Instructor Workshop
Financial Accounting FA2 & FA3
Introduction
Course Overviews
Students
Instructors
Specific Topics in Accounting
Ethics
Financial Accounting 2 (FA2)
Course Purpose
The broad aim of this course is to present:
• Concept,
• methods,
• and techniques
concerning the valuation of assets and the
application of generally accepted accounting
principles.
Financial Accounting 2 (FA2)
Lesson 1
Financial reporting and accounting concepts
Lesson 2
Income statement and balance sheet presentation
Lesson 3
Cash flow statement
Lesson 4
Revenue and expense recognition
Financial Accounting 2 (FA2)
Lesson 5
Interest concepts of future and present value
Lesson 6
Current monetary balances
Lesson 7
Inventory measurement, inventory valuation,
and cost of goods sold
Financial Accounting 2 (FA2)
Lesson 8
Investments: Temporary and long-term
Lesson 9
Capital assets: Acquisition, disposal, and
exchange
Lesson 10
Capital assets: Amortization and impairment
Financial Accounting 3 (FA3)
Course Purpose
The primary aim of FA3 is to assist you in
developing professional competence and skills
that will enable you to:
Financial Accounting 3 (FA3)
Course Purpose
prepare financial statements, focusing on the
liabilities and owners’ equity elements of the
balance sheet
Financial Accounting 3 (FA3)
Course Purpose
choose appropriate financial accounting and
reporting policies in both specific and general
circumstances using ethical, professional
judgment
Financial Accounting 3 (FA3)
Course Purpose
determine the substance of a business
transaction and critically assess the ability of
the GAAP framework to reflect its substance
Financial Accounting 3 (FA3)
Course Purpose
analyze a financial accounting situation,
identify issues and alternatives, then formulate
recommendations using ethical, professional
judgment
Financial Accounting 3 (FA3)
Lesson 1
Partnership equity accounting
Lesson 2
Liabilities
Lesson 3
Shareholders’ equity
Lesson 4
Complex debt and equity instruments
Financial Accounting 3 (FA3)
Lesson 5
Leases
Lesson 6
Accounting for income tax
Lesson 7
Pension costs and obligations
Financial Accounting 3 (FA3)
Lesson 8
Accounting changes
Lesson 9
Financial statement analysis I and cash flow
Lesson 10
Financial statement analysis II and EPS
Levels of Competence
LEVEL 1 — Mastery.
LEVEL 2 — Comprehension.
LEVEL 3 — Background knowledge
Levels of Competence
LEVEL 1 — Mastery. Students are required to:
attain an in-depth understanding of concepts and
principles
develop a sound conceptual and comprehensive
technical knowledge of procedures
become proficient in the application of knowledge
to practice
become proficient users of reference documents
and sources for further study
Levels of Competence
LEVEL 1 — Mastery.
Skills developed and examined at this level
are:
•
•
•
•
•
comprehension,
application,
analysis,
synthesis, and
evaluation
Levels of Competence
LEVEL 2 — Comprehension. Students
are required to:
attain a broad understanding of concepts,
principles, and procedures
develop a working knowledge of
procedures
identify common reference documents and
sources for further study
Levels of Competence
LEVEL 2 — Comprehension.
Skills developed and examined at this
level are:
• comprehension and
• application.
Levels of Competence
LEVEL 3 — Background knowledge.
Students are required to:
identify common reference documents and
sources
acquire a general knowledge of broad topic
areas
Levels of Competence
LEVEL 3 — Background knowledge.
Skills developed and examined at this level
are:
• recall and
• general knowledge
Students
Two Groups
University
• Full-time students
• Course delivery by lecture
Working
• Part-time students
• Course delivery by
– distance learning
– Some lectures
Challenges
ESL Environment
Accounting Courses
ESL Environment
Speaking & Listening
Comprehension
Slang & Idioms
New terms (technical language)
ESL Environment
Reading & Writing
Textbooks
• Dense, tightly written
• New terms (technical language)
• Canadian examples
Parsing questions
• What is the question?
Summarizing
Accounting
Lack of work experience
Why?
F/S formats & Presentation
Applying GAAP
How to study
Pre-reading
It doesn’t happen!!
Students
Two Groups
University
Working
Challenges
ESL Environment
Accounting
Instructors
Approaches to Presenting Accounting
Information
Dealing with ESL
Homework & Exam Setting
Approaches to Presenting
Accounting Information
Big to Small then Back to Big
Life Cycles
Similar Transactions
Where are you?
Exercises and Comprehensive Problems
Stories
Memory Hooks
Big to Small then Back to Big
Basic principle: Start with the End in Mind
Break the “Big Picture” into smaller chunks
Break the “chunks” into components
Work back: Components -> Chunks -> Big
Picture
Example: Statement of Cash Flows
Life Cycles
Example: Bonds
Life Cycle: Issue -> Pay Interest -> Retire
Start with a basic set of transactions
Add variations: Issue at Premium/Discount,
Issue between interest dates, etc.
Similar Transactions
Principle: Link to Prior Knowledge
Example: Future Tax Liability -> Allowance for
Doubtful Accounts
The link introduces a previously understood
concept
The link is seldom perfect
Where are you?
Journal entries are made at various points in
the Accounting Cycle
When demonstrating JE’s, tell students where
you are in the Cycle
Example: Bonds
Issuing the bonds -> Journalizing
Amortizing bond premium -> Adjusting Entries
Multi-year examples -> remind students of
the effects of Closing Entries
Exercises and Comprehensive
Problems
Exercises
Single concept
Not complex
Measure concept comprehension/application
Comprehensive Problems
Single/Multiple concept(s)
Life Cycle and/or Complex
Measure concept comprehension/application
Test ability to organize information
Stories
Attention grabbers
Complexity can be controlled
Uses:
Demonstrate the “Why”
Simplify a complex concept
Create a frame of reference for complex material
Memory Hooks
Mnemonics
“Silly” associations
Useful for
short-term recall
Lists
sequences
Once concept is “owned” discard memory
hook
Approaches to Presenting
Accounting Information
Big to Small then Back to Big
Life Cycles
Similar Transactions
Where are you?
Exercises and Comprehensive Problems
Stories
Memory Hooks
Dealing with ESL
Encourage Speaking
Ask & Name
Fill in the Blanks
Teams & Competition
Encourage
Speaking
Ask & Name
Ask a question
Name a student
Don’t let them suffer too long
Give positive reinforcement to any attempt
No “wrong” answers
Ask another student to help
Ask other students their opinion
Fill in the Blanks
Scenario:
You have just asked
“What Accounting Principle are we using here?
1.
2.
No Response
Do not give them the Answer!!
Prompt a response
M
A
T
C
H
I
N
G
Teams & Competition
Teams
A mix of Strong & Weak students
Assign a problem
First team to finish wins!
Keep score for a few weeks
Reassign teams occasionally
Teams & Completion
Rules:
The entire Group must work on the answer
All Group members must understand the answer
When a Group indicates it is finished, you choose
one member to present and explain the answer
The answer must be presented without prompting
from the other Group members
Benefits both strong and weak students
Helps you identify some areas that need
reinforcement
Dealing with ESL
Encourage Speaking
Ask & Name
Fill in the Blanks
Teams & Competition
Homework & Exam Setting
Single Concept
Vocabulary
Applied Concepts
Comprehensive
Instructors
Approaches to Presenting Accounting
Information
Dealing with ESL
Homework & Exam Setting
Summary
Course Overviews
Students
Instructors
Coming Up Next…
Specific Topics
Goods & Services Tax (FA2 Lesson 2)
Accounting for income Tax (FA3 Lesson 6)
Pension Costs & Obligations (FA3 Lesson 7)
Leases (FA3 Lesson 5)
EPS – Earnings Per Share (FA3 Lesson 10)
Ethics