School of Administrative Studies
Faculty of Liberal & Professional Studies
York University
Fall 2019 Course Outline – All in class sections
AP/ADMS 3585 3.0 Intermediate Financial Accounting I
Course Director : Liona Lai, CPA CA, PH.D
Section : All Sections
Course website: Moodle
Date/Time/Location: A: Friday 2:30pm to 5:30pm
C: Friday 11:30am to 2:30pm
E: Internet section videos to be posted on Fridays
evenings/Saturday mornings the latest
Instructors Office Hours: Professor Liona Lai Friday 10:15am to 11:15am ATK 212
Alla Volodina by appointment
Email: For questions that you do not find appropriate for posting on the
moodle forum, you may send them to the professor of your section:
[email protected] (Section C and E)
[email protected] (Section A)
Calendar Description
This course, in conjunction with AP/ADMS 3595 3.00, develops thorough knowledge and
understanding of generally accepted accounting principles and financial statement analytical
skills by examining various technical areas of financial accounting. Prerequisite: AP/ADMS
2500 3.00. Prior to Fall 2009 Prerequisite: AK/ADMS 2500 3.0. Course credit exclusion:
AK/ADMS 3585 3.00.
Learning Outcomes
After completion of the course, apart from mastering the technical knowledge of the revenue and
asset side of the financial statements, students should also
1. Understand the importance of ethics in the accounting profession and realize potential conflicts of
interest that one may encounter in the profession.
2. Begin to learn how to see the inter-relationship between accounting issues, analyse them, and
integrate the findings to draw reasonable conclusions.
3. Begin to learn the basics of case writing and communicate effectively.
4. Understand the importance of teamwork and learn how to develop work plans and resolve
conflicts.
5. Learn to organize, analyze, and present simple accounting data using Excel.
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Textbook
Required
Intermediate Accounting, 12th Canadian Edition, Volume 1, By Donald E. Kieso, Jerry J.
Weygandt, Terry D. Warfield, Irene M. Wiecek, and Bruce McConomy
Do not use previous editions, there is a new chapter in the 12th edition and many chapters
have been updated significantly to reflect the current changes in accounting standards.
Chapter 2, 3, and 9 contains the most significant changes.
WileyPlus course code – 716682 (Course name ADMS 3585 Fall 2019)
Recommended
Accounting recommendations, CPA Canada Standards and Guidance Collection, CPA Canada,
available through eResources at York University library.
Grade Components
Weighting Due Date Notes
WileyPlus Assignment 10% December 1 Completion only; Must
complete 10 out of 12 for full
marks.
Data Analytics 5% November 10
Assignment
Group Case Assignment 15% December 1
Mid Term Exam 30% Oct 25 6pm-9pm 3 Hours
Tentative Coverage: Chapter 1-
8, Appendix 5A, 6A
Final Exam 40% Exam Period 3 Hours
Coverage: Chapter 1-12,
Appendix 5A, 6A, 10A
All concepts comprehensive;
Calculations from materials
after midterm
For those with midterm
weight transferred approved:
All concepts and calculations
comprehensive
Total 100%
WileyPlus Assignment 10%
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There is one assignment per chapter, a total of 12 assignments. The purpose of the assignment is
to make sure you understand the key concepts in each chapter. Marks are awarded based on
completion only, i.e. no marks will be deducted for wrong answers. You should review each
chapter before attempting each assignment so that you know which key concepts you have to
spend more time to review. Additional 2% bonus points will be awarded to those who complete
all 12 assignments.
After you have finished the assignments, you should attempt all the review questions listed for
each chapter for more in depth practice.
WileyPlus Data Analytics Assignment 5%
This assignment will be completed in groups of 2. The purpose of the assignment is to help you
get familiar with using excel to organize, analyze, and present simple accounting data. You will
be required to work with raw accounts receivables data and estimate the allowance for doubtful
account for year end, using facts provided.
Group Case 15%
In this group case assignment, you will form in groups of 5 to 6 people. The case will be based
on an annual report of a company (to be posted on Moodle). You will be analyzing the
accounting policies and reporting choices about this company.
Exams: 30% midterm; 40% final
There is one midterm exam and one final exam. Both the midterm exam and the final exam last 3
hours and contain multiple-choice questions, comprehensive problems, and a case.
Course Support – Tutorial/Help desk
A TA will be present during the session to answer any exercise questions. If you have any
specific requests for any questions to be demonstrated, you can post it on the Tutorial Forum and
the TA will try his/her best to respond within 48 hours. The first tutorial will focus on difficult
materials prior to the midterm exam and the second tutorial will focus on Chapter 9: Investments
which many students find challenging. The final tutorial will focus on measurement issues on
long lived tangible and intangible assets
On campus tutorial schedule
Date Times Location Format
1 hour
Saturday problem
11am to 1pm CLH J
October 19 demonstration
1 hour Q&A
Saturday Nov 1 hour
11am to 1pm CLH J
16 problem
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demonstration
1 hour Q&A
1 hour
problem
Sunday Dec 1 11am to 1pm CLH J
demonstration
1 hour Q&A
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Summary of Class Schedule
Class TOPIC
Class 1: Sept 6 Chapter 1: Canadian Reporting Environment; Chapter 2: Conceptual Framework
Class 2: Sept
Chapter 2: Conceptual Framework; Chapter 4: Reporting Financial Performance
13
Class 3: Sept
Chapter 5 Financial Position and Cash Flows; Chapter 6 Revenue Recognition
20
Class 4: Sept
Chapter 6: Revenue Recognition
27
Class 5: Oct 4 Chapter 8: Inventory
Class 6: Oct 11 Chapter 3: Measurement (present value concepts)/ Chapter 7 Cash and Receivables
Class 7: Oct No class on Oct 25.
25 6-9pm Midterm Location (Section A: CLH C; Section C: CLH D; Section E: CLH G)
Class 8: Nov 1 Chapter 7: Cash and Receivables/ Chapter 9: Investment (Passive Investments)
Class 9: Nov 8 Chapter 9: Investment (Strategic Investments)
Class 10: Nov
Chapter 10, 11, 12 See Detailed Class Schedules
15
Class 11: Nov
Chapter 10, 11, 12 See Detailed Class Schedules
22
Class 12: Nov
Chapter 10, 11, 12 See Detailed Class Schedules
29
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Detailed Class Schedule
Class 1:
Chapter 1: Canadian Reporting Environment
Learning objectives:
1. Understand the role of financial accounting in the capital allocation process
2. Understand the relationship between financial reporting and information asymmetry
3. Understand the relationship between legislation, accounting scandals, financial engineering, and
ethics
4. Understand standard setting in Canada
5. Distinguish between rules vs. principles based GAAP.
Readings: Kieso Chapter 1 all pages
Case discussion: CA1.3, CA1.4, CA1.5
Review Questions: none
Chapter 2: Conceptual Framework
Learning objectives:
1. Understand the objectives of financial reporting in relation to various stakeholders, their needs
and potential conflicts/biases.
2. Understand qualitative characteristics of accounting information and elements
Readings: Kieso Chapter 2 p. 2-1 to 2-5
Class 2:
Chapter 2: Conceptual Framework (Continue from last class)
Learning objectives:
1. Understand what Recognition, Measurement, and Presentation mean in financial reporting
2. Learn the case approach based on the conceptual framework.
Readings: Kieso Chapter 2 p. 2-6 to 2-35
Case discussion: CA2-2
Review Questions: Qualitative Characteristics E 2-3, Foundational Principles E2-11,
Accounting Decisions P2-5, Investment decision and accounting information P2-8
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Chapter 4: Financial Statements: Reporting Financial Performance
Learning objectives:
1. Determine what defines high earnings quality
2. Understand the purpose, usefulness, and limitations of the Statement of Financial Position
3. Prepare the Statement of Income and Comprehensive Income, the Statement of Financial
Position, the Statement of Retained Earnings, and the Statement of Changes in Equity in the
format required by IFRS and ASPE
4. Evaluates accounting treatment for discontinued operations and assets held for sale
5. Calculate earnings per share in accordance with IFRS and ASPE.
6. Evaluates disclosure for changes in accounting policies, contingencies, contractual situations,
subsequent events
Readings: Kieso Chapter 4, no appendix
Review Questions: E4-3(Discontinued Ops), E4-17(EPS), P4-2(Discontinued Ops), P4-
13(Income Statement/Discontinued Ops
Class 3:
Chapter 5: Financial Position and Cash Flows
Learning objectives:
1. Prepare the Statement of Financial Position
2. Understand the purpose and usefulness of the Statement of Cash Flows
3. Prepare the Statement of Cash Flows: Indirect method
4. Calculate and interpret ratios
Readings: Kieso Chapter 5, Appendix 5A
Review Questions: E5-14(Statement of Cash Flows), E5-16 a (Statement of Cash Flows), P5-5
(a&b) , P5-7 b, c, d, e(Statement of Finanical Position, Statement of Cash Flows, Ratios)
Chapter 6: Revenue Recognition
Learning objectives:
1. Evaluate treatment for revenue under IFRS 15: 5-step approach
2. Evaluate treatment for specific revenue recognition issue: right of return, repurchase agreements,
bill and hold, principal-agent relationship, consignments, warranties, non-refundable upfront fees
Readings: Kieso Chapter 6 p. 6-1 to 6-35, 6-38 to 6-42
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Review Questions: E6.3(Loyalty program), E6.5 (Warranties), E6.26 (Bill and Hold),
E6.27(Principal Agent), E6-29(Consignment Sales), E6-18 (Allocate Transaction Price), P6-3
(IFRS 15), P6-4(IFRS 15)(Tutorial)
Class 4: Revenue Recognition (continued)
Learning objectives:
1. Evaluate treatment for revenue under ASPE
2. Presentation and Disclosure requirements for revenue recognition (IFRS and ASPE)
3. Accounting for long term contracts in profitable, interim loss, and overall loss situations.
Readings: Kieso Chapter 6 p. 6-35 to 6-38, 6-42 to 6-59 (Appendix 6A)
Case Discussion: CA 6-1
WileyPlus Assignment: Earnings approach BE6.23 & BE6.24, Percentage of Completion and
Completed Contract BE6.33, Zero-profit method BE6.34.
Review Questions: E6-23 (ASPE earnings approach), E6-32(long term contract- % completion
& completed contract), P6.9 (long term contract - % completion and zero-profit)
Class 5: Inventory
Learning objectives:
1. Evaluate treatment for inventory transactions: definition and recognition, measurement, and
disclosure.
2. Evaluate the impact of inventory errors on the accuracy of financial statements
3. Understand the differences and evaluate the appropriateness of the choice of cost formula.
4. Calculate and analyse inventory impairment loss: lower of cost and net realizable value
5. Understand accounting for other types of inventory excluded from the LCNRV rule (e.g.
biological assets and agricultural produce at point of harvest)
6. Estimate inventory using the gross profit method
Readings: Kieso Chapter 8, no appendix
Case Discussion: IC8-1
Review Questions: E8-3(Inventoriable costs), E8-7(Inventory errors), E8-10(Inventory errors),
E8-17(cost formula - periodic), E8-18(cost formula – perpetual), P8-10(Gross Profit method),
P8-12 (LCNRV)
Class 6: Measurement – Present value concepts
Learning objectives:
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1. Apply present value concepts in measuring financial instruments.
Readings: Kieso Chapter 7 p. 3-13 to 3-27
Cash and Receivables
Learning objectives:
1. Evaluate treatment for cash and receivables: definition, recognition, measurement, and disclosure
2. Determine and analyse allowance for doubtful account balance and related bad debt expense
account.
3. Determine note receivables balance using the effective interest and straight- line method
4. Determine amounts to be recorded when notes are received for property, goods, or services
5. Evaluate appropriate treatment for sale of receivables with or without recourse, receivables
securitization, and secured borrowings under ASPE and IFRS
Readings: Kieso Chapter 7
Case Discussion: IC 7-1
WileyPlus Assignment: Reporting Cash BE7.3, AFDA BE7.7, Notes Receivables BE7.12,
Sale/Transfer of Receivables BE7.15&16
Review Questions:, E7-5(Various), E7-9(Bad debts), E7-11 (Notes receivable), E7-14(Notes
receivable), E7-17(Transfer of A/R), P7-2(Bad debts), P7-5(Bad debts), P7-6(Bad debts), P7-
13(Transfer of A/R, Ratios)
Class 7: Midterm Exam
Class 8:
Chapter 9: Investment Part 1 Non-Strategic Investments
Learning objectives:
1. Accurately determine and apply the appropriate measurement model (cost/amortized cost, FV-NI,
FV-OCI) for non-strategic investments depending on the facts surrounding their acquisition.
2. Accurately calculate balances for the above investments using the effective interest and straight
line method.
3. Accurately calculate any realized and unrealized gain or losses and the appropriate presentation.
4. Understand and interpret the implication of each measurement model as applied to the
investments on decision making.
Readings: Kieso Chapter 9 p.9-3 to 9-26
Review Questions: E9.5(FVNI Bonds), E9.10(FVNI FVOCI Equity), E9.11(FVNI FVOCI
Page 9 of 16
Equity), E9.18(Cost, FVNI FVOCI),), P9.2(FVNI Bonds and Equity), P9.7(FVOCI bonds),
P9.13, (FVOCI equity)
Class 9:
Chapter 9: Investment Part 2 Strategic Investments
Learning objectives:
1. Accurately determine investments that fall into the categories of significant influence or control
2. Apply and understand the use of equity method
3. Comprehend the basic concept of consolidation
4. Interpret the implication of the equity method on decision making
5. Accurately recognize, measure, and disclose impairment loss on non-strategic and strategic
investments
6. Comprehend the three levels of fair value input
Readings: Kieso Chapter 9, p.9-26 to 9-48, Chapter 3 p. 3-2 to 3-13
Case Discussion: CA 9-1
Review Questions: E9.19(Impairment equities), E9.20(Impairment bonds), E9.24(FVOCI vs
Equity), E9-25(Long term equity-Equity method, impairment), , P9-15(FVOCI, Equity method,
IFRS, ASPE)
Class 10 through Class 12
Starting this class, we will be going through Chapter 10, 11, and 12 simultaneously. In the first
class, we will study the criteria for PPE, Investment Properties, Biological Assets, Intangibles,
and Goodwill. Then, we will go through the measurement models and depreciation methods of
these assets. In the second class, we will go into details of issues surrounding the initial
recognition of these assets and study different impairment models. In the last class, we will study
costs incurred after acquisition and disposals of long-lived assets.
Chapter 10: Acquisition of Property, Plant and Equipment
Learning objectives:
1. Evaluate treatment for PPE: recognition criteria, measurement and disclosure
2. Understand and apply the concept of componentization
3. Understand specific cost elements: borrowing costs, dismantling and restoration costs
4. Understand and evaluate treatment for nonmonetary exchanges, contributed assets, and
government assistance.
5. Accurately calculate year end balances using appropriate measurement model (cost, revaluation,
fair value)
6. Evaluate appropriate treatment for costs incurred after acquisition
Page 10 of 16
Chapter 11: Amortization, Impairment, and Disposition
Learning objectives:
1. Evaluate different depreciation policies and accurately calculate depreciation expense
2. Understand depletion of natural resources
3. Evaluate treatment for other depreciation issues: change in estimates and policy, partial year
depreciation
4. Understand and apply different impairment models.
5. Understand and apply impairment models to asset groups and cash-generating units
6. Evaluate treatment for held for sale and derecognition of PPE
Chapter 12: Goodwill and Other Intangible Assets
Learning objectives:
1. Evaluate treatment for intangible assets: recognition, measurement, and disclosure
2. Evaluate treatment for research and development costs and impact on decision making
3. Understand and apply impairment models to intangibles assets
4. Evaluate treatment for goodwill: recognition, measurement, and disclosure.
5. Understand and apply impairment model to goodwill
Class 10
Readings:
On criteria: Kieso Chapter 10, p. 10-4 to 10-6 (general PPE), p. 10-21 to 10-22 (Investment
properties, natural resource properties, biological assets); Chapter 12 p. 12-3 to 12-6 (Intangibles
and goodwill)
On measurement model: Kieso Chapter 10, p. 10-23 to 10-28, 10-42 to 10-43 Chapter 12, 12-12
to 12-15
On depreciation: Kieso, Chapter 11, p. 11-4 to 11-19
Review Questions: E10-23( FV vs Cost), E10-25 (Revaluation - PPE), , P10-11(Revaluation -
PPE), P12-7 (Revaluation -Intangibles)(Tutorial), E11.16 Depreciation – change in estimate,
P10.12 (Investment Properties)
Class 11
Readings:
On initial recognition: Chapter 10 p. 10-6 to 10-22; Chapter 12 p. 12-6 to 12-12, 12-16 to 12-21,
p. 12-24 to 27
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On Impairment: Chapter 11 p. 11-19 to 11-27; Chapter 12 p. 12-21 to 12-24; p. 12-27 to 12-30
Review Questions: E10.9(Acquisition cost of realty), E10.13(Equipment purchase),
P12.1(Various costs), E12.9(R&D), E12-20(Goodwill ), E10.21(Government assistance), P10-
9(Non-monetary Exchange), E10.22(Biological assets), E11.19(Impairment cost recovery -
PPE), E11.21(Impairment both models - PPE), E12.17(Impairment- Intangibles), E12-
18(Impairment-Intangibles), E12.21(Goodwill Impairment), P11.14(Impairment-PPE)
Class 12
Readings:
On costs after acquisition: Chapter 10 p. 10-29 to 10-34
On derecognition: Chapter 11 p. 11-27 to 11-30
Review Questions: E10.28 (Subsequent cost – PPE), P12.5 (Subsequent costs – intangibles),
E11-26(Disposal of Assets), P11-15(Disposal of Assets),
Case Discussion: IC 6-1, IC 10-1
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PART II: ADMINSTRATIVE INFORMATION
ENROLMENT
Prerequisites
Students are personally responsible for ensuring that they have the necessary prerequisites. The
School of Administrative Studies reserves the right to de-enrol any student when it is determined
that a student has requested a course without having the necessary listed prerequisites. The
School will not be responsible for refunds resulting from students being dropped from a course
due to a lack of a prerequisite. Students with outstanding deferred exams in the prerequisite
course may not enrol in this course.
COURSE WEBSITE
Access
The course is available through your moodle website. All materials, including slides, problem
solutions, class announcements, and assignment details, are posted on the course website.
Make sure you have a valid Passport York account.
Computing Help
All computing issues should be directed to the Computing and Network Services (CNS). It has
an extensive site on the Internet at: http://www.cns.yorku.ca. Contact them by phone (416) 736-
5800, by E-mail [email protected] or you may obtain assistance in person in the William
Small Center.
EXAMINATIONS
Exam Conflicts
Exam conflicts are defined as having two or more exams scheduled at the same time on the same
day or 3 exams in 24 hours. Back-to-back exams are not considered exam conflicts. Consult the
York University website for official timetable information, and if you have exam conflicts,
contact the course director to make alternate arrangements in advance.
ABSENCE FROM EXAMS
MIDTERM EXAM
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There are two types of absences from the examination:
1) Authorized
2) Unauthorized – you get zero on the exam
Authorized absences (Medical)
If you are unable to attend a midterm because of SEVERE illness, you must obtain a signed
Attending Physicians Statement (APS). Attending Physician’s Statements may be downloaded
from http://www.registrar.yorku.ca/pdf/attend_physician_statement.pdf. You must submit an
APS where the doctor clearly indicates that you were incapacitated on the exam date and
have examined you.
The APS must be submitted within ONE week from the missed midterm examination date to
ATK 282. INSTRUCTORS WILL NOT ACCEPT APS IN CLASS. LATE SUBMISSION
WILL NOT BE CONSIDERED.
ADMS3585 (please clearly mark ADMS3585)
Administrative Studies Office,
Room 282, Atkinson Building
4700 Keele Street,
Toronto, ON M3J 1P3
Phone: (416) 736-5210
Fax: (416) 736-5963
Website: www.yorku.ca/laps/sas/
Regular Hours (September-April): Summer Hours (May-August):
Monday- Thursday, 9:00am - 7:30pm Monday-Thursday, 9:00am - 7:30pm
Friday, 9:30am - 4:30pm Friday, 9:30am - 3:30pm
Important: Submitting your documents on time is not a guarantee that your request will be
approved. For medical absence, if you do not seek medical appointment within a
reasonable time frame AND the APS does not clearly support that you were incapacitated
ON THE EXAM DATE, your request will be denied.
Authorized absences (Religious)
The University publishes a list of accredited religions. If you have a religious observance
preventing attendance at an exam then submit appropriate documentation to get an authorized
absence. All religious absences must be approved by the instructor before the exam date.
Authorized absences (Compassionate)
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1) These should be cleared with your Course Director well ahead of the scheduled exam.
2) Attendance at weddings or funerals is an excused absence only for members of the
immediate family or if you are in the wedding party.
3) Note that York does not normally consider inability to get off work as reason for excused
absence. Your employer will have to give you a signed letter on letterhead to make such
condition an excused absence
4) In all cases, whether it be wedding, bereavement or other compassionate grounds, your
course director will want to see some form of written documentation supporting the
existence of the event.
FINAL EXAM:
In order to request a deferral of your final exam the following steps are required:
1) Download the DSA form from the Registrar's Office web site, complete it with all of your
data and attach the documentation to support your request, keep these paper forms and
documents with you;
2) Access the School of Administrative Studies DSA system by clicking on the link
(http://www.yorku.ca/laps/sas/links.html). Look for “Status of Deferred Exam Requests” and
login using your Passport York ID and password and complete the online form;
3) Once you have completed the online form, a ticket number will be issued, please copy that
number in the top right corner of the paper version of the DSA form that you have already
completed in step 1;
4) Bring the paper DSA form with supporting documentation (i.e. APS) to the main office of the
School of Administrative Studies, room 282 Atkinson within one week from the date of your
missed final examination;
5) Check the status of your request in the School of Administrative Studies DSA system, once
approved make sure to take proper note of the location, date and time of the exam;
6) 48 hours before the scheduled exam check the School of Administrative Studies DSA system
to confirm the location, time and date of your deferred exam. We also encourage you to check
the DSA system again on the day of your exam for any last minute changes.
Deferred exams are normally held in the third weekend in January 2018. Please check with the
main office for exact dates.
Final Exam Review/Reappraisal
Students may request to review final exam. Contact the Administrative office (Room 282 at
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Atkinson Building) to set up an appointment. With sufficient academic grounds, students may,
request that a final grade in a course be reappraised. Non-academic grounds are not relevant for
grade reappraisals; in such cases, students are advised to petition to their home Faculty. Students
need to be aware that a request for a grade reappraisal may result in the original grade being
raised, lowered or confirmed. For reappraisal procedures and information, please visit the Office
of the Registrar site at: http://www.registrar.yorku.ca/services/policies/grade.htm
Academic Honesty
Cheating on exams and other forms of academic dishonesty are absolutely not acceptable. Any
attempts of cheating will result in substantial penalties. Suspected breaches of academic honesty
will be investigated and charges shall be laid if reasonable and probable grounds exist. Check the
published regulations by York University regarding cheating and other forms of academic
dishonesty on the University website (see academic policies on the ‘current students’ page of
www.yorku.ca). It is assumed that you have read and are familiar with these regulations.
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