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 934 - Advanced Financial Accounting C01

Academic Credit Value:
3 units
Course Delivery Mode:
Hours of Study:
42 hours
Course Prerequisite(s):
ACC 926 Intermediate Financial Accounting 1 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:
Carol Tristani, B.Sc., B. Ed. (Adult Education) MBA, CPA, CGA
Course Dates:
09/16/2019 - 12/16/2019

Required Course Materials:
Modern Advanced Accounting in Canada, 8th edition, Murray Hilton, Darryl Herauf.
Optional Course Materials:
CPA Canada Standards and Guidance Collection, Accounting Handbook, Chartered Professional Accountants Canada, most recent edition. (“HBK”) available via McMaster Library
Course Description:

Students are advised to retain course outlines for future use in support of applications for employment or transfer of credits.
Refer to the Policy & Procedure section for further course and Centre for Continuing Education (CCE) information

This course deals with more advanced topics in financial accounting and reporting with an emphasis on business combinations and foreign currency transactions and translation.  Specific aspects of business combinations that are covered include:
- Recording and reporting procedures at the time of acquisition;
- Recording and reporting procedures subsequent to acquisition;
- Consolidation and equity basis reporting for wholly and non-wholly owned subsidiaries.

Accounting for nonprofit sector organizations will also be examined with emphasis on financial reporting issues and Outcomes, financial statement disclosures and fund accounting.

Advanced Financial Accounting (Course ACC 934) is a McMaster University diploma course.  The course content, its Outcomes 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 teat questions, information and/or other general material from a variety of sources including affiliated professional associations and institutes.

Learning Outcomes:
The broad learning outcomes of this course are to help students develop:

- Technical and procedural skills to deal with more advanced areas within the GAAP framework;
- The ability to apply conceptual principles when selecting appropriate accounting policies and treatments in particular circumstances;
- The ability to assess a situation, identify issues and alternatives and formulate recommendations using ethical, professional judgment.

Diligent attempts at the homework assignments are essential to enhancing the student’s knowledge of the course.  The homework suggested is the minimum amount recommended to enhance your understanding of the course.  Attempt more problems if you feel deficient in any area.  It is expected that you have read the material and attempted the homework assignment before coming to class.
Course Evaluation
The final grade is calculated based on the following components:
Student Evaluation
Midterm Test 40%
Assignment 10% (due assignment folder only in Avenue to Learn)
Final Test 50%

Use Word or Excel only – no pdf, gifs, jpegs or scanned handwritten assignment.  Do not embed graphics or other file formats in Word or Excel documents.  

Course Format:
This course is designed to present the fundamental concepts and theories in advanced 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:
• Course assignments are submitted to the appropriate A2L Assignment folder by the specified due date. • One assignment is due in this course. See the last page of your course outline for details. All assignments are to be submitted via the A2L drop box. No email or in-class submissions will be accepted. Use Word or Excel only – no pdf, gifs, jpegs or scanned handwritten assignment. Do not embed graphics or other file formats in Word or Excel documents.
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:

Course Schedule:

Week 1           Course Overview

Chapter 1:  Survey of International Accounting

   Chapter 2:  Investments in Equity Securities

IFRS and ASPE Standards

Class Outcomes:

  • Identify factors that can influence a country’s accounting standards
  • Describe areas where Canadian practice differs from other countries
  • Describe the role played by the International Accounting Standards Board (IASB) in establishing standards.
  • Identify the direction CICA intends to follow for public and private enterprises with the advent of IFRS
  • Distinguish equity investment types:  fair value through profit or loss (FVTPL), available-for-sale and significant influence
  • Prepare equity method and cost method journal entries

Homework Problems:  Chapter 1 Case 2; Chapter 2 Problem 1, 3


Week 2 Chapter 3:  Business Combinations

Class Outcomes:

  • To introduce business combinations and forms for achieving a business combination
  • Describe the acquisition method of accounting for a business combination
  • Prepare a balance sheet immediately after a purchase of net assets and a purchase of shares business combination, using the acquisition method.

Homework Problems:  Case 2 and Problem 7


Week 3 Chapter 4:  Consolidated Statements of Non-Wholly Owned Subsidiaries

Class Outcomes:

  • Identify how to determine if control exists
  • Calculate and allocate the acquisition differential
  • Prepare a consolidated balance sheet at acquisition date
  • Discuss the different theories of consolidation and how financial statement differs under them

Homework Problems:  Problems 6 and 10 (omit part b)


Week 4 Chapter 5:  Consolidated Financial Statements Subsequent to Acquisition:  Cost and Equity Method

Class Outcomes:

  • Testing goodwill and other intangible assets for impairment
  • Describe the differences between equity and cost methods of reporting investments
  • Prepare consolidated statements using the equity and cost methods of recording
  • Calculate consolidated net income and consolidated retained earnings when the cost method of recording the investment is used
  • Prepare consolidated financial statements in years subsequent to acquisition when the cost method of recording is used

Homework:  Problems 2, 3, 9a, b, c; 12 (question revised)


Week 5 Chapter 5:  Continued


Week 6 Chapter 6:  Inter-company Inventory and Land Profits

Class Outcomes:

  • Prepare consolidated financial statements that reflect the elimination and realization of inter-company profits in inventory and land sales.

Homework Problems:  Problems 2, 10


Week 7 Test #1 (chapters 1, 2, 3, 4, 5)


Week 8 Chapter 6 (continued)


Week 9 Chapter 7:  Part A Only Inter-company profits in Depreciable Assets

Class Outcomes:

  • Prepare consolidated statements that reflect the elimination and subsequent realization of inter-company profits in depreciable assets from upstream and downstream sales

Homework Problems: Problem 3, 10 a, b     

Chapter 12:  Accounting for Not-for-Profit Organizations  

Class Outcomes

  • Describe the accounting practices for NFPs currently mandated in the CICA Handbook, sec 4400
  • Explain the purpose of fund accounting and budgetary control systems that use encumbrances
  • Discuss the use of restricted fund and deferred contribution methods of recording contributions and how their use impacts financial statement preparation

Homework Problems:  Case 2

Week 10 Chapter 10:  Foreign Currency Transactions (assignment due Nov 21 via drop     box - no gifs, jpegs, pdfs allowed or pasted into files– only submit Word or Excel files)

Class Outcomes:

  • Distinguish between the one and two transaction theory approaches to recording a foreign currency transaction
  • Describe when to use historical or current rate when translating assets and liabilities
  • Describe the hedging concept
  • Apply the hedging concept to the preparation of journal entries for forward exchange contracts

Homework Problems:  Problems 7 (parts a and b only), 13


Week 11                       Chapter 11:  Foreign Currency Translation (up to and including page 636)

Class Outcomes:

  • Differentiate integrated and self-sustaining foreign operations and use the appropriate translation method to prepare consolidated financial statements

Homework Problems:  Problems 1a,b; 3 a, b (i, ii only)


Week 12 Review Class

Week 13 Final Exam