ACCT 4201: Advanced Financial Accounting

Building on Intermediate Financial Accounting 1 and 2, students examine several 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, land, and depreciable assets; foreign currency transactions; translation and consolidation of international operations; and accounting for not-for-profit organizations including public sector reporting.

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

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

Module 3: Business Combinations

Module 4: Consolidation of Non-Wholly Owned Subsidiaries

Module 5: Consolidation Subsequent to Acquisition Date

Module 6: Consolidation - Intercompany Inventory and Land Profits

Module 7: Consolidation - Intercompany Profit in Depreciable Assets, Deferred Taxes, Intercompany Bondholdings and Joint Ventures

Module 8: Foreign Currency Transactions

Module 9: Translation and Consolidation of Foreign Operations

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

Required text and materials

The following materials are required for this course. Students will receive the following:

  1. Hilton, M., & Herauf, D. (2019). Modern advanced accounting in Canada (Connect). (9th ed.). Toronto, ON: McGraw-Hill Ryerson.
    Type: Textbook: ISBN: 9781260305814

Additional requirements

A computer with Internet access

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

Assessments

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: Modules 1-4 10%
Assignment 2: Modules 5-6 10%
Assignment 3: Modules 5-7 10%
Assignment 4: Modules 8-10 10%
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.

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