ACCT 4201: Advanced Financial Accounting
Students examine a range of complex issues in financial reporting. Topics include the development of financial accounting standards; temporary and long-term investments in debt and equity securities including investments in associates; business combinations and joint ventures; consolidation at acquisition; consolidation subsequent to acquisition; intercompany profits in inventory, land and depreciable assets; foreign currency transactions and hedge accounting; translation and consolidation of international operations; accounting for not-for-profit organizations and public sector reporting.
Learning outcomes
- Apply the appropriate conceptual principles when selecting accounting policies.
- Account for temporary and long-term investments in debt and equity securities including investments in associates.
- Explain the methods of accounting for business combinations and joint ventures.
- Use the equity method to account for joint ventures.
- Prepare consolidated financial statements at acquisition and in subsequent years for both fully-owned and partially-owned subsidiaries.
- Eliminate the intercompany profits on inventory, land and depreciable assets in a consolidation.
- Translate a firm’s foreign currency transactions.
- Account for fair value and cash flow hedges.
- Translate and consolidate a company’s international operations.
- Account for not-for-profit organizations.
- Employ fund accounting and the deferral and the restricted fund methods.
- Describe the objectives and issues relevant to public sector reporting.
Course topics
- 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 Organizations
Required text and materials
The following material is required for this course:
- Herauf, D., & Mbagwu, C., (2022). Modern Advanced Accounting in Canada (Connect + Print) (10th ed.). McGraw-Hill Ryerson.
Type: Textbook. ISBN: 9781265161637
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
Please be aware that should your course have a final exam, you are responsible for the fee to the online proctoring service, ProctorU, or to the in-person approved Testing Centre. Please contact exams@tru.ca with any questions about this.
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 | 12.5% |
| Assignment 2: Modules 5-6 | 12.5% |
| Assignment 3: Modules 5-7 | 12.5% |
| Assignment 4: Modules 8-10 | 12.5% |
| Mandatory Final Exam | 50% |
| Total | 100% |
Open Learning Faculty Member Information
An Open Learning Faculty Member is available to assist students. Students will receive the necessary contact information at the start of the course.
