COMM_V 293 - Financial Accounting

Course Description

This course introduces students to key concepts and practices in financial accounting. Financial accounting is principally concerned with the construction and interpretation of financial reports prepared for external parties to the issuing firm or entity. Topics include the accounting cycle, accrual accounting, adjusting entries, merchandising operations, inventory, revenue recognition, receivables, property, plant and equipment, intangible assets, shareholders’ equity, liabilities, cash flow statements, carbon accounting, and financial statement analysis. Content is delivered through lectures, tutorials, quizzes, group assignments, and practice problems, with student engagement fostered through collaborative group work, class and tutorial discussions, and exercises.

Consideration will be given to accounting techniques and the formulation of financial reports; however, the course focuses on understanding accounting policies, their rationale, and their implications for users of financial accounting information. Emphasis is placed on developing an understanding of the concepts, principles, and conventions upon which financial accounting is based; appreciating the extent of professional judgment required in measuring and recording transactions and preparing financial statements; and building an analytical basis for interpreting financial statements. The course uses a user-oriented approach that includes interpretation and assessment of financial statements from a variety of North American corporations. Students will have multiple opportunities to apply core accounting knowledge and use financial information to make better decisions in real-world business and organizational contexts. Assessment methods include group assignments, peer evaluations, quizzes, a midterm exam, and a final exam.

Responsible Business Content

This course addresses responsible business and sustainable development by examining how transparent, informative, and ethically prepared financial accounting information supports better decision-making by external users and contributes to strong institutions and well-functioning markets. Topics include brief introduction to carbon accounting and climate-related reporting (Environmental Sustainability; Climate Action), professional judgment and ethical financial reporting (Responsible Business and Ethics; Peace, Justice and Strong Institutions), and the measurement of infrastructure and intangible assets, including innovation-related assets (Industry, Innovation and Infrastructure).

Learning Objectives

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

• Discuss and apply the concepts, principles, and conventions of financial accounting to business transactions at a broad level.
• Identify and explain the role of judgment in accounting.
• Broadly interpret and apply professional ethical codes and norms.
• Analyze financial statements.
• Diagnose and solve common financial accounting issues impacting businesses.
• Evaluate common financial accounting problems, dilemmas, and methods.

Students Will Gain Confidence In

• Interpret and assess financial statements to understand a firm’s financial position, performance, and underlying accounting choices.
• Apply financial accounting concepts, principles, and conventions to analyze common business transactions and reporting issues.
• Evaluate the role of professional judgment and ethical considerations in measuring, recording, and reporting financial information.
• Use financial accounting information to support informed decision-making by external users, including investors, creditors, and other stakeholders.

Prerequisite: One of MATH_V 100, MATH_V 102, MATH_V 104, MATH_V 110, MATH_V 120, MATH_V 180, MATH_V 184, MATH_O 100, MATH_O 116.