BAT4M Financial Accounting Fundamentals
Ministry of Education Course Title: Accounting, Grade 12, Academic
Course Code: BAT4M
Grade Level: 12
This course introduces students to the advanced accounting principles that will prepare them for post secondary studies in business. Students will learn about financial statements for various forms of business ownership and how those statements are interpreted. Students will expand knowledge of sources of financial information, further develop accounting methods for assets and introduce accounting for partnerships and corporations.
Overall Curriculum Expectation - all units are interrelated
Unit 1 The Accounting Cycle
- Students are introduced to the financial reporting process, including the roles played by financial statements, generally accepted accounting principles, independent audits, and professional judgement. Students describe the information contained in the financial statements of a business and prepare simple financial statements for a sole-proprietorship, a partnership, and a corporation. They perform the journalizing process as part of the accounting cycle and indicate the effects of transactions on the elements of an accounting equation. Merchandising activities, accounting systems, internal control, and audits are examined.
Unit 2 Advanced Accounting Practices for Assets
- In this unit, students focus on the accounting procedures for short-term assets, with an emphasis on internal control, the nature of accounts receivable and notes receivable, and the accounting principles relating to the acquisition, use, and disposal of capital assets. The elements of depreciation methods used for plant and equipment are studied in depth, as well as the accounting for intangible assets and for natural resources. The different methods of allocating the costs of purchased merchandise between inventory and the cost of goods sold, including the valuation of inventory, are covered, as well as the taking of a physical inventory and the methods for estimating the cost of goods sold.
Unit 3 Financing
- Students examine the financing of a partnership and a corporation. Both debt and equity financing together with their respective advantages and disadvantages are discussed. The corporate life cycle (partnership, to private corporation, to public corporation) is analysed.
Unit 4 Financial Analysis/Decision Making and Understanding Annual Reports
- Students explore the annual reports of various Canadian corporations. Students gain insights into the purpose and need of annual reports and how and why annual reports have a specific format. Students have the opportunity to assess strengths and weaknesses of corporations by analysing their financial status using accounting information in decision making.
Unit 5 Societal and Technological Issues in Accounting
- In this unit, students understand and apply the concept of professional judgement and the rules of professional conduct. Scenario analysis is effective in studying potential abuses of accounting data (preparation, interpretation, and opinion), internal control weaknesses, and implications of global competition. Students use current technology to evaluate alternative ethical mutual funds.