COURSE OUTLINE
SCHOOL:
School of Business
DEPARTMENT:
Accounting
PROGRAM:
COURSE TITLE:
Intermediate Accounting 3
COURSE CODE:
ACCT355
TOTAL COURSE HOURS:
60.
PRE-REQUISITES/COREQUISITES:
ACCT265 – Intermediate
Accounting 2
COURSE ELIGIBILITY FOR PRIOR
LEARNING ASSESSMENT AND
RECOGNITION (PLAR):
Yes
ORIGINATED BY:
Edward Gough
REVISED BY:
Edward Gough
DATE:
September, 2007
APPOVED BY: ___________________________________
Chair/Dean
Students should keep all course outlines for each course taken at
Centennial College. These may be used to apply for transfer of credit to
other educational institutions. A fee may be charged for additional or
replacement copies.
Course Title: Intermediate Accounting 3
CENTENNIAL COLLEGE
Course Code: ACCT 355
COURSE DESCRIPTION:
This course is part of the curriculum for the full-time Accounting three-year program,
and is of interest to Continuing Education students. It is recognized by the Certified
General Accountants Association. The course is designed to provide the student with a
comprehensive understanding of accounting topics, both their application and rationale.
These topics focus on the preparation of financial statements and includes: the
statement of cash flows as well as more specialized topics such as earnings per share
calculations, accounting for corporate income tax, pensions, leases, accounting
changes and error analysis, and the principles of full disclosure in financial reporting.
COURSE LEARNING OUTCOMES:
Upon sucessful completion of this course, the student will have demonstrated the ability
to:
1. Calculate basic earnings per share, fully diluted earnings per share, adjusted
earnings per share and explain when their uses are appropriate.
2. Describe the accounting issues related to convertible securities and their effect on
earnings per share.
3. Identify the reporting and disclosure requirements for corporate income taxes, and
be able to explain and account for timing and permanent differences related to
taxable income and accounting income.
4. Identify the major components of pension expense and their effects on the income
statement and explain the usefulness of and be able to complete a worksheet to
support the employer's pension expense entries.
5. Explain and acount for the various types of lease transactions with particular
emphasis on operating and capital leases.
6. Account for accounting changes and error corrections.
7. Prepare a statement of cash flow using both the direct and the indirect method.
8. Describe the full disclosure principle and its application to various reports.
ESSENTIAL EMPLOYABILITY SKILLS (EES);
This course supports the students’ ability to:
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communicate clearly, concisely and correctly in the written, spoken, and visual
form that fulfills the purpose and meets the needs of the audience.
respond to written, spoken, or visual messages in a manner that ensures
effective communication.
execute mathematical operations accurately.
apply a systematic approach to solve problems.
use a variety of thinking skills to anticipate and solve problems.
locate, select, organize, and document information using appropriate technology
and information systems.
analyze, evaluate, and apply relevant information from a variety of sources.
show respect for the diverse opinions, values, belief systems, and contributions
of others.
Issued & Revised by COLT: June 2007
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
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interact with others in groups or teams in ways that contribute to effective
working relationships and the achievement of goals.
manage the use of time and other resources to complete projects.
take responsibility for one’s own actions, decisions, and consequences.
PRIOR LEARNING ASSESSMENT & RECOGNITION PROCESS (ES):
This course is available for PLA (Prior Learning Assessment) challenge. The challenge process
is as follows:
a)
Obtain a “Prior Learning Assessment Form” from the Admissions Office. There is a fee
associated with a PLA application.
b)
Contract the School of Business “PLA Contact” located in the School of Business Office,
Room C3-06 to arrange a time for the written examination.
c)
Complete a written examination (2 ½ hours).
EVALUATION & GRADING SYSTEM:
Two criteria are used to determine whether a student has achieved a passing grade in
this course:
(a) An overall 50% success rate based on the grading system below, AND
(b) A 50% success rate in the combined test/exam component of the course (marked*)
Assignments/quizzes/cases
Test #1
Comprehensive Final Examination
15%
35%
50%
100%
A grade of A or B in this course could provide the student with a CGA exemption. (See
instructor for details).
TESTS AND FINAL EXAM INSTRUCTIONS
1. Only non-programmable (numeric memory, not text memory) calculators. The
invigilator may inspect your calculator and calculator case.
2. Students who primary language in not English are permitted to bring a paper
bilingual dictionary into the test room, provided the invigilator examines the
dictionary to determine that it does not contain any supplemental notations.
3. No electronic dictionary, cell phone, palm pilots, ear device, head sets or
any other electronic device of any kind is allowed during the exam.
4. If you wish to know the time bring a watch. Clocks on cell phones are not
permitted.
5. Only non-programmable (numeric memory, not text memory) calculators. The
invigilator may inspect your calculator and calculator case.
6. Students who primary language in not English are permitted to bring a paper
bilingual dictionary into the test room, provided the invigilator examines the
dictionary to determine that it does not contain any supplemental notations.
7. No electronic dictionary, cell phone, palm pilots, ear device, head sets or
any other electronic device of any kind is allowed during the exam.
8. If you wish to know the time bring a watch. Clocks on cell phones are not
permitted.
STUDENT ACCOMMODATION:
All students have the right to study in an environment that is free from discrimination and/or
harassment. It is College policy to provide accommodation based on grounds defined in the
Ontario Human Rights Code. Accommodation may include changes or modifications to
standard practices.
Students with disabilities who require academic accommodations must register with the Centre
for Student with Disabilities. Please see the Centre for Students with Disabilities for details.
Students requiring accommodation based on human rights grounds should talk with their
professors as early as possible. Details are available on the Centennial College website
(www.centennialcollege.ca )
If students are unable to write an examination due to a medical problem or unforeseen family
problems, they should immediately contact their professor or program Chair for advice. In
exceptional and well-documented circumstances (e.g. unexpected family problems, serious
illness, or death of a close family member), students should be able to write a make-up
examination to replace an examination missed.
TEXT AND OTHER INSTRUCTIONAL/LEARNING MATERIALS:
Intermediate Accounting, Seventh Canadian Edition. Volume 2., Kieso, Weygantd, Warfield,
Young and Wiecek. John Wiley & Sons Canada Ltd.
ISBN: 0-470-83373-4.
Supplementary:
Study Guide, Vol. 2 to accompany Kieso et. al . Intermediate Accounting, Seventh Canadian
Edition Volume 2 – (Chapters 14-24).
ISBN: 0-470-38494-3
USE OF DICTIONARIES:
Students who primary language in not English are permitted to bring a paper bilingual
dictionary into the test room, provided the invigilator examines the dictionary to
determine that it does not contain any supplemental notations.
PROBATIONARY POLICY:
Please contact your academic department for details.
Course Title: Intermediate Accounting 3
WEEK
1
2
3/4
TOPIC/CONTENT
Introduction to CICA
Handbook.
Current Accounting
Issues.
Dilutive Securities and
Earnings per Share
Income Taxes
Centennial College
LEARNING OUTCOMES
READINGS
Chapter 17
Pages 812902,
913-919
Chapter 19
1. Describe the accounting for issuance,
conversion, and retirement of convertible
securities.
2. Explain the accounting for convertible
preferred shares.
3. Contrast the accounting for stock warrants
and stock warrants issued with other
securities.
4. Describe the accounting for stock
compensation plans under GAAP.
5. Explain the controversy involving stock
compensation plans.
6. Calculate earnings per share in a simple
capital structure.
7. Calculate earnings per share in a complex
capital structure.
1. Explain the difference between accounting
income and taxable income.
2. Explain what a taxable temporary difference
is and why a future tax liability is recognized.
3. Explain what a deductible temporary
difference is and why a future tax asset is
recognized.
4. Differentiate between timing, temporary, and
permanent differences.
Issued & Revised by COLT: June 2007
Course Code: ACCT 355
INSTRUCTIONAL
STRATEGIES USED
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COURSE
EVALUATIONS
(TESTS &
ASSIGNMENTS
USED)
Ch. 17 - All brief
exercises 1-5
Ch. 18 – All brief
exercises
E18-1
E18-8
E18-10
E18-13
E18-14
P18-1
Assignment
and/or Quiz
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All brief exercises
E19-1
E19-3
E19-4
E19-5
E19-10
E19-11
E19-12
E19-20
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
WEEK
TOPIC/CONTENT
LEARNING OUTCOMES
READINGS
5. Prepare analyses and related journal entries
to record income tax expense when there are
multiple temporary differences.
6. Explain the effect of various tax rates and tax
rate changes on future income tax accounts.
7. Apply accounting procedures for a tax loss
carryback.
8. Apply accounting procedures and disclosure
requirements for a tax loss carryforward
3/4
Income Taxes
Chapter 19
5/6
Pensions and Other
Employees Future
Benefits
Chapter 20
9. Explain why the future income tax asset
account is reassessed at the balance sheet
date.
10. Explain the need for and be able to apply
intraperiod tax allocation.
11. Identify the reporting and disclosure
requirements
12. Describe key aspects of the asset-liability
(liability
method and identify outstanding issues with
this method.
1. Distinguish between accounting for the
employer’s pension plan and accounting for
the pension fund.
2. Identify types of pension plans and their
characteristics.
3. Identify the accounting and disclosure
requirements for defined contribution plans.
4. Explain alternative measures for valuing the
pension obligation.
5. Identify the components of pension expense.
6. Identify transactions and events that affect
Issued & Revised by COLT: June 2007
INSTRUCTIONAL
STRATEGIES USED
•
•
COURSE
EVALUATIONS
(TESTS &
ASSIGNMENTS
USED)
P19-1
P19-2
Assignment
and/or Quiz
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•
All brief exercises
E20-1
E20-2
E20-3
E20-6
E20-10
E20-15
P20-2
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
WEEK
TOPIC/CONTENT
LEARNING OUTCOMES
READINGS
INSTRUCTIONAL
STRATEGIES USED
COURSE
EVALUATIONS
(TESTS &
ASSIGNMENTS
USED)
the projected benefit obligation.
7. Identify transactions and events that affect
the balance of the plan assets.
8. Explain the usefulness of—and be able to
complete—a work sheet to support the
employer’s pension expense entries.
9. Explain the pension accounting treatment of
past service costs.
10. Explain the pension accounting treatment of
actuarial gains and losses, including corridor
amortization.
11. Identify the differences between pensions and
post-retirement health care benefits.
12. Identify the financial reporting and disclosure
requirements for defined benefit plans.
13. Identify the financial accounting and reporting
for defined benefit plans whose benefits do
no vest or accumulate.
7
MID-TERM TEST
8
Leases
Chapters 1820.
Chapter 21
MID-TERM
TEST
1. Explain the nature, economic substance, and
advantages of lease transactions.
2. Identify and explain the accounting criteria
and procedures for capitalizing leases by the
lessee.
3. Identify the lessee’s disclosure requirements
for capital leases.
4. Identify the lessee’s accounting and
disclosure requirements for an operating
lease.
5. Contrast the operating and capitalization
methods of recording leases.
Issued & Revised by COLT: June 2007
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All brief exercises
E21-1
E21-2
E21-3
E21-4
E21-5
E21-6
E21-8
E21-11
E21-12
E21-13
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
WEEK
9/10
TOPIC/CONTENT
Accounting Changes
and Error Analysis
LEARNING OUTCOMES
READINGS
Chapter 22
6. Calculate the lease payment required for the
lessor to earn a given return.
7. Identify the classifications of leases for the
lessor.
8. Describe the lessor’s accounting for direct
financing leases.
9. Describe the lessor’s accounting for salestype leases.
10. Describe the lessor’s accounting for operating
leases.
11. Identify the lessor’s disclosure requirements.
12. Describe the effect of residual values,
guaranteed and unguaranteed, on lease
accounting.
13. Describe the effect of bargain purchase
options on lease accounting.
14. Describe the lessor’s accounting treatment for
initial direct costs.
1. Identify the types of accounting changes.
2. Describe a change in accounting policy.
3. Understand how to account for retroactivewith-restatement type of accounting
changes.
4. Understand how to account for retroactivewithout-restatement type of accounting
changes.
5. Understand how to account for prospectivetype accounting changes.
6. Describe the accounting for changes in
estimates.
7. Describe the accounting for correction of
errors.
Issued & Revised by COLT: June 2007
INSTRUCTIONAL
STRATEGIES USED
•
•
COURSE
EVALUATIONS
(TESTS &
ASSIGNMENTS
USED)
E21-16
P21-2
Assignment
and/or Quiz
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All brief exercises
E22-2
E22-3
E22-8
E22-9
E22-11
E22-13
E22-17
P22-1
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
Assignment
and/or Quiz
WEEK
TOPIC/CONTENT
LEARNING OUTCOMES
READINGS
INSTRUCTIONAL
STRATEGIES USED
COURSE
EVALUATIONS
(TESTS &
ASSIGNMENTS
USED)
8. Identify changes in a reporting entity.
9. Identify economic motives for changing
accounting methods.
10. Analyse the effect of errors.
11/12
13/14
Statement of Cash
Flows
Full Disclosure in
Financial Reporting
Chapter 23
Chapter 24
1. Describe the purpose and uses of the
statement of
cash flows.
2. Define cash and cash equivalents.
3. Identify the major classifications of cash
flows and
explain the significance of each.
4. Contrast the direct and indirect methods of
calculating net cash flow from operating
activities.
5. Differentiate between net income and net
cash flows from operating activities.
6. Prepare a statement of cash flows.
7. Identify the financial reporting and disclosure
requirements for the statement of cash flows.
8. Use a work sheet to prepare a statement of
cash flows.
1. Review the full disclosure principle and
describe problems of implementation.
2. Explain the use of notes in financial statement
preparation.
3. Describe the disclosure requirements for
major segments of a business.
4. Describe the accounting problems associated
with interim reporting.
5. Identify the major disclosures found in the
auditor’s report.
Issued & Revised by COLT: June 2007
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All brief exercises
E23-1
E23-2
E23-3
E23-4
E23-5
E23-6
E23-7
E23-9
E23-11
E23-12
E23-13
E23-14
E23-15
Assignment
and/or Quiz
•
•
•
•
All brief exercises
E24-2
E24-3
P24-1
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
Assignment
and/or Quiz
WEEK
15
TOPIC/CONTENT
COMPREHENSIVE
FINAL EXAM
LEARNING OUTCOMES
READINGS
INSTRUCTIONAL
STRATEGIES USED
6. Understand management’s responsibilities for
financials.
7. Identify issues related to financial forecasts
and projections.
8. Describe the profession’s response to
fraudulent financial reporting.
All chapters covered during the semester.
Issued & Revised by COLT: June 2007
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)
COURSE
EVALUATIONS
(TESTS &
ASSIGNMENTS
USED)
COMPREHENSI
VE FINAL
EXAMINATION
POLICY STATEMENTS
College Policies
The following statements are selected from Centennial College policies approved by the Board
of Governors.
Student Responsibilities
Students are expected to know the contents of the course outline and to discuss with the
professor any areas where clarification is required.
Students should keep all course outlines for each course taken at Centennial College. These
may be used to apply for transfer of credit to other educational institutions. A fee may be
charged for additional or replacement copies.
Other Policies
Students should familiarize themselves with all College Policies that cover students’ rights,
responsibilities, and the Academic Appeal process. For further information, consult the
Academic Matters Section in the full-time and continuing education calendars. The Academic
Appeal Application form is available from any Enrolment Services (Registrar) Office.
Proof of Student Status
Students are obliged to produce official photo identification at any time during the semester
when requested to do so by any professor. (The official piece is the Centennial Student Card.)
Continuing Education students do not have Centennial Student Cards, and so they may use
other forms of photo identification, such as a driver’s license, health card, or other governmentissued photo identification.
Final Examinations
When writing a test or examination, students must put their official photo-ID cards in full view,
for review by the invigilator. Students who do not have official photo-ID will be permitted to write
the examination with a substitute photo-ID, but they will be required to produce photo-ID at the
program or department office within 24 hours or the next business day following the
examination, or else the examination results will be void.
Faculty Consultation
Professors are available to see students outside of class time. Students can contact professors
via voice mail, email, or through their program or department office. Information regarding how
to contact teachers will be provided at the beginning of the course and is also available in the
program or department office.
Human Rights Statement
It is the policy of the College that all programs will strive for a learning, teaching, and working
environment that promotes inclusion, understanding and respect for all students and
employees, consistent with the Ontario Human Rights Code and the Centennial College's
Statement of Diversity.
Issued & Revised by COLT: June 2007
THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar)