Accounting

Curriculum Review

Business Studies:

Accounting

The Big Picture

• Descriptive course titles• Fewer expectations• Increased emphasis on ethics• “demonstrate an understanding of” only in overall

expectations• Plain language, e.g., “record transactions in journals

and ledgers”• Greater use of examples• Management accounting is out in BAT4M• Cash Flow statement is in• All courses require computer software use

Course Titles

• BAF3M Introduction to Financial Accounting

• Financial Accounting Fundamentals• BAT4M Principles of Financial Accounting

• Financial Accounting Principles• BAI3E Introduction to Accounting

• Accounting Essentials• BAN4E Accounting for a Small Business

• Accounting for a Small Business

BAF3M Financial Accounting Fundamentals

Original:1. The Objectives of

Accounting2. Accounting

Fundamentals3. Financial Analysis,

Control, and Decision Making

STRANDS

Revised:1. Accounting

Fundamentals2. Accounting Practices3. Internal Control,

Financial Analysis, and Decision Making

4. Ethics, Impact of Technology, and Careers

BAF3M – Accounting Fundamentals

• Discipline of accounting• Different forms of business organization• Procedures and principles for a service

business• Explain different equity sections, e.g.,

capital versus shareholder’s equity• Describe impact of adjusting entries on

financial statements

BAF3M – Accounting Practices

• Accounting cycle for merchandising business• Perpetual and periodic inventory systems remain• Use accounting software or application software

for service, merchandising business and financial statements

• Sales taxes• Describe alternative accounting systems such as

special journals and ledgers

BAF3M - Internal Control, Financial Analysis, and Decision Making

• Petty cash, bank reconciliation procedures

• Budgeted financial statements

• Role of an auditor

• Analysis of liquidity, solvency, profitability

• “simple” financial ratios, e.g.– Current, debt ratios– Comparative statements, trend analysis

BAF3M – Ethics, Impact of Technology, and Careers

• Role of ethics and code of conduct

• Impact of current issues on accounting, e.g., fraud, globalization of transactions

• Impact of technology on accounting functions

• Research educational paths for accounting career paths

BAT4MFinancial Accounting Principles

Original:1. The Accounting Cycle2. Advanced Accounting

Practices for Assets3. Financing4. Financial Analysis and

Decision Making

Revised:1. The Accounting Cycle2. Accounting Practices

for Assets3. Partnerships and

Corporations4. Financial Analysis and

Decision Making

STRANDS

BAT4M – The Accounting Cycle

• emphasis on the computerized environment (go beyond BAF3M)

• Include year end procedures using software• Roles of agencies, e.g., OSC• Relate GAAP and practices, e.g., matching

principle and cash vs. accrual basis)• More ethics and issues, e.g., off balance

sheet activities

BAT4M – Accounting Practices for Assets

• Short term assets, inventories, capital assets

• Notes receivable procedures included

• Relate technology to inventory control

• Capital vs. revenue expenditures

• Record and analyze methods of amortization

BAT4M – Partnerships & Corporations

• New strand• Limited vs. general partnerships• Various partnership transactions, e.g., formation,

admission, dissolution, etc.• Common and preferred transactions and dividends• Impact of dividends on shareholder equity• Prepare financial statements including

shareholders equity section

BAT4M – Financial Analysis and Decision Making

• Compare debt and equity financing• Investigate alternative sources, e.g., government loans• Describe and analyze annual report as a means of

communication• Use annual report to prepare financial analysis of a company• Higher level ratios, e.g., turnovers, earning per share, times

interest earned, etc.• Use info technology in financial analysis (spreadsheets?)• Prepare and analyze cash flow statement!

BAI3E – Accounting Essentials

Original:1. The World

Accounting Cycle2. The Accounting Cycle3. Cash Management in

a Service Business4. The Use of

Accounting Information in Decision Making

Revised:1. Fundamentals of

Accounting for Business2. The Accounting Cycle3. Internal Control,

Banking and Computerized Accounting

4. Decision Making, Ethics, and Careers

STRANDS

BAI3E - Fundamentals of Accounting for Business

• Describe differences in sources of financing, e.g. equity vs. loans

• Identify elements of accounting system, e.g., journals, ledgers, etc.

• Adv. and disadvantages of business ownership forms

• Differentiate service and merchandising

BAI3E - The Accounting Cycle

• Focus on service business only

• Explain relationships, e.g. assets to liabilities and equity

• Complete the cycle for a service business

• Complete sales tax remittance forms

BAI3E - Internal Control, Banking and Computerized Accounting

• Petty cash procedures, reconcile daily sales with point of sales records

• Describe bank account features

• Complete Bank reconciliation

• Accounting software through closing, adjusting entries and financial statements– Service business only

BAI3E - Decision Making, Ethics, and Careers

• How is information used to make decisions, e.g. by managers

• Identify costs beyond our control, e.g., taxes, minimum wage

• Ethics related to a small business– Handling of cash, hiring relatives– Consequences, e.g., job loss, fines– Investigate code of ethics

• Investigate a variety of accounting careers, e.g., accounting clerks, payroll, etc.

BAN4E – Accounting for a Small Business

Original:1. The Service and

Merchandising Businesses

2. Accounting Practices3. The GST, Retail Sales

Taxes, and Cash-Flow Statements

4. Financial Analysis and Accounting Careers

Revised:1. Service and

Merchandising Businesses

2. Accounting Practices3. Plant & Equipment,

Payroll, and Income Taxes

4. Ethics and Decision Making

STRANDS

BAN4E - Service and Merchandising Businesses

• Complete accounting cycle for a service business using accounting software

• Timing for taking inventory and safeguarding inventory

• Complete manual cycle for merchandising using periodic and perpetual systems

• Repeat using accounting software

BAN4E - Accounting Practices

• Procedures for A/R and A/P sub ledgers

• Use multi-column journal

• Use multi-journal system

BAN4E - Plant & Equipment, Payroll, and Income Taxes

• Calculate cost of an fixed asset• Record depreciation• Methods of paying employees, e.g., hourly wage,

salary, piecework, etc.• Record payroll transactions using accounting

software• Prepare personal income tax return using software• Prepare a small business tax return

BAN4E - Ethics and Decision Making

• Ethical challenges for a small business, e.g., not reporting revenue, manipulating inventory, etc.

• Report on a current issue• Compare budgeted and actual data to evaluate

performance• Create a simple cash budget• Relate need for accounting personnel to an

expanding business, e.g., specialization versus one person

• Summarize steps to incorporate a business

Resources

• Ethics Case Studieshttp://ba.gsia.cmu.edu/ethics/AA/arthurandersen.htm

• Misleading Annual Reports

http://www.canadianbusiness.com/markets/stocks/article.jsp?content=20050314_66053_66053

• Capital Cost Allowancehttp://www.cra-arc.gc.ca/E/pub/tp/it128r/it128r-e.html

• BAT4M Files (can be used for other courses also)http://samsa.biz/BAT4M/