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FINANCIAL ACCOUNTING 2
Schedule:
ACA MTThF 7:30-9:00
ACB MTThF 9:00-10:30
Attendance: per student handbook
Exam rules:
1. No bathroom breaks during exam.
2. Delayed exam will only be given for major exams (per handbook). None for short or long
quizzes.
Edmodo page: XU Accounting 5 2015-2016 - https://edmo.do/g/iyck8k
Facebook class page: XU ACTG 5 ACA & ACB 2015-2016 https://www.facebook.com/groups/946785415392555/
ACCOUNTING 5
FINANCIAL ACCOUNTING 2
Course Outline
Topic 1 LIABILITIES
Definition of liabilities
Examples of liabilities
Initial measurement of liabilities
Subsequent measurement of liabilities
Amortized cost of financial liability
Fair value option of measuring financial
liability
Current and noncurrent liabilities
Measurement of current liabilities
Measurement of noncurrent liabilities
Long-term debt falling due within year
Refinancing of financial liability
Covenants
Breach of covenants
Presentation of current liabilities
Estimated liabilities
Premiums
Customer loyalty program
Warranty
Accrual approach for warranty
Expense as incurred approach for
warranty
Sale of warranty
Payroll taxes
Value added taxes
Gift certificates payable
Refundable deposits
Bonus computation
Deferred Revenue
Definition of provision
Recognition of a provision
Measurement of a provision
Definition of bond
Features of a bond issue
Contents of a bond indenture
Types of bonds
Issuance of bonds at a premium or
discount
Initial and subsequent measurement of
bonds payable
Recording interest on bonds payable
Bond issue cost
Bond retirement on maturity date
Bond retirement prior to maturity date
Treasury bonds
Bond refunding
Fair value option of measuring bonds
payable
Change in fair value of financial liability
recognized in other comprehensive
income
ACCOUNTING 5
FINANCIAL ACCOUNTING 2
Definition of lease
Operating lease lessee
Operating lease lessor
Unequal rental payments
Disclosures for operating lease lessee
Disclosures for operating lease lessor
ACCOUNTING 5
FINANCIAL ACCOUNTING 2
Concept of corporation
Organization of a corporation
Articles of incorporation and by-laws
Preincorporation subscription
agreement
Components of corporation
Books and records of a corporation
Organization cost
Elements of shareholders equity
Share capital ordinary share and
preference share
ACCOUNTING 5
FINANCIAL ACCOUNTING 2
Legal capital
Trust fund doctrine
Accounting for share capital
Issuance of share capital for noncash
consideration
Issuance of share capital for services
Share issuance costs
Costs of public offering of shares
Share issued at a discount
Watered share and secret reserve
Delinquent subscription
Preference share callable,
redeemable and convertible
Rights issue and share warrants
Treasury shares
Donated shares
Assessments on shareholders
Recapitalization
Definition of terms ordinary share, equity instrument, potential ordinary share, financial
instrument, warrant or option
Basic earnings per share
Average shares outstanding
Participating preference share
Bonus issue
Rights issue
Basic loss per share
ACCOUNTING 5
FINANCIAL ACCOUNTING 2
Reference(s):
Peralta, J., Valix, C. & Valix C. (n..d.). Financial accounting: Volume two. (2015 ed.). Manila,
Philippines: Gic Enterprises & Co., Inc.