Expanded Syllabus AC511

University of San CarlosSchool of Business and Economics

Department of Accountancy

SYLLABUS

Course No. : AC 511

Course Title : Advanced Financial Accounting and Reporting Part I

Credit : 3 units (lecture)

Prerequisite Courses : AC 506: Financial Accounting and Reporting Part II

Revised : by Marvic John M. Leyson Revised 2nd semester, AY: 2011 – 2012

Overview of the Course

This course deals with special contemporary accounting issues in the practice of accountancy. It includes the proper application of contemporary accounting techniques and methodology to advanced accounting problems and situations like branch and home office relationship. This course also discusses the principles and procedures in accounting for installment and consignment sales, construction contracts, corporate liquidation, joint ventures and insurance contracts.

This course is designed to provide the student with conceptual knowledge of financial accounting for business enterprises. It covers discussions on financial reporting, and disclosures in conformity with Philippine Accounting Standards (PAS), Philippine Financial Reporting Standards (PFRS), and International Financial Reporting Standards (IFRS).

Course Description

This course is the first part of advanced accounting. It discusses advanced accounting principles applicable to special problems encountered by business entities and accounting practitioners as well. It also covers the basic principles and concepts underlying income recognition and measurement. Greater in-depth understanding and higher level of analytical and critical thinking are required compared to the fundamental and intermediate accounting courses.

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General Objectives

During the semester, the students are expected to:

1. understand the fundamental principles, concepts, and theories associated with business operations involving home office and branch, installment sales, franchise, and long-term construction contracts;

2. familiarize with the basic concepts and underlying principles involved in accounting for joint ventures, fire insurance and build-operate-transfer scheme;

3. demonstrate the competencies required in the practice of the accountancy as a competent and socially responsible professionals; and

4. recognize the issues and developments in the practice of accountancy relevant to the needs of the local, national, and global communities in a rapidly changing world.

Classroom Management

1. Attendance is a MUST. Attendance in all classes is required. Being present in class means that you attend each class, and come prepared having read the chapters and the exercises or cases that are assigned for that class. There are 54 sessions/hours in this course and you may incur only seven(7) absences for MW schedules or seven (7) absences for TTH schedules. Otherwise, you will automatically be dropped from class and receive a grade of either NC (No Credit) or a failing grade of 5.0 whichever is applicable.

2. Readmission. Students who incur three consecutive (3) absences will be asked by the instructor to see the Department Chair to secure permission to be re-admitted to class. A re-admission slip should be properly accomplished for this purpose.

3. Tardiness is discouraged. Make sure that you come on time, as it becomes a source of irritation for the members of the class and the professor when students come late. As a policy for this class, you will be considered late if you come to class after 15 minutes of the time, three instances of tardiness whether incurred consecutive or not is considered one absence. Learn to be professionals; respect for other people’s time is a principle that should be valued.

4. Seat Plan. A permanent seat plan will be made at the start of the semester. You are advised to keep to your assigned seating arrangement; otherwise, you will be marked absent for that day.

5. Prayer. Classes should always start and end with a short prayer. The instructor can opt to lead the prayer or assign students to do this alternatively.

6. Classroom Management. Students should assist in maintaining the orderliness and cleanliness of the classrooms. Graffiti writing is strictly prohibited. Any student found violating this rule will be punished with the appropriate sanction. Before leaving the classroom, the instructor with the help of the students, should ensure that no litter/garbage is left behind and that chairs are in their proper order. Should the class be the last schedule for the day, the instructor should arrange that the lights and air conditioning units are switched off.

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7. Mobile Phones. Use of mobile phones inside the classroom is strictly prohibited. Switch them off or place them under silent mode before entering your classes. The instructor has the right to confiscate mobile phones that rings and/or is used during class hours. The confiscated unit can only be claimed in the Dean’s office at the end of the semester.

8. Eating and Drinking. Food and drinks are not allowed inside the classroom and in the corridors. It is your responsibility to properly schedule your classes so that meals and snacks can be taken at its proper time.

9. Consultation Hours. Students are encouraged to see the instructor during consultation hours for any concerns, questions and assistance with regards to the course. Instructors should ensure that they are available on these hours and at the agreed location.

10. Submissions. Timely submission of written requirements will be strictly followed. Just like when you submit a report to the Bureau of Internal Revenue (BIR), BIR would charge you “penalty.” The penalty is collected not for the purpose of making money; it is meant to discourage late submission of reports. It is also the same in this class. The penalty for late submission of reports is “non-acceptance”’

11. Library Hours. Maximize the use of the library resources. The library hours are: Monday to Saturday 7:30 a.m. to 8:00 p.m.

12. Enjoy every moment of the class. Lastly, learning should be fun and exciting. Enjoy your classes! It will be such a tragedy if you will be miserable in the class. Participate so you get the most of this course.

Suggested Learning Experiences Course Requirements Grading System

1. Lecture-Discussion 1. Regular Attendance Midterms: 2. Practice Tests Tests/Quizzes - 1/33. Individual Assignments 2. Active Class Participation Other Requirements - 1/34. Problem Solving Exercises Midterm Examination - 1/35. Pretests 3. Passing Grades6. Unit Tests and Quizzes Finals:7. Seatworks 4. Completion & Submission Midterm Grade - 1/38. Boardwork of Seatworks and Assignments Class Standing after

Midterm - 1/35. Right attitude toward course Final Examination - 1/3

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For purposes of transmutation, the course will use the following grade equivalent (at 50% passing):

Raw ScoreGrade

Equivalent Raw ScoreGrade

Equivalent100 1.0 73 74 2.198 99 1.1 70 72 2.295 97 1.2 68 69 2.393 94 1.3 65 67 2.490 92 1.4 63 64 2.588 89 1.5 60 62 2.685 87 1.6 56 59 2.783 84 1.7 55 57 2.880 82 1.8 53 54 2.978 79 1.9 50 52 3.075 77 2.0 Below 50 5.0

Specific Objectives Contents Mode of Delivery / Learning Activities and Resources

Assessment Scheme

WEEK 1 = 3 hours

Orientation

1. Introduction of the members of the class2. Setting of expectations3. Discussion of classroom rules and policies4. Revisit Vision and Mission Statements of the

University of San Carlos5. Checking of admission slips6. Setting of seat plan7. Grouping of students 8. Course Introduction:

Distribution and presentation of the course

A. IntroductionB. USC Vision-MissionC. Course DescriptionD. Course ObjectivesE. Course RequirementsF. Alternative ActivitiesG. Grading SystemH. House Rules

Group dynamics

Interaction

Leveling expectations

Hand-outs, notes

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syllabus. Discussion of the content of the syllabus for

the purpose of clarification. Explore course structure, sequencing of

subject matter. Discussion on the course requirements and

grading.

Unit I Accounting for Agency Transactions At the end of the chapter, students should be able to:1. Contrast between a sales agency and a

branch.2. Account for sales agency when agency net

income is: determined separately not determined separately

A. Sales Agencies Introduction of Concepts Accounting Process Journal Entries Determination of Agency Net

Income Lecture-discussion

Boardworks

Problem Solving Exercises

Pre-tests

Class Participation

Assignments

Seatworks

Practice Tests

WEEK 2 and 3 = 6 hours

Unit II Accounting for Branch Operations

At the end of the chapter, students should be able to:1. Record transactions between the home office

and the branch.2. Prepare separate financial statements of the

branch and home office.3. Prepare combined financial statements for

home office and branch.4. Reconcile home office and branch accounts

(reciprocal accounts).

B. Branches Introduction of Concepts Accounting Process Journal Entries Separate Financial Statements Combined Financial Statements Reconciliation of Reciprocal

Accounts

Lecture-discussion

Boardworks


Accounting Case: Why Compa-nies Have Agencies and Bran-ches

Pre-tests

Class Participation

Assignments

Seatworks

Practice Tests

Unit Tests

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WEEK 4, 5 and 6 = 9 hours

Unit III Special Problems in Home Office and Branch Accounting

At the end of the chapter, students should be able to:1. Record the transactions involving shipments of

merchandise billed above costs from the home office to branch.

2. Prepare entries to record the inter branch transfer of cash and merchandise

3. Determine the branch true net income or loss4. Develop a working paper for consolidation of

accounts of the home office and branch.5. To prepare the combined income statement

and statement of financial position for home office and branch

A. Special Problems Interbranch transactions

involving transfer of cash and merchandise

Branch billing at amounts otherthan cost

Freight costs on shipments Branch expense allocation Branch true income Combined income statement

Lecture-discussion

Boardworks


Accounting Case: How the Home Office and Branches Work Together

Pre-tests

Class Participation

Assignments

Seatworks

Practice Tests

Unit Tests

WEEK 7, 8 and 9 = 9 hours

Unit IV Accounting for Installment Sales

At the end of the chapter, the students will be able to:1. Discuss and explain the nature, characteristics

and operations of installment sales.2. Explain and apply the methods of recognizing

gross profit on installment sales.3. Apply the accounting procedures governing

installment sales for: Sale of personal property Sale of real estate property Trade-ins

A. Nature and Characteristics Introduction of Concepts Accounting Process Journal Entries

B. Gross Profit ComputationC. Accounting Procedures

Sale of personal property Sale of real estate property Trade-ins Repossessions Interest computation using

Lecture-discussion

Boardworks


Accounting Case: Companies using Installment Sales Method (e.g. Appliance Stores)

Pre-tests

Class Participation

Assignments

Seatworks

Practice Tests

Unit Tests

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Repossessions Interest computation using annuity

method4. Prepare the financial statements of entities

whose activities involved in selling items on installment

annuityMethod

D. Financial Statement Preparation

WEEK 10 MIDTERM EXAMINATIONS

WEEK 11 = 3 hours

Unit V Accounting for Consignment Sales

At the end of the chapter, the student will be able to:1. Discuss and explain the nature, characteristics

and operation of consignment sales.2. Identify and calculate for consigned goods in

the books of the: Consignor Consignee

3. Determine consignment income under: Completed consignment Uncompleted consignment

4. Prepare financial statements from the viewpoint of the consignor.

A. Nature and Characteristics Introduction of Concepts Consignor and Consignee Accounting Process under both

Consignee and Consignor’s books Journal Entries under both

Consignee and Consignor’s booksB. Determination of Consignment Income

Completed consignment Uncompleted consignment

C. Financial Statement Preparation under viewpoint of Consignor

Lecture-discussion

Boardworks


Accounting Case: How Consign-ment Works

Pre-tests

Class Participation

Assignments

Seatworks

Practice Tests

Unit Tests

Week 12 and 13 = 6 hours

Unit VI Accounting for Long Term Construction Contracts

At the end of the chapter, the student will be able to:1. Discuss and explain the nature, characteristics


Lecture-discussion

Boardworks

Pre-tests

Class Participation

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and operation of long term construction contracts.

2. Determine the gross profit on long term construction contracts using: Percentage of completion method Cost recovery or zero-profit method

3. Account for long term construction contracts for revision of estimate and change order

B. Accounting Methods Percentage of completion

method Cost recovery or zero-profit

method Gross Profit Method

C. Accounting Procedures Revision of estimates Change order


Accounting Case: What Method Do Construction Companies Commonly Use?

Assignments

Seatworks

Practice Tests

Unit Tests


Unit VII Accounting for Financially Distressed Corporations

At the end of the chapter, the students would be able to:

1. Discuss and explain the terms, nature and characteristics of insolvency.

2. Enumerate and explain the remedies available for relief of debtor.

3. Understand the concepts behind and compute for the rates of estimated payment and deficiency to unsecured creditors.

4. Prepare the statement of affairs.5. Prepare the statement of realization and

liquidation.6. Explain the nature and importance of the

statement of affairs.7. Familiarize the nature and content of the

statement of affairs8. Prepare the statement of affair using the

conventional and the alternative forms and the deficiency statement

A. Insolvency/Bankruptcy Defined and Differentiated Voluntary vs. Involuntary Secured vs. Unsecured Creditors Assignee, Trustee, Receiver Proceedings

B. Remedies Available for Relief of Debtor Equity Insolvency Bankruptcy Insolvency

C. Statement of Affairs Nature, Purpose and Importance Form and Content Computation of Amount

Available,Rate of Estimated Payment and Deficiency to unsecured Creditors

Preparation of the Statement ofAffairs and the Supporting Deficiency Statement

D. Statement of Realization and Liquidation Nature, Purpose and Importance

Lecture-discussion

Boardworks


Accounting Case: Corporate Rehabilitation in the Philippines

Class Participation

Assignments

Seatworks

Practice Tests

Unit Tests

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Form and Content Analysis of Transactions and its

Effect on the Statement Preparation of the statement of

realization and liquidation

WEEK 16 = 3 hours

Unit VIII Commercial Franchise Operations (Point of View of Franchisor)

At the end of the chapter, the students would be able to:

1. Discuss and explain the nature, characteristics and operation of franchises.

2. Explain and apply the methods of recognizing franchise revenue under: Accrual basis Installment basis

3. Determine the initial franchise fees and continuing franchise fees.

4. Compute net income earned by the franchisor.


B. Methods of Recognizing Franchise Revenue Accrual basis Installment basis

C. Accounting Procedures Initial Franchise Fees Continuing Franchise Fees

D. Determination of Franchisor Net Income

Lecture-discussion

Boardworks


Accounting Case: Common Philippine Franchises

Accounting Case: How Fran-chises Work

Class Participation

Assignments

Seatworks

Practice Tests

Unit Tests


Unit IX Joint Venture and Associated Enterprises and Fire Insurance

At the end of the chapter, the students would be able to:1. Discuss and explain the nature, characteristics

and operation of joint venture and associated enterprises.

A. Joint Ventures Introduction of Concepts Accounting Process Journal Entries Financial Reporting of Interests

Lecture-discussion

Boardworks


Class Participation

Assignments

Seatworks

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2. Record the different transactions under joint ventures.

3. Explain the financial reporting of interests in joint venture.

4. Discuss and explain the nature, characteristics and operation of insurance contracts.

5. Account for fire insurance (point of view of insurer) and record the transactions under insurance contracts.

6. Compute income under insurance contracts.

B. Fire Insurance Contracts (Point of View of Insurer) Introduction of Concepts Accounting Process Journal Entries Measurement of Income

Accounting Case: Joint Ventures in the Philippines

Accounting Case: How Fire Insurance Companies Work

Practice Tests

Unit Tests

WEEK 19 FINAL EXAMINATIONS

TOTAL = 54 HOURS

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REFERENCES

A. BOOKS

Textbook: Guerero, P., Peralta, J., Advanced Accounting. Volume One. 2008 edition, GIC Enterprises and Co., Inc, C2008

Guerero, P., Peralta, J., Advanced Accounting. Volume Two. 2008 edition, GIC Enterprises and Co., Inc, C2008

References: Skousen, K. F., Stice E. K. Stice, J. D., Intermediate Accounting. 15th edition, South-Western College Publishing, C2004.

Statement of Financial Accounting Standard. Compiled by the Accounting Standards Council, PICPA.

Kinnel, Kieso & Weygandt, Financial Accounting. 3rd edition, John Wiley and Sons, Inc., C2004.

Valix & Peralta, Financial Accounting. 2000 edition.

Epstein B. J., Mirza., International Accounting Standards. C2001.

B. WEBSITES

http://skousen.swcollege.com Bank for International Settlements

http://skousen.swcollege.com Intermediate Accounting, Skousen:

http://www.wiley.com/college/kieso Intermediate Accounting, Kieso & Weygandt:

http://www.wiley.com/gaap International Accounting Standard, John Wiley & Sons:

http://www.booksites.net/benedict Practical Accounting:

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http://www.booksites.net/benedict

http://www.wiley.com/gaap

http://www.wiley.com/college/kieso

http://skousen.swcollege.com/

http://skousen.swcollege.com/

http://www.rutgers/edu/accounting/raw/fasb Financial Accounting Standards Board

http://www.ifac.org International Federation of Accountants

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http://www.ifac.org/

http://www.rutgers/edu/accounting/raw/fasb

RUBRIC

CRITERIA KNOWLEDGE SKILLS ATTITUDES and VALUES

Individual Performance 30 pts shares readings, explains, expounds reasoning, justifying, demonstrating, responding diligence, patience, perseverance

Group Involvement 20 pts contributes ideas, communicates, listens relating, agreeing, sharing, deciding, collating tolerance, consideration, kindness

Class Commitment 20 pts consults, discusses, decides, relates listening, conferring, associating, synthesizing openness, dedication, objectivity

Practical Implications 30 pts plans, implements, evaluates, improves forecasting, articulating, applying, modifying persistence, determination, optimism

Presentation Rubric

Attributes Above Standard At Standard Attribute Still a Goal Attribute

Points Earned

(5-4.5) (4.5-3.5) (3.5-0)

Resource Utilization

Utilized all resources described on Information Sheet to acquire info; incorporated info

information presentation and Web page.

Utilized some resources described on Information Sheet to acquire info; incorporated information into

presentation and Web page.

Utilized few or no resources described on Information Sheet to acquire information

into presentation and Web page. /5

(10-9) (9-7) (7-0)

Topic Discussion

Informed when speaking (without reference to notes) about the material.

Informed when speaking about the material while referencing notes.

Unable to accurately discuss information related to topic or simply read information

from paper. /10

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(10-9) (9-7) (7-0)

Visuals & Supplementary

Materials

Oral report included computer-generated and/or hand made visuals (clip-art, graphs, tables, charts, and QuickTime movies), and was presented with multimedia software that

enhanced presentation.

Oral report included computer-generated and/or hand made visuals (clip-art, graphs, tables, charts, and

QuickTime movies) that enhanced presentation, but was not presented with multimedia software.

Oral report did not include visuals or supplementary materials or materials used

did not enhance presentation. /10

(15-13.5) (13.5-10.5) (10.5-0)

Hyper Studio or Web Page Utilization

Created pages accurately reflect the groups data, results and rationale. It is organized in a

way that enhances the reader's ability to understand the information, data and results.

Created pages accurately reflect the groups data, results and rationale. It is organized in a way that

allows the reader to understand the information, data and results.

Created pages are incomplete, missing or do not get across the group's information,

data and results. /15

Total Presentation Points Earned

http://ed.fnal.gov/help/97/sightsound/litscrub.html

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Documents

Expanded Syllabus AC511