ACCT 4201
Advanced Financial Accounting

3.0 Credits

Description

Building on Intermediate Financial Accounting 1 and 2, students examine a number of complex topics and their effect on financial reporting and disclosure. Topics include an introduction to international accounting and the development of accounting standards; temporary and long-term investments in debt and equity securities; business combinations; consolidation at acquisition; consolidation subsequent to acquisition; consolidation and intercompany profit in inventory and land; consolidation and intercompany company in depreciable assets; foreign currency transactions; translation and consolidation of international operations; and accounting for not-for-profit organizations including public sector reporting.

Delivery Method

Web-based.

Prerequisites

None.

Recommended Requisites:

ACCT 3211: Intermediate Financial Accounting 2

Exclusions

ACCT 4200: Advanced Financial Accounting

Objectives

Upon successfully completing this course, students will be able to:

  • Apply conceptual principles when selecting appropriate accounting policies.
  • Demonstrate the ability to assess a situation, identify issues and alternatives, and provide a recommendation using advanced accounting knowledge and ethical professional judgment.
  • Classify and account for various financial instruments using International Financial Accounting Standards.
  • Explain the concept of business combinations and the main theories and methods of accounting for business combinations.
  • Prepare consolidated financial statements at acquisition and in subsequent years for both fully owned and partially owned subsidiaries.
  • Apply the equity method of accounting for joint ventures (IFRS 11).
  • Translate foreign currency transactions and account for fair value and cash flow hedges.
  • Choose and apply the proper method to translate and consolidate foreign operations.
  • Explain the objectives of not-for-profit organizations and account for these organizations using the guidelines in Part III of the CPA Canada Handbook. Apply the deferral method and the restricted fund method. Apply fund accounting and budgetary control.
  • Describe the financial reporting objectives for government and discuss the reporting issues relevant to government.

Course Outline

Module 1: Introduction

  • Survey of international accounting
  • Development of accounting standards

Module 2: Temporary and Long-Term Investments in Debt and Equity Securities

  • FVTPL and FVTOCI investments in both debt and equity
  • Investments in associates
  • Cost method
  • Equity method

Module 3: Business Combinations

  • Types of business combinations
  • Joint ventures

Module 4: Consolidation at Acquisition

  • Consolidation theories and methods
  • Consolidation on date of acquisition

Module 5: Consolidation Subsequent to Acquisition

  • Consolidation subsequent to acquisition
  • NCI calculations subsequent to acquisition

Module 6: Consolidation - Intercompany Profit in Inventory and Land

  • Intercompany profits in inventory and land
  • Consolidated financial statements
  • Impairment

Module 7: Consolidation - Intercompany Profit in Depreciable Assets

  • Intercompany profits in depreciable assets
  • Intercompany bond-holdings

Module 8: Foreign Currency Transactions

  • Accounting for foreign currency transactions
  • Hedges
    • Fair value hedge
    • Cash flow hedge

Module 9: Translation and Consolidation of International Operations

  • Functional currency
  • Foreign currency transactions approach
  • Foreign operation approach
  • Translation gains and losses

Module 10: Not-for-Profit and Public Sector Accounting

  • Not-for-profit accounting
  • Fund accounting
  • Capital assets, and donated goods and services
  • Deferral method
  • Restricted fund method
  • Budgetary controls and encumbrances
  • Public Sector Reporting
    • Government reporting objectives
    • Government reporting issues

Maximum Completion

30 weeks.

Required Text and Materials

Hilton, M., & Herauf, D. Modern advanced accounting in Canada (with Connect Access Card). 7th ed. Toronto, ON: McGraw-Hill Ryerson, 2013.
Type: ISBN: 978-1-259-06648-1

Additional Requirements

Required Software:

MS Office 2003 or higher.

Note: All assignments are required to be in MS Word document format.

A financial calculator is required for this course.

Choose one of the following recommended models:

  • Hewlett Packard: HP10bII, HP10bII+, or HP12c
  • Texas Instruments: BAII Plus, or BAII Plus Professional

Open Learning Faculty Member Information

An Open Learning Faculty Member is available to assist students. Primary communication is through the Learning Environment's "Mail" tool or by phone. Students will receive the necessary contact information when starting the course.

Assessment

In order to successfully complete this course, students must obtain at least 50% on the final mandatory examination and 50% overall.

Assignment 1: Modules 1-4 10%
Assignment 2: Modules 5-6 10%
Assignment 3: Modules 5-7 10%
Assignment 4: Modules 8-10 10%
Final Exam * 60%
Total 100%

*Mandatory