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Work towards your CPA designation!

ACC 927 - Intermediate Financial Accounting II C01

Academic Credit Value:
3 units
Course Delivery Mode:
Hours of Study:
42 hours
Course Prerequisite(s):
ACC 926 Intermediate Financial Accounting I or equivalent. Be advised: Students who do not meet the pre-requisite will be required to withdraw. In such cases, CCE’s withdrawal/refund policies will apply.
Course Anti-requisite(s):
Instructor Name:
Glenn Skrubbeltrang
Course Dates:
05/07/2019 - 08/06/2019

Required Course Materials:
Intermediate Accounting (Volume II), 11th Canadian Edition, Kieso, Weygandt, Warfield, Young, Wiecek; John Wiley & Sons Canada Limited.
Optional Course Materials:
CPA Handbook, most recent edition
Course Description:
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.  
Learning Outcomes:
Upon completion of this course, students will:

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
The homework is the minimum amount suggested to enhance your understanding of the course.  You should attempt more problems if you are experiencing difficulties. It is expected that you have read the material and attempted the homework assignment before class.
Course Evaluation

The final grade is calculated based on the following components:

Midterm #1  25%
Midterm #2 25%
Final Exam 40%
Assignments 10%

Course Format:
This course is designed to present the fundamental concepts and theories in Intermediate Financial Accounting and promote the application to the workplace and professional practice. Course activities will include instructor presentations, required readings and experiential learning activities (i.e. case studies, group discussions, projects, etc.).
Assignment Submission:
Late Coursework:
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. 

Policy & Procedures:

Academic Regulations (Attendance, Coursework, Tests/Exams):
In accordance to 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 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, 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).

Academic Integrity

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 results 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

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.
  2. Improper collaboration in-group work.
  3. Copying or using unauthorized aids in tests and examinations.
Academic Accommodations:
Students with disabilities who require academic accommodations must contact the Student Accessibility Centre (SAS) to meet with an appropriate Disability Services Coordinator. To contact SAS, phone 905-525-9140 ext. 28652, or email For further information, consult McMaster University’s Policy for Academic Accommodation for Students with Disabilities.
On-line Elements:
In this course, we will be using on-line elements, which may include email, Avenue to Learn, WebEX, and external web sites.  Students should be aware that, when they access the electronic components of this course, private information such as first and last names, user names for the McMaster e-mail accounts, and program affiliation may become apparent to all other students in the same course. The available information is dependent on the technology used. Continuation in this course will be deemed consent to this disclosure. If you have any questions or concerns about such disclosure please discuss this with the course instructor.

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

To access the CPA Handbook, please follow these steps:
  • Go to
  • 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 ​
    Course Changes:
    The instructor reserves the right to modify elements of the course and will notify students accordingly.
    Course Withdrawal Policy:
    Policies related to dropping a course and course withdrawals are posted to the Centre for Continuing Education’s program webpage, FAQs & Policies (
    Storm Closure Policy:
    In the event of inclement weather, the Centre for Continuing Education will abide by the University’s Storm Closure Policy:, 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.
    Grading Scale:
     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
    Course Schedule:
    Unit 1 - Course Introduction; Chapter 13 - Current Liabilities

    Unit 1 Learning Outcomes:

    1.1 Define liabilities
    1.2 Differentiate between financial and other liabilities.
    1.3 Describe current liability valuation
    1.4 Identify common types of current liabilities.
    1.5 Explain the classification issues of short-term debt expected to be refinanced.
    1.6 Identify the major types of employee-related liabilities.
    1.7 Account for major types of employee-related liabilities
    1.8 Explain the accounting for common estimated liabilities.
    1.9 Explain the recognition, measurement and disclosure requirements for asset retirement obligations.

    Homework:  P13-2, P13-9, P13-20, P13-13, P 13-15

    Unit 2 - Chapter 14- Long Term Liabilities

    Unit 2 Learning Outcomes:

    2.1 Describe the formal procedures associated with issuing long-term debt.
    2.2 Identify various types of long-term debt.
    2.3 Explain the initial measurement of bonds/notes at date of issuance.
    2.4 Apply the methods of bond discount and premium amortization.
    2.5 Value bonds and consideration in special situations.
    2.6 Describe the accounting procedures for the extinguishment of debt.
    2.7 Indicate how long-term debt is presented and analyzed.

    Homework:  E14-13 (use rate 12%), P14-3, P14-4, P14-10

    Unit 3 - Chapter 15- Shareholders’ Equity

    Unit 3 Learning Outcomes:

    3.1 Discuss the characteristics of the corporate form of organization.
    3.2 Identify the rights of shareholders.
    3.3 Describe the major features of preferred shares.
    3.4 Explain the accounting procedures for issuing shares.
    3.5 Identify the major reasons for repurchasing shares.
    3.6 Accounting for reacquisition and retirement of shares.
    3.7 Accounting for various forms of dividend distributions.
    3.8 Explain the effect of different types of dividend preferences.
    3.9 Distinguish between stock dividends and stock splits.
    3.10 Prepare the shareholders’ equity section of the balance sheet
    3.11 Analyze shareholders’ equity.
    3.12 Explain accounting for treasury shares.

    Homework:  E15-13, P15-1, P15-2, P15-3

    Unit 4– Chapter 16- Complex Financial Instruments

    Unit 4 Learning Outcomes:

    4.1 Describe the presentation and measurement issues related to various complex
    financial instruments.
    4.2 Explain the accounting for issuance, conversion and retirement of convertible securities.
    4.3 Describe the nature of derivatives in general and why they exist.
    4.4 Explain the various types of financial risks including how they arise.
    4.5 Describe the nature of options, forwards and futures.
    4.6 Describe the recognition, measurement and presentation issues relating to options, forwards and futures.
    4.7 Describe the various types of stock compensation plans.
    4.8 Explain the differences between employee and compensatory option plans and other options.
    4.9 Describe the accounting for compensatory stock option plans under generally accepted accounting principles.
    4.10 Explain the nature of performance related plans.

    Homework:  E16-10, E16-16, P16-5

    Unit 5 - Chapter 17- Earnings Per Share

    Unit 5 Learning Outcomes:

    5.1 Explain why EPS is an important number.
    5.2 Explain when and how EPS is required to be presented.
    5.3 Identify potential common shares.
    5.4 Calculate earnings per share in a simple capital structure.
    5.5 Calculate diluted earnings per share using the if-converted method, the treasury stock method and the reverse stock method.
    5.6 Identify anti-dilutive potential common shares.

    Homework:  E17-6, E17-13, P17-5

    Unit 6 - Chapter 18 - Corporate Income Taxes

    Unit 6 Learning Outcomes:

    6.1 Explain the difference between accounting income and taxable income.
    6.2 Explain what a taxable temporary difference is and why a future tax liability is recognized.
    6.3 Explain what a deductible temporary difference is and why a future tax asset is recognized.
    6.4 Differentiate among, temporary, and permanent differences.
    6.5 Prepare analyses and related journal entries to record income tax expense when there are multiple temporary differences.
    6.6 Demonstrate the presentation on the income tax accounts on financial statements under IFRS and PE GAAP.
    6.7 Demonstrate the effect of various tax rates and tax rate changes on future income tax accounts.
    6.8 Apply accounting procedures for a tax loss carry back.
    6.9 Apply accounting procedures for a tax loss carry forward.
    6.10 Identify the reporting and disclosure requirements for corporate income taxes.

    Homework:  E18-13, E18-17, E18-20, P18-1

    Unit 7 – Chapter 19- Pensions

    Unit 7 Learning Outcomes:

    7.1 Distinguish between accounting for the employer’s pension costs and accounting for the pension fund.
    7.2 Identify types of pension plans and their characteristics.
    7.3 Identify the accounting and disclosure requirements for defined contribution plans.
    7.4 Explain alternative measures for valuing the pension obligation.
    7.5 Identify the components of pension expense.
    7.6 Identify transactions and events that affect the projected benefit obligation and the balance of the plan assets.
    7.7 Explain the usefulness of the pension worksheet
    7.8 Prepare a pension worksheet schedule to support the employer pension expense entries.
    7.9 Explain the pension accounting treatment of past service costs and actuarial gains and losses.
    7.10 Explain the basics of what current service cost, the projected benefit obligation and past service cost.

    Homework:  E19-18, E19-19, P19-3

    Unit 8 - Chapter 22- Statement of Cash Flows

    Unit 8 Learning Outcomes:

    8.1 Describe the purpose and uses of the statement of cash flows.
    8.2 Define cash and cash equivalents.
    8.3 Identify the major classifications of cash flows and explain the significance of each.
    8.4 Contrast the direct and indirect methods of calculating net cash flow from operating activities.
    8.5 Differentiate between net income and cash flows from operating activities.
    8.6 Prepare a statement of cash flows.
    8.7 Interpret a statement of cash flows.
    8.8 Identify the financial reporting and disclosure requirements for the statement of cash flows.

    Homework:   E22-14b, E22-16

    Unit 9 - Chapter 20- Leases

    Unit 9 Learning Outcomes:

    9.1 Explain the nature, economic substance, and advantages of lease transactions.
    9.2 Identify and explain the accounting criteria and procedures for capitalizing leases by the lessee.
    9.3 Identify the lessee’s disclosure requirements for capital leases.
    9.4 Identify the lessee’s accounting and disclosure requirements for an operating lease.
    9.5 Contrast the operating and capitalization methods of recording leases.
    9.6 Describe the effect of residual values, guaranteed and unguaranteed, on lease accounting.
    9.7 Describe the effect of bargain purchase options on lease accounting.

    Homework:  E20-6, P20-12

    Discuss changes in accounting policies, estimates and errors

    Refer to ACC 926 coverage in Chapter 4 under the Statement of Retained Earnings and Statement of Changes in Equity (pages 182-184).