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Commerce 2AA3
Financial Accounting
Summer 2014 Course Outline
Accounting and Financial Management Services Area
DeGroote School of Business
McMaster University
COURSE OBJECTIVE
This course will help all students (whether or not they plan a career in accounting) understand
why accounting exists, how it is implemented, its usefulness for decision making, how it affects
behaviour and contracts and why there are controversies over accounting methods.
The specific objectives of this course are:
1) Help students develop a thorough understanding of accounting procedures and the choices
possible in preparing corporate financial statements.
2) Help students become intelligent readers and users of corporate financial reports, which
include the fundamental statements (balance sheet, income statement, retained earnings
statement, and cash flow statement) plus explanatory notes, auditor’s report, etc.
3) Develop students’ appreciation of the usefulness and limitations of financial accounting
information.
INSTRUCTOR AND CONTACT INFORMATION
Office
Email
Office Hours
Aadil Merali Juma
DSB 318
jumaas@mcmaster.ca (you must use your official McMaster email
address for correspondence. Do not use a Gmail account to send it on
behalf of McMaster or any other aliases. Also do not use Avenue email
for correspondence. You must send it from your MUSS account)
Mondays and Wednesdays from 4pm to 6pm
Teaching Assistants
Geoff Blasutti (blasutgd@mcmaster.ca)
and Daniel Fan (fandw@mcmaster.ca)
Course Website: http://avenue.mcmaster.ca/
COURSE ELEMENTS
Credit Value:
Avenue:
Participation:
Evidence-based:
3
Yes
Yes
Yes
Leadership:
Ethics:
Innovation:
Experiential:
No
Yes
No
No
IT skills:
Numeracy:
Group work:
Final Exam:
Yes
Yes
No
Yes
Global view:
Written skills:
Oral skills:
Guest speaker(s):
Yes
Yes
No
Yes
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COURSE DESCRIPTION
This course provides an introduction to the fundamental concepts of financial accounting. The
focus of this course will be on how accounting is used for recording economic events and for the
financial reporting, primarily to users external to business organizations. The course will
emphasize underlying concepts and principles, as well as cover accounting procedures in
sufficient detail to enable students to record accounting transactions and prepare financial
statements. A major emphasis in the course will be on understanding the information in
corporate financial reports and its use by individuals external to a corporation in making
investment and contracting decisions. The course will examine alternative accounting policies
and methods that may legitimately be used in financial reporting, and motivations that may
influence managers in choosing among them.
REQUIRED COURSE MATERIALS AND READINGS
Avenue registration for course content
 http://avenue.mcmaster.ca
Pearson My Accounting Course (My Accounting Lab + Course Connect)
5th Canadian Edition by Harrison, Horngren, Thomas
 http://www.pearsonmylabandmastering.com/northamerica/
Course ID: merali87567
Access Code: CSMAHF-CLONK-PURSY-SAYAN-GNASH-TIRES
FREE
FREE
EVALUATION
The final grade will be calculated in the first instance from the grades obtained on the one term
examination, five best online-assessment marks, and the final examination. The
assessments/examinations and their weightings in the determination of the final grade are:
Components and Weights
Term Test
Saturday May 24th, 2014 @ 9am for 2 hours
40%
Final Exam
Wednesday June 18th, 2014 @ 7pm for 3 hours
40%
Online Quizzes
5 best online assessments out of 6 total assigned @ 4%
20%
Total
Notes on Examinations
1. All students will write the same term and final examinations
2. Components will have multiple-choice questions and/or written problems
3. Examination locations will be announced in lectures, and posted on Avenue
100%
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4. The official McMaster University photo identification card must be presented at each
examination.
5. NOTE: The use of a McMaster standard calculator is allowed during examinations in this
course. See McMaster calculator policy at the following URL:
http://www.mcmaster.ca/policy/Students-AcademicStudies/examinationindex.html
6. The instructor reserves the right to adjust your final grade on the basis of the overall
evaluation of class performance, trend of your performance, participation, and other factors. This
adjustment will result in a maximum change of one grade point.
Grade Conversion
At the end of the course your overall percentage grade will be converted to your letter grade in
accordance with the following conversion scheme.
LETTER GRADE
PERCENT
LETTER GRADE
PERCENT
A+
A
A-
90 - 100
85 - 89
80 - 84
C+
C
C-
67 - 69
63 - 66
60 - 62
B+
B
B-
77 - 79
73 - 76
70 - 72
D+
D
D-
57 - 59
53 - 56
50 - 52
F
00 - 49
Communication and Feedback
Students who are uncomfortable in directly approaching an instructor regarding a course concern
may send a confidential email to the area chair Dr. Lilian Chan: ylchan@mcmaster.ca or the
Associate Dean (adbusac@mcmaster.ca).
Students who wish to correspond with instructors or TAs directly via email must send messages
that originate from their official McMaster University email account. This protects the
confidentiality and sensitivity of information as well as confirms the identity of the student.
Emails regarding course issues should NOT be sent to the Area Administrative Assistants.
Instructors are required to provide evaluation feedback for at least 10% of the final grade to
students prior to Week #4 in the term.
Instructors may conduct an informal course review with students by Week #4 to allow time for
modifications in curriculum delivery.
Students who wish to have a course component re-evaluated must complete the following form:
http://www.mcmaster.ca/policy/Students-AcademicStudies/Form_A.pdf
In order for the component to be re-read:


the component must be worth 10% or more of the final grade in the course
students pay a fee of $50 in Gilmour Hall #209 (receipt is then brought to APO)
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


the Area Chair will seek out an independent adjudicator to re-grade the component
an adjustment to the grade for the component will be made if a grade change of three points
or greater on the 12 point scale (equivalent to 10 marks out of 100) has been suggested by the
adjudicator as assigned by the Area Chair
if a grade change is made, the student fee will be refunded
LECTURES
Lectures will be a combination of lecture presentation and discussion of conceptual and
numerical examples from the text plus current business examples of topics covered. The material
in the course will generally follow that assigned in the text. However, lecture coverage will
include material not covered in the text and exclude some material in the text. Students are
responsible for all material covered in lectures and, therefore, should attend all lectures.
Absence from lectures is not an excuse for not being aware of the details of coverage in the
course. Students should prepare for each lecture by reading the relevant chapter in the text,
reviewing the lecture notes, looking at any examples to be covered and attempting the assigned
questions before each class. Some materials relating to lectures will be posted on Avenue.
Guidelines will be given each lecture as to the specific coverage in the following lecture(s).
PARTICIPATION
Class participation is an integral part of the learning experience in this course. Students should
participate in lecture and tutorial discussions either by asking questions, volunteering answers to
questions raised or responding when asked specifically. Note that it is not expected that students
will have the correct answers to all questions. Rather, participation will allow students to test
their ideas and develop confidence in their understanding of the course material.
ACADEMIC DISHONESTY
It is the student’s responsibility to understand what constitutes academic dishonesty. Please refer
to the University Senate Academic Integrity Policy at the following URL:
http://www.mcmaster.ca/policy/Students-AcademicStudies/AcademicIntegrity.pdf
This policy describes the responsibilities, procedures, and guidelines for students and faculty
should a case of academic dishonesty arise. Academic dishonesty is defined as to knowingly act
or fail to act in a way that result or could result in unearned academic credit or advantage. Please
refer to the policy for a list of examples. The policy also provides faculty with procedures to
follow in cases of academic dishonesty as well as general guidelines for penalties. For further
information related to the policy, please refer to the Office of Academic Integrity at:
http://www.mcmaster.ca/academicintegrity
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REQUESTING RELIEF FOR MISSED ACADEMIC WORK
1.
Students may request relief from a regularly scheduled midterm, test, assignment or other
course component in the following two ways:
a)
b)
for absences from classes lasting up to five (5) days; or
for absences from classes lasting more than five (5) days.
a)
For absences from classes lasting up to five (5) days
Students must use the MSAF (McMaster Student Absence Form). This is an on-line, selfreporting tool, for which submission of medical or other types of supporting documentation is
normally not required. Students may use this tool to submit a maximum of one (1) request for
relief of missed academic work per term as long as the weighting of the component is worth 29%
of the final grade or less. Students must follow up with their course instructors regarding the
nature of the relief within two days of submitting the form. Failure to do so may negate the
opportunity for relief. It is the prerogative of the instructor of the course to determine the
appropriate relief for missed term work in his/her course.
If the value of the component is worth 30% or more, students must report to the APO to discuss
their situation and will be required to provide appropriate supporting documentation.
b)
For absences from classes lasting more than five (5) days
Students cannot use the MSAF. They MUST report to the APO to discuss their situation and
will be required to provide appropriate supporting documentation.
Students who wish to submit more than one request for relief of missed academic work per term
cannot use the MSAF. They must report to the APO and discuss their situation with an academic
advisor. They will be required to provide supporting documentation and possibly meet with the
Manager.
The MSAF cannot be used during any final examination period.
Students unable to write a mid-term at the posted exam time due to the following reasons:
religious; work-related (for part-time students only); representing university at an academic or
varsity athletic event; conflicts between two overlapping scheduled mid-term exams; or other
extenuating circumstances, have the option of applying for special exam arrangements. Please
see the DeGroote Missed Course Work Policy for a list of conflicts that qualify for academic
accommodation
http://ug.degroote.mcmaster.ca/forms-and-resources/missed-course-work-policy/
Such requests must be made to the Academic Programs Office at least ten (10) working days
before the scheduled exam along with acceptable documentation. Instructors cannot themselves
allow students to unofficially write make-up exams/tests. Adjudication of the request must be
handled by the Academic Programs Office.
If a mid-term exam is missed without a valid reason, students will receive a grade of zero (0) for
that component.
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STUDENT ACCESSIBILITY SERVICES
Student Accessibility Services (SAS) offers various support services for students with
disabilities. Students are required to inform SAS of accommodation needs for course work at the
outset of term. Students must forward a copy of such SAS accommodation to the instructor
normally, within the first three (3) weeks of classes by setting up an appointment with the
instructor. If a student with a disability chooses NOT to take advantage of an SAS
accommodation and chooses to sit for a regular exam, a petition for relief may not be filed after
the examination is complete. The SAS website is:
http://sas.mcmaster.ca
POTENTIAL MODIFICATIONS TO THE COURSE
The instructor and university reserve the right to modify elements of the course during the term.
The university may change the dates and deadlines for any or all courses in extreme
circumstances. If either type of modification becomes necessary, reasonable notice and
communication with the students will be given with explanation and the opportunity to comment
on changes. It is the responsibility of the student to check their McMaster email and course
websites weekly during the term and to note any changes.
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COURSE SCHEDULE
Commerce 2AA3
Financial Accounting
Summer 2014 Course Schedule
Date
May 5 – M
TOPIC
Financial Statements and Business
Decisions
(Note: First class is on Monday, May 5th)
Financial Statements and Business
Decisions
Details
Chapter 1
May 12 – M
Investing and Financing Decisions
Chapter 2
May 14 – W
Operating Decisions and Income Statement
Chapter 3
May 19 – M
No Classes (Victoria Day)
May 21 – W
Statement of Cash Flows
Chapter 12
May 24 – Sat
Midterm (40%) at 9am
Chapters 1,2,3, and 12
May 26 – M
Receivables and Cash
Chapter 4 and Chapter 5
May 28 – W
Revenues, Cost of Goods Sold and
Inventory
Chapter 6
June 2 – M
Revenues, Cost of Goods Sold and
Inventory
Chapter 6
June 4 – W
Ch. 9: Long Lived Assets
Chapter 7
June 9 – M
Ch. 10: Current Liabilities and Notes
Payable
Chapter 9
June 11 – W
Ch. 11: Long-Term Liabilities
Chapter 9
June 16 – M
Ch. 12: Owners’ Equity
Chapter 10
June 18 – W
Final Exam
Cumulative on all chapters
May 7 – W
Chapter 1
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Remarks
i. Please see the Course Website for any updates and course material.
ii. MSAF is not permissible for weights on evaluation that are greater than or equal to 30%
(Midterms, Final exam). Any attempt to submit a falsified MSAF for this course for a missed
test or midterm exam constitutes academic dishonesty and charges may be filed with the Office
of Academic Integrity.
iii. Please check with the Academics Program Office on the main floor of DeGroote on conditions
attached to using the MSAF for the online evaluation components.
iv. It is your responsibility to check Avenue daily – everything you will need is there and any
important announcements will be posted there. Set your home page to the news feed for the
course.
v. It is your responsibility to understand what constitutes academic dishonesty.
vi. We only respond to emails from students’ McMaster email accounts. Ensure that your Mac
account is activated and has space to receive emails. We reply to emails only once, and if it
returns to us as “undeliverable mail” we do not attempt any further replies. Do not use the
email provided by Avenue. We do not check Avenue for emails. We do not respond to emails
asking questions to which the answer is readily available in the course outline or Avenue.