Lifelong Learning for a Brighter World

Jing Zhou, McMaster University Continuing Education Accounting graduate Jing Zhou, McMaster University Continuing Education Accounting graduate


Cheques and balances. It all adds up.

Work towards your CPA designation!

ACC 926 - Intermediate Financial Accounting I C01

Academic Credit Value:
3 units
Course Delivery Mode:
Hours of Study:
42 hours
Course Prerequisite(s):
ACC 925 Introductory Financial Accounting 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:
Patricia Zima
Course Dates:
05/09/2019 - 08/08/2019

Required Course Materials:
Keiso, Weygandt, Warfield, Young, Wiecek & McConomy. Intermediate Accounting. Volume 1. 11th Canadian edition. John Wiley. Toronto. 2016. (note – homework problem solutions from the text can be obtained in the course website through Avenue to Learn at ( )
Optional Course Materials:
CPA Standards and Guidance Collection, Assurance Handbook, most recent edition. Available via McMaster Library
Course Description:
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.  

Intermediate Financial Accounting 1 (Course ACC 926) is a McMaster University diploma course.  The course content, its objectives and evaluation structure meet the requirements and standards set by McMaster University’s Undergraduate Council and Senate.  It is important to note that this course may draw upon examples, practice problems, sample test questions, information and/or other general material from a variety of sources including affiliated professional associations and institutes.
Learning Outcomes:
Upon completion of this course, students will:
Examine / discuss / explore and assess the current financial accounting reporting applications under Canadian Generally Accepted Accounting Principals (GAAP), particularly as it relates to valuation of assets.  Your understanding of these issues will develop as you pursue your study and career in accounting. 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:

Test #1             20%
Test #2             20%
Assignments   20%
Final Exam       40%
Total                 100%

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.

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:

    Learning Outcomes:

    • Identify the objective of financial reporting and the importance of user needs in the financial statement process
    • Explain the notion of management bias with respect to financial reporting
    • Explain the need for accounting standards, the meaning of GAAP and the significance of using professional judgement in applying GAAP
    • Identify the major entities that influence the standard-setting process and explain how they influence financial reporting
    • Identify ethical issues impacting financial reporting  


    Learning Outcomes:

    • Provide a framework for, and an understanding of, basic financial accounting theory;
    • Describe the usefulness of, and attempts to construct, a conceptual framework;
    • Define the objectives, qualitative characteristics, and basic elements of accounting;
    • Explain the basic assumptions of accounting
    • Discuss changes in accounting policies, estimates and errors


    Learning Outcomes:

    • Identify and explain basic procedures of the accounting process
    • Describe the way these procedures are combined in completing the accounting cycle.
    • Explain how inventory accounts are adjusted at year-end.

    CPA Handbook


    Learning Outcomes:

    • Identify the uses and limitations of an income statement.
    • Prepare a single-step income statement.
    • Prepare a multiple-step income statement.
    • Explain how irregular items are reported.
    • Explain intra-period tax allocation.
    • Explain the reporting of earnings per share information
    • Prepare a retained earnings statement.
    • Measure and report gains and losses from discontinued operations.
    • Explain how comprehensive income is reported.
    • Differentiate between the cash basis of accounting and accrual basis of accounting.


    Learning Outcomes:

    • Identify the uses, limitations and major classifications of a balance sheet.
    • Prepare a classified balance sheet.
    • Identify balance sheet information requiring supplemental disclosure
    • Identify major disclosure techniques for the balance sheet.
    • Indicate the purpose and usefulness of the statement of cash flows.
    • Identify the content of the statement of cash flows.

    Midterm Test (Chapters 1 – 5)


    Learning Outcomes:

    • Apply the revenue recognition principle
    • Describe accounting issues involved with revenue recognition for the sale of goods
    • Explain accounting for consignment sales
    • Describe accounting issues involved with revenue recognition for services and long-term contracts.
    • Apply the percentage-of-completion method for long-term contracts.
    • Discuss how to deal with measurement and collection uncertainty.


    Learning Outcomes:

    • Identify items considered cash and cash equivalents.
    • Explain how cash and related items are reported.
    • Explain how temporary investments and related income are reported and measured.
    • Define receivables and identify the different types of receivables.
    • Explain accounting issues related to recognition and measurement of accounts receivable.
    • Explain accounting issues related to valuation of accounts receivable.
    • Explain the accounting issues related to recognition and measurement of notes receivable.
    • Explain accounting issues related to valuation of notes receivable.
    • Explain accounting issues related to disposition of accounts and notes receivable.
    • Calculate and discuss the significance of working capital to a company.

    Chapter 8 - INVENTORY

    Learning Outcomes:

    • Identify major classifications of inventory.
    • Distinguish between the perpetual and periodic inventory systems.
    • Identify the effects of inventory errors on the financial statements.
    • Identify the items that should be included as inventory cost.
    • Distinguish between the physical flow of inventory and the cost flow assigned to inventory.
    • Identify possible objectives for inventory valuation decisions.
    • Describe and compare the cost flow assumptions used in accounting for inventories.
    • Understand the importance of judgement in selecting an inventory cost flow method.
    • Recognize that the lower of cost and market basis for inventory valuation is a departure from the historical cost principle, and understand why this is appropriate.
    • Explain various definitions of possible market amounts that may be used when applying lower of cost and market.
    • Explain how LCM (lower of cost and market) works and how it is determined.
    • Know how to account for inventory on the lower of cost and market basis.
    • Identify when inventories are carried regularly at net realizable value.
    • Explain accounting issues related to purchase commitments.
    • Describe internal controls for inventory

    Chapter 9 - INVESTMENTS 

    Learning Outcomes:

    • Identify, account for and report equity investments at fair value with gains and losses reported in OCI (FV-OCI) and net income (FV – NI). 
    • Differentiate strategic investments from FV-OCI and FV-NI investments
    • Value investments using the equity method
    • Explain the basics of consolidation.
    • Explain the accounting for impairments in value of long-term investments in equity securities.

    Chapter 10 - ACQUISITION OF PPE

    Learning Outcomes:

    • Describe the major characteristics of property, plant, and equipment.
    • Identify the costs included in the initial valuation of land, building, and equipment.
    • Describe the accounting issues associated with self-constructed assets.
    • Identify the costs included in the initial valuation of natural resources.
    • Accounting for natural resources.
    • Understand other accounting issues related to the initial measurement of plant assets.
    • Describe the accounting treatment for costs subsequent to acquisition.
    • Apply the revaluation model to property, plant and equipment


    Learning Outcomes:
    • Explain the concept of amortization.
    • Identify and describe the factors that must be considered when determining amortization charges.
    • Determine amortization charges using the straight-line, activity, and decreasing charge methods and compare the methods.
    • Explain the accounting procedures for depletion of natural resources.
    • Explain special amortization methods.
    • Identify and understand reasons why amortization methods are selected.
    • Explain the accounting procedures for a change in the amortization rate.
    • Explain the accounting issues related to asset impairment.
    • Describe the accounting treatment for the disposal of property, plant, and equipment.
    • Explain how property, plant, and equipment are reported and analysed.


    Learning Outcomes:

    • Describe the characteristics of intangible capital assets.
    • Discuss the recognition and measurement issues of acquiring intangibles.
    • Explain how identifiable intangibles are valued subsequent to acquisition.
    • Identify the types of intangible assets.
    • Explain the conceptual issues related to goodwill.
    • Describe the accounting procedures for recording goodwill at acquisition.
    • Explain the accounting issues related to intangible asset impairments.
    • Differentiate between research and development expenditures, and describe and explain the rationale for the accounting for each.
    • Identify the disclosure requirements for intangibles, including deferred charges, and issues related to the analysis of this category of asset.
    • Apply the revaluation model to intangible assets.

    Final Exam