MEMORIAL UNIVERSITY OF NEWFOUNDLAND

Faculty of Business Administration

Business 5120
Advanced Accounting
Course Information and Schedule
Winter 2023

CONTACT INFORMATION

Instructor: Pauline Downer FCPA, FCA MBA

Associate Professor
Website: Memorial’s Brightspace (D2L) site
Telephone: Home 726-0649
Email: [email protected]
Note: All email correspondence with current students must be through
@mun.ca email accounts. Emails will be answered within 24 hours, except
that emails will not be answered on weekends.

Whenever possible, we will be taking a *green* approach to the course and making materials available in
electronic form. It’s up to you to decide if you want to work with a paper version of those materials.

COURSE DESCRIPTION AND OBJECTIVES

Business 5120 expands on the following concepts introduced in earlier financial accounting
courses:
• Cost accounting method for long-term investments
• Equity accounting method for long-term investments
• Calculation of purchased goodwill
• Theory of the purchase method of business combination

The following concepts will be introduced and covered in detail:

• Consolidated financial statements at date of acquisition, and subsequent to

acquisition
• Inter-company transactions, unrealized profits and losses
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 • Segmented reporting & special purpose entities
• Accounting for Non-Profits

The plan is to use lecture capture software in the classroom and have recordings uploaded to
Brightspace. On occasion the technology does not work as designed. If that should happen, the lecture
will not be re-recorded.

Students are expected to familiarize themselves with and adhere to the Faculty of Business’ Statement and Code
of Academic and Professional Integrity:
https://www.business.mun.ca/undergraduate/FBA-student-code-conduct.pdf

This course is critical to the education of students preparing for a career in accounting. Current
developments are essential for a comprehensive understanding of advanced accounting and this
course will cover the IFRS and ASPE standards.

It is important that you work on the problems in this course. Your success in this course will
depend on the amount of time you spend on the problems. Also please note that the
problems we do for consolidations will use the journal entry method. The solutions to the text
DO NOT USE THIS METHOD. However, you should be able to use the solutions to determine of
your answer is correct.

EVALUATION

Marks in this course will be determined as follows:

Weighting
Wednesday, Feb 15 Term Test 1 Chapters 1,2,3,4,5 24%
Monday, March 20 Term Test 2 Chapters 1-7, and Equity 40%
Assignments McGraw Hill Online Assignments 16%
Thursday, April 6 Case Due 20%
100%

Each of the three deliverables differs with respect to the material emphasized and tested.
Therefore, the grade weight assigned to each piece of evaluation is fixed*. You may not elect
to move weight from one piece of evaluation to another deliverable. We do not give
supplementary evaluations or exams.

All students of Memorial University of Newfoundland can obtain a free copy of Microsoft Office 365
through https://my.mun.ca/.

Missed examinations:

Deferred examinations for any missed term tests will not be given. If a student has a valid
documented reason for missing a term test, the weight of the missed deliverable will be added
to a special comprehensive final examination.
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PLEASE NOTE THAT THE FINAL EXAM SCHEDULE WILL SHOW A DATE AND TIME FOR THIS COURSE,
BUT IT IS ONLY FOR THE ADMINISTRATION OF THE DEFERRED EXAMS FROM THE TERM. THERE IS
NO FINAL EXAM IN THIS COURSE IF YOU WROTE BOTH TERM TESTS.

Appropriate documentation for a missed deliverable must be submitted, in writing, within 48

hours of the missed deliverable. Students must conform with General Academic Regulations
(Undergraduate) 6.7.5
(https://www.mun.ca/regoff/calendar/sectionNo=REGS-0601), which requires that a request
be made within 48 hours of the original date of the examination. Please make such requests
through your MUN email account. The university calendar notes the following:

6.7.5 Exemptions from Parts of the Evaluation

1. For information and procedures regarding exemptions from final examinations, refer to
Exemptions From Final Examinations and Procedures for Applying to Write Deferred Final
Examinations.
2. A student is, at times, prevented from completing a part of the evaluation by illness or medical
conditions of less than five calendar days’ duration. In such cases, a student may apply for an
alternate evaluation by declaring to the relevant instructor that the student has experienced
such an illness or medical condition. This declaration should be made via telephone or in
writing through the student’s University approved e-mail account. This declaration should be
made in advance of the original date on which an in-class part of the evaluation is to be held or
a take-home part of the evaluation is due, wherever possible, but no later than 48 hours after
the original date of the part of the evaluation. If the declaration is made by telephone, written
confirmation must then be received by the relevant instructor within seven calendar days of
the original date of the part of the evaluation.
3. A student who is prevented from completing a part of the evaluation by illness of at least five
calendar days’ duration, bereavement or other acceptable cause, duly authenticated in writing,
may apply for an alternate evaluation. This application should be made in advance of the
original date on which an in-class part of the evaluation is to be held or a take-home part of the
evaluation is due, wherever possible, but no later than 48 hours after the original date of the
part of the evaluation. If application is made by telephone, written confirmation must then be
received by the head of the appropriate academic unit within seven calendar days of the
original date of the part of the evaluation. The following supporting documentation is required:
o For illness or medical conditions, medical documentation from a health professional is
required. Students should provide the health professional with a copy of the Student
Medical Certificate.
o For bereavement or other acceptable cause, official documents or letters that support
the reason for the request (e.g. death certificate, letter from employer, etc.) are
required.
4. The alternate evaluation may consist of the deferral of in-class work, the extension of the
deadline for take-home work, an alternative allocation of marks, or another appropriate
accommodation as determined by the course instructor. A student who is dissatisfied with the
accommodation offered by the instructor may consult with the head of the appropriate
academic unit.

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Please note the Faculty of Business Administration Policy with respect to deferred final exams.
• A student who is scheduled to write three final examinations which begin and end within a
twenty-four-hour period may request to write a deferred examination. Normally, only the
second examination in the twenty-four-hour period may be deferred. The application to defer
this examination should be made in writing to the Undergraduate Programs Office (B1015) or
by email to [email protected]. It should be submitted as soon as possible after the release of
the final examination schedule, and in any case no later than two weeks before the end of the
semester or session.
• A student who is prevented from writing a final examination by illness, bereavement or other
acceptable cause, duly authenticated in writing, may apply to write a deferred examination.
The application to defer the examination should be made in person or via telephone to the
Undergraduate Programs Office (B1015) (709) 864-8512, or by email to [email protected]. This
application should be made in advance of the examination wherever possible, but no later than
48 hours after the original date of the examination. If application is made by telephone, written
confirmation must then be received by the Undergraduate Programs Office within seven
calendar days of the original date of the examination.
• All deferred final exams will be held at the commencement of the semester following the one
in which the deferred final exam has been approved.
• Deferred final exams will be written on the first Friday of the semester following the semester
in which the deferred exam was granted, with the exception of Intersession.

COURSE MATERIALS

Textbook
Herauf, Darrell, Mbagwu Chima. Modern Advanced Financial Accounting in Canada Tenth
Edition., Toronto, Ontario: McGraw Hill Ryerson, 2022. (Please note this is a new version of the text!
And has not been used prior to this term.)

PowerPoint slides as well as the solutions to the end of the chapter problems will be posted on
D2L.

MCGRAW HILL CONNECT ASSIGNMENTS

Students will need to register with McGraw Hill Connect to complete assignments through the Connect
web site which can be accessed directly at https://accounts.mheducation.com/login.

The assignments are due by 8:00 p.m. on the due date. Late assignments will not be accepted; they
will be assigned a grade of zero. Some of the material from the assignments may also appear on the
term tests.

The assignments have been selected to help you develop your competencies in the course and you are
encouraged to try all assignments. Please save your work as you progress through the Connect
problem(s).

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 Assignment Related
name chapter Marks Due Date
22A Chapter 1&2 2 Friday January 27
22B Chapter 3 2 Friday January 27
22C Chapter 4 2 Friday February 3
22D Chapter 5 2 Friday February 10
22E Chapter 6 2 Friday March 3
22F Chapter 7 2 Friday March 10
22G Chapter 9 2 Friday April 1
22H Chapter 12 2 Thursday April 6
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TEAM CASE ANALYSIS

Students are to form teams of five people for the purpose of preparing a final case analysis.
If need be, one or two of the teams may consist of three or four people, but no team may
have more than five people or fewer than three people. Students are to advise me by
Monday January 30th of the group members. A Drop Box in D2L will be set up to submit
the group names. PLEASE USE THEDROPBOX!! DO NOT EMAIL THE GROUP NAMES TO
ME!!

The case will be comprehensive and will mainly focus on the preparation of a set of
consolidated financial statements including journal entries etc. Instructions will be provided
when the Case is distributed on March 1st . Marks will be deducted for poor presentation,
grammar and flow of ideas. The case is due by 8pm on Thursday April 6th through the Drop
Box on D2L. A Drop Box will be set up for the team assignments. Failure to meet this
deadline will result in a penalty of half a mark per daylate.

Ethics

Cheating is a serious academic offence. Students are expected to contribute equally to team
work and to produce individual efforts on the case analysis. This is not to say that team
support is unacceptable; the opportunity to learn together is encouraged.
However, there is an obvious difference between comparing end-product or consulting on a
difficult issue (acceptable) and copying all or part of a case analysis (unacceptable). Given
that 20% of the grade in the course comes from teamwork, there may be a tendency
towards “free riders”. The case submission itself will be evaluated on a score of 0-20. You, in
turn, will get a grade based on your “percentage effort” relative to the team’s submission.
Each team member will evaluate the other members of the team but not themselves. The
trick is that you can’t allocate more than 100 x the number of other team members in
evaluating your team members’ efforts. Let me give you an example.

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 Luke is a member of a five-person team. Since he has four other team
members to evaluate, he has a total of 400 percentage points to allocate. He
decides that the team operated quite well, but that Emma contributed more than
Kevin. Amelia’s and Zack’s contributions were in between. So Luke allocates 115
points to Emma, 85 points to Kevin and 100 points to each of Amelia and Zack, for
a total of 400.

After the results from all documented inputs are averaged, the manager
determines that Emma was awarded 108 points, Kevin 92 points, and Luke,
Amelia, and Zack each received 100 points. If the team earned 16 marks out of 20,
Emma would get 17.28, Kevin would get 14.72, and Luke, Amelia, and Zack would
each get 16.0 marks.

Your individual evaluation of the other team member’s contribution to the team case effort is
due through the Drop Box on D2l by 8 pm on Thursday April 6th . There will be a separate
Drop Box for these submissions. DO NOT EMAILL ME THE PEER EVALUATION THROUGH
EMAIL. Please do this in a word or Pdf document with the team member’s last names as the file
name. Please ensure you identify on the word or Pdf document that is submitted who the evaluation
is prepared by! Failure to meet this deadline or to include appropriate supporting documentation
with your memo will result in a penalty of half a mark per day late. For example, if you “forget” to
submit an appropriate memo and then do so two days after the team case was due, you will lose one
of the 20 marks available to you for the team submission.

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TENTATIVE COURSE SCHEDULE1

Date Material coverage

Mon. January 9th ✓ Course overview
✓ Chapter One: Framework for Financial
Reporting
Wed. January 11 ✓ Chapter Two: Investments in Equity Securities
Mon. January 16

Wed. January 18 ✓ Chapter Three: Business Combinations

Mon. January 23

Wed. January 25 ✓ Chapter Four: Consolidation of Non-Wholly

Mon. January 30 Owned Subsidiaries

Wed. February 1 ✓ Chapter Five: Consolidation Subsequent to

Mon. February 6 Acquisition Date

Wednesday, February 15 Term test #1: 24%* of your final grade (Chs 1-5)
*No deferreds ; see above Evaluation section

Wed. Feb 8 ✓ Chapter Six: Intercompany Inventory and Land

Mon. Feb 13 Profits
Mon. February 27

February 20, 22 ✓ No class: Term break

Wed. March 1 Chapter Seven: (A) Intercompany Profits in Depreciable
Mon. March 6 Assets
Wed Mar 8 (B) Intercompany Bond holdings
✓
Mon. March 13 ✓ Consolidation Entries if the Investment is
Wed. March 15 accounted for using the Equity method

Monday, March 20 Term test #2: 40%* of your final grade

*No deferreds; see above Evaluation section
Wed. March 22 ✓ Chapter Nine- Other Consolidation Reporting
Mon. March 27 Issues

Wed. March 29 ✓ Chapter Twelve- Accounting for Not-For-Profit

Mon. April 3 and Public Sector Organizations

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 Date Material coverage
Wed. Apr 5 ✓ Team Case Day- no class.

Thursday. April 6 ✓ Team project due through Brightspace: 20% of

your final grade
✓ See Ethics section concerning individual
contribution to the team assignment and
submission of your memo – with supporting
documentation.

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