Introduction to Financial Accounting

MGCR 211 Fall 2017

Instructor: Dr. Hongping Tan

Objective: This course is an introduction to the role of financial

accounting in the reporting of the financial performance of a
business. It examines the principles, components and uses of
financial accounting and reporting from a user’s perspective
but also from a preparer's perspective (albeit limited),
including the recording of accounting transactions and
events, the examination of the elements of financial
statements, the preparation of the financial statements and
the analysis of financial results.

The course will allow you to come away with the tools to
interpret financial information in your future roles as
managers, investors, or other users of financial information.

You should leave this course with the knowledge of what

information is conveyed by the financial statements and what
the financial statement elements mean.

Accounting is much more than bookkeeping. It is an exciting

discipline where the “answer” depends on many different
factors. We hope that you enjoy the challenge of
understanding and using financial information/statements.

Learning outcomes: After completing this course, the participants will be able to:

1. Read and interpret financial statements for a

corporation;
2. Determine the strengths and weaknesses of the
accounting information provided for decision making;
3. Detect instances where earnings may have been
managed by preparers;
4. Identify sources of alternate information, when
necessary;
5. Analyse financial statements, while considering for
known biases introduced in accounting numbers under
Generally Accepted Accounting Principles, for several
basic financial statement items.
6. Use accounting information in his/her future
professional life.

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Professor: Dr. Hongping Tan
Office: Bronfman 472
Telephone: (514) 398-4013
Email: hongping.tan@mcgill.ca

Course Coordinator: Ralph Cecere, CPA CA

Office: 464
Telephone: (514) 398-4983
Email: ralph.cecere@mcgill.ca

Office Hours: 3:30-5:30pm on Tue and Thu

Or by appointment

Tutorials: Available on Fridays, TBA

Required Text: Financial accounting: Tools for Business Decision-Making;

Seventh Canadian edition, Kimmel + WileyPlus;

Note: Students may purchase the hardcover version of the customized textbook new
from the bookstore (ISBN: 9781119465904) for $149.95 or opt for the digital set (ISBN:
9781119466697) for $120. A 'First Day of Class' one pager is available with textbook
purchase instructions. Additional support material (such as the PowerPoint slides) and
additional reading material will be provided by the instructor via the MyCourses site.
Solutions to selected practice exercises and the cases will also be provided. There is no
prior 'used book' market available for this textbook as it is the first semester of use.

Class notes and material will be uploaded on MyCourses. See

http://www.mcgill.ca/mycourses/ to log on.

Grading: Case Assignment 1 (due Oct. 19) 5%

Case Assignment 2 (due Nov. 28) 5%
Case Assignment 3 (due Dec. 6) 10%
Mid-term Exam 30%
Final Exam 50%
100%

The mid-term exam will be written on Friday, November 3, 2017 from 12:00pm to
2:00pm in a location TBA. Students should advise their professor (as soon as possible)
if they have a conflict with the midterm date or time. A separate room will be
available for those students who have received approval to write at another time on
the day of the mid-term.

The case assignments are to be completed by the same teams of 4 or 5 students. All
assignments will be delivered via the MyCourses website or assigned from the Textbook.
See your course outline for due dates. All assignments must be typed, with a clear top
page indicating the student names and student numbers; please use a font equivalent
to Arial 11 or Times New Roman 12, with line spacing of 1.5, and normal margin.
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Note: In the event of extraordinary circumstances beyond the University’s
control, the content and/or evaluation scheme in this course is subject to
change.

If you have a disability please contact the instructor to arrange a time to discuss your
situation. It would be helpful if you contact the Office for Students with Disabilities
at 514-398-6009 before you do this.

Missed Examination (Time conflict):

Students who miss the midterm exam or have a time conflict

must provide justification to their course instructor (within 5
days for a missed exam). If students have valid reasons, we will
first try to schedule the exam at an alternate time. If this is
not possible, the weight of the mid-term exam will be
transferred to that of the final exam.

Students who miss the final exam must consult the Bcom office
(or other appropriate program office if you are not from the
Desautels Faculty of Management) on the appropriate procedure
to follow. Final exams are centrally administered. You should
also notify your instructor to make them aware of the situation
and of the course of action proposed by the service in charge.

Communication: Official means of communication from lecturer to students will

be via McGill e-mail account or via MyCourses. It is the
student’s responsibility to check their McGill e-mail on a regular
basis. For more information, please refer to McGill’s policy on
e-mail communications with students at
http://www.mcgill.ca/files/secretariat/E-mail-
Communications-with-Students-Policy-on.pdf

Language: In accordance with McGill University’s Charter of Students’

Rights, students in this course have the right to submit in
English or in French any written work that is to be graded.

Academic Integrity: McGill University values academic integrity. Therefore all

students must understand the meaning and consequences of
cheating, plagiarism and other academic offences under the
Code of Student Conduct and Disciplinary Procedures (see
www.mcgill.ca/students/srr/honest/ for more information).

Final exam date and location TBA.

The final exam material is cumulative.

Note: Suggested textbook problems will be provided via MyCourses. You are
encouraged to complete these as the course material is being delivered.
Solutions to the suggested problems will be available on MYCOURSES. Some of
these problems may also be used by your instructor for class discussion.
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 Course schedule
Dates Required Readings/Cases Description
Introduction, course outline and
T, Sep. 05 Introduction
administrative matters
The Purpose and Use of
H, Sep. 07 Chapter 1
Financial Statements
T, Sep. 12 Case Review: Gamma Systems
A Further Look at Financial
H, Sep. 14 Chapter 2
Statements
T, Sep. 19 Case Review: Credit Decisions and the Balance Sheet
The Accounting Information
H, Sep. 21 Chapter 3
System
T, Sep. 26
H, Sep. 28 Chapter 4 Accrual Accounting Concepts
T, Oct. 03
H, Oct. 05 Class Notes provided by Instructor Revenue Recognition
T, Oct. 10 Chapter 5 Merchandising Operations
H, Oct. 12
Reporting and Analyzing
T, Oct. 17 Chapter 6
Inventory
Assignment 1 Due: Complete 'Sky Watchers Ltd.' case
H, Oct. 19
from Wiley
T, Oct. 24 Chapter 7 Internal Control and Cash
H, Oct. 26
Reporting and Analyzing
T, Oct. 31 Chapter 8
Receivables
H, Nov. 02
Mid-term will cover Chapters 1-6 inclusively and Revenue
Friday, Nov.03
Recognition
Reporting and Analyzing Long-
T, Nov. 07 Chapter 9
Lived Assets
H, Nov. 09 Case Review: Barrie Trucking
Reporting and Analyzing
T, Nov. 14 Chapter 10 (exclude Appendix 10A)
Liabilities
Reporting and Analyzing
H, Nov. 16 Chapter 11
Shareholders’ Equity
Case Review: Equity Investments and the Income Statement
T, Nov. 21 Chapter 13 Statement of Cash Flows
H, Nov. 23
Assignment 2 Due: Complete ' Georgian Brick and Cement
Company' case from Wiley
Performance Measurement and
T, Nov. 28
Earnings Management
H, Nov. 30 Chapter 14 +
Additional reading material provided by instructor
This is not an
official class Assignment 3 Due on Dec. 6: Complete the 'Diamonds Ski
date and Cottage Rentals' from Wiley