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Page 1: ACCT*3340 Intermediate Financial Accounting II F16 ... · F Sep 9 Current & non-financial liabilities Full class: ... Total 100% . Teaching and ... as they will be covered in class

ACCT*3340 Intermediate Financial Accounting II F16 (Section 01, 02, & 03)

0.5 credit 

General Course Information

Instructor: Robert Murison

Email: [email protected] Office Location: MAC 217 Office Hours: TBD Department/School: Department of Management Class Schedule: Section 3: Monday/Wednesday/Friday 9:30 – 10:20am

Instructor: Sandra Scott

Email: [email protected] Office Location: MAC 202 Office Hours: Wednesdays, 4:30-6:30 pm Department/School: Department of Management

Class Schedule: Section 1: Monday/Wednesday/Friday 1:30 – 2:20 pm Section 2: Monday/Wednesday/Friday 10:30 – 11:20 am

Pre-requisites: ACCT*3330

Co-requisites: N/A

Course Description

The course will build upon the conceptual foundation developed in Intermediate Financial Accounting I. The focus of this second intermediate financial accounting course is on how enterprises account for liabilities and equity accounts including current and non-current liabilities, leases, pensions, income taxes, contributed capital, retained earnings and stock options. Additional topics will include accounting changes and error corrections.

Intermediate accounting is a ‘nuts and bolts’ course focused on learning the core body of knowledge required to prepare financial statements for an organization. Consequently, there is a strong emphasis on applying this body of knowledge through practical problems. Intermediate accounting is a required course for those seeking a professional accounting designation and is recognized by the CPA professional associations.

*****Please note that the midterms in this course are held outside of normal class times – both midterms are on Wednesdays from 5:30 – 7:00 pm. Please ensure you can arrange to attend the midterms.*****

Course Learning Outcomes

Upon successfully completing this course, you will be able to:

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1. Apply generally accepted accounting principles and practices to situations with moderate complexity as they relate to the following topics:

a. Current liabilities b. Long term financial liabilities c. Accounting for leases, pensions, deferred taxes and asset retirement obligations d. Shareholders’ equity e. Other measurement and disclosure issues such as earnings per share, interim and

segmented reporting, subsequent events and related party transactions 2. Prepare financial statement information related to the above noted topics. 3. Analyze moderately complex accounting issues and research alternative treatments in

support of a recommended solution. 4. Communicate effectively in oral and written format in response to less structured

problems. 5. Contribute effectively in groups by fulfilling agreed commitments and maintaining a

positive environment. 6. Demonstrate an awareness of ethical and professional reporting responsibilities as they

relate to financial reporting.

Indicative Content

Date Chapters/Topics Pre-Class Readings In-class activities

F Sep 9 Introduction -- --

M Sep 12 Current & non-financial liabilities I Kieso Ch 13 P13-1abde, P13-8

W Sep 14 Current & non-financial liabilities II HB I: IAS 1, 16, 37 HBII: 1510, 3110, 3290

E13-16, P13-3

F Sep 16 Case writing seminar for group case presentations/reports

-- --

M Sep 19 Long term liabilities I On-line Assts 1,2 due by 11 pm

Kieso Ch 14 P14-10, E14-16

W Sep 21 Long term liabilities II HB I: IAS 32, 39, IFRS 9 HB II: 3856

P14-5, P14-2

M Sep 26 Shareholders’ equity I On-line Asst 3 due by 8 am Group contract/calendar due

Kieso Ch 15 P15-3, P15-1

W Sep 28 Shareholders’ equity II HB I: IAS 1 HB II: 3240, 3251, 3856

E15-15, P15-2

M Oct 3 Complex financial instruments I On-line Asst 4 due by 8 am

Kieso Ch 16 P16-1

W Oct 5 Multiple choice midterm (during class time)

In the lecture hall

W Oct 5 Midterm exam #1 5:30 – 7:00 pm Location TBA

Covering Ch 13, 14, 15

--

M Oct 10 THANKSGIVING No classes

W Oct 12 Complex financial instruments II HB I: IFRS 9 HB II: 3856

E16-8 excl 5,7, P16-6, P16-7

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F Oct 14 Midterm exam #1 take-up

M Oct 17 Earnings per share I On-line Asst 5 due by 8 am

Kieso Ch 17 E17-8, P17-2

W Oct 19 Earnings per share II HBI: IAS 33 E17-12, P17-5

M Oct 24 Income tax accounting I On-line Asst 6 due by 8 am

Kieso Ch 18 E18-15, P18-5

W Oct 26 Income tax accounting II Group written assignment due by midnight

HB I: IAS 12 HB II: 3465

E18-19, E18-26

M Oct 31 Income tax accounting III

P18-15

W Nov 2 Leases I On-line Asst 7 due by 8 am

Kieso Ch 20 E20-5, P20-3

M Nov 7 Leases II HB I: IFRS 17 (new) HB II: 3065

E20-7, P20-18

W Nov 9 Multiple choice midterm (during class time)

In the lecture hall

W Nov 9 Midterm exam #2 5:30 – 7:00 pm Location TBA

Covering Ch 16, 17, 18

--

M Nov 14 Pensions & employee future benefits I On-line Asst 8 due by 8 am

Kieso Ch 19 E19-1, E19-15

W Nov 16 Pensions & employee future benefits I

HB I: IAS 19 HB II: 3462

E19-9, P19-3

F Nov 18 Midterm exam #2 take up

M Nov 21 Other measurement & disclosure issues I On-line Asst 9 due by 8 am

Kieso Ch 23 E23-5, E23-6

W Nov 23 Other measurement & disclosure issues II

HB I: IAS 10, 24, IFRS 8 HB II: 3820, 3840

BE23-10, P23-9, P23-10

M Nov 28 Accounting changes On-line Asst 10 due by 8 am

Kieso Ch 21 HB I: IAS 8 HB II: 1506

P21-3, P21-17

W Nov 30 Term review/catch up

F Dec 2 Term review

Dec 13 Final exam 11:30 – 1:30 pm Location TBA

Emphasis on Ch 20, 19, 23, 21, but covering entire course

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Note: The schedule of learning activities may require modification from time to time. Any changes will be announced in class and/or on the Courselink site. The Friday Schedule:

Date On-line lecture topic & on-line assignments

In-class schedule

F Sep 9 Current & non-financial liabilities Full class: Introduction F Sep 16 Long term liabilities Full class: Case seminar F Sep 23 Shareholders’ equity Group case presentations F Sep 30 Complex financial instruments Group case presentations F Oct 7 Catch up (or get ahead) Group case presentations F Oct 14 Earnings per share Full class: Midterm #1 take up F Oct 21 Income tax accounting F Oct 28 Leases Group case presentations F Nov 4 Study for the midterm! Group case presentations F Nov 11 Pensions & employee future benefits Group case presentations F Nov 18 Other msmt & disclosure issues Full class: Midterm #2 take up F Nov 25 Accounting changes F Dec 2 Study for the final exam! Full class: Term review

Course Assessment

Assessment Weight Description Associated Learning

Outcomes Due Date/ location

Assessment 1: 5% On-line homework 1 ,2 Refer to weekly schedule / on-line

Assessment 2: 20% Midterm Exam #1 1, 2, 4, 6 Oct 5 / 5:30 -7:00 pm

Assessment 3: 7% Group written assignment

1 - 6 Oct 26 / on-line

Assessment 4: 20% Midterm Exam #2 1, 2, 4, 6 Nov 9 / 5:30 -7:00 pm

Assessment 5: 8% Group case presentation

1 - 6 Refer to case schedule / in- class

Assessment 6: 40% Final Exam 1, 2, 4, 6 Dec 13, 11:30 – 1:30 pm / TBA

Bonus credit: 2% Research project/ alternative assignment

Refer to Research Project below

Total 100%

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Teaching and Learning Practices

The goal for this course is to help you develop the knowledge and skills that entry-level accountants are expected to possess. Accordingly, there will be strong emphasis on problems to give you practice at applying accounting principles and practices. The material in this course is complex and experience shows that the best way to learn the materials is to work through the problems on your own without looking at solutions. Only after attempting problems should you look at solutions to check that you have understood the materials.

The course will be run as a hybrid in-class/on-line course, with on-line learning substituting for class meetings on most Fridays. On-line learning materials will consist of narrated Powerpoint presentations and a selection of brief exercises from the text which are to be completed through WileyPlus.

A typical week will include the following learning activities:

Background Readings

Each topic contains readings about related concepts and issues. Readings are to be completed prior to attending class.

On-line presentations

Narrated Powerpoint presentations will be available on the course website. Friday lectures are generally set aside for viewing these presentations and completing the related on-line homework. The schedule of on-line presentations is shown as part of the “Friday Schedule” above, but can be accessed anytime. They should be viewed on or before the date shown o nthe Friday schedule, as they will be covered in class the following week.

On-line homework

Homework related to the narrated presentations will consist of a selection of brief exercises from the text, and can be found at the WileyPlus website. The homework will be available for completion until early in the morning on the day the topic is first scheduled to be covered in class. These are straightforward exercises that will prepare you for the more complex questions we will cover in class.

Problems for class discussion

You will be assigned problems and exercises which form an integral part of each class discussion. These problems approximate the difficulty level you should expect to see on exams. You are to attempt the in-class problems prior to attending class.

Self-study problems

In addition to the problems for class discussion, additional problems should be completed on a self-study basis to reinforce and clarify the in-class learning. Solutions to a selection of additional problems from the text will be posted to Courselink.

The following additional learning activities will take place during the term:

Group written assignment

The group written assignment will provide you and your group members with an opportunity to delve more deeply into one of the topic areas in the course. The assignment will include some less directed elements, and will require demonstration of strong writing and organizing skills.

Group case presentation

Most Friday lectures will consist of student-led case analyses, prepared in advance and presented during class. In addition to the in-class presentation, all groups will submit a written report.

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Research Project

This term there will be an opportunity to earn additional course credit (up to 2% bonus in overall grade) by participating in a research project or alternatively, by completing an additional assignment. Participation in the research project can be achieved by completing an online survey at the beginning and a second one at the end of term. Each survey generates a 1% bonus. Alternatively, you may elect to complete the additional assignment which will be released to those who request it in mid-November. Earning the bonus credit is expected to take 20-30 minutes, regardless of whether you choose to participate in the research project or complete the additional assignment. The emphasis in this course is on learner-centredness, in accordance with the University’s Mission Statement, and as such, there is a significant element of self-teaching involved. The time commitment will be commensurate to other types of courses but the benefit to students working on the problem components outweighs the time commitment.

Course Resources

Required Texts:

Kieso, et al., Intermediate Accounting, Volume II, 11th Canadian Ed., John Wiley & Sons Canada Ltd., 2016.

[The text may be purchased in hard copy with “WileyPlus” access or as the online “eBook” version. For students who are planning to pursue the CPA designation, we recommend the hard copy. The material in this course is examinable within the professional program, and it’s useful to have the reference from which you originally learned the material. The e-book provides access only for 6 months.] Note that used textbooks do not include “WileyPlus” access.

CPAC Handbook. Electronic access to the CPAC Handbook can be obtained through the University of Guelph library. Because the Handbook is constantly being updated, a hardcopy version would become quickly updated, and is not recommended.

Course Policies

Missed assessments

There are no deferred on-line assignments or midterms.

You must inform the instructor via email ([email protected] or [email protected]) on or before the day of the exam if you are unable to attend a midterm. All absences must be supported by documentation provided within one week of the missed examination date. Students who do not report and document absences from missed midterms within the timelines noted above will receive a grade of zero for the missed examination. Please note that missed final examinations must be reported to the BComm Counselling Office in MAC 106, or at [email protected]. It is the student’s responsibility to report/document the absence AND to request a deferred examination.

Late group assignments

Unless you have discussed an extension well ahead of the due date, late penalties of 5%/earned grade/day (including weekends) will be assigned. Extensions will only be granted on the basis of extenuating circumstances.

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Grade re-assessments

Students wanting to resubmit their midterm or group project for a grade re-assessment must do so within one week of the date the quiz or midterm was returned to students in class.

Midterm exams

Please note that the midterms in this course are held outside of normal class times – both midterms are on Wednesdays from 5:30 – 7:00 pm. If this timing creates a conflict with another course, please inform the instructor as soon as possible. Otherwise, please ensure you can arrange to attend the midterms.

The midterm exams have two components: an optional (but highly recommended) multiple choice exam (offered during regular class time), AND a mandatory, written exam in the evening.

On-line communication

We will be communicating with you via your central email account (@mail.uoguelph.ca) from time to time. You are required to check this account on a regular basis. Please be advised that we will not edit our mailing lists to your hotmail/yahoo etc. account. While we endeavour to check our email daily, you can reasonably expect a response within 48/72 hours.

Group work

Some of the coursework for this class will be done in groups. You are responsible for forming your own group of three members and for registering your group through Courselink. Group members must be enrolled with the same instructor. Your group’s grade depends on the contribution of each member. Students are expected to do everything possible to ensure good working relationships with fellow group members and resolve conflicts and differences of opinion as they occur. Peer evaluations concerning each member’s contribution to the group assignment will be conducted and will inform half the marks assigned to each group submission. Peer evaluations must be completed through the online PEAR system. Please note that late peer evaluations will result in deductions from individual members’ group project grades.

Authorized vs. unauthorized collaboration

Many students find it helpful to consult their peers while doing assignments. This practice is legitimate and is expected. However, the written assignments are required to be the work of the individual only (for individual assignments), and individual group members only (for the group assignment). Therefore, it is not acceptable practice to pool notes/files and produce common answers. To avoid this situation, it is suggested that students do not write anything down during such peer consultations/discussion, but keep mental notes for later development on their own. Major occurrences of academic dishonesty, such as the submission of work that is not the individual’s/group’s own, will be dealt with according to the procedures set out in the Senate guidelines, and may result in expulsion from the University.

Retention of graded work

Keep a copy of all of your graded work until final marks have been recorded. You may be asked to resubmit your work at any time.

Use of electronic devices and recording of lectures

Electronic recording of classes is expressly forbidden without consent of the instructor. When recordings are permitted they are solely for the use of the authorized student and may not be reproduced, or transmitted to others, without the express written consent of the instructor.

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University Policies

Academic Consideration

When you find yourself unable to meet an in-course requirement because of illness or compassionate reasons, please advise the course instructor in writing, with your name, id#, and e-mail contact. See the academic calendar for information on regulations and procedures for Academic Consideration:

http://www.uoguelph.ca/registrar/calendars/undergraduate/current/c08/c08-ac.shtml

Academic Misconduct

The University of Guelph is committed to upholding the highest standards of academic integrity and it is the responsibility of all members of the University community, faculty, staff, and students to be aware of what constitutes academic misconduct and to do as much as possible to prevent academic offences from occurring.

University of Guelph students have the responsibility of abiding by the University's policy on academic misconduct regardless of their location of study; faculty, staff and students have the responsibility of supporting an environment that discourages misconduct. Students need to remain aware that instructors have access to and the right to use electronic and other means of detection. Please note: Whether or not a student intended to commit academic misconduct is not relevant for a finding of guilt. Hurried or careless submission of assignments does not excuse students from responsibility for verifying the academic integrity of their work before submitting it. Students who are in any doubt as to whether an action on their part could be construed as an academic offence should consult with a faculty member or faculty advisor.

The Academic Misconduct Policy is detailed in the Undergraduate Calendar:

http://www.uoguelph.ca/registrar/calendars/undergraduate/current/c08/c08...

Accessibility

The University of Guelph is committed to creating a barrier-free environment. Providing services for students is a shared responsibility among students, faculty and administrators. This relationship is based on respect of individual rights, the dignity of the individual and the University community's shared commitment to an open and supportive learning environment. Students requiring service or accommodation, whether due to an identified, ongoing disability or a short-term disability should contact Student Accessibility Service (SAS) as soon as possible.

For more information, contact SAS (formerly CSD) at 519-824-4120 ext. 56208 or email [email protected] or see the website: http://www.uoguelph.ca/csd/

Course Evaluation Information

Please refer to the Course and Instructor Evaluation Website

Drop date

The last date to drop one-semester courses, without academic penalty, is Friday, November 4, 2016. For regulations and procedures for Dropping Courses, see the Academic Calendar:

http://www.uoguelph.ca/registrar/calendars/undergraduate/current/c08/c08

Academic Load

Students should note that 10 to 12 hours of academic time and effort per week (including classes) are expected for a 0.50 credit course (see the Undergraduate Calendar) http://www.uoguelph.ca/registrar/calendars/undergraduate/current/c08/c08-aload.shtml).

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Additional Course Information Code of Conduct – The Top Ten

As a student in the Department of Management, College of Business and Economics at the University of Guelph, you are a member of a scholarly community committed to improving the effectiveness of people and organizations, and the societies in which they reside, through groundbreaking and engaging scholarship and pedagogy. We seek to promote a comprehensive, critical and strategic understanding of organizations, including the complex interrelationship between leadership, systems (financial and human) and the broader social and political context. And, we prepare graduates for leadership roles in which organizational objectives, self-awareness, social responsibility and sustainability are primary considerations.

In keeping with this commitment, we expect all of our students (indeed – all members of our community) to act in a professional and respectful manner to fellow students, staff and faculty, as well as to members of the broader university and local community. This expectation is very much in keeping with your preparation for a professional career.

The following conduct is expected of all of our students:

1. Come to class prepared to learn and actively participate (having completed assigned readings and attempted the assigned problems).

2. Approach your academic work with integrity (avoid all forms of academic misconduct).

3. Arrive on time and stay for the entire class. If you happen to be late, enter the classroom as quietly as possible. At the end of class, apologize to the faculty member for the interruption. If you have to leave class early, alert the faculty member in advance.

4. If you know in advance that you are going to miss a class, send an email to the faculty member letting him/her know that you will be absent, with a brief explanation.

5. While in class, refrain from using any written material (e.g., newspaper) or technology (e.g., the Internet, computer games, cell phone) that is not relevant to the learning activities of that class. Turn off your cell phone at the start of each class.

6. Listen attentively and respectfully to the points of view of your peers and the faculty member. Don’t talk while others have the floor.

7. Raise your hand when you wish to contribute and wait to be called upon. Challenge others appropriately, drawing on reason and research rather than unsubstantiated opinion, anecdote and/or emotion. Keep an open mind and be prepared to have your point of view challenged.

8. When sending emails to faculty, apply principles of business writing; use a professional and respectful style (use a formal salutation, check for spelling and grammatical errors, and avoid slang and colloquial short forms).

9. If you need extra help, ask for it. However, do not wait unit right before a midterm/final exam. Keep up with the work in the course. When meeting with your instructor, have your questions prepared in advance.

10. Complete the online course evaluations at the end of the term and provide thoughtful feedback. We are committed to continuously improving our teaching practice, but need your input to help us decide what to focus on.

Learning Objectives by Topic The learning objectives that follow are taken from the Kieso text, with some modifications. The brief exercises assigned in the on-line homework are noted next to the learning objective they are most closely related to.

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For most topics, we will focus on a subset of the text’s learning objectives as high priority objectives over which students should attain a Mastery level of competence. Homework problems and exam questions are likely to have a primary focus on Mastery level learning objectives. At the Knowledge level, students are expected to be familiar with the material. Homework problems and exam questions may touch on these areas. Finally, Overview level objectives will be covered in the readings only. Neither homework problems nor exam questions will address these areas. Some of the cases assigned for group presentation may involve some content related to these learning objectives.

Topic 1 – Current & non-financial liabilities Mastery

1. Understand the importance of non-financial and current liabilities from a business perspective. 2. Define liabilities, distinguish financial liabilities from other liabilities, and identify how they are measured. 3. Define current liabilities and identify and account for common types of current liabilities. BE13-4 4. Account for foreign-currency denominated liabilities. 5. Explain the recognition, measurement, and disclosure requirements for decommissioning and restoration obligations. 6. Explain the issues and account for unearned revenues. 7. Explain the issues and account for product guarantees and other customer program obligations. BE13-21 8. Explain and account for contingencies and uncertain commitments, and identify the accounting and reporting

requirements for guarantees and commitments. 9. Indicate how non-financial and current liabilities are presented and analyzed.

Knowledge 10. Identify and account for the major types of employee-related liabilities. 11. Identify differences in accounting between ASPE and IFRS and what changes are expected in the near future.

Topic 2 – Long term financial liabilities Mastery

1. Understand the nature of long-term debt financing arrangements. 2. Understand how long-term debt is measured and accounted for. BE14-5, BE14-8 3. Understand when long term debt is recognized and derecognized. 4. Indicate how long-term debt is presented on the statement of financial position. 5. Identify major differences in accounting between accounting standards for private enterprises (private entity ASPE and

IFRS, and what changes are expected in the near future. Knowledge

6. Identify disclosure requirements. 7. Understand how to account for how to account for troubled debt restructurings. 8. Calculate and interpret key ratios related to solvency and liquidity.

Topic 3 – Shareholders’ Equity Mastery

1. Discuss the characteristics of the corporate form of organization, rights of shareholders and different types of shares. 2. Describe the major features of preferred shares. 3. Explain how to account for the issuance, reacquisition and retirement of shares, stock splits, and dividend distribution.

BE15-6, BE15-12, BE15-13 4. Understand the components of shareholders’ equity and how they are presented. 5. Understand capital disclosure requirements.

Knowledge 6. Identify the major differences in accounting between ASPE and IFRS, and what changes are expected in the near

future. 7. Calculate and interpret key ratios relating to equity. 8. Explain the accounting for par value shares and treasury shares (Appendix 15A).

Overview 9. Explain how to account for a financial reorganization (Appendix 15B)

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Topic 4 – Complex financial instruments Mastery

1. Understand what derivatives are and how they are used to manage risk. 2. Understand how to account for derivatives. BE16-3 3. Understand how derivatives are used in hedging. (Appendix 16A) 4. Analyze whether a hybrid/compound instrument issued for financing purposes represents a liability, equity, or both.

BE16-11 5. Explain the accounting for hybrid/compound instruments. BE16-19 6. Describe the various types of stock compensation plans. 7. Describe the accounting for stock-based compensation.

Knowledge 8. Explain the need for hedge accounting standards. (Appendix 16A) 9. Understand how to apply hedge accounting standards. (Appendix 16A) 10. Account for share appreciation rights plans. (Appendix 16B) 11. Identify the major differences in accounting between ASPE and IFRS, and what changes are expected in the near

future. Topic 5 – Earnings per share Mastery

1. Understand why earnings per share (EPS) is an important number. 2. Understand when and how EPS must be presented, including related disclosures. 3. Calculate EPS for companies with a simple capital structure. BE17-2 4. Calculate diluted EPS for companies with a complex capital structure. BE17-13, BE17-19

Knowledge 5. Identify the major differences in accounting between ASPE and IFRS, and what changes are expected in the future.

Topic 6 – Pensions & employee future benefits

Mastery

1. Understand the importance of pensions from a business perspective. 2. Identify and account for a defined contribution plan. BE19-2 3. Identify and explain what a defined benefit plan is and the accounting issues. 4. Explain what the employer’s benefit obligation is, identify alternative measures for this obligation, and prepare a

continuity schedule of transactions and events that change its balance. BE19-4 5. Identify transactions and events that change the benefit plan assets, and calculate the balance of the assets. BE19-

5 6. Explain what a benefit plan’s surplus or deficit is, calculate it, and identify what transactions and events change its

amount. 7. Identify the components of pension expense, and account for a defined benefit pension plan under the IFRS

immediate recognition approach. 8. Identify the components of pension expense, and account for a defined benefit pension plan under the ASPE

immediate recognition approach. 9. Determine the benefit plan accounts reported in the financial statements and explain their relationship to the funded

status of the plan. 10. Account for defined benefit plans with benefits that vest or accumulate other than pension plans. 11. Identify the types of information required to be presented and disclosed for defined benefit plans, prepare basic

schedules, and be able to read and understand such disclosures. Knowledge

12. Identify differences between the IFRS and ASPE accounting for employee future benefits and what changes are expected in the near future.

Overview 13. Identify the components of pension benefit cost, and account for a defined benefit pension plan under the deferral

and amortization approach under ASPE; determine the pension plan accounts reported in the financial statements and explain their relationship to the funded status of the plan. (Appendix 19B)

Topic 7 - Leases Mastery

1. Explain the conceptual nature, economic substance, and advantages of lease transactions.

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2. Identify and apply the criteria that are used to determine the type of lease for accounting purposes for a lessee under the classification approach.

3. Calculate the lease payment that is required for a lessor to earn a specific return. 4. Account for a lessee’s basic capital (finance) lease. BE20-4 5. Determine the effect of, and account for, residual values and bargain purchase options in a lessee’s capital (finance)

lease. 6. Account for an operating lease by a lessee and compare the operating and capitalization methods of accounting for

leases. 7. Determine the balance sheet presentation of a capital (finance) lease and identify other disclosures required. 8. Identify and apply the criteria that are used to determine the type of lease for a lessor under the classification

approach. 9. Account for and report basic financing and sales-type leases by the lessors. BE20-13, BE20-14 10. Account for and report financing and sales-type leases with guaranteed values or a bargain purchase option by a

lessor. 11. Account for and report an operating lease by a lessor.

Knowledge 12. Explain and apply the contract-based approach to a basic lease for a lessee and lessor. 13. Identify differences in accounting between accounting standards for private enterprises and IFRS, and what changes

are expected in the near future. Overview

14. Describe and apply the lessee's accounting for sale-leaseback transactions. (Appendix 20A) 15. Explain the classification and accounting treatment accorded leases that involve real estate (Appendix 20A).

Topic 8 – Accounting for income taxes & tax losses Mastery

1. Understand the importance of income taxes from a business perspective. 2. Explain the difference between accounting income and taxable income, and calculate taxable income and current

income taxes. 3. Explain what a taxable temporary difference is, determine its amount, and calculate deferred tax liabilities. BE18-10,

BE18-4 4. Explain what a deductible temporary difference is, determine its amount, and calculate deferred tax assets. 5. Prepare analyses of deferred tax balances and record deferred tax expense. 6. Explain the effect of multiple tax rates and tax rate changes on income tax accounts, and calculate current and future

tax amounts when there is a change in substantively enacted tax rates. BE18-12 7. Account for a tax loss carryback. BE18-14 8. Account for a tax loss carryforward, including any note disclosures. BE18-14 9. Explain why the Deferred Tax asset is reassessed at the balance sheet date, and account for the deferred tax asset

with and without a valuation allowance account. Knowledge

10. Identify and apply the presentation and disclosure requirements for income tax assets and liabilities, and apply intraperiod tax allocation.

11. Identify the major differences between ASPE and IFRS for income taxes. 12. Apply the temporary difference approach (future income taxes method) for income taxes in a comprehensive situation

(Appendix 18A).

Topic 9 – Other measurement & disclosure issues Mastery

1. Understand the importance of disclosure from a business perspective. 2. Review the full disclosure principle and describe problems of implementation. 3. Explain the use of accounting policy notes in financial statement preparation. 4. Describe the disclosure requirements for major segments of a business. BE23-7 5. Describe the accounting problems associated with interim reporting. 6. Discuss the accounting issues for related party transactions. BE23-11 7. Identify the difference between the two types of subsequent events.

Knowledge 8. Identify the major differences in accounting between ASPE and IFRS, and what changes are expected in the near

future. Overview

9. Describe methods used for basic financial statement analysis and summarize the limitations of ratio analysis.

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10. Identify the major disclosures found in the auditor's report.

Topic 10 – Accounting changes Mastery

1. Identify and differentiate among the types of accounting changes. 2. Identify and explain alternative methods of accounting for accounting changes. 3. Identify the accounting standards for each type of accounting change under ASPE and IFRS. 4. Apply the retroactive application method of accounting for a change in accounting policy and identify the disclosure

requirements. BE21-4 5. Apply retrospective restatement for the correction of an accounting error and identify the disclosure requirements.

BE21-5 6. Apply the prospective application method for an accounting change and identify the disclosure requirements for a

change in an accounting estimate. BE21-8 7. Identify economic motives for changing accounting methods and interpret financial statements where there have

been retrospective changes to previously reported results. Knowledge

8. Identify the differences between ASPE and IFRS related to accounting changes. Overview

9. Correct the effect of errors and prepare restated financial statements (Appendix 21A).