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
- Identify the appropriate Canadian GAAP reporting standards—International Financial Reporting
Standards (IFRS) and Accounting Standards for Private Enterprises (ASPE)—as applicable.
- 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.
- Understand the basic principles of liability recognition and presentation, and recommend
- Account for current and other financial liabilities, including derivative financial
- Identify long-term financing sources, and prepare journal entries for long term debt
instruments including partial period interest calculations and redemption of long-term
- Apply the fair value concept to long-term liabilities using IFRS.
- Identify and appropriately value financial instruments that contain both debt and equity
components through appropriate application of IFRS.
- Prepare the shareholders’ equity section of the Statement of Financial Position and related
- Calculate basic and diluted earnings per share (EPS).
- 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.
- Calculate pension amounts, and complete a pension worksheet and journal entries.
- Account for leases for the lessee and lessor using IFRS 16.
- Account for changes in accounting policy, estimates, and errors.
- Prepare a statement of cash flows using both the direct and indirect methods.
- Apply full disclosure in financial reporting.
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: 9781119600060
A non-programmable financial calculator is required.
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
|Assignment 2: Equity, EPS, and Financial Instruments
|Assignment 3: Income Tax and Post-Employment Benefits
|Assignment 4: Leases and Accounting Changes and Errors
|Assignment 5: Statement of Cash Flows and Issues
|Final Exam (mandatory)
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.