Curriculum Review

1. Curriculum Review Business Studies: Accounting

2. 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

3. 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

4. BAF3M Financial Accounting Fundamentals Original: • The Objectives of Accounting • Accounting Fundamentals • Financial Analysis, Control, and Decision Making STRANDS Revised: • Accounting Fundamentals • Accounting Practices • Internal Control, Financial Analysis, and Decision Making • Ethics, Impact of Technology, and Careers

5. 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

6. 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

7. 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

8. 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

9. BAT4MFinancial Accounting Principles STRANDS Original: • The Accounting Cycle • Advanced Accounting Practices for Assets • Financing • Financial Analysis and Decision Making Revised: • The Accounting Cycle • Accounting Practices for Assets • Partnerships and Corporations • Financial Analysis and Decision Making

10. 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

11. 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

12. 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

13. 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!

14. BAI3E – Accounting Essentials STRANDS Original: • The World Accounting Cycle • The Accounting Cycle • Cash Management in a Service Business • The Use of Accounting Information in Decision Making Revised: • Fundamentals of Accounting for Business • The Accounting Cycle • Internal Control, Banking and Computerized Accounting • Decision Making, Ethics, and Careers

15. 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

16. 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

17. 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

18. 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.

19. BAN4E – Accounting for a Small Business STRANDS Original: • The Service and Merchandising Businesses • Accounting Practices • The GST, Retail Sales Taxes, and Cash-Flow Statements • Financial Analysis and Accounting Careers Revised: • Service and Merchandising Businesses • Accounting Practices • Plant & Equipment, Payroll, and Income Taxes • Ethics and Decision Making

20. 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

21. BAN4E - Accounting Practices • Procedures for A/R and A/P sub ledgers • Use multi-column journal • Use multi-journal system

22. 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

23. 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

24. 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 Allowance http://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/