Course Description

Apply generally accepted accounting principles to account for significant influence investments, prepare consolidated financial statements, record foreign currency transactions, translate foreign currency financial statements and not for profit accounting.

Vocational Learning Outcomes

This course provides the opportunity for you to achieve the following outcomes:

364 - Business Admin - Accounting

VLO 1 Record financial transactions in compliance with Canadian Generally Accepted Accounting Principles for sole proprietorships, partnerships, private enterprises, publicly accountable enterprises and non-profit organizations. (T, A)
VLO 2 Prepare and present financial statements, reports and other documents in compliance with Canadian Generally Accepted Accounting Principles for sole proprietorships, partnerships and private enterprises. (T, A)
VLO 8 Contribute to strategic decision-making by applying advanced financial management concepts. (T, A)
Assessment Levels —T: Taught A: Assessed R: Reinforced 

Essential Employability Skills

This course contributes to your program by helping you achieve the following Essential Employability Skills:

EES 1 Communicate clearly, concisely and correctly in the written, spoken and visual form that fulfills the purpose and meets the needs of the audience. (T, A)
EES 3 Execute mathematical operations accurately. (T, A)
EES 4 Apply a systematic approach to solve problems. (T, A)
EES 5 Use a variety of thinking skills to anticipate and solve problems. (T, A)
EES 10 Manage the use of time and other resources to complete projects. (T, A)
Assessment Levels —T: Taught A: Assessed R: Reinforced 

Course Learning Outcomes / Elements of Performance

When you have earned credit for this course, you will have demonstrated the ability to:

1. Examine the accounting standard setting environment and its impact on accounting information

  • Identify standard setting bodies and their role in shaping accounting practice
  • Describe the structure of the CPA Handbook and its role in providing guidance and explanation for transactions encountered by corporate entities
  • Identify major differences between IFRS and ASPE standards
  • Describe how accounting standards in Canada are tailored to different organization types

2. Examine methods of recording and reporting investments in equity securities when there exists significant influence and control

  • Distinguish the accounting reporting practices for strategic and non-strategic investments in the outstanding voting shares of another company
  • Record controlled strategic investments using the equity method
  • Prepare entries to record a business combination through a purchase of its net assets and purchase of its outstanding voting shares
  • Explain the concepts of negative goodwill and a subsidiary with goodwill on its separate entity statements and how it should be treated when it arises in a business combination
  • Prepare the consolidation eliminating entries when there exists ownership of 100% or less of the subsidiary company
  • Prepare consolidated statement of changes in equity, statement of comprehensive income and statement of financial position (balance sheet) under the fair value enterprise (FVE) method and identifiable net asset (INA) methods.
  • Analyze financial statements to assess the accounting impact of different accounting methods on key financial ratios

3. Record foreign currency transactions and balances in domestic currency in accordance with Generally Accepted Accounting Principles

  • Translate foreign currency transactions and balances into the functional currency.
  • Describe the concept and methods of hedging against foreign currency risk.
  • Prepare journal entries for forward contracts under both the net method and gross method when hedging existing monetary positions.
  • Prepare the partial balance sheet for forward exchange contracts that hedge existing monetary positions.

4. Prepare translated statement of comprehensive income and statement of financial position (balance sheet) in the domestic currency in accordance with Generally Accepted Accounting Principles

  • Explain the difference between economic exposure and accounting exposure caused by fluctuations in foreign exchange rates
  • Differentiate the functional currency and the presentation currency for a foreign operation
  • Describe the two methods of translating foreign financial statements:  functional currency translation (FCT) method and presentation currency translation (PCT) method
  • Explain the indicators for evaluating a foreign operation for the purpose of choosing a foreign currency translation method.
  • Calculate the foreign exchange gain or loss under each of FCT and PCT.
  • Prepare translated financial statements of a foreign operation using the FCT method and PCT method.

5. Explain not for profit (NFP) and government reporting practices in accordance with the CPA Handbook requirements

  • Distinguish NFP’s from profit-oriented organizations
  • Identify similarities and differences in objectives and financial statement reporting for a not for profit (NFP) organization and profit-oriented organization.
  • Explain the accounting and reporting practices unique to NFPs currently mandated in the CPA Canada Handbook
  • Distinguish the three types of contributions received by an NFP: restricted funds, endowment finds and unrestricted funds
  • Discuss current trends in government and NFP reporting and their impact on financial reporting

Pre-defined Evaluation / Earning Credit

The following list provides evidence of this course's learning achievements and the outcomes they validate:

Final Exam (25%)

Validates Outcomes:  CLO 1, CLO 2, CLO 3, CLO 4, CLO 5, EES 1, EES 3, EES 4, EES 5

    364  :   VLO 1, VLO 2, VLO 8

Quiz(zes) (23%)

Validates Outcomes:  CLO 1, CLO 2, CLO 3, CLO 4, CLO 5, EES 1, EES 3, EES 4, EES 5, EES 10

    364  :   VLO 1, VLO 2, VLO 8

Midterm Exam(s) (20%)

Validates Outcomes:  CLO 1, CLO 2, EES 1, EES 3, EES 4, EES 5

    364  :   VLO 1, VLO 2, VLO 8

Assignment(s) (32%)

Validates Outcomes:  CLO 1, CLO 2, CLO 3, CLO 4, CLO 5, EES 1, EES 4, EES 5, EES 10

    364  :   VLO 1, VLO 2, VLO 8

Experiential Learning

This course currently has no Experiential Learning

Learning Resources

a) Course Text with CONNECT access: 

Modern Advanced Accounting in Canada, 10th Edition


By Darrell Herauf, Chima Mbagwu, Kevin Veenstra

© 2022 | McGraw-Hill Publishers


CONNECT electronic access with ebook or with Print Copy Textbook


b) CPA Handbook Recommended 

http://ezproxy.mohawkcollege.ca/login?url=http://edu.knotia.ca/Knowledge/Home.aspx?productID=1


c) Texas Instrument BA II PLUS (no substitutes)

Delivery Format

This course is delivered 5 hours per week in a combination of face to face and online work. Details will be provided at start of semester and on MyCanvas.

Prior Learning Assessment and Recognition

Students who wish to apply for Prior Learning Assessment and Recognition (PLAR) need to demonstrate competency at a post-secondary level in all outlined course learning outcomes. Evidence of learning achievement for PLAR candidates includes:

  • Challenge Exam

Course Related Information

1) Unless otherwise noted, all assignment, drop box, discussion and quiz deadlines are 11:59:00 PM Toronto, Ontario time zone


2) Missed assessments cannot be made up at a later date; No late submissions on any assessment allowed


3) All students must adhere to College student behaviour, student rights and responsibilities, student services and overall academic operation policies as applicable.



See learning plan for these and other course specific information.

Program Information

College Related Information

Mohawk College is committed to creating a learning community where all students and staff experience a safe and respectful work and study environment. College policies and procedures respect individual rights and responsibilities, promote accountability, fairness and due process. Students are expected to familiarize themselves with Mohawk College's Policies and Procedures accessible through the College website https://www.mohawkcollege.ca/about-mohawk/leadership-and-administration/policies.


Mohawk College is committed to the implementation of Universal Design for Learning (UDL) in support of equity, inclusion and accessibility, as well as providing compliance elements for the Accessibility for Ontarians with Disabilities Act within the college community. Mohawk College courses will employ UDL principles and/or initiatives. For more information on the specific UDL elements included in this course, contact the educator. For more information review the UDL webpage at https://www.mohawkcollege.ca/centre-for-teaching-learning-innovation/teaching-effectively/universal-design-for-learning.


Students with permanent or temporary disabilities who require academic accommodations are encouraged to register with Accessible Learning Services (ALS). Documentation outlining the functional limitations of disability is required; however, interim accommodations pending receipt of appropriate documentation is possible. All documentation is kept confidential in the office of ALS. For more information review the ALS webpage at https://www.mohawkcollege.ca/accessible-learning-services, or contact ALS at als@mohawkcollege.ca or 905-575-2122. To learn more about UDL and accommodations review https://www.mohawkcollege.ca/accessible-learning-services/accommodations/accommodation-guides/communicating-use-of-accommodations-when-using-udl.


Students enrolled in Mohawk/McMaster collaborative programs are protected under McMaster University's policies and procedures outlined in General Academic Regulations, McMaster Undergraduate Calendar, and in McMaster's Academic Integrity Policy http://www.mcmaster.ca/academicintegrity/. Please be advised that all policies and procedures are subject to change.


This course may use online proctoring software for assessment(s) to uphold academic quality and maintain academic integrity where deemed required by the academic area. Additional information will be provided by the educator, in MyCanvas, if a remote proctoring tool is being used. Refer to Mohawk College’s Student Online Proctoring Guide to learn more at https://ats.mohawkcollege.ca/hc/en-ca/articles/30869042051220-Online-Proctoring-Guide. In addition, to maintain academic integrity student submissions may be assessed using Turnitin. To learn more review https://www.turnitin.com/. 


A minimum grade of 50% is required as a course pass at Mohawk College. Please be aware, that a higher passing grade (minimum 60% or 70%) may be required if this course is taken as part of certain diploma or certificate programs. Consult the academic department for details. Additionally, if you are taking this course as part of a diploma or certificate program, be aware that you need an overall weighted grade point average (WGPA) of at least 60% to graduate. Graduation requirements are higher for some programs. Please check requirements with your department. For more information on program promotion and graduation requirements review https://www.mohawkcollege.ca/registration-and-records/grading-evaluation/grading-system.


Educators are required to review Emergency Lockdown procedures and Emergency Evacuation Procedures, including Evacuation and Lockdown procedures for students with disabilities, at the start of every course and each semester. Additional information is provided to educators in the College Emergency Safety and Security Procedures Booklet or online through Human Resources within MyMohawk.