UNIVERSITY OF ALBERTA

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UNIVERSITY OF ALBERTA SCHOOL OF BUSINESS

DEPARTMENT OF ACCOUNTING & OIS

Accounting 414, Intermediate Financial Accounting Term I, 2016/2017

Course Outline

Instructors: Jocelyn E. King, CPA, CA Sec A5

Yamin Hao Sec A1, A2 & A4 Trish Stringer, CMA, CA Sec A3

Class Time and Place:

414 A1: TR 8:00-9:20 am Bus 3-06 414 A2: TR 9:30-10:50 am Bus 3-06 414 A3: TR 11:00-12:20 pm Bus B-05 414 A4: TR 2:00- 3:30 pm Bus 3-06 414 A5: TR 3:30-4:50 pm Bus 3-06 Jocelyn King

Office: Bus 1-27A

Phone: 492-4611

E-mail: [email protected]

Office Hours: Tuesdays and Thursdays 12:30- 1:50 pm And by appointment

Yamin Hao

Office: Bus 3-40G

Phone: 492-5158

Office Hours: Wednesdays 10:00 am – 12:00 pm And by appointment

Trish Stringer

Office: Bus 1-27B

Office Hours: TBA

Required: Text - Intermediate Accounting, Volume 1, Seventh edition, Beechy, Conrod &

Farrell, McGraw-Hill Ryerson, 2016 Introduction

This is the first of a two-part series in Intermediate Financial Accounting. The course begins with an examination of the conceptual framework of accounting and a review of the accounting cycle and financial statement preparation. It then focuses on a detailed examination of revenue recognition and on the accounts on the asset side of the balance sheet.

This is a demanding course. Students should expect to spend at least 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

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accounting courses, so it is important that you give this course the time and attention that it requires. This is a very heavy course. You need to plan for the greater than average amount of time necessary to complete the course materials. Getting behind in the assignments and studying immediately before the examinations is unlikely to be successful.

The course notes posted on Ulearn are intended as supplemental to the text readings. 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 three groups:

1) Those that will be discussed in class, 2) Those that are assigned as homework, 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 regularly call upon members of the class to provide parts of the solution. Solutions to in class discussion problems, cases, homework and the extra self-study problems will be posted on Ulearn.

Calculator

You will need a non-programmable financial calculator in this class. The Texas Instruments TI-BAII Plus or the Sharp EL738C are both good options, although any non-programmable financial calculator will work. You are only permitted to use a non-programmable calculator in the exams.

Ulearn

The following materials will be available at https://ulearn.ualberta.ca as the course progresses:

• Announcements

• Syllabus

• PowerPoint slides for lectures, supplementary notes and additional discussion problems.

• Homework assignments.

• Solutions to self-study problems from the textbook. These are listed in the attached class schedule.

• Group case assignment.

• Sample midterm and final exams.

• Other useful materials.

Course Protocols

Students are responsible for all information provided in class (announcements, lectures, problem analysis, etc.). If you cannot make the class, we suggest that you arrange for another student to provide you with the information you missed.

Questions about exam coverage will not be answered outside of class.

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In order to assure privacy and security, we will only read email originating from your University email account. And in your email title, please indicate “Acctg 414”. Any email from non-University accounts (e.g. hotmail) will not be read. In situations where the instructors need to communicate with students, this will be done in class, on Ulearn and/or by email. You are responsible for monitoring your university email account for such messages.

The Evaluation System

Your grade in this course will be based on the marks you obtain on one (1) ninety (90)

minute midterm exam, four (4) homework assignments, one (1) case, and one (1) three-hour comprehensive final exam. The marks will be weighted as follows to determine your

percentage mark in the course:

Description Dates Weight

Midterm Tuesday October 11 @ 5:00 pm 28%

Case (complete in groups) See course schedule 10%

Homework See course schedule 12%

Final Exam Friday December 9 @ 9:00 am 50%

Total 100%

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.

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 term, after reviewing the distribution of weighted scores, your instructors will review these cut offs together. They 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.

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Homework Assignments

There will be Four (4) scheduled homework assignments in this course. The tentative homework schedule is as follows:

Homework#

Due Date

Tentative Topics Percentage (@ 3:00 pm)

1 September 20, 2016

Chapters 1-2 and Appendix.

2%

2 October 6, 2016 Chapters 3, 4, and 5 4%

3 November 15, 2016 Chapters 6,7, and 8 4%

4 December 1, 2016 Chapters 11, 9 and 10 2%

The homework assignments are designed to encourage you to keep up with your reading of the topics being covered and to review and practice what you have learned. Homework assignments should be completed individually, without the assistance of the instructor. You can use any materials from the course to assist you in completing the homework and may discuss your homework with your fellow students.

For each homework assignment, you will get the full credit on that assignment if your score is greater than or equal to 70% of the maximum available score. If your original score is 50%

to 70% of the full score, you will get 3/4 of the full credit. If your original score is 30% to 50%, you will get 1/2 of the full credit. If your original score is 20% to 30%, you will get 1/4 of the full credit. If your original score is less than 20%, you will get 0 for the corresponding assignment. (e.g., if you get 56% correct in your homework 1, then you will be awarded 1.5% toward your final grade, i.e. ¾ x 2% = 1.5%).

Your submission of homework assignments must be handwritten in pen (i.e. not typed and no electronic submissions). It should be placed in the appropriate drop-box outside the 3^rd- floor General Office by 3 pm on the assigned date. Late submissions will not be graded.

There will be no opportunity to make up a homework submission.

Case

You will be required to complete one case assignment that is designed to help you to understand the accounting cycle and practice your basic bookkeeping skills and prepare a complete set of financial statements. For the case, students must work together in groups of two (2) to three (3). Students are expected to form their own groups (you may use the discussion board forum on Ulearn to contact other students, if necessary). Students may form groups with students from other sections of ACCTG 414.

The required materials and instructions for the case will be posted on Ulearn. Your

submission must be in hardcopy (i.e., no electronic submissions). It should be placed in the appropriate drop-box outside the 3^rd-floor General Office by 3 pm on the assigned date.

The case is due in two instalments on the dates stated below. The due dates will allow you to complete the case well in advance of submission. Late submissions will not be graded.

There will be no opportunity to make up a case submission.

Part Due date Return date Percentage

Part #1 September 29 @ 3 pm October 6^th 5%

Part #2 November 1 @ 3 pm November15^th 5%

Total 10%

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The marks assigned to the case totals 10% 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 the case carefully, this will enhance your understanding of the course material, which should also help your performance on the midterm, homework and the final.

Exams

All exams in this course will be closed book. You will have ninety (90) minutes to write the midterm exam and three (3) hours to write the final exam. The final exam will be

comprehensive.

• Midterm–Tuesday, October 11^th, 2016 at 5:00 pm (location TBD)

• Final Exam – Friday, December 9^th, 2016 at 9:00 am (location TBD)

Note that the midterm exam will not be held in class; rather, students in all five sections of the course will write the midterm exam at a common time, 5:00-6:30 p.m. The specific locations where students will write the exams will be announced in class and listed on

Ulearn well in advance. It is important that you go to your assigned location. A student who has an unavoidable commitment that conflicts with a midterm exam should advise his or her instructor of the conflict, in writing (email is fine), as soon as possible, or a minimum of at least two weeks prior to the exam date.

Section 23.5.1 of the Calendar provides the University Regulations for the conduct of exams. At an exam, students must be able to present their student ID cards or other acceptable photo identification. Cell phones, iPods, and other electronic devices must be turned off and put away prior to the exam.

You are only permitted to use a non-programmable calculator in the exams. As noted in Section 23.5.1(2) “Only those items specifically authorized by the instructor may be brought into the exam facility. The use of unauthorized personal listening, communication, recording, photographic and/or computational devices is strictly prohibited.” Cell Phones may NOT be used as calculators.

Midterm examinations will be returned in class. Final exams will not be returned.

Remarking Policy for Case, Homework Assignments and Midterm Exam

After a marked case, homework assignment or midterm exam has been returned; the

marking key/solution will be posted on Ulearn. Students should review the marking carefully and bring to your instructors attention any questions about their marks as soon as possible.

No remarking requests will be accepted more than one week after the results have been made available.

All appeals must be in writing and the original submission (unless available on-line) must be attached. Exams submitted for appeal will be subject to an entire review. This may result in your grade being lower.

Absences from Exams

Occasionally life events occur that require a student to miss term work, term examinations, or final examinations. However, excused absences are not granted automatically and will be

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considered only for acceptable reasons such as incapacitating illness, severe domestic affliction, or religious convictions.

Unacceptable reasons include, but are not limited to personal events such as vacations, weddings, or travel arrangements. When a student is absent without acceptable excuse, a final grade will be computed using a score of zero for the work missed. Any student who applies for or obtains an excused absence by making false statements will be liable under the Code of Student Behaviour. Students may be asked to make a statutory declaration (similar to a statement under oath) of the reason for their absence.

Absence from Midterm examination

If you are absent from the midterm exam for a legitimate reason, please email your instructor within two (2) days (or as soon as possible). If the midterm is missed for an acceptable reason, the weight of the midterm will be reallocated to the final exam.

Absence from Final examination

Section 23.3(2) and 23.5.6 (1) of the Calendar provides the University Regulations regarding procedures in the case of a missed final examination. If a deferred final exam is required for this course, it will tentatively be held on Friday, January 13, 2017 at 10:00 am.

Final Exam Viewing and Reappraisals

If you wish to view your final exam, a time will be set (an announcement will be posted on Ulearn) after final grade distributions have been made. Please note that no answer key will be provided. This is not a time to ask questions about how a question should have been answered but to review for any addition errors and any marking issues.

All instructors assign grades across all sections of the course and once we have assigned final grades, we will not change the course grade except in the case of a grading, recording or calculation error.

For information regarding applying for a reappraisal of your final exam please see Section 23.5.4 (2) of the Calendar.

Academic Integrity and Code of Student Behaviour

Absolute and complete academic honesty is expected of you in this course. It is important for you as a student to behave in an ethical manner. The University of Alberta is committed to the highest standards of academic integrity and honesty. Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect.

Students are particularly urged to familiarize themselves with the provisions of the Code of Student Behaviour (online at

http://www.uofaweb.ualberta.ca/governance/StudentAppealsRegulations.cfm) and avoid any behaviour that could potentially result in suspicions of cheating, plagiarism,

misrepresentation of facts and/or participation in an offence. Academic dishonesty includes helping others to engage in academic dishonesty.

Academic dishonesty is a serious offence and can result in suspension or expulsion from the University. Ignorance is NOT a defense!

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Classroom Etiquette

Courtesy to the instructor, and to other students, is an important part of every class.

Because some kinds of behaviour are distracting to both the instructor and to other students, it is expected that students:

a) Will arrive in class before it begins, and will stay until it is over;

b) Will not engage in sidebar conversations with other students;

c) Will not read non-course materials; and

d) Will not use personal communication or entertainment devices in class. This includes computers used for those purposes, mp3 players, cell phones, Blackberries, etc.

If arriving late or leaving early on a specific date is unavoidable, please inform the instructor.

Other

Audio or video recording of lectures, labs, seminars or any other teaching environment by students is allowed only with the prior written consent of the instructor or as a part of an approved accommodation plan. All course materials are to be used solely for personal study, and are not to be used or distributed for any other purpose without prior written consent from the instructor.

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Schedule of Topic Coverage

Date Topic Description Readings and Problems

Sept. 1 Introduction to course / Framework For Financial Accounting

Read: Chapter 1, Chapter 2, and Course Slides

Sept. 6 Framework For Financial Accounting/ Accounting Judgments

Read: Chapter 1, Chapter 2, and Course Slides

For discussion: TR2-4, A 2-15

For self-study: TR1-3, A1-3, A1-5, A1-7, A2-1, A2-5, A2-17

Sept. 8 The Accounting Information Processing System

Read: Appendix – Fundamentals: Accounting Information Processing System pg. 747- End, Course notes - Review of Accounting Cycle and course slides

For discussion: AApp1-7, AApp1-9 For self-study: AApp1-4

Sept. 13 The Accounting Information Processing System

For discussion: AApp1-12

For self-study: AApp1-13, AApp1-20,

H-P Moving and Storage Service (On Ulearn) Sept. 15 Statements of Income &

Comprehensive income

Read: Chapter 3, Course notes and course slides

For discussion: A3-3

For self-study: TR3-1, A3-6, A3-16, A3-20 Homework 1 Due @ September 20, 3:00pm

Sept. 20 Statements of Income &

Comprehensive income

For discussion: A 3-17 For self-study: A3-12, A3-13 Sept. 22 Statements of Financial

Position & Changes in Equity;

Disclosure

Read: Ch. 4, excluding Accounting Changes pg. 164-167 and course slides

For self-study: A4-26, A4-29 Sept. 27 Statements of Financial

Position & Changes in Equity;

Disclosure

For self-study: A4-16, A4-18

Case Part 1 Due @ September 29, 3:00 pm

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Schedule of Topic Coverage, continued

Date Topic Readings* and Problems

Sept.

29

The Statement of Cash Flow - The Indirect method

Read: Chapter 5, excluding Direct Method pg, 245- 246

Course notes - Statement of Cash Flow and course slides

For discussion: A5-16 Req. 1, A5-20 Req. 1 For self-study: A5-6. A5-18

Oct. 4 The Statement of Cash Flow- The Indirect method

For discussion: The Cashflow Company and Ostrich Company (on Ulearn)

For self-study: A5-24, A5-28, A 5-30

Homework 2 Due @ October 6, 3:00pm Oct. 6 Revenue & Expense

Recognition

Read: Chapter 6, up to pg. 294 and course slides Case Part 1 returned in class Oct. 11 MIDTERM EXAM

From 5:00-6:30 pm

No regular class –additional office hours during class time.

Coverage: All materials up to and including Chapter 5

Oct. 13 Revenue & Expense Recognition

Read: Chapter 6, pg. 294 – end of chapter and course slides

For discussion: Wonder Waste Reduction and Make, More, & Money (on Ulearn)

For self-study: A6-4, A6-7, A6-8 Oct. 18 Revenue & Expense

Recognition

For discussion: A6-15, A6-19 Time to discuss the midterm exam.

Oct. 20 Financial Instruments: Cash and Receivables

Read: Chapter 7, 387-404 and course slides For discussion: A7-6, A7-12

For self-study: A7-2, A7-7, A7-8, A7-13

Oct. 25 Financial Instruments: Cash and Receivables

Read: Chapter 7, pg. 404-417, Appendix pg.

446-451 and course slides For discussion: A7-17, A7-24 For self-study: A7-15 A7-18, A7-30

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Oct. 27 Cost based Inventories and Cost of sales

Read: Chapter 8 including Appendix and course slides

For discussion: Interior Advances Ltd.

For self-study: A8-2, A8-5, A8-11 Case Part 2 Due @ November 1, 3:00 pm

Nov. 1 Cost based Inventories and Cost of sales

Read: course slides For discussion: A8-29

For self-study: A8-16, A8-28, A8-30 Nov. 3 Financial Instruments:

Investments in Debt and Equity Securities

Read: chapter 11, course notes and course slides For discussion: A11-14

For self-study: A11-3, A11-6, A11-10, A11-17

Nov. 7-11 NO CLASSES Fall term class break  Nov. 15 Financial Instruments:

Investments in Debt and Equity Securities

Read: chapter 11 and course slides For discussion: A11-19

For self-study: A11-21, A11-25 Case Part 2 returned in class

Homework 3 Due @ November 15, 3:00pm Nov. 17 Property Plant and

Equipment; Intangibles;

and Goodwill

Read: chapter 9, and course slides For discussion: A9-3, A9-6

For self-study: A9-2, A9-8, A9-12

Nov. 22 Property Plant and Equipment; Intangibles;

and Goodwill

Read: course slides

For discussion: A9-7, A9-14 For self-study: A9-15, A9-19

Nov. 24 Property Plant and Equipment; Intangibles;

and Goodwill

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Nov. 29 Depreciation, Amortization and Impairment

Read: chapter 10, including Appendix 2, and course slides

For discussion: A10-11, A10-23

For self-study: TR10-4, A10-9, A10-17, A10-20, A10- 26

Homework 4 Due @ December 1, 3:00pm

Dec. 1 Time for catching up

Dec. 6 Wind up and Final Exam Review

FINAL EXAM: All sections Friday December 9, 2016 at 9:00 am DEFERRED FINAL EXAM: Friday, January 13, 2017 at 10:00 am