ACCT 3211: Intermediate Financial Accounting 2

Building on ACCT 3201: Intermediate Financial Accounting 1, students learn to prepare the current liabilities, long-term liabilities, and shareholders' equity sections of the statement of financial position and the cash flow statement. Topics include current liabilities and contingencies; long-term financial liabilities; shareholders' equity; complex financial instruments and earnings per share; income taxes; pension and other employee future benefits; leases; accounting changes and error analysis; the cash flow statement; and other measurement and disclosure issues.


  1. Identify the appropriate Canadian GAAP reporting standards—International Financial Reporting Standards (IFRS) and Accounting Standards for Private Enterprises (ASPE)—as applicable.
  2. Distinguish between non-financial and financial liabilities and apply principals related to the appropriate recognition of non-financial liabilities, including asset retirement obligations under IFRS and ASPE.
  3. Understand the basic principles of liability recognition and presentation, and recommend appropriate treatment.
  4. Account for current and other financial liabilities, including derivative financial instruments.
  5. Identify long-term financing sources, and prepare journal entries for long term debt instruments including partial period interest calculations and redemption of long-term debt.
  6. Apply the fair value concept to long-term liabilities using IFRS.
  7. Identify and appropriately value financial instruments that contain both debt and equity components through appropriate application of IFRS.
  8. Prepare the shareholders’ equity section of the Statement of Financial Position and related journal entries.
  9. Calculate basic and diluted earnings per share (EPS).
  10. Calculate income tax including deferred tax assets and liabilities, carry back and carry forward amounts, and changes in tax rates, and prepare the related journal entries.
  11. Calculate pension amounts, and complete a pension worksheet and journal entries.
  12. Account for leases for the lessee and lessor using IFRS 16.
  13. Account for changes in accounting policy, estimates, and errors.
  14. Prepare a statement of cash flows using both the direct and indirect methods.
  15. Apply full disclosure in financial reporting.

Course outline

Module 1: Non-Financial and Current Liabilities

  • Topic 1: Current Liabilities - Recognition and Measurement
  • Topic 2: Non-Financial Liabilities - Recognition and Measurement

Module 2: Long-Term Financial Liabilities

  • Topic 1: Bonds Payable
  • Topic 2: Notes Payable
  • Topic 3: Troubled Debt Restructuring

Module 3: Shareholders' Equity

  • Topic 1: Share Capital Recognition, Derecognition, and Measurement
  • Topic 2: Dividends
  • Topic 3: Retained Earnings and Other Components of Shareholders' Equity
  • Topic 4: Presentation, Disclosure, and Analysis

Module 4: Complex Financial Instruments and Earnings per Share

  • Topic 1: Overview and Types of Complex Financial Instruments
  • Topic 2: Basic Earnings per Share and Presentation
  • Topic 3: Diluted Earnings per Share and Presentation

Module 5: Income Taxes

  • Topic 1: Income Tax Fundamentals
  • Topic 2: Accounting Income and Taxable Income
  • Topic 3: Income Tax Loss Carryover Benefits

Module 6: Pensions and Other Post-Employment Benefits

  • Topic 1: Overview of Pensions
  • Topic 2: Accounting for Pensions

Module 7: Leases

  • Topic 1: Basics of Leasing
  • Topic 2: Classification and Accounting for a Finance Lease
  • Topic 3: Accounting for Leases from a Lessor's Perspective

Module 8: Accounting Changes and Error Analysis

  • Topic 1: Types of Accounting Changes
  • Topic 2: Changes in Accounting Policies
  • Topic 3: Changes in Accounting Estimates
  • Topic 4: Corrections of Errors in Prior Period Financial Statements

Module 9: Statement of Cash Flows

  • Topic 1: The Statement of Cash Flows
  • Topic 2: Classification of Cash Flows
  • Topic 3: Preparing a Cash Flow Statement Using both the Direct and Indirect Methods
  • Topic 4: Disclosure and Non-Cash Transactions

Module 10: Other Measurement and Disclosure Issues

  • Topic 1: Full Disclosure Principle
  • Topic 2: Other Disclosure Issues

Required text and materials

Kieso, D. E., Weygandt, J. J., Warfield, T. D., Young, N. M., Wiecek, I. M., & McConomy, B. J. (2019). Intermediate accounting, volume 2 (12th Cdn. ed.). Toronto, ON: John Wiley & Sons Canada, Ltd.
Type: Loose-leaf Textbook: ISBN: 978-1-119-49736-3

Additional requirements

Students will need a non-programmable financial calculator for this course. Recommended calculators include the Hewlett Packard 10BII+ or the Texas Instruments BA II Plus. Of the two, the Hewlett Packard is much more user-friendly.

Please note that students must use a financial calculator or Excel for all time value of money calculations. Neither tables nor a computer are allowed for students exams. Students must be proficient in the use of a financial calculator.


Please be aware that due to COVID-19 safety guidelines all in-person exams have been suspended. As such, all final exams are currently being delivered through ProctorU, which has an approximate fee of $35 involved. There will be more information in your course shell, on how to apply, if your course has a final exam.

To successfully complete this course, students must achieve a passing grade of 50% or higher on the overall course, and 50% or higher on the final mandatory exam.

Assignment 1: Liabilities 8%
Assignment 2: Equity, EPS, and Financial Instruments 8%
Assignment 3: Income Tax and Post-Employment Benefits 8%
Assignment 4: Leases and Accounting Changes and Errors 8%
Assignment 5: Statement of Cash Flows and Issues 8%
Final Exam (mandatory) 60%
TOTAL 100%

Open Learning Faculty Member

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.

Search To Top