Intermediate Financial Accounting - University of Alberta

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UNIVERSITY OF ALBERTA FACULTY OF BUSINESS

DEPARTMENT OF ACCOUNTING & MIS

Accounting 414, Intermediate Financial Accounting Term I, 2009/2010

Course Outline Instructor: Jocelyn E. King, CA Class Time and Place:

414 A3: TR 1100-1220 Bus 4-09 414 A4: TR 1400-1520 Bus 3-06 614 A1: TR 1400-1520 Bus 3-06

Bus 1-27A

Phone: 492-4611

E-mail:

Office Hours: T 1230 – 1330, W 1100-1300, And by appointment Course home page:

Required: Text - Intermediate Accounting by Kieso, Weygandt, Warfield, Young & Wiecek, Volume 1, eighth Canadian edition, John Wiley &

Sons Canada, Ltd

Course package - includes lecture slides, supplementary notes, selected problems and solutions

Introduction

This is the first of a two-part series in Intermediate Financial Accounting. The course focuses on the asset side of the balance sheet, and also covers the conceptual framework of accounting and a review of the accounting cycle and financial statement preparation.

This is a demanding course.

Students should expect to spend up to 10 hours per week outside class in order to gain an adequate understanding of the course material.

A thorough understanding of the framework, concepts, and techniques of accounting as developed in this course is necessary to enable you to proceed with upper level courses in financial accounting. This is a very heavy course.

You need to plan for the greater than average amount of time necessary to complete the course materials.

Your course package includes a set of slides for each topic to be covered in the course and in some cases supplementary notes. These slides contain copies of most of the examples to be discussed in class, plus a brief summary of each topic area. The notes are intended as supplemental to the text readings. In some topics, the accounting rules have changed since the publication of the text.

In these situations, the slides represent the most current accounting pronouncements.

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Introduction, continued

The structure of the course is a combination of lecture and problem solving.

End-of-chapter problems and additional problem material have been identified to help you learn how to apply concepts and work with the double-entry system.

The problems are broken down into two groups:

1) Those that will be discussed in class, and 2) Those that are recommended for self-study.

Students are expected to read the relevant chapter material and attempt to solve recommended problems PRIOR TO class. Most of the recommended problems will be covered in class. This will be JOINT work and I will consistently call upon members of the class to provide parts of the solution. Solution to all self-study exercises and problems will be posted on blackboard. Solutions to in class discussion problems and cases will be available ONLY in class.

Blackboard

The following additional materials are available from Blackboard at

• Solutions to selected questions from the textbook. These recommended questions are listed in the attached class schedule.

• Sample midterm and final exams with solutions.

• Other useful materials.

The Evaluation System

There will be a midterm examination, a final examination, and 2 cases. The weighting of these components is indicated below:

Case 1: (complete in groups of 2*) Oct. 6 and Nov. 3 10%

Midterm Oct. 20 at 5:00 pm 30%

Case 2: (complete in groups of 3-4*) Due Dec. 1 (2^nd last class) 10%

Final Exam Saturday, Dec. 5, 1400 50%

Total 100%

Note: The midterm exam will not be held in class; rather, students in all sections of the course will write a common exam at the same time, 5:00-6:20 p.m., in various locations. The specific location for you to write the exam will be announced in class and listed on Blackboard well in advance. It is important that you go to your assigned location. Students who have commitments that conflict with the exam time should advise the instructor in writing at least two weeks prior to the exam date.

* Students are responsible for choosing their own group members, and our expectation is that you will be able to work successfully within groups. In the event of a dispute within groups, group members will be given the opportunity to evaluate each other, and I reserve the right to lower the grade of any group member(s) who, in the consensus of their peers, have not contributed to the output of the group.

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The Evaluation System, continued

Percentage grades will be converted to letter grades as follows:

Percentage Grade Letter Grade

95%+ A+

90%-94% A

85%-89% A-

80%-84% B+

75%-79% B

70%-74% B-

65%-69% C+

60%-64% C

56%-59% C-

53%-55% D+

50%-52% D

<50% F

At the end of the year, after reviewing the distribution of weighted scores, I will review these cut offs together with the instructors of all other sections of Accounting 414. We may reduce one or more cut-off scores but will not increase them.

Please note that students wishing to register in Accounting 415 must obtain a minimum grade of C- in ACCTG 414.

Cases

All cases for submission are due in class on the date stated in the outline. The due dates provided allow you to complete the cases well in advance of submission. Late submissions will not be graded.

Case 1 is an accounting cycle case. Required material for the case will be posted to the course website. It is due in two installments. The first installment is due on October 6, 2009. It will be corrected and returned to you on October 13, 2009, but no grade will be assigned at this point. The case will be graded for credit on the second submission which is due on November 3, 2009.

Correction of the first installment is provided to assist you in identifying any errors you may have before you begin the final stages of the case. You may choose not to take advantage of the initial grading, although I would encourage you to do so.

You must complete Case 1 using Excel. Use of Excel will facilitate your completion of the case by eliminating the potential for addition errors.

Case 2 is a more conceptual case, which will give you an opportunity to evaluate the accounting policies for a real company and apply the knowledge that you have gained in the course. Required material for the case will be posted to the course website.

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Cases, continued

The marks assigned to the two cases total 20% of the marks available in the course, which can have a significant effect on your final grade. Additionally, if you invest the time in doing these cases carefully, this will enhance your understanding of the course material, which should also help your performance on the midterm and the final.

Absences from Exams

Absence from an examination will be treated as a score of zero unless documented evidence of illness or a family crisis is provided within two weeks of a midterm and one week of the final examination. In the event that a midterm examination is missed for acceptable reasons, no make-ups will be given.

Instead, the credit assigned to the missed work will be reallocated to the final examination. This will result in a weight of 80% on the final exam.

Once you have written an exam, grades will not be reallocated due to explanations given after the fact. Therefore, if you are too ill to write an exam, please obtain a doctor’s note and do not attempt the exam.

If a student is absent from the final exam, he or she must obtain permission from the Faculty’s Undergraduate Office to write a deferred final exam. If a deferred final exam is required for this course, it will be held on Friday, January 8^th, 2010, 1000.

Deferred final examinations will be allowed only for students following University procedures for obtaining deferrals. Students interested in deferred final

examinations should consult the Undergraduate Office. For more information on what a deferred exam is, go to:

Students in the University Calendar Code of Student Behavior

Students’ attention is drawn to the Code of Student Behavior, which addresses plagiarism, cheating, and aiding and abetting. A copy of the Code can be obtained at regarding this matter please talk to the instructor or the Undergraduate Office.

Ignorance is NOT a defense!

Course Protocols

Students are responsible for all information provided in class (announcements, lectures, problem analysis, etc.). If you cannot make the class, it is suggested that you arrange for someone else in the class to provide you with the information you missed.

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Course Protocols

I will only read email originating from Blackboard using your University email account. And in your email tile, please indicate “Acctg 414”. Any email from non- University accounts (e.g. hotmail) will not be read.

The marks described in this syllabus represent the only marks available to students. Make-up or extra work to improve your grade is not possible.

If you feel that your grade on either an exam or an assignment is incorrect, you must notify the instructor in writing during the one-week period following the return of the assignment or exam.

Grades are assigned across all sections or the course and by all instructors.

Once we have assigned final grades, we will not change course grade except in the case of a recording error. Appeals of final grades will follow the university guidelines for marks appeals.

Related Internet Sites

Regulators and Related Organizations:

ASC

OSC

SEDAR (CSA)

EDGAR (SEC)

Standard Setting Bodies:

AcSB

IASB

FASB

Professional Organizations:

CGA Canada

CICA

CMA Canada

CASB

ICAA

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Schedule of Topic Coverage

Date Topic Readings* and Problems

*Read chapter appendices only if indicated

Sept. 3 01 Introduction to course / 02 Conceptual Framework of Accounting Sept. 8 02 Conceptual Framework of

Accounting

Skim: Chapter 1

Read: Chapter 2, Course Package slides “Conceptual framework of Accounting”

For discussion: E2-10, P2-7

For self-study: BE 1-5, BE1-9, BE1-16, E2-1, E2-4, E2-9, P2-2

Sept. 10 03 The Accounting Process Read: Chapter 3 and Appendix 3A, supplementary notes “review of the Accounting Cycle”, Course Package slides “Review of the Accounting Cycle”

For discussion:E3-11

For self-study:BE3-6, BE3-7, BE3-10, E3-1, E3-4

Sept. 15 03 The Accounting Process For discussion: E3-12, E3-16

For self-study: E3-23, P3-3, P3-4, H-P Moving and Storage Service (in course package)

Sept. 17 04 Statements of Income, Comprehensive income &

Retained Earnings

Read: Chapter 4, pp. 139- 162, Course Package slides “Statements of Income and Retained Earnings” pp. 1-15 For discussion: E4-5

For self-study:E4-3, E4-6, E4-11 Sept. 22 04 Statements of Income,

Comprehensive income & Retained Earnings

Read: Chapter 4 and Appendix 4A, pp.

162-174, Course Package slides

“Statements of Income and Retained Earnings” pp. 16 to end

For discussion: P4-3 (a), P 4-11 For self-study: E4-16, P4-8, P4-10 Sept. 24 05 Balance Sheet and

Statements of Retained Earnings & Cash Flows

Read: Ch. 5 pp.199-222, Course Package slides “The Balance Sheet”

For discussion: P 5-5

For self-study: E5-2, E5-4(a), E5-8, P5- 2, P5-3, P 5-5,

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Sept 29 Guest Speaker - T O’Malley Review the current definitions of assets and liabilities. Consider whether they are adequate, could they be improved?

Oct. 1 05 Balance Sheet and Statements of Retained Earnings & Cash Flows

Read: Chapter 5 remainder

Course Package supplementary notes

“Daisy Inc”, Course packages slides

“The Statement of Cash Flows”

For discussion: E5-12

For self-study: BE5-9, BE5-11, BE5-12, E5-13

Oct.6 05 Balance Sheet and Statements of Retained Earnings & Cash Flows

Case 1, Requirement 1 due

For discussion: P 5-6 parts a,b,c & e.

For self-study: E5-14, E5-15, P5-8 Oct. 8 05 Cash flows

06 Cash and Receivables

Read: Chapter 7, pp. 353-371 and Appendix 7A, Course Package slides

“Cash and Receivables” pp. 1- 10 For discussion: The Cashflow Company (course package), Ostrich Company (course package), P7-2, P7-5

For self-study: E7-2, E7-4, E7-8, E7-25, P7-3, P7-4, P7-16

Oct. 13 06 Cash and Receivables Case 1, Requirement 1 returned Read: Chapter 7, pp. 371-393, Course Package slides “Cash and Receivables”

pp. 11-end

For discussion: P7-13, E7-19, P 7-7 For self-study: E 7-14, E7-15P7-7, P7-9, P7-11

Oct. 15 07 Revenue & Expense Recognition

Read: Chapter 6, pp. 289-297, Course Package, “Revenue Recognition”, pp. 1- 11

For discussion: Wonder Waste

Reduction and Make, More, & Money (course package, at the end of the slides for this topic)

For self-study: E6-2, E6-4, E6-14, E6-16 Oct. 20 MIDTERM EXAM

From 5:00-6:20 pm

No regular class –additional office hours during class time.

Coverage: All materials up to and including Topic 5.

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Read: Chapter 6, pp. 297-309, Course Package, “Revenue Recognition”, pp.

10 to 18

For discussion: E6-10, P6-6

For self-study: E6-20, E6-22, E6-24, P6-13, P6-15, P6-16

Read: Chapter 6, pp. 309- end, Course Package, “Revenue Recognition”, pp. 18 to end

For discussion: E6-22, E6-24, P6-12 For self-study: E6-8, E6-12, E6-13, P6-2, P6-4, P6-9, Lion Corp Self study Question (in course package)

Oct. 29 07 Revenue & Expense Recognition/ Inventory

Read: Chapter 8, pp. 425-451, Course package, “Inventory”, pp. 1 to 8 and supplementary notes on Inventory methods pp 1 to 3.

For discussion: E8-8. P8-3,

For self-study: E8-1, E8-13, E8-15, E8-17, E8-18, P8-8

Nov.3 08 Inventory Read: Chapter 8, pp. 451- 466 and Appendix 8A, Course package,

“Inventory”, pp8 to end, and supplementary notes on Inventory methods pp 4 to end.

Case 1, Requirement 2 due For discussion: P8-9,

For self-study: E8-19, E8-20, E8-26, E8-23, P8-7, P8-11

Nov. 5 08 Inventory/ Investments Read: Chapter 9, pp. 507-535, Course package “Investments”, pp. 1 to 10 For discussion: P8-10, P 8-13 For self-study: BE9-2, BE9-4, E9-4, E9-7, E9-9

Nov. 10 NO CLASSES Fall term class break 

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Nov. 12 09 Investments Read: Chapter 9, pp. 478-488, 496-502, Course package “Investments in Debt and Equity Securities” pp. 10 to 19 For discussion: P9-10, P9-11, P9-14 For self-study: E9-8, E9-15, E9-17, E9- 18, E9-22,

Nov. 17 09 Investments Read: Chapter 9, pp. 535-554, Course package “Investments in Debt and Equity Securities” pp. 19-end For discussion: P9-6

For self-study: E9-20, E9-21, E9-23, P9- 3, P9-11, P9-14.

Nov. 19 09 Investments/ 10 Capital Assets Tangible &

Intangible

Read: chapter 10, Course package

“Capital Assets”, pp. 1 to 16 For discussion:E10-4, P10-9

For self-study: E10-6, E10-7, P10-5, P10-10, P10-12

Nov. 24 10 Capital Assets Tangible

& Intangible

“Capital Assets”, pp. 16 to 20 For discussion: E11-6, E11-21

For self-study: E10-16, E10-18, P10-9, E 11-5, E11-13, E11-15, P11-11, P11- 13

Nov 26 10 Capital Assets Tangible

& Intangible

“Capital Assets”, pp. 20 to end For discussion: E 12-3, E12.20

For self-study: E12-10,E12-12, E12-14, E12-16, E12-18, P12-3, P12-6

Dec. 1 Time for catchup Case 2 due

Time for catch up and for discussion

Dec. 3 Wind up and Final Exam Review

FINAL EXAM: All sections Saturday, December 5, 2009 At 1400 DEFERRED FINAL EXAM: Friday, January 8, 2010 At 1000