ACC 926 Intermediate Financial Accounting I is the first 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 asset accounts of the balance sheet, and related significant income statement accounts. While the course is concerned primarily with the theory underlying the material covered, it also considers the real life applications to current reporting requirements. This course addresses how Canadian practice evolves in response to updates in IFRS and private entity GAAP standards.
ACC 926 Intermediate Financial Accounting I concentrates on four major topic areas:
- Financial Reporting
- Financial Statements and Revenue Recognition
- Current and Financial Assets
- Capital Assets
Financial reporting reviews the theoretical issues of accounting, which includes understanding and applying the appropriate standards in an ethical manner with reference to the conceptual framework underlying financial reporting. The topic also reviews the technical components of financial reporting, commonly referred to as the accounting cycle.
The topic on Financial Statements reviews the classification and presentation issues encountered in the preparation of general purpose financial statements. Various formats available in the preparation of the various statements are studied and accounting for comprehensive income, irregular items, and earnings per share is introduced. Revenue recognition and its relationship with the topics covered to this point is studied in detail. The basics of financial statement analysis are also introduced.
Students will review and expand on their knowledge of accounting for cash, receivables, inventories and investments. The topic explores the complexities involved in the recognition, measurement, valuation and classification of these assets and highlights how the application of accounting standards and professional judgment is required in these activities.
In the study of assets that are capitalized, students will review the concepts of capitalization versus expense and gain experience in identifying the costs that will be included in a capitalized asset. The acceptable methods of allocating the cost of an asset through amortization is explored and Capital Cost
Allowance (CCA), the method required for income tax purposes, is introduced. Other topics include disposition of tangible capital assets and accounting for natural resources. In the final topic, students are introduced to some of the complexities involved in the accounting for intangible assets including Goodwill.
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.