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ACC 926 - Intermediate Financial Accounting I C32

Academic Credit Value:
3 units
Course Delivery Mode:
Online Self-Study (OSS)
Hours of Study:
42 hours
Course Prerequisite(s):
ACC 925 Introductory Financial Accounting or equivalent. Be advised: Students who do not meet the pre-requisites will be required to withdraw. In such cases, CCE’s withdrawal/refund policies will apply.
Course Anti-requisite(s):
Instructor Name:
Helen Montoux
Course Dates:
07/15/2019 - 12/14/2019

Required Course Materials:
Intermediate Accounting (Volume 1) Kieso Weygandt Warfield Young Wiecek. (2016), 11th Canadian Edition, Mississauga: John Wiley & Sons Canada Limited & Intermediate Accounting Study Guide (Volume 1, 11th Edition)
Optional Course Materials:
CPA Standards and Guidance Collection, Assurance Handbook, most recent edition. Available via McMaster Library
Course Description:
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:

  1. Financial Reporting
  2. Financial Statements and Revenue Recognition
  3. Current and Financial Assets
  4. 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.

Learning Outcomes:
Students will examine, discuss and assess the current financial accounting reporting applications under

Generally Accepted Accounting Principles (GAAP) as it relates to valuation of assets.   Specific course objectives are:

  1. Describe the main components of the conceptual framework for financial reporting
  2. Discuss how the conceptual framework for financial reporting is used to guide the decisions of standard setting bodies and professional practice
  3. Assess the impact of accounting policy choices on financial statements
  4. Prepare financial statements in accordance with generally accepted accounting principles
  5. Account for investments in debt and equity investments  using various accounting models
  6. Account for impairment of long lived tangible and intangible assets along with goodwill

The practice problems throughout the course are the minimum amount suggested to enhance your understanding of the course.  You should attempt more problems if you are experiencing difficulties.

Course Evaluation
Students will demonstrate knowledge and an understanding of the accounting concepts covered in Intermediate Financial Accounting I 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. 

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.).

ACC 926 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 (Avenue to Learn), review activities and suggested learning strategies and resources.  

It is expected that the recommended activities which include practice exercises/quizzes/problems, be completed prior to submission of 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.

Assignment Submission:
Course assignments are submitted to the appropriate A2L Assignment folder by the specified due date
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 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).

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:
Plagiarism, e.g. the submission of work that is not one’s own or for which other credit has been obtained.
Improper collaboration in-group work.
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 (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

Publisher’s Student Website:
Interactive learning site that includes a Student Toolkit. Resources include check figures, demonstration problems, quizzes, flash cards, power point presentation and more.

Unit/Module Notes:

The outlines and notes contained in the course guide are intended to summarize the major objectives for each unit. They are not intended to be substitutes for the information in the textbook.  Where applicable, additional examples are provided in the notes.  The most advantageous way to use the outlines and notes is as an introduction to each topic area.  It is advisable not to move to a new topic until you understand the material from the unit that you are working on.  Then complete the suggested activities and practice exercises.

Avenue to Learn:

Another resource for your learning will be access to a website for this specific course.  To access the course website, you will need a Mac ID.  Information on the website, obtaining a Mac ID and Avenue to Learn is included in your course package.  Access to the website is limited to students who are registered in ACC 926 Intermediate Financial Accounting I through correspondence.  

The resources on the website include:

  • Module Notes
  • Discussion Topics
  • Additional Course Resources
In this course, we will be using a web-based service ( to reveal plagiarism.  Students will be expected to submit their work electronically to so that it can be checked for academic dishonesty.  Students who do not wish to submit their work to must still submit a copy to the assigned Assignment folder and add a note in the comment section that they do not wish to have the paper scanned by Turnitin.  Those files will not be selected for submission.  No penalty will be assigned to a student who does not submit work to  All submitted work is subject to normal verification that standards of academic integrity have been upheld (e.g., on-line search, etc.).  To see the Policy, please go to
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:


Start Date

Unit Name and Description

 Learning Outcomes















Week 1

Week 2

Week 3

Week 4

Financial Reporting

This initial unit reviews many of the concepts you first studied in your introductory accounting course. However, as IFRS standards are now required for publicly accountable enterprises, you will review the conceptual framework of financial reporting to further internalize your understanding of the theory behind financial reporting. It will include a review of the objectives of financial reporting, Generally Accepted Accounting Principles (GAAP), and the standard setting process because a sound understanding of the standards set by the profession is essential in guiding the preparation of financial reports. Without this understanding, the professional would not be able to apply his or her professional judgement appropriately. A general review of the accounting cycle is also covered with particular emphasis on adjusting entries needed in the preparation of accrual based financial statements.


Module 1 & 2 The Canadian Financial Reporting Environment

Module 3 Conceptual Framework Underlying Financial Reporting

Module 4 & 5 The Accounting Information System

Module 6  The Accounting Information System

  • Gain a further understanding of the conceptual framework of accounting and be able to apply professional judgement in reference to this framework
  • Identify ethical issues when making accounting decisions
  • Review the accounting cycle up to the Trial Balance
  • Prepare adjusting, closing, and reversing journal entries and prepare basic financial statements


End of Week 4

Quiz (Assignment 1) Unit 1 Modules 1-6


















Week 5

Week 6

Week 7

Week 8

Financial Statements and Revenue Recognition

Accurately prepared financial statements are one of the most valuable resources available to investors and creditors when making resource allocation decisions.  The format of the statement of comprehensive income is important to users, so those items not related to operations need to be identified and presented separately. The balance sheet (statement of financial position) informs users of a company’s financial position at a point in time and the Statement of Cash Flow (statement of cash flows) identifies whether the change in cash experienced by a company from one period to another was the result of operating, investing, or financing decisions. A fourth statement, the statement of changes in equity, provides users with information on increases and decreases in contributed capital, retained earnings, and any capital maintenance adjustments. These statements provide the information required to assess the liquidity and profitability of an organization. The study of the revenue recognition and realization principle demonstrates how it is applied to complex situations.



Module 1 Reporting Financial Performance

Module 2 Financial Position and Cash Flows

Module 3 Financial Position and Cash Flows

Module 4 Revenue Recognition

  • Prepare single-step and multiple-step income statements
  • Understand the proper presentation and classification issues related to irregular items including discontinued operations, unusual items, changes in accounting policies, and changes in accounting estimates
  • Prepare properly classified balance sheet and statement of cash flows and identify those issues pertaining to these statements that need additional disclosure
  • Be introduced to financial statement analysis
  • Apply the revenue recognition and realization principle to complex situations

Ass’t #2

End of Week 8

 Unit 2 Modules 1-4















Week 9

Week 10

Week 11

Week 12



Current and Financial Assets

 As Canadian GAAP moved toward convergence with IFRS, the focus on the balance sheet had been increasing to ensure assets and liabilities of an organization were accurately presented. This unit will explore the issues related to the recognition, valuation, and measurement of cash, receivables and inventory. As these assets are current, the value assigned to them on the balance sheet should reflect realizable value, not necessarily historical cost. Students explore how these values are arrived at by applying the appropriate accounting treatment.  The recognition, valuation, measurement and classification of both short term and long term investments are also studied in this unit. The topic of investments is an area of accounting that has seen sweeping changes in the last couple of years and the implications of these changes will be discussed.


Module 1 Cash and Receivables

Module 2 Inventory

Modules 3 & 4 Inventory

Module 5 Investments

  • Apply appropriate accounting treatment to ensure accurate presentation of cash and receivables on the balance sheet
  • Identify costs to be included in inventory and apply the appropriate cost formula to accurately value inventory under both the perpetual and periodic inventory system
  • Understand the effect of inventory errors on the balance sheet and the income statement and apply the gross profit method of estimating inventory
  • Classify non strategic investments as either cost/amortized cost, fair value through net income, or fair value through OCI, and apply the appropriate accounting treatment to these investments
  • Understand the difference between strategic investments where an investor has significant influence and strategic investments where the investor has control
  • Apply equity accounting and understand the basics of consolidation

Ass't #3

End of Week 12

Units 3 Modules 1-5












Week 13

Week 14

Week 15

Week 16

Capitalized Assets

Capitalized assets are those that are not expensed immediately and include tangible assets such as property, plant and equipment as well as natural resources and intangible assets such as patents, franchises and goodwill.  Proper accounting for these assets requires assessing which costs should be capitalized and determining if the asset will be depreciated over time. Not all assets are depreciated, but if they are, assumptions on the asset’s life, the appropriate depreciation method to use, and any residual value needs to be estimated.  For those assets that are not depreciated an impairment test may indicate that the asset requires a write down if the fair value of the asset is less than its carrying value.

Modules 1 & 2 Property, Plant & Equipment Accounting

Module 3 Depreciation, Impairment and Disposition

Module 4 Intangible Assets and Goodwill

Module 5 Intangible Assets and Goodwill

  • Identify the costs included in the initial valuation of capitalized assets
  • Recognize and appropriately account for costs related to capitalized assets subsequent to acquisition
  • Apply the appropriate accounting treatment to the depreciation, exchange or disposal of capitalized assets
  • Understand the concepts involved in the subsequent valuation of impaired capital assets
  • Explain the concept of goodwill, how it is valued, and how impairment tests are conducted

Final Exam


Final Exam. This final exam is comprehensive and covers the entire course content of Units 1 to 4. It is a combination of multiple choice, short answer questions and problems.