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School of Business and Economics

Department of AccountancyDowntown Campus

SYLLABUS

COURSE DETAILS

Course No.:AC 506Professor:Marvic John M. Leyson

Course Title:Financial Accounting and Reporting Part IIOffice :MTWTh 10:30-12:00

Credit Units:6Department of Accountancy

Pre-requisites:AC 503Contacts:

Email: Phone: 253-1000

Term

:2nd Semester, SY 2013-2014

Schedule:

Course Description

The course is the continuation of the study of Financial Accounting and Reporting. It is designed to cover the financial accounting principles relative to recognition, measurement, valuation, financial statement presentation and disclosure requirements of various assets and liabilities. The course will also cover the related internal control, ethical issues and management of inventories, biological assets, investment property, property, plant and equipment, intangibles and provisions and estimated liabilities. It also deals with contemporary issues related to such topics, such as leases, employees retirement benefits, share-based compensation and book value and earnings per share. Once again, a greater in-depth understanding and a higher level of analytical and critical thinking will be fundamental for this course.

Program Level Student Learning Outcomes

Each course has specific Course Level Student Learning Outcomes (SLOs) that will be achieved through the curriculum designed for the course. The cumulative achievement of all Course level SLOs will result in the achievement of Eleven (11) Program Level Student Learning Outcomes as listed below.

Upon completing the BS Accountancy program, graduates will demonstrate the following:

PO1: Business Knowledge : The ability to acquire and apply basic knowledge of science, mathematics, business and economics; and to understand key terms, facts and processes related to Finance and Accounting.

PO2: Communication/Reporting: The ability to verbalize and articulate business information needed by various stakeholders in making economic decisions.

PO3: Leadership/Teamwork: The ability to influence or work with others towards a common goal.

PO4: Multi-disciplinary Teams: The ability to function in collaboration with other disciplines.

PO5: Witness to the Word: The ability to be professionally competent, noble in character and sensitive to the Gospels mission and adhere to the Code of Professional Ethics for the accounting profession.

PO6: Life-long Learning: The ability to demonstrate personal and intellectual autonomy and information literacy

PO7: Research: The ability to undertake an in-depth study of accounting, tax, business law and auditing issues.PO8a: Technical Competency Risk Analysis: The ability to analyze, interpret and manage financial, business and audit risks.

PO8b: Technical Competency Problem Solving: The ability to identify and analyze problems related to accounting, tax, business law and auditing issues as basis for solutions and recommendations.

PO8c: Technical Competency Decision Making: The ability to render professional judgment on the preparation of external and internal reports based on applicable standards and practices.PO9: Broad Business Perspective: The ability to analyze and interpret business information from various business industries or sectors, either local or international.

PO10: System Design: The ability to use system approach to design and evaluate operational performance of an accounting information system.PO11: Contemporary Issues: The ability to present options in resolving emerging and relevant issues related to accounting, tax, business law and auditing.

Course Level Student Learning Outcomes

Upon completion of the course students should be able to:These SLOs are designed to support the Program Level Student Learning Outcomes

Targeted Program Level Outcomes (PO)

PO1PO2PO3PO4PO5PO6PO7PO8aPO8bPO8cPO9PO10PO11

CO1: Identify, enumerate, classify and define the fundamental standards, principles, concepts and theories associated with the management and control of inventories, biological assets, investment property, property, plant and equipment, non-current assets held for sale and intangibles.X

CO2: Identify, enumerate, classify and define the fundamental standards, principles, concepts and theories associated with the management and control of provisions, contingencies, lease, employee benefits, share-based compensation and book value and earnings per share.X

CO3: Solve problems relating to concepts of assets, liabilities and shareholders equity in accordance with Philippine Financial Reporting Standards.X

CO4: Apply the principles related to the recognition, measure-ment and valuation of assets, liabilities and shareholders equity in resolving financial accounting issues.XX

CO5: Prepare journal entries to record the transactions affecting the asset, liability and shareholders equity accounts.XXX

CO6: Construct financial statements including the notes for account analyses and disclosure requirements.XXXX

C07: Reflect and review on the applicability of the Philippine Financial Reporting Standards in industry-generated financial statements.XXXXX

Course Orientation (3 hours) USC Mission Statement

School of Business and Economics and Department of Accountancy aims Duties and responsibilities of a student Discussion of final requirements and grading systems Expectations about the subject and from the teacher

Review of Financial Accounting

Conceptual Framework Preparation and Presentation of Financial Statements Financial Assets Financial Liabilities Shareholders Equity Compound Financial Instruments Derivatives Funds and Other Investments

CO11. Identify, enumerate, classify and define the fundamental standards, concepts, principles and theories related to financial accounting, financial statements and financial instruments in general.

Inventories (9 hours)

Definition of Terms Recognition Principles Classification Principles Initial Measurement: Cost Subsequent Measurement: Lower of Cost or Net Realizable Value Standard Costs Relative Sales Price Method Purchase Commitments Gross Profit Method Retail Inventory Method Presentation Principles DisclosuresCO1, CO3, CO4, CO5

1. Identify, enumerate, classify and define the fundamental standards, concepts, principles and theories related to inventories.2. Apply the principles of the Philippine Financial Reporting Standards in the recognition, measurement, classfica-tion, presentation and derecognition of inventories.3. Solve problems involving inventory, including the different methods to estimate its value.4. Prepare journal entries involving inventories.

Biological Assets (3 hours)

Definition of Terms Recognition Principles Initial and Subsequent Measurement Biological Transformation Biological Assets and Agricultural Produce Biological Assets Attached to Land Government Grant Related to Biological Asset Price Change and Physical Change Disclosures CO1, CO3, CO4, CO51. Identify, enumerate, classify and define the fundamental standards, concepts, principles and theories related to biological assets.2. Apply the principles of the Philippine Financial Reporting Standards in the recognition, measurement and derecognition of biological assets, biological transformation, agricul-tural produce and fair value.3. Solve problems involving biological assets.4. Prepare journal entries biological assets.

Investment Property (3 hours) Definition of Terms

Recognition Principles

Initial and Subsequent Measurement

Transfers of Investment Property

Derecognition

Disclosures

CO1, CO3, CO4, CO5

1. Identify, enumerate, classify and define the fundamental standards, concepts, principles and theories related to investment property.2. Apply the principles of the Philippine Financial Reporting Standards in the recognition, measurement and derecognition of investment property.3. Solve problems involving investment property.4. Prepare journal entries involving investment property.

Property, Plant and Equipment: Intro-duction and Initial Measurement (9 hours) Definition of Terms Recognition Principles Initial Measurement Elements of Cost of PPE Acquisition Principles Classification: Land Classification: Building Classification: Machinery Capital and Revenue Expenditures Presentation Principles Derecognition Disclosures

CO1, CO3, CO4, CO51. Define the fundamental standards, concepts, principles and theories related to property, plant and equipment.2. Apply the principles of the Philippine Financial Reporting Standards in the recognition, initial measurement, classification, presentation and derecognition of property, plant and equipment.3. Solve problems involving property, plant and equipment.4. Prepare journal entries involving property, plant and equipment.

Government Grants and Borrowing Costs

(3 hours) Definition of Terms Recognition of Government Grants Classification of Government Grants Accounting for Government Grants Presentation of Government Grants Repayment of Government Grant Government Assistance Qualifying Assets and Borrowing Costs Accounting for Borrowing Costs General and Specific Borrowings DisclosuresCO1, CO3, CO4, CO51. Define the fundamental standards, concepts, principles and theories related to government grants and borrowing costs.2. Apply the principles of the Philippine Financial Reporting Standards in the recognition, measurement, classifica-tion, presentation and repayment of government grants.3. Apply the principles of the Philippine Financial Reporting Standards in the inclusion of borrowing costs on the cost of property, plant and equipment.4. Solve problems involving govern-ment grants and borrowing costs.5. Prepare journal entries involving government grants and borrowing costs.

Property, Plant and Equipment: Subsequent Measurement (9 hours) Definition of Terms: Depreciation, Revaluation and Impairment

Subsequent Measurement: Cost Model

Physical and Functional Depreciation

Depreciation Methods

Change in Useful Life and Depreciation Method Subsequent Measurement: Revaluation Model

Frequency and Basis of Revaluation

Proportional and Elimination Approach

Treatment of Revaluation Surplus

Sale of Revalued Asset

Indication of Impairment

Measurement of Recoverable Amount

Reversal of Impairment LossCO1, CO3, CO4, CO51. Define the fundamental standards, concepts, principles and theories related to the subsequent measure-ment of property, plant and equip-ment, depreciation, revaluation and impairment of assets2. Apply the principles of the Philippine Financial Reporting Standards in the subsequent measurement of proper-ty, plant and equipment, depreciation, revaluation and impairment of assets.3. Solve problems involving the subsequent measurement of property, plant and equipment.4. Prepare journal entries involving the subsequent measurement of property, plant and equipment.

Non-Current Assets Held for Sale (3 hours) Definition of Terms Recognition Principles Measurement Principles Presentation Principles Derecognition DisclosuresCO1, CO3, CO4, CO51. Define the fundamental standards, concepts, principles and theories related to non-current assets held for sale.2. Apply the principles of the Philippine Financial Reporting Standards in the recognition, measurement, presenta-tion and sale of non-current assets held for sale. 3. Solve problems involving the non-current assets held for sale.4. Prepare journal entries involving non-current assets held for sale.

Exploration and Evaluation of Mineral Resources ( 6 hours) Definition of Terms Recognition Principles Initial Measurement: Acquisition, Exploration, Development and Resto-ration Cost Subsequent Measurement and the Concept of Depletion Depreciation of Mining Property Trust Fund Doctrine and Wasting Asset Doctrine Maximum Dividend Derecognition Disclosures

CO1, CO3, CO4, CO51. Define the fundamental standards, concepts, principles and theories related to exploration and evaluation of mineral resources and depletion.2. Apply the principles of the Philippine Financial Reporting Standards in the recognition, measurement and derecognition of the exploration and evaluation asset as well as in the concept of depletion.3. Solve problems involving the exploration and evaluation of mineral resources.4. Prepare journal entries involving the exploring and evaluation of mineral resources.

MIDTERM EXAMINATION

Intangible Assets (6 hours) Definition of Terms

Essential Criteria

Recognition and Acquisition Principles

Classification Principles

Patent

Copyright

Franchise on the part of Franchisee

Trademark

Goodwill

Other Types of Intangibles

Initial Measurement

Subsequent Measurement

Amortization of Intangible Assets

Change in Amortization Method and Useful Life

Derecognition

Disclosures

CO1, CO3, CO4, CO51. Define the fundamental standards, concepts, principles and theories related to intangibles.2. Apply the principles of the Philippine Financial Reporting Standards in the recognition, classification, measure-ment, presentation and derecognition of intangibles.3. Solve problems involving intangibles and amortization of such intangibles.4. Prepare journal entries involving intangibles.

Research and Development Cost (3 hours) Definition of Terms Research and Development Phase Research and Development Activities Accounting for Research Cost Accounting for Development Cost Internally Developed Computer Software Website Development Costs

CO1, CO3, CO4, CO51. Define the fundamental standards, concepts, principles and theories related to research and development cost.2. Apply the principles of the Philippine Financial Reporting Standards in the recognition, classification, measure-ment, differentiation and accounting for research and development cost.3. Solve problems involving research and development cost.4. Prepare journal entries involving research and development cost.

Special Topics: Provisions and Contingencies ( 6hours) Definition of Terms Recognition Principles Initial and Subsequent Measurement Premiums Warranties Refundable Deposits Customer Loyalty Programs Restructuring Provisions Other Estimated Liabilities Contingent Liabilities Contingent Assets Presentation Principles Disclosures

CO1, CO3, CO4, CO51. Define the fundamental standards, concepts, principles and theories related to provisions and contingencies.2. Apply the principles of the Philippine Financial Reporting Standards in the recognition, classification, measure-ment, presentation and derecognition of provisions and contingencies.3. Solve problems involving provisions and contingencies.4. Prepare journal entries involving provisions and contingencies.

Special Topics: Leases (12 hours) Definition of Terms

Classification: Operating and Finance Lease

Recognition Principles

Initial and Subsequent Measurement

Lessor Side: Direct Financing Lease

Lessor Side: Sales Type Lease

Sale and Leaseback

Presentation Principles

DisclosuresCO2, CO3, CO4, CO51. Identify, enumerate, classify and define the fundamental standards, concepts, principles and theories related to leases.2. Apply the principles of the Philippine Financial Reporting Standards in the recognition, measurement, classifi-cation, presentation and derecog-nition of leases.3. Solve problems involving leases.4. Prepare journal entries involving leases on both the sides of the lessee and lessor.

Special Topics: Employee Benefits (9 hours) Definition of Terms

Short-Term Employee Benefits

Postemployment Benefits: Defined Contribution Plan

Postemployment Benefits: Defined Benefit Plan

Long-Term Employee Benefits

Termination Benefits

Presentation Principles

DisclosuresCO2, CO3, CO4, CO51. Identify, enumerate, classify and define the fundamental standards, concepts, principles and theories related to employee benefits.2. Apply the principles of the Philippine Financial Reporting Standards in the recognition, measurement, classifi-cation, presentation and derecog-nition of employee benefits.3. Solve problems involving employee benefits.4. Prepare journal entries involving employee benefits.

Special Topics: Share-Based Compensation (3 hours) Definition of Terms

Share Options

Share Appreciation Rights

Recognition Principles

Initial and Subsequent Measurement

Derecognition

Presentation Principles

DisclosuresCO2, CO3, CO4, CO51. Identify, enumerate, classify and define the fundamental standards, concepts, principles and theories related to share-based compensation.2. Apply the principles of the Philippine Financial Reporting Standards in the recognition, measurement, classifi-cation, presentation and derecog-nition of share-based compensation.3. Solve problems involving share-based compensation.4. Prepare journal entries involving share-based compensation.

Special Topics: Book Value and Earnings per Share (6 hours) Definition of Terms

Computation of Book Value per Share

Computation of Basic Earnings per Share

Computation of Diluted Earnings per Share

Presentation in the Financial Statements

DisclosuresCO2, CO3, CO4, CO51. Identify, enumerate, classify and define the fundamental standards, concepts, principles and theories related to book value and earnings per share.2. Apply the principles of the Philippine Financial Reporting Standards in the measurement and presentation of book value and earnings per share.3. Solve problems involving book value and earnings per share.4. Prepare journal entries involving book value and earnings per share.

Financial Statement Construction and Appreciation (3 hours) Comprehensive Summary Statement of Financial Position

Income Statement

Statement of Changes in Shareholders Equity

Notes to Financial Statements

Other Contemporary TopicsCO6, CO71. Prepare a statement of financial position in accordance with PFRS.2. Prepare an income statement in accordance with PFRS.3. Prepare a statement of changes in shareholders equity in accordance with PFRS.4. Prepare the necessary notes to financial statements, including account analyses and disclosure requirements.5. Reflect on the application and developments of Philippine financial statements in light of PFRS.