go to https://library.mcmaster.ca/articles/knotia

Click on the URL for McMaster Users Only

Log in using your MacID and password

Under subscriptions find the CPA Standards and Guidance Collection and click to access this resource

The instructor reserves the right to modify elements of the course and will notify students accordingly.

Policies related to dropping a course and course withdrawals are posted to the Centre for Continuing Education’s program webpage, FAQs & Policies (https://www.mcmastercce.ca/cce-policies#Dropping).

In the event of inclement weather, the Centre for Continuing Education will abide by the University’s Storm Closure Policy: https://www.mcmaster.ca/policy/Employee/storm_emergency_policy.pdf, and will only close if the University is closed. All in-class courses, exams and room bookings by internal and external clients will be cancelled if the Centre for Continuing Education is closed. On-line courses will take place as scheduled.

Grade	Equivalent Grade Point	Equivalent Percentages
A+	12	90-100
A	11	85-89
A-	10	80-84
B+	9	77-79
B	8	73-76
B-	7	70-72
C+	6	67-69
C	5	63-66
C-	4	60-62
D+	3	57-59
D	2	53-56
D-	1	50-52
F	0	0-49

The following is your course schedule for ACC 927.

Unit 1

Module 1:     Current Liabilities

Module 2:     Long term Debt

Module 3:     Shareholders’ Equity

Module 4:     Dividends

Module 5:     Complex Financial Instruments

Unit 2

Module 1:     Basic Earnings Per Share 

Module 2:     Diluted Earnings Per Share 

Module 3:     Accounting Income vs Taxable Income

Module 4:     Income Taxes

Unit 3

Module 1:     Types of Pension Plans

Module 2:     Defined Benefit Pension Plans

Module 3:     Leases

Unit 4

Module 1:     Accounting Changes

Module 2:     Cash Flow Statement

Module 3:     Measurement and Disclosure Issues

For further details please review the “Course & Assignment Schedule” under “Course Overview”.