FAR EASTERN UNIVERSITY Manila Institute of Accounts, Business and Finance COURSE SYLLABUS Course Code
:
FIN ACT 1
Course Title
:
Financia Financiall Accountin Accounting g and Report Reporting, ing, Part Part I
Course Pre-requisite
:
FND ACT ACT 2 – Fundamen Fundamentals tals of Accou Accountin nting g , Part II
Course Credit
:
Six Six (6) (6) unit units s
Course Description
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This course introduces introduces the nature, nature, functions, functions, scope and limitations limitations of the broad field field of accounting theory. theory. It deals with the the study of the theoretical accounting framework objectives of financial statements, accounting conventions, and generally accepted accounting principles, standard setting process for accounting practice, national as well as international principles relating to the preparation and presentation of financial statements, the conditions under which they may be appropriately applied, their impact or effect on the financial statements; and the criticisms commonly leveled against them. The course covers the detailed discussion, appreciation, and application of accounting principles covering the assets, financial and nonfinancial. nonfinancial. Emphasis is given on the interpretation interpretation and application of theories of accounting in relation to cash, temporary investments, investments, receivables, inventories, prepayments, long term investments, investments, property, plant and equipment, intangibles, and other assets, including financial statement presentation and disclosure requirements. The related internal control, ethical issues, and management of assets are also covered. Exposure to computerized system in receivables, inventory, and lapsing schedules is a requirement requirement in this course.
General Course Objectives
:
At the end of the the course, the student is expected expected to be able to obtain a comprehensive comprehensive knowledge knowledge and and understanding understanding on selected pronouncements of the Accounting Standards Council (ASC) as embodied in the PAS and principles underlying measurement, valuation and presentation and disclosure of ASSETS.
Revised as of May 2009
COURSE CONTENT Week
Learning Objectives
1
A t t he e nd of th e se ss ion, the s tu den t i s expected to understand: Know the requirements for completing the course successfully; Articulating his/her own expectation from the course and the professor Nature, principles and scope of accounting Nature, principles and objectives of financial and related records of an organization The nature, role and significance of accounting theories and principles Principles of conceptual framework of accounting Philippine financial reporting standards/Philippine accounting standards The concept and role of the true and fair presentation of financial statements A t t he e nd of th e se ss ion, the s tu den t i s expected to understand: •
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Focal Points/Topics 1. Overview of the course 2. Administrative matters 3. Co ncepts and principles relating to the preparation and presentation of Financial Statements.
Competencies
Teaching Strategies
Values
Planning and Organizing Understanding
1. Expectation setting for both students and professor; 2. Formulation of the seat plan 3. Lectures 4. Assignments
Teamwork Cooperation
Judgment Understanding
1. Lectures 2. Assignments
Flexibility
Evaluative Measures 1. Seat Plan 2. Summarized student expectation sheet 3. Quiz
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2
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Financial Reporting standards Council (Creation, objectives and functions; Membership/composition; Standard setting process)
Financial Reporting Standards Council and Conceptual Framework for the Preparation and Presentation of Financial Statements
Revised as of May 2009
1. Quiz
Week
Learning Objectives •
3
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Competencies
Teaching Strategies
Values
Evaluative Measures
Flexibility Creativity Accountability
1. Preparation of Financial Statements 2. Quiz
The IASB, history, current structure and processes, globalization of capital markets, calls for the harmonization of accounting standards, formation and achievements of the IASC
A t t he e nd of th e se ss ion, the s tu den t i s expected to understand: •
Focal Points/Topics
Users and their information needs Objective of financial statements Underlying assumptions in the preparation of financial statements Qualitative characteristics of financial statements (Understandability, Relevance, Reliability, Comparability) Principles of Recognition and Measurement (Measurement basis) Elements of financial statements and their definition (Assets, Liabilities, Equity, Income, Expenses) Recognition and measurement of the elements of financial statements Concepts of capital and capital maintenance ( Financial concept, Physical concept)
Conceptual Framework for the Preparation and Presentation of Financial Statements
Judgment Understanding Presentation Skills
Revised as of May 2009
1. Lectures 2. Assignments
Week 4
Learning Objectives A t t he e nd of th e se ss ion, the s tu den t i s expected to understand:
Focal Points/Topics Introduction to Financial Instruments
Definition of financial instruments [ Financial assets: nature and examples, Financial liabilities: nature and examples, Equity instruments: nature and examples ( Distinction between equity and financial liabilities), Compound financial instruments] Categories of financial assets/financial liabilities Financial assets covered by Pas 32 & 39 Other financial assets excluded from the scope of Pas 39 and addressed under other PFRS Approach in accounting for financial instruments Nonfinancial assets/nonfinancial liabilities: nature and examples A t t he e nd of th e se ss ion, the s tu den t i s expected to understand: Accounting for Cash Definition, nature and composition of cash and cash equivalents Recognition and measurement of cash Management and control of cash (Accounting of petty cash fund, Bank reconciliation at a single date) Financial statement valuation, presentation and disclosure Learning Objectives Focal Points/Topics •
Competencies
Teaching Strategies
Values
Evaluative Measures 1. Quiz 2. I nternet works
Understanding Analytical Ability Decision Making Skills
1. Lectures 2. Assignments
Accountability Flexibility Patience
Analytical Ability Problem Solving Skills Presentation Skills
1. Lectures 2. Illustrative problems 3. Board work 4. Assignment
Honesty Integrity Fairness Accountability
1. Preparation of Bank Reconciliation 2. Quiz
Values
Evaluative Measures
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5
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Week
Revised as of May 2009
Competencies
Teaching Strategies
6 7
A t t he e nd of th e se ss ion, the s tu den t i s expected to understand: •
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8
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Definition, nature and classification of receivables Accounting for receivables [Recognition, Initial and subsequent measurement, Impairment and uncollectible of receivables (Assessment and recording of impairment loss, Reversal or recovery of impairment loss), De-recognition, Generating cash from receivables] Accounting for notes/loans receivable (Definition and types of promissory notes, Recognition, Initial Measurement and valuation at present value)
First Preliminary Examination Accounting for Analytical Ability Receivables Problem Solving Skills Presentation Skills
Accounting for Receivable financing arrangements Receivables (cont’d) [Accounts Receivable, Pledging (general assignment of receivables), Factoring, Assignment of specific receivable]: Notes receivable (Discounting)] Notes/loans receivable impairment and un-collectibility Financial statement presentation and disclosure Internal control measures for receivable
Analytical Ability Problem Solving Skills Presentation Skills
Revised as of May 2009
1. Lectures 2. Illustrative problems 3. Board work 4. Assignment
Honesty Integrity Fairness Accountability
1. Quiz
1. Answering assignments 2. Lectures 3. Board work 4. Giving assignment
Honesty Integrity Fairness Accountability
1. Quiz 2. Case Study
Week 9
Learning Objectives
Focal Points/Topics A t th e e nd o f t he s es si on , t he st ude nt is Accounting for expected to understand: Investments in Equity and Debt Investment in equity instruments covered Instruments including basic by Pas 32 and 39 [Investment in concepts on marketable equity securities (designated Derivatives (covered at fair value through profit or loss, Trading, available for sale), Investment in by Pas 32 and 39) unquoted equity securities] Investment in debt instruments [Held-tomaturity investments, not held-to-maturity (Trading, Available-for-sale)] •
Competencies
Teaching Strategies
Values
Analytical Ability Problem Solving Skills Presentation Skills
1. Answering assignments 2. Lectures 3. Board work 4. Giving assignment
Honesty Integrity Fairness Accountability
Analytical Ability Problem Solving Skills Presentation Skills
1. Lectures 2. Illustrative problems 3. Board work 4. Assignment
Honesty Integrity Fairness Accountability Commitment
Evaluative Measures 1. Internet works 2. Quiz
•
10
A t th e e nd of the ses si on , t he st ude nt is expected to understand: •
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Definition, nature and classes of inventories Recognition Initial measurement at cost Inventory recording systems (Periodic inventory system, Perpetual inventory system) Inventory costing methods (Items not ordinarily interchangeable: Specific identification; For items that are interchangeable: First in, First out method, Weighted average cost method)
Accounting for Inventories
Revised as of May 2009
1. Quiz 2. Internet works
Week 11
Learning Objectives •
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12 13
A t th e e nd of the ses si on , t he st ude nt is expected to understand: • • • •
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Week
Inventory estimation methods [Gross profit method, Retail inventory method (excluding peso value and retail info)] Valuation at lower of cost and net realizable value (Write down to net realizable value, Reversal of write-down) Other inventory issues (Purchase commitment, Inventory valued at selling price, Use of more than one cost method, Borrowing costs, Lump-sum acquisition, Inventory errors) Financial statement presentation and disclosures Internal control and management of inventory
Definition, nature and classes Recognition Initial measurement at cost Valuation at lower of cost and net realizable value (Write-down to net realizable value, Reversal of write-down) Financial statement presentation and disclosures Learning Objectives
Focal Points/Topics Accounting for Inventories (cont’d)
Competencies Analytical Ability Problem Solving Skills Presentation Skills
Second Preliminary Examination Accounting for Analytical Ability agricultural activities Problem Solving and biological assets Skills Presentation Skills
Focal Points/Topics
Competencies
Revised as of May 2009
Teaching Strategies
Values
1. Answering assignments 2. Lectures 3. Board work 4. Giving assignment
Honesty Integrity Fairness Accountability Commitment
1. Lectures 2. Illustrative problems 3. Board work 4. Assignment
Honesty Integrity Fairness Accountability Innovation
Teaching Strategies
Values
Evaluative Measures 1. Quiz
1. Quiz 2. Case Study
Evaluative Measures
14
A t th e e nd of the ses si on , t he st ude nt is expected to understand: • • •
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Definition, nature and classes Recognition Initial measurement (Cash purchase, Purchase on a deferred payment contract, Issuance of securities, Donation or discovery, Self-construction, Exchanges of non-monetary and monetary assets) Expenditures subsequent to acquisition Valuation or measurement subsequent to initial recognition (Benchmark methodcost less accumulated depreciation and accumulated impairment losses; allowed alternative method- revaluation at fair value less accumulated depreciation and accumulated impairment losses Depreciation of assets (Definition, nature and causes; Factors affecting depreciation; methods of depreciation ( Straight-line method, Declining balance method, Sum-of-the-years digits method, Group and composite depreciation) Depletion of wasting assets
Accounting for Property, Plant and Equipment
Analytical Ability Problem Solving Skills Presentation Skills
Revised as of May 2009
1. Lectures 2. Illustrative problems 3. Board work 4. Assignment
Honesty Integrity Fairness Accountability Innovation
1. Quiz
Week
Learning Objectives
15
Accounting changes affecting depreciation Revaluation of property, plant and equipment (Recording on date of revaluation, Frequency of revaluation, Revaluation increase, Revaluation decrease, realized revaluation) Impairment of assets (Definition, when to recognize and how to measure impairment loss, measurement of recoverable amount, impairment loss for an individual asset, Impairment loss for cash-generating unit, Reversal of previously recognized impairment loss) Retirement and disposals Financial statement presentation and disclosures Internal control and management of property, plant and equipment A t th e e nd of the ses si on , t he st ude nt is expected to understand: •
•
Focal Points/Topics Accounting for Property, Plant and Equipment (cont’d)
Competencies
Teaching Strategies
Values
Evaluative Measures 1. Quiz 2. Case Study
Analytical Ability Problem Solving Skills Presentation Skills
1. Answering assignments 2. Lectures 3. Board work 4. Giving assignment
Honesty Integrity Fairness Accountability Innovation
Accounting for Intangible Assets
Analytical Ability Problem Solving Skills Presentation Skills
1. Lectures 2. Illustrative problems 3. Board work 4. Assignment
Honesty Integrity Fairness Accountability Innovation Transparency
1. Quiz 2. Internet works
Focal Points/Topics
Competencies
Values
Evaluative Measures
•
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16
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Week
Definition, nature and classes Recognition criteria Initial measurement and accounting for intangibles (Patents, Copyright, Trademarks and trade names, Franchise rights, Lease rights, Computer software, goodwill, Research and development costs, Other intangible assets) Learning Objectives
Revised as of May 2009
Teaching Strategies
Subsequently incurred costs Measurement subsequent to initial recognition (Cost method, Revaluation method) Amortization Impairment of value of intangible assets Reversal of impairment loss Retirements and disposition Financial statement presentation and disclosures Internal control measures for intangibles A t th e e nd of the ses si on , t he st ude nt is expected to understand: • •
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17
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Investment in cash surrender value of life insurance Investment in funds Investment property Interest in joint ventures* Interest in associates* Investment in subsidiary*
*Detailed discussion covered in Advanced Accounting subjects 18
1. Accounting for Other Types of Investments
Analytical Ability Problem Solving Skills Presentation Skills
2. Accounting for Noncurrent Assets Held for sale Final Examination
Revised as of May 2009
1. Lectures 2. Illustrative problems 3. Board work 4. Assignment
Honesty Integrity Fairness Accountability Innovation Transparency
1. Quiz
Textbook: Financial Accounting Volume 1 by Conrado Valix and Jose Peralta, 2008 References: Books: Financial accounting : tools for business decision making. Kimmel, Paul. 2010 Financial accounting : a global approach. Monger, Rod. 2010 Financial accounting : volume two. Valix, Conrado T. 2010 Financial accounting. Vol 1. Valix, Conrado T. 2010 Financial accounting : volume three. Valix, Conrado T. Valix, 2009 Financial accounting. Albrecht, W. Steve. 2008 Financial accounting : a business process approach. Reimers, Jane L. 2008 Financial accounting. Harrison, Walter T. 2008 Financial accounting. Williams, Jan R. 2008 Financial accounting and reporting. Whittington, O. Ray. 2008 Financial accounting and reporting. Elliott, Barry. 2008 Financial accounting. Needles, Belverd E. 2007 Financial accounting : a user perspective. Albright, Thomas L. 2007 Financial accounting. Libby, Robert. 2007 Financial accounting : instructors solutions manual. Needles, Belverd E. 2007 Financial accounting. Vol. 2. Valix, Conrado T. 2007 Financial accounting. Harrison, Walter T. 2006 Financial accounting : ann introduction. Peirson, Graham. 2006 Financial accounting : reporting & analysis. Stice, Earl K. Financial accounting. Britton, Anne. 2006 Financial accounting and reporting. Whittington, O. Ray. 2006 Financial accounting in an economic context. Pratt, Jamie. 2006 Financial accounting, reporting and analysis. Elliott, Barry. 2006 • • • • • • • • • • • • • • • • • • • • • • •
Journal, Newspaper and Magazines:
Revised as of May 2009
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Accounting Times, PICPA IAS PLUS Newsletter, Deloitte and Touche Global Eye on IFRS, Ernst and Young Business World Harvard Business Review
Online/URL: http://www.picpa.com.ph http://www.iasplus.com http://www.iasb.org http://www.ifac.org • • • •
Revised as of May 2009
Computation of Grades: Computation of Periodic Grades Class Standing Average Quizzes (AQ)………………………………………………….…….30% Class Participation (CP) ………………………………………………...…...10% Major Examination (PEx/MEx/FEx) ………………………………………….……..60% Total …………………………………………………………………….…………….100% a. Determine 1st Preliminary Grade (1 st PG) 1st PG = AQ(30%) + CP (10%) + PEx (60%) b. Determine 2nd Preliminary Grade (2 nd PG) and Midterm Grade (MG) 2nd PG = AQ(30%) + CP (10%) + PEx (60%) MG = 1st PG (50%) + 2 nd PG (50%) c. Determine Final Period (FP) and Final Grade (FG) FP = AQ(30%) + CP (10%) + PEx (60%) FG = MG (50%) + FP (50%)
Passing Grade is 75% with an equivalent point of 3.0
Revised as of May 2009
Grade Point System
Grade 95 92 90 88 85 82 80 78 75 Below 75%
100% 94% 91% 89% 87% 84% 81% 79% 77%
Point System 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 3.00 5.00
Descriptive Equivalent
Superior Very Good Good Fair Barely Satisfactory Failure
Prepared by:
Reviewed by:
Approved by:
NORINA S. SALVADOR
JENNIFER T. BUEN Curriculum Committee
ESTELITA D. BELLO Dean - IABF
Faculty GERRY V. FERNANDO Curriculum Committee
Revised as of May 2009
