Comm 293 Syllabus Fall 2018 PDF

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COMM 293: FINANCIAL ACCOUNTING, Sections 101, 102, 103

COURSE INFORMATION Term/Period:

2018 Winter Session Term 1

Instructors:

Xin Zheng, Ph.D. (Sep 6 - Oct 16) Rajesh Vijayaraghavan, Ph.D. (Oct 18 - Nov 29)

E-mail:

[email protected] [email protected] [email protected]

Course Schedule:

Section 101 Tuesday and Thursday 9:30am - 11am Section 102 Tuesday and Thursday 11am - 12:30 pm Section 103 Tuesday and Thursday 2pm - 3:30pm

Course Duration:

September 6 – November 29, 2018

Office Hours:

12:30 – 1:30 Monday and Tuesday, or by appointment in HA 363 or HA 365 in the Henry Angus office tower. We will announce TA office hours during the first week of classes.

Pre-Requisite:

None

COURSE DESCRIPTION AND GOALS Financial Accounting is principally concerned with the construction and interpretation of financial reports prepared for external parties to the issuing firm or entity. Consideration will be given to accounting techniques and the formulation of financial reports; however, the course will focus on understanding accounting policies, their rationale and the implications for users of the financial accounting information. The user orientation approach will include interpretation and assessment of financial statements from a variety of North American corporations. • • • •

To develop an understanding of the concepts, principles and conventions upon which financial accounting is based. To appreciate the extent of professional judgment required in (i) measuring and recording transactions and (ii) preparing financial statements. To provide an analytical basis upon which to intelligently interpret financial statements. To provide multiple opportunities to (i) apply this core knowledge and (ii) interpret and use financial information in making better decisions.

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COMM 293: FINANCIAL ACCOUNTING, Sections 101, 102, 103

LEARNING OBJECTIVES Upon completion of COMM 293, students will be able to: •

Identify the numerous users of financial statements and understand how each relies on different components of the financial statements in their decision-making process.

•

Understand financial accounting frameworks and standards in Canada.

•

Explain the similarities and differences between proprietorships, partnerships and corporations.

•

Identify and briefly explain the qualitative characteristics of accounting information.

•

Understand the importance of judgment and professional ethics in today’s accounting environment.

•

Analyze and record transactions under both a cash and accrual basis.

•

Prepare and explain the purpose of adjusting and closing journal entries.

•

Prepare financial statements – Classified Statement of Financial Position (Balance Sheet), Multistep Statement of Earnings (Income Statement), Statement of Changes in Equity (Retained Earnings) and Statement of Cash Flows (indirect method).

•

Explain the importance and the components of good internal control.

•

Determine when the sale of goods or the provision of services should be recognized as revenue in the financial statements.

•

Apply the percentage-of-completion method and cost recovery method to long-term contracts.

•

Measure and report accounts receivables in accordance with generally accepted accounting policies including an appropriate allowance for doubtful accounts under both the percentage of sales and aging methods.

•

Account for investments that management intends to trade with the expectation of profit.

•

Understand the difference between perpetual and periodic inventory systems Account for the initial purchase of inventory and the subsequent allocation between inventory (Balance Sheet) and cost of goods sold (Income Statement) under First-in, First-out (FIFO), Moving-weightedaverage and specific identification cost flow methods.

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COMM 293: FINANCIAL ACCOUNTING, Sections 101, 102, 103 •

Calculate gross profit margin and explain its significance in managing a business.

•

Quantify and explain the effect of inventory errors on an entity’s financial statements.

•

Apply the lower of cost and net realizable value principle to an entity’s inventory.

•

Calculate the cost of tangible long-lived (property, plant and equipment) and intangible assets.

•

Explain the difference between repairs and betterments.

•

Understand the purpose of depreciation expense and how it differs from Capital Cost Allowance used for Income tax purposes.

•

Calculate depreciation expense under the straight-line, units-of-production and diminishingbalance methods.

•

Account for changes in depreciation estimates.

•

Account for the disposal of assets.

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Understand the concept of asset impairment.

•

Account for and explain current, long-term and contingent liabilities.

•

Describe the characteristics of bonds payable and calculate the selling price of a bond.

•

Calculate interest expense of a bond issued at par, at a premium or at a discount using the effective-interest rate method.

•

Calculate the gain or loss on the redemption of a bond.

•

Explain the advantages and disadvantages of incorporating an entity.

•

Account for the issuance and retirement of common and preferred shares.

•

Account for and explain the effect of cash and stock dividends and stock splits.

•

Determine and record the effect of transactions on the operating, investing or financing activities of an entity.

•

Perform analytical procedures (including financial statement ratios) on a set of financial statements in order to identify and assess areas of strengths/weaknesses of an entity’s profitability, liquidity, solvency and share price.

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COMM 293: FINANCIAL ACCOUNTING, Sections 101, 102, 103

COURSE MATERIALS & REQUIREMENTS Textbook: FINANCIAL & MANAGERIAL ACCOUNTING, Weygandt, Kimmel, Kieso, Third Edition, Wiley, (You have the option of using the digital copy, or the binder ready version. ISBN: 9781119532736. Please note that this book will be used for both COMM 293 and COMM 294. You MUST have the access code to WileyPLUS). Further information on accessing the publisher’s website for this course will be posted during the first week of classes. We cannot overemphasize the importance of understanding the first four chapters of the textbook which form the foundation for the course. You must understand debits/credits, the accounting cycle and the fundamental concepts underlying accounting. We encourage you to read the textbook, work through the chapter examples, and make use of the online materials on a weekly basis. Do not wait for the examinations - study and prepare yourself throughout the term!

Privacy Statement Related to The Use of Wiley Plus: In this course, you will be using WileyPlus. This is a service operated outside of Canada. When you access this site from within Canvas you are being transferred to these servers. In order to protect your identity, UBC obfuscates your personal information. However, you can opt to share your real name with the service (name only – no other personal information is shared). This supports your instructor to view your progress within WileyPlus. You are also free to opt-out if you have concerns about your privacy. In this case, the name fields will also be anonymized. Grades results will still be transferred to Canvas as usual. Please exercise caution whenever sharing personal information.

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COMM 293: FINANCIAL ACCOUNTING, Sections 101, 102, 103 Other Learning Resources: Additional on-line learning materials will be made available on the canvas.ubc.ca website (described more fully under Technology Requirements) as the course progresses including: •

Review/Supplementary Problems: Completing as many of the exercises and problems as possible is an integral component of the course requirements. The exercises and problems provide examples of procedural and conceptual issues and are intended to assist you in understanding and responding to technical and discussion/essay-type questions encountered during the course and on examinations. Solutions to selected textbook exercises and problems will be posted.

•

“Practice” Examinations: One midterm and one final examination complete with solutions will be posted two weeks prior to examination dates. It is imperative to complete and review the practice examinations under exam conditions well before the published examination dates. Such practice in conjunction with completion of the course assignments and in class questions, and active engagement in class discussions, will prepare you for examinations. The examination questions will be comprehensive in nature requiring you to demonstrate your knowledge in both quantitative and qualitative responses.

Technology Requirements: Computer with internet access. •

canvas.ubc.ca: canvas.ubc.ca contains critical files for the course, including assignment solutions, selected textbook exercise and problem solutions, and a practice midterm and final examination with solutions. You will need a campus-wide login (“CWL”) to access this site. Please remember to check the “Announcements” section of this website on a regular basis.

•

WileyPlus – the publisher’s website: This is the publisher’s website which contains numerous resources you may find helpful in grasping concepts. Should you wish to access the site you will require the access code, which accompanies the purchase any versions of the textbook. You will access WileyPlus through canvas.ubc.ca.

A computer will be necessary for class work, homework and examinations.

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COMM 293: FINANCIAL ACCOUNTING, Sections 101, 102, 103 Campus-Wide Login (CWL): All students at UBC are required to sign-up for a Campus-Wide Login (CWL), which can be used to access a number of services at UBC such as the SSC, Canvas and UBC E-mail. Information about CWL can be found at: https://it.ubc.ca/services/accounts-passwords/campus-widelogin-cwl. Canvas.ubc.ca: We will be using the Canvas Learning Management System for this course. The course page will be accessible starting September 7th, 2018. How to Login to canvas.ubc.ca: Follow the steps to access this course page on Canvas: Go to www. canvas.ubc.ca click “Login to Your Courses” In the blue box (labelled “Login to www.canvas.ubc.ca”), enter your Login ID and password, then click on the “Login” button: 2) Login ID: Your CWL (Campus Wide Login). 3) Password: Your CWL password 4) Click on the course name (COMM 293 101 102 103 Financial Accounting) 1)

Technical Support: If you experience any technical difficulties with your login, please contact the UBC Information

Help Desk.

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COMM 293: FINANCIAL ACCOUNTING, Sections 101, 102, 103

ASSESSMENT SUMMARY Assignments submitted at the beginning of lectures (See Note 1) Quizzes Midterm exam Final exam Total

15% 5% 40% 40% 100%

Note 1: All homework assignments are due at 9 am on the scheduled due date. Questions will be posted a week before they are due. Late assignments will not be accepted nor will any assignments be remarked. The primary purpose of the assignments is to provide direct, ongoing feedback and to assist you in preparation for examinations. Late assignments will not be accepted. Emailed assignments will also not be accepted. Note 2 You must achieve an aggregate passing grade on the Examinations component in order to pass the course. [(MT*40% + FINAL*40%) ≥ 40%] Please note that if you do not obtain a passing grade on the examination component, the highest course mark you can obtain is 47%. Note 3: Assignments, Midterm and Final Exams: •

Assignments are meant to be individual work. Assignments are not group assignments.

•

Examinations contain a combination of quantitative and qualitative problems that must be completed in a specified time period. Responses are evaluated on the student's ability to 1) communicate in a professional manner, 2) apply the fundamental concepts and principles correctly, and 3) formulate a reasonable and practical response to the problems. Examinations are marked by the Instructor and the Teaching Assistants. Note 4: Quizzes Quizzes will be accessible on Canvas for 24 hours, starting at 4pm on the announcement date in the course schedule.

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COMM 293: FINANCIAL ACCOUNTING, Sections 101, 102, 103

EXAMINATIONS: Examinations will be delivered on-line and will require the use of a computer. Every student is expected to bring their own laptops to the midterm and final. Detailed instructions for using your computer for exams will be provided as the course progresses. None of the following may be used during the examination: Programmable calculators, cell phones, tablet computers, personal computers1, or wearable computer devices of any type. Please turn off all such devices and put them away until the examination is over. There will be a 5-mark penalty if your cell phone rings or produces an audible alert for text messages during an exam. Since cell phones are not allowed out during exams, make sure you have a watch to keep track of time.

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COMM 293: FINANCIAL ACCOUNTING, Sections 101, 102, 103

POLICIES & PROCEDURES Expectation of class members An important part of business is acting in a professional manner. Everyone is expected and encouraged to: • • • •

actively participate in class/tutorial discussions bring textbooks/ebooks to all classes as we will be attempting and reviewing textbook problems each class deal with classmates in a professional manner submit assignments on the days and times stipulated in the course schedule

COURSE AND INSTITUTIONAL POLICIES Attendance: Class members are expected to attend 100% of scheduled classes, make every effort to inform the instructor of any absence prior to missing the Midterm and supply appropriate documentation relating to their absence to the Sauder Undergraduate Office within one week of the scheduled date of the examination. Should the Sauder Office accept the documentation, the marks on the missed midterm will be allocated to another exam and/ or the Final Examination at the discretion of the instructor. If the documentation is not provided or is not accepted, the member will receive a mark of zero on the Midterm. Makeup midterm exam for students with academic concession is scheduled on Tuesday, October 24th 2018. If you miss the makeup midterm exam, the mark for your midterm will be zero. Class members who miss the Final examination will have their standing in the course evaluated by the Undergraduate Office. If a deferred standing is granted, these members will write in the December 2018 examination period. Electronic Devices: Electronic devices (cellphones, tablets, personal technology, etc.) are not permitted in class unless required by the instructor for specific in-class activities or exercises. Cellphones and other personal electronic devices must be turned off during class and placed away from the desktop. Laptops and tablets may be used for taking notes or accessing the digital textbook. Surfing the internet is not permitted in class as it is extremely distracting to others please respect everyone’s right to a positive learning environment. Students who fail to abide by this policy will be asked to leave the classroom for the duration of the class.

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COMM 293: FINANCIAL ACCOUNTING, Sections 101, 102, 103

ACADEMIC INTEGRITY All UBC students are expected to behave as honest and responsible members of an academic community. Failure to follow appropriate policies, principles, rules and guidelines with respect to academic honesty at UBC may result in disciplinary action. It is the student’s responsibility to review and uphold applicable standards of academic honesty. Instances of academic misconduct, such as cheating, plagiarism, resubmitting the same assignment, impersonating a candidate, or falsifying documents, will be strongly dealt with according to UBC’s procedures for Academic Misconduct. These standards can be viewed in full at http://www.calendar.ubc.ca/vancouver/index.cfm?tree=3,54,111,959.

ACCESS AND DIVERSITY If you need help from Access and Diversity at UBC, please contact their office at [email protected]. Please forward any recommendation letter from the A&D office to [email protected] if you need any help from us.

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COMM 293: FINANCIAL ACCOUNTING, Sections 101, 102, 103

COURSE SCHEDULE (FALL 2018) Lect. 1 2 3 4 5 6

Class Date Thursday Sep 6 Tuesday Sep 11 Thursday Sep 13 Tuesday Sep 18 Thursday Sep 20 Tuesday Sep 25

7 Thursday Sep 27 8 9 10 11 12 13 14 15 16 17

Tuesday Oct 2 Thursday Oct 4 Tuesday Oct 9 Thursday Oct 11 Tuesday Oct 16 Thursday Oct 18 Tuesday Oct 23 Thursday Oct 25 Tuesday Oct 30 Thursday Nov 1

18 Tuesday Nov 6 19 Thursday Nov 8 20 Tuesday Nov 13 21 Thursday Nov 15 22 Tuesday Nov 20 23 Thursday Nov 22 24 Tuesday Nov 27 25 Thursday Nov 29

Topic Accounting in Actions The Recording Process Accrual accounting & adjusting entries

Content Activities Chapters 1 Chapters 2 Chapters 3

Assignments / Quizzes

Completing the Accounting Cycle Accounting Cycle in Merchandising Accounting Cycle in Merchandising

Chapter 4 Chapter 5 Chapter 5

Assignment 1

Inventory, Cost of Goods Sold, Revenue Recognizing

Chapter 6

Assignment 2

Inventory, Cost of Goods Sold, Revenue Recognizing Accounts receivable Accounts receivable Cash, Reconciliation & Internal Control

Chapter 6 Chapters 7 Chapters 8 Chapter 8

Quiz 1

Quiz 2

Quiz 3 Assignment 3

Midterm (7pm to 9pm. No Class) PPE PPE Intangibles Liabilities Liabilities

Chapter 9 Chapter 9 Chapter 9 Chapter 10 Chapter 10

Liabilities/Investments Investments Shareholders Equity Shareholders Equity Cash Flow Statements Cash Flow Statements Analyzing Financial Statements Analyzing Financial Statements

Chapter 10 /Chapter 12 Chapter 12 Chapter 11 Chapter 11 Chapter 13 Chapter 13 Chapter 14 Chapter 14

Final TBD

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Quiz 4

Assignment 4

Quiz 5

Assignment 5

Quiz 6

Assignment 6

COMM 293: FINANCIAL ACCOUNTING, Sections 101, 102, 103

Students will be provided with sufficient notice of any change in dates or times of classes. Final exams will be held between December 4 & 19, 2018 and are scheduled by the University. The final exam schedule will be available 3 weeks before the final examination. Please do not make holiday arrangements before the date of the final examination is published. The above noted Schedule outlines the material covered during each lecture. Please read the material prior to attending class. We will try and provide as many real-life examples as possible...