Curriculum Review
Business Studies:
Accounting
The Big Picture
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Descriptive course titles
Fewer expectations
Increased emphasis on ethics
“demonstrate an understanding of” only in overall
expectations
Plain language, e.g., “record transactions in journals
and ledgers”
Greater use of examples
Management accounting is out in BAT4M
Cash Flow statement is in
All courses require computer software use
Course Titles
• BAF3M Introduction to Financial Accounting
• Financial Accounting Fundamentals
• BAT4M Principles of Financial Accounting
• Financial Accounting Principles
• BAI3E
Introduction to Accounting
• Accounting Essentials
• BAN4E Accounting for a Small Business
• Accounting for a Small Business
BAF3M
Financial Accounting Fundamentals
STRANDS
Original:
1. The Objectives of
Accounting
2. Accounting
Fundamentals
3. Financial Analysis,
Control, and Decision
Making
Revised:
1. Accounting
Fundamentals
2. Accounting Practices
3. Internal Control,
Financial Analysis,
and Decision Making
4. Ethics, Impact of
Technology, and
Careers
BAF3M – Accounting Fundamentals
• Discipline of accounting
• Different forms of business organization
• Procedures and principles for a service
business
• Explain different equity sections, e.g.,
capital versus shareholder’s equity
• Describe impact of adjusting entries on
financial statements
BAF3M – Accounting Practices
• Accounting cycle for merchandising business
• Perpetual and periodic inventory systems remain
• Use accounting software or application software
for service, merchandising business and financial
statements
• Sales taxes
• Describe alternative accounting systems such as
special journals and ledgers
BAF3M - Internal Control, Financial
Analysis, and Decision Making
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Petty cash, bank reconciliation procedures
Budgeted financial statements
Role of an auditor
Analysis of liquidity, solvency, profitability
“simple” financial ratios, e.g.
– Current, debt ratios
– Comparative statements, trend analysis
BAF3M – Ethics, Impact of Technology,
and Careers
• Role of ethics and code of conduct
• Impact of current issues on accounting, e.g.,
fraud, globalization of transactions
• Impact of technology on accounting
functions
• Research educational paths for accounting
career paths
BAT4M
Financial Accounting Principles
STRANDS
Original:
1. The Accounting Cycle
2. Advanced Accounting
Practices for Assets
3. Financing
4. Financial Analysis and
Decision Making
Revised:
1. The Accounting Cycle
2. Accounting Practices
for Assets
3. Partnerships and
Corporations
4. Financial Analysis and
Decision Making
BAT4M – The Accounting Cycle
• emphasis on the computerized environment
(go beyond BAF3M)
• Include year end procedures using software
• Roles of agencies, e.g., OSC
• Relate GAAP and practices, e.g., matching
principle and cash vs. accrual basis)
• More ethics and issues, e.g., off balance
sheet activities
BAT4M – Accounting Practices for Assets
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Short term assets, inventories, capital assets
Notes receivable procedures included
Relate technology to inventory control
Capital vs. revenue expenditures
Record and analyze methods of
amortization
BAT4M – Partnerships & Corporations
• New strand
• Limited vs. general partnerships
• Various partnership transactions, e.g., formation,
admission, dissolution, etc.
• Common and preferred transactions and dividends
• Impact of dividends on shareholder equity
• Prepare financial statements including
shareholders equity section
BAT4M – Financial Analysis and
Decision Making
• Compare debt and equity financing
• Investigate alternative sources, e.g., government loans
• Describe and analyze annual report as a means of
communication
• Use annual report to prepare financial analysis of a company
• Higher level ratios, e.g., turnovers, earning per share, times
interest earned, etc.
• Use info technology in financial analysis (spreadsheets?)
• Prepare and analyze cash flow statement!
BAI3E – Accounting Essentials
STRANDS
Original:
1. The World Accounting
Cycle
2. The Accounting Cycle
3. Cash Management in
a Service Business
4. The Use of
Accounting
Information in
Decision Making
Revised:
1. Fundamentals of
Accounting for Business
2. The Accounting Cycle
3. Internal Control,
Banking and
Computerized
Accounting
4. Decision Making,
Ethics, and Careers
BAI3E - Fundamentals of Accounting
for Business
• Describe differences in sources of
financing, e.g. equity vs. loans
• Identify elements of accounting system,
e.g., journals, ledgers, etc.
• Adv. and disadvantages of business
ownership forms
• Differentiate service and merchandising
BAI3E - The Accounting Cycle
• Focus on service business only
• Explain relationships, e.g. assets to
liabilities and equity
• Complete the cycle for a service business
• Complete sales tax remittance forms
BAI3E - Internal Control, Banking and
Computerized Accounting
• Petty cash procedures, reconcile daily sales
with point of sales records
• Describe bank account features
• Complete Bank reconciliation
• Accounting software through closing,
adjusting entries and financial statements
– Service business only
BAI3E - Decision Making, Ethics,
and Careers
• How is information used to make decisions, e.g.
by managers
• Identify costs beyond our control, e.g., taxes,
minimum wage
• Ethics related to a small business
– Handling of cash, hiring relatives
– Consequences, e.g., job loss, fines
– Investigate code of ethics
• Investigate a variety of accounting careers, e.g.,
accounting clerks, payroll, etc.
BAN4E – Accounting for a Small Business
STRANDS
Original:
1. The Service and
Merchandising
Businesses
2. Accounting Practices
3. The GST, Retail Sales
Taxes, and Cash-Flow
Statements
4. Financial Analysis and
Accounting Careers
Revised:
1. Service and
Merchandising
Businesses
2. Accounting Practices
3. Plant & Equipment,
Payroll, and Income
Taxes
4. Ethics and Decision
Making
BAN4E - Service and Merchandising
Businesses
• Complete accounting cycle for a service
business using accounting software
• Timing for taking inventory and
safeguarding inventory
• Complete manual cycle for merchandising
using periodic and perpetual systems
• Repeat using accounting software
BAN4E - Accounting Practices
• Procedures for A/R and A/P sub ledgers
• Use multi-column journal
• Use multi-journal system
BAN4E - Plant & Equipment, Payroll,
and Income Taxes
• Calculate cost of an fixed asset
• Record depreciation
• Methods of paying employees, e.g., hourly wage,
salary, piecework, etc.
• Record payroll transactions using accounting
software
• Prepare personal income tax return using software
• Prepare a small business tax return
BAN4E - Ethics and Decision Making
• Ethical challenges for a small business, e.g., not
reporting revenue, manipulating inventory, etc.
• Report on a current issue
• Compare budgeted and actual data to evaluate
performance
• Create a simple cash budget
• Relate need for accounting personnel to an
expanding business, e.g., specialization versus one
person
• Summarize steps to incorporate a business
Resources
• Ethics Case Studies
http://ba.gsia.cmu.edu/ethics/AA/arthurandersen.htm
• Misleading Annual Reports
http://www.canadianbusiness.com/markets/stocks/article.jsp?content=
20050314_66053_66053
• Capital Cost Allowance
http://www.cra-arc.gc.ca/E/pub/tp/it128r/it128r-e.html
• BAT4M Files (can be used for other courses also)
http://samsa.biz/BAT4M/