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Department of Business

ACCT*3340

INTERMEDIATE FINANCIAL ACCOUNTING II Winter 2014

___________________________________________________________________________________ Instructor(s): Allan Foerster Room # 205 Office Hours: Tuesday and Thursday 12:00-2:00 pm in MCLN 205, or by appointment **Please note** If MCLN is locked during office hours, call my extension and I will let you in... x52709 Class Times and Location: Tuesday and Thursday 10:00-11:20 am in MACK 120 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 Description and Objectives: 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 and the statement of cash flows. The course will cover these topics under the International Financial Reporting Standards (IFRS) and the Accounting Standards for Private Enterprise (ASPE). 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. The objectives of this course are to help you:

• Build a strong foundational knowledge concerning generally accepted accounting principles and practices • Synthesize this knowledge to be able to develop appropriate recommendations for situations requiring

professional judgement • Integrate this knowledge with your general business knowledge to evaluate financial and non-financial

information produced by real life organizations Course Materials and Resources: This course uses a variety of materials and resources. One of your primary resources will be the course website (https://courselink.uoguelph.ca). All announcements, required and recommended readings, assignments and updates

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will be posted here. You will also be able to access any handouts you may have missed through this site. Check this site often. The required textbook is:

Kieso, et al., Intermediate Accounting, Volume II, 10th Canadian Ed., John Wiley & Sons Canada Ltd., 2013. [The text may be purchased in hard copy with “WileyPlus” access, or as the online version.]

There are also readings from the CICA Handbook. Electronic access to the CICA Handbook can be obtained through the University of Guelph library. Because the Handbook is constantly being updated, a hardcopy version would quickly become outdated, and is not recommended. Course Philosophy and Approach: My role is to guide your learning and provide resources. It is not to "cover the material". It is not to "go over everything you need to know". It is not to teach you everything I know to you. In a senior accounting course of this nature, teaching and learning is a co-operative effort. There are implications to this. You must now take the initiative. I will not "hound" you to study, come to class, do homework, do extra out-of class reading etc. If you do not take the initiative, you will likely struggle. While we do a lot in our classroom sessions each week, I expect that discovery, repetition, practice and mastery will be less a classroom activity and more under your individual control. I will do my best to guide, motivate and inspire you, but ultimately, you are responsible from no on for your own education. You determine how much study time to devote, how much effort to expend, and how much study time to devote, how much effort to expend, and how much repetition, practice, and review is needed for mastery of the material. I in turn promise to make the subject matter interesting, relevant and (to the extent that it is possible to do in accounting), enjoyable. In short, I will do my best to motivate and encourage you to want to learn as much as possible. The source of my motivation is the thought that during your careers you will collectively make decisions that will affect the flow of billions of dollars and impact the lives of countless individuals. The quality of the decisions you make will be improved in part by what you learn in this course. When I wish to contact you by e-mail, I will do so through your University of Guelph e-mail account. You are responsible for monitoring e-mail posted to your University of Guelph e-mail account on a regular basis. The course is based on an active 12-week semester. In my view, the most effective and efficient use of classroom time aims at reinforcing or clarifying what you have tried to learn on an individual basis before entering the classroom. For this reason, I will assume that you have carefully read the assigned material and made a reasonable effort to prepare solutions to the assigned problems prior to the class. These materials will be discussed in class. Finally, it's useful to set out guidelines for interactions in the lecture hall, within groups, and whenever communicating with each other online.

• we will all strive to create and maintain a welcoming and safe environment; • we will strive to support each other in the learning process; • all discussion will be respectful of others' opinions and ideas; • lively debate is welcome; personal attacks are not.

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ACCT 3340 TENTATIVE CLASS SCHEDULE – Winter 2014

WEEK READINGS (Note: chapter coverage will generally start in the week noted, but may be completed in the following week)

KEISO Vol. 2 – Chapters & Appendices

DISCUSSION PROBLEMS and CASES

1 Current Liabilities, Provisions and Contingent Liabilities IAS 37

Ch. 13 E13-9, 14, 18, 21 P13-2, 14, 15, 17

2 Long-term Financial Liabilities IFRS 9, IAS 39

Ch. 14 E14-8, 9, 11, 20 P14-3,7, 10, 12

3 Shareholders’ Equity IFRS 2

Ch. 15 and App. 15B

E15-2, 5, 10, 13,19 P15-2, 4, 6, 10, 14

4 Complex Financial Instruments IFRS 9, IAS 39

Ch. 16 and App. 16B (excluding derivatives material per p. 1022-1038)

E16-1, 5, 6, 10, 16, 22 P16-1, 7, 9

5 Income Taxes (pages 1146-1167 + Appendix) IAS 12

Ch. 18 and App. 18A

E18-1, 3, 4, 5, 11, 19, 31 P18-1, 3, 8, 14

6 Income Taxes (Loss Carryover Benefits) Handbook, s. 3465

Ch. 18 E18-22, 24 P18-12

READING WEEK

7 Earnings per Share IAS 33

Ch. 17 E17-2, 5, 11, 15, 16 P17-3, 4, 8, 10

8 Pensions and Other Employee Future Benefits IAS 26

Ch. 19 E19-1, 4, 9, 10, 13 P19-4, 10, 13 CA19-1

9 Leases IAS 17

Ch. 20 and App. 20A (re: Sale Leaseback)

E20-3, 4, 6, 9, 16, 23 P20-3, 5, 8, 10

10 Accounting Changes and Error Analysis IAS 8

Ch. 21 and App. 21A

E21-2, 5, 6, 10, 16 P21-2, 6, 9, 12

11 Statement of Cash Flows IAS 7

Ch. 22 E22-1, 6, 12, 14, 16 P22-2, 4, 7

12 Other Reporting Issues (Related Party Transactions & Subsequent Events) IAS34, IFRS 8

Ch. 23 E23-2, 6 P23-1, 5

13 Review class ( or last class of term in week 12 for Tuesday/Thursday classes)

TBA

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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. Method and Timing of Evaluation: Your performance will be evaluated based on the following:

Assignment/Examination Date Mark

Allocation

In-class quizzes Random 10 Mid-term exam, 5:30 – 7:00 pm TBA 30 Group case 1 Oct 16 10 Participation/Professional Decorum 10 Final Exam TBA 40 100

In-class Quizzes During the course of the term there will be 6 “surprise” in-class quizzes. These quizzes will be short (approximately 10 minutes each) and will typically consist of either multiple choice questions or “fill in the blanks”. The quizzes are worth two marks each, and the best 5 out of 6 quizzes will count towards the final grade (this is meant to take into account the possibility that some students may unavoidably miss a class due to illness or other reason). Participation and Professional Decorum: Participation will be based on the overall quality and breadth of participation by students throughout the term. The participation mark will generally be the same for all students of a section of BU397, but may be adjusted for individual students: (i) that are significantly above average in their extent of participation, (ii) if professional decorum (as discussed below) is not observed, or (iii) for students that frequently miss class and are therefore not in a position to actively participate. Professional decorum refers to behaviour of students in the classroom and not to participation. Full marks will be awarded to any student that exhibits professional behaviour throughout the term. Examples of unprofessional behaviour include (but may not be restricted to) talking to colleagues during classroom presentations or problem take-up, coming to class late or leaving before the end of the lecture (unless mentioned in advance to the professor), or any action/behaviour that distracts the class. Students should consider that the classes are equivalent to business meetings or appointments. As such, courtesy would dictate that anticipated lateness (or early departure from class) should be discussed with the instructor before the fact. The instructor welcomes questions and/or comments during the class. However, in order that everyone may benefit from the discussions, it is necessary that only one person speak at a time. The reading of extraneous material,

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particularly newspapers, non-course-related web site material, etc., during class is not acceptable.

Cases: Solutions to the group case are due based on the deadline announced in class. Cases may be discussed in class after they have been submitted; therefore, no credit will be given for late submissions. You are responsible for the formation of your group. Groups should not exceed four students unless permission is granted by the Instructor. Each student will receive an equal mark. Students should not share or discuss their solutions with members of other groups. One (hard) copy of the solution (per group) should be submitted with a (soft) copy to MyLS (for turnitin.com review). The solution to each case should be no more than 3 pages in length (plus appendices for journal entries or draft financial statements -- if applicable), and must deal with the relevant issues in the case (see page 5 below for further details). NOTE: THERE WILL BE A 5% PENALTY (0.5 marks/10) FOR EVERY PAGE (OR PART OF PAGE) THAT THE WRITTEN PART OF THE SOLUTION TO THE CASE EXCEEDS 3 PAGES. THE PENALTY DOES NOT APPLY TO ITEMS PROPERLY INCLUDED IN APPENDICES AS DETAILED ABOVE AND ON PAGE 5 OF THE OUTLINE. The mid-term and final examinations will cover material from the assigned readings, online presentations and homework, class discussion problems and material introduced in class. The timing of Mid-term exam will be announced in class with a location to also be provided at that time. Please ensure that you can make yourself available to write these exams. The midterm examination will cover current & non-financial liabilities, long term liabilities, and shareholders’ equity, complex financial instruments and deferred taxes (excluding accounting for tax loss carryforwards). The final examination time is set by the Registrar. It is your responsibility to resolve time conflicts. The final examination will emphasize topics not covered by the midterm examinations, but may encompass any material covered during the semester. Important note regarding written assignments: 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 group members only. Therefore, it is not acceptable practice to pool thoughts and produce common answers. Disregard of this requirement will be drawn to the student’s attention and reported to the Dean’s Office. To avoid this situation, it is suggested that students do not write anything down during such talks, 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 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. If you are registered with the Centre for Students with Disabilities and will require some form of accommodation in the completion of the required learning activities for this course, please meet with me during the first week of classes. Additional practice problems Since repetition is a key component of success, if you are interested in trying additional problems beyond those assigned for class discussion, solutions will be posted to the course website..

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Missed examinations You must inform the instructor via email (afoerster@uofguelph) on or before the day of the exam if you are unable to attend the midterm examination. 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 midterm examinations within the timelines noted above will receive a grade of zero for the missed examination. The mark value of the midterm examination will be added to the final examination. Please note that missed final examinations must be reported to the BComm Counselling Office in MINS207, or at bcomm@uoguelph.ca. It is the student’s responsibility to report/document the absence AND to request a deferred examination. Finally, please note that once an exam is written, the result stands. Rewriting an exam on which you did poorly is not an option, nor is reweighting the exam or doing additional assignments to replace it. If you are not feeling well, it is important to consider carefully whether or not to write the exam. Academic Regulations and Procedures All students are expected to abide by the University’s academic regulations in the completion of their academic work, as set out in the undergraduate calendar at http://www.uoguelph.ca/registrar/calendars/undergraduate/current/c08/index.shtml Some regulations are highlighted below: 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 http://www.uoguelph.ca/registrar/calendars/undergraduate/current/c08/c08-aload.shtml) Academic Misconduct: The University of Guelph is committed to upholding the highest standards of academic integrity and directs 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. The University of Guelph takes a serious view of academic misconduct and it is your responsibility as a student to be aware of and to abide by the University’s policy. Included in the definition of academic misconduct are such activities as cheating on examinations, plagiarism, misrepresentation, and submitting the same material in two different courses without written permission. To better understand your responsibilities, read the Undergraduate Calendar at: http://www.uoguelph.ca/registrar/calendars/undergraduate/current/c08/c08-amisconduct.shtml You are also advised to make use of the resources available through the Learning Commons (http://www.learningcommons.uoguelph.ca/) and to discuss any questions you may have with your course instructor, teaching assistant, Academic Advisor or Academic Counsellor. Students should be aware that faculty have the right to use software to aid in the detection of plagiarism or copying and to examine students orally on submitted work. For students found guilty of academic misconduct, serious penalties, up to and including suspension or expulsion from the University can be imposed. Academic Consideration: Students who find themselves unable to meet course requirements by the deadline or criteria expected because of medical, psychological or compassionate circumstances beyond their control, should review the regulations on

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Academic Consideration in the Undergraduate Calendar (http://www.uoguelph.ca/undergrad_calendar/c08/c08-ac.shtml) and discuss their situation with the instructor, Program Counsellor or Academic Advisor as appropriate. Religious Holidays: Should a student need to miss scheduled tests, mid-term examinations, final examinations, or requirements to attend classes and participate in laboratories for religious reasons, please advise the instructor within two weeks of the distribution of this course outline so that alternate arrangements can be made. For further information see http://www.uoguelph.ca/registrar/calendars/undergraduate/current/c08/c08-accomrelig.shtml Accessibility The university welcomes feedback on accessibility issues. If you wish to provide feedback, you may:

• Email the Human Rights and Equity Office (HREO) o accessibility@uoguelph.ca o hreinfo@hre.uoguelph.ca

• Fill in the feedback box on the University's accessibility website at http://www.uoguelph.ca/accessibility

• Call and speak with an HREO staff member at ext. 53000 • TTY users can use the Bell Relay System by calling 1-800-267-6511 • Drop-in at the HREO (15 University Ave. East), Monday-Friday, 8:45am - 4:45pm • Mail your feedback to the HREO using campus mail services

If your concerns are specific to this course, please feel free to speak with me, or contact me by phone or email at any time. Code of Conduct – The Top Ten As a student in the Department of Business, College of Management 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, learning activities etc.).

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

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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. When making a presentation, wear business dress. 10. Provide thoughtful feedback at the completion of all courses (we are committed to continuous improvement

but need your input to help us decide what to focus on).