Non-Degree Course Outline

Faculty:

Course Outline Program Coordinator: Carol Smith – 2 year

Catherine Duffy – 3 year
Academic Period: Winter/Summer 2020 Associate Dean: Dr. Susan Kelsall

Course Name: Advanced Financial Accounting 2

Land Acknowledgement
Humber College is located in Adobigok, known as “Place of the Black Alders” in the Ojibwe
Anishinaabe language. It is uniquely situated along GabeKanang Ziibi, the Humber River providing an
integral connection for Indigenous peoples between the northern shore of Lake Ontario and the Lake
Simcoe Georgian Bay region. In Honouring the Land, we are walking in the moccasin tracks of our
ancestors and leaving our footprints for the future generations to come.

Faculty Faculty of Business

Program Business Administration Accounting (3 Yr.)

Course Name: Advanced Financial Accounting 2 (ACCT 354)

Pre-Requisite(s) ACCT 325

Co-Requisite(s) None

Pre-Requisite(s) for None

Equates None

Restrictions None

Credit Value Three (3)

Total Course Hours 42 hours

Developed By: The Faculty Team Approved by:

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Non-Degree Course Outline

Course Description
This advanced financial accounting course (parts 1 and 2) provides in-depth study of the
advanced financial accounting concepts of long-term inter-corporate investments,
consolidation, cash flow, foreign currency transactions, translation and consolidation of
foreign operations and accounting for not-for-profit and public sector organizations.
Computer spreadsheets are used to demonstrate concepts and application of financial
accounting practices.

Course Rationale
This course will build on financial accounting topics covered in the advanced financial
accounting course previously studied. The emphasis is on financial accounting of
partnerships, consolidation reporting issues, foreign currency, as well as not-for-profit
and public organizations applying the underlying Generally Accepted Accounting
Principles and concepts to financial accounting.

Program Learning Outcomes Emphasized in this Course:

1. Record financial transactions in compliance with Canadian Generally Accepted
Accounting Principles for sole proprietorships, partnerships, private enterprises,
publicly accountable enterprises and non-profit organizations.

2. Prepare and present financial statements, reports and other documents in

compliance with Canadian Generally Accepted Accounting Principles for sole
proprietorships, partnerships and private enterprises.

3. Communicate clearly, concisely and correctly in the written, spoken, and visual
form that fulfills the purpose and meets the needs of the audience

4. Respond to written, spoken, or visual messages in a manner that ensures effective

communication

5. Execute mathematical operations accurately

6. Apply a systematic approach to solve problems.

7. Use a variety of thinking skills to anticipate and solve problems.

8. Locate, select, organize, and document information using appropriate technology

and information systems.

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Non-Degree Course Outline

9. Analyze, evaluate, and apply relevant information from a variety of sources.

10. Interact with others in groups or teams in ways that contribute to effective
working relationships and the achievement of goals

11. Manage the use of time and other resources to complete projects

12. Take responsibility for one’s own actions, decisions, and consequences

Essential Employability Skills Emphasized in this Course:

Communication Skills X
Critical Thinking and Problem Solving X
Interpersonal X
Numeracy X
Information Management X
Personal X

Course Format(s)
Classes will take the form of lectures, discussions, assignments and learning exercises
held within a classroom 100% of the time

In order to best achieve the learning outcomes of the course and to simulate a business
setting classrooms with a boardroom layout will be used where possible. There will be a
strong emphasis on independent learning and group work, therefore attendance,
punctuality and participation are REQUIRED for the successful completion of this course

Course Learning Outcomes

Upon successful completion of this course, students will be able to:

Consolidation Reporting Issues

1. Prepare the journal entries under the equity method to reflect the elimination and
subsequent realization of intercompany profits in depreciable assets.

2. Prepare a consolidated cash flow statement by applying concepts learned in prior

courses and unique consolidation concepts
3. Describe and apply the current accounting standards that govern the reporting of
interests in joint arrangements.

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Non-Degree Course Outline

4. Understand the deferred tax implications of the accounting for a business

combination.

5. Describe the requirements for segment disclosures and apply the quantitative
thresholds to determine reportable segments.

6. Analyze and interpret financial statements involving all topics in this course.

Foreign Currency Transactions

7. Translate foreign currency transactions and balances into the functional currency.

8. Prepare journal entries and subsequent financial statement presentation for forward
exchange contracts that are entered into for speculative purposes, that hedge
existing monetary positions, that hedge firm commitments and that hedge highly
probably future transactions.

9. Describe the concept of hedging and prepare a list of items that could be used as a
hedge against foreign currency risk.

Translation and Consolidation of Foreign Operations

10. Differentiate between an integrated and self-sustaining foreign operation, and
describe the translation method that is used in the translation of each type.

11. Prepare translated financial statements for integrated foreign operations using the
functional currency and the presentation currency translation methods.

12. Use translated financial statements to prepare consolidated financial statements.

Accounting for Not-for-Profit and Public Sector Organizations

13. Define not-for-profit organizations (NPOs) and describe how they differ from profit-
oriented organizations.

14. Describe and apply the not-for-profit accounting and reporting practices currently
mandated bin the CPA Handbook.

15. Explain the objectives of fund accounting, and prepare financial statements using
fund accounting.

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Non-Degree Course Outline

16. Prepare journal entries and financial statements under the restricted fund method
and the deferral method.

17. Identify similarities and differences in financial statement accounts for NPO’s and a
profit-oriented organization.

18. Account for net assets invested in capital assets.

19. Outline the basics of public sector financial reporting.

Course Specific Policies and Expectations

Classes will take the form of lectures, discussions and work periods. It is strongly
recommended that students complete assignments on a regular basis. Previous results
have indicated that those students who work regularly have obtained the best results.

Course resources will be supplemented to incorporate changes in international financial

reporting standards. Additional class materials etc. are made available to students on
the course website. Students are expected to visit the website regularly to
read/download these materials.

Progressive testing will take place throughout the course. Although term tests are
largely chapter specific, students should recognize that due to the cumulative nature of
accounting knowledge, each test may include references to prior material. Final grades
are calculated on the total marks achieved throughout the semester, expressed as a
percentage of the total possible marks.

The textbook accompanying software resource, McGraw Hill Connect, will be utilized
throughout the course for online homework assignments and/or quizzes which will be
mandatory and form a significant portion of the graded evaluation summarized above.

A make-up test for a missed test and/or acceptance of a late assignment are at the
discretion of the course professor, according to their policy communicated to students
at the beginning of the course and posted on Blackboard.

In this course, in-class and course participation is vitally important. Based on professor
judgment, each student must complete all assigned activities, including all graded and
non-graded assignments, with an acceptable level of effort for the student to be
permitted to write the midterm and/or the final exam.

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Non-Degree Course Outline

To earn a passing grade in this course, a student must earn a minimum grade of 50% on
the weighted average of all Tests/Midterms and the Final Comprehensive Exam. If a
student does not achieve this minimum grade then the maximum course grade awarded
will be 45% and, the student will be required to retake the course.

Please refer to the Business – Accounting & Business Administration – Accounting

2019/ 2020 Student Handbook for further information.

CPA Competencies Covered by Learning Outcomes:

1. (CPA 1.2.2) Evaluate treatment of routine transactions for: Accounting for
associates and joint ventures, foreign currency accounting, foreign
currency transactions/balances, hedging foreign currency balances
using forward contracts
2. (CPA 1.2.3) Evaluate treatment of non-routine transactions including: Employee
benefits, derivatives and hedge accounting, translation of foreign
currency financial statements, Business combinations, Consolidated
statements on date of acquisition, Consolidated financial statements
subsequent to acquisition date, Joint venture proportionate
consolidation or equity method, NPO fund accounting, capital assets
and donated goods and services and contributions and restrictions,
Public Sector Financial reporting.
3. (CPA 1.3.2) Prepare routine financial statement note disclosure.
4. (CPA 1.4.1) Analyze complex financial statement note disclosure
5. (CPA 1.4.2) Evaluate financial statements including note disclosures for the
Statement of Financial Position, Statement of Earnings, Statement of
Comprehensive Income, Statement of Shareholder’s Equity and
Statement of Cash Flows.
6. (CPA 1.4.4) Interpret financial reporting results for stakeholders.
7. (CPA 1.4.5) Analyzes and predicts the impact of strategic and operational
decisions on financial results.

Assessment Weighting
Assessment Weight
Homework (Online, Other Written Assignments, Class
20
Participation, Cases and/or Quizzes)
Midterm Examination 30
Comprehensive and Cumulative Final Examination 50
Total 100%

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Non-Degree Course Outline

Modules of Study
Module and topic Course Learning Resources Assessments
Outcomes
• Unit 1Chapter 7: 1, 2, 3, 4, 5, 6 Hilton, M.W., Bonus
Intercompany Profits On-line Ch 7,8,9
in Depreciable Assets
• Chapter 8 & 9: CPA Handbook
Consolidated Cash
Flows and Other
Consolidation
Reporting Issues
Unit 1 Assessment Hilton, M.W., Ch 7, Midterm
Ch8 & Ch9, Examination– 30%

CPA Handbook &

Website materials
Unit 2 7, 8, 9, 10, 11, 12, 13, Hilton, M.W.,Ch 10,
• Chapter 10: Foreign 14, 15, 16, 17, 18, 19 11, 12
Currency Transactions
• Chapter 11: CPA Handbook
Translation and
Consolidation of
Foreign Operations
• Chapter 12:
Accounting for NFPOs
and Public Sector
Organizations
Comprehensive and Hilton, M.W., Ch7 to Final Examination –
Cumulative Assessment 12 50%

CPA Handbook &

Website materials
Please note: this course schedule may change as resources and circumstances
require.

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Non-Degree Course Outline

Required Resources, Tools and/or Equipment:

Hilton, M.W. & Herauf, D. (2019). Modern Advanced Accounting in Canada (9th Ed.).
Canada: MGraw-Hill Ryerson. ISBN: 9781260305814

McGraw Hill Connect On-line application for the above textbook

CPA Canada Handbook CPA Canada Standards and Guidance Collection

Blackboard Course Website
Financial Calculator ex. Texas Instruments BAII Plus or similar

Supplemental Resources:
CPA Canada Handbook (Chartered Professional Accountants of Canada) CPA Canada
Standards and Guidance Collection

The CPA Canada Handbook is available online as part of the CPA Canada Standards and
Guidance Collection through Humber Libraries, http://library.humber.ca

Additional Tools and Equipment

None

Prior Learning Assessment and Recognition (PLAR)

Students who have prior learning in the material of this course may be eligible for a
course credit in recognition of their prior learning. The following table indicates the
method that is used to assess prior learning for this course, or it indicates that such an
assessment is not available. Students must apply for consideration for a prior learning
assessment through the Office of the Registrar, and there is usually a fee associated with
the application.

Not
Challenge Other
Portfolio Skills Test Interview Available
Exam (Specify)
For PLAR
☐ X* ☐ X ☐ ☐
*Based on eligibility as determined by the Faculty of Business

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Policies and Procedures

It is the student’s responsibility to be aware of their obligations under Humber Policies
and Procedures.

Academic Regulations
It is the student’s responsibility to be aware of the College Academic Regulations. The
Academic Regulations apply to all applicants to Humber and all current students
enrolled in any program or course offered by Humber, in any location. Information
about academic appeals is found in the Academic Regulations.

Accessible Learning Services

Humber strives to create a welcoming environment for all students where equity,
diversity and inclusion are paramount. Accessible Learning Services facilitates equal
access for students with disabilities by coordinating academic accommodations and
services. Staff in Accessible Learning Services are available by appointment to assess
specific needs, provide referrals and arrange appropriate accommodations. If you
require academic accommodations, contact:
Accessible Learning Services: http://www.humber.ca/student-life/swac/accessible-
learning
North Campus: (416) 675-6622 X5090
Lakeshore Campus: (416) 675-6622 X3331

Academic Integrity
Academic integrity is essentially honesty in all academic endeavours. Academic integrity
requires that students avoid all forms of academic misconduct or dishonesty, including
plagiarism, cheating on tests or exams or any misrepresentation of academic
accomplishment.

Disclaimer
While every effort is made by the professor/faculty to cover all material listed in the
outline, the order, content, and/or evaluation may change in the event of special
circumstances (e.g. time constraints due to inclement weather, sickness, college closure,
technology/equipment problems or changes, etc.). In any such case, students will be
given appropriate notification.

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Copyright
Copyright is the exclusive legal right given to a creator to reproduce, publish, sell or
distribute his/her work. All members of the Humber community are required to comply
with Canadian copyright law which governs the reproduction, use and distribution of
copyrighted materials. This means that the copying, use and distribution of copyright-
protected materials, regardless of format, is subject to certain limits and restrictions. For
example, photocopying or scanning an entire textbook is not allowed, nor is distributing
a scanned book.

See the Humber Libraries website (http://library.humber.ca) for additional information

regarding copyright and for details on allowable limits.

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