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This course is a continuation of Financial Accounting & Reporting Part I. It is designed to cover the financial
accounting principles relative to recognition, measurement, valuation, and financial statement presentation of
liabilities, shareholders equity, and special topics (leases, accounting for income taxes and employee benefits)
including disclosure requirements. The related internal control, ethical issues, and management of liabilities and
owner(s) equity are also covered. It also deals with contemporary issues such as leases, employee benefits,
and accounting for income taxes and other current related items.
F. COURSE OBJECTIVES :
1. GENERAL: At the end of the course, the students should be able to:
1.1 Acquire knowledge on the latest pronouncements of the Framework for the Preparation and Presentation
of Financial statements and the Philippine Financial Reporting Standards PFRS) through the Philippine
Accounting Standards (PAS).
1.2 Acquire sufficient knowledge and familiarity with the updated PAS 1 / IAS 1: Presentation of Financial
Statements.
1.3 Acquire familiarity with the latest / updated PFRS on the preparation and presentation of the asset
accounts in the Statement of Financial Position.
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1.4 Appreciate the significance of preparation and presentation of financial statements in adherence to the
latest PFRS in order to objectively serve the needs of the different financial information users or
stakeholders.
1.5 Show concern on the related internal control, ethical issues and the efficient and effective management of
assets/resources of the business enterprise.
1.6 Show commitment to the social and economic upliftment of business enterprises by adhering to the basic
concepts and principles of financial accounting in solving problem situation.
2. SPECIFIC : At the end of the course, the students should be able to:
2.1 COGNITIVE
2.1.1 Know and understand the concepts of the FRAMEWORK and the updated PASs on the asset
accounts of the Statement of financial Position.
2.1.2 Understand fully the FRAMEWORK and the PASs as they are applied in the discussion of the
different asset accounts.
2.1.3 Apply the accounting concepts in conformity with the FRAMEWORK and PASs
2.1.4 Analyze the applications of accounting concepts based on the FRAMEWORK and PASs
2.1.5 Prepare in classified form the financial statements in conformity with the FRAMEWORK and
PASs
2.1.6 Analyze and interpret the financial statements to ascertain the liquidity and profitability position of
the business enterprise.
2.1.7 Evaluate the significance of applying the FRAMEWORK and PASs in relation to the real business
environment.
2.2 AFFECTIVE
2.2.1 Appreciate the different features of FRAMEWORK and the updated PASs
2.2.2 Appreciate the values of the different asset accounts to the business enterprise to ensure and
efficient and effective operations and long-term viability.
2.2.3 Relate the topics discussed in the classroom with the actual situation in the business industry.
2.3 PSYCHOMOTOR
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2.3.1 Apply the accounting concepts in conformity with the FRAMEWORK and updated PASs
2.3.2 Follow the accounting process as they are applied in the PFRS and in the textbook with the
FRAMEWORK and updated PASs
2.3.3 Perform the analytical task of recording transactions based on the FRAMEWORK and updated
PASs
2.3.4 Practice the art of using the accounting concepts in the preparation and presentation of financial
statements in properly classified format.
2.3.5 Carry out the knowledge learned in classroom discussions to the real business world.
G. COURSE REQUIREMENTS :
1. CLASS STANDING:
1.1 Recitation
1.2 Assignment
1.3 Group Report
Others:
1.4.1 Seat work
1.4.2 Attendance
1.4.3 Board work
2 MAJOR QUIZZES:
CLASSROOM DECORUM:
1. You are expected to be always in your prescribed uniform plus your University issued ID.
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2. You are expected to attend the class on time and University Policy on attendance will be applied.
H. COURSE OUTLINE :
READING /
WEEKS TOPICS ACTIVITIES EVALUATION
ASSIGNMENTS
Week 1. Accounting for Intangible Assets By: N. Robles / P. Lecture / Class Standing
1 -3 (PAS 38)/Impairment of Assets(PAS 36) Empleo Discussion Board work
a. Definition, nature and classes Chapter 6 Intangible Seatwork
(18 hrs) http://www.youtube.com/watch?v=0U0- Assets Graded
Ez_8UQw p. 340-389 Recitation
Week 2. Accounting for Trade & other Payables Framework-Recognition Lecture / Class Standing
4-6 2.1. Definition and composition and measurement of Discussion Board work
2.2. Recognition and measurement Liabilities Seatwork
18 of Financial and non-financial Graded
hours Liabilities IAS 1 - Current Liabilities Recitation
http://www.accountingtools.com/di Chapter 1 Current
ctionary-financial-liability Liabilities, Provisions and Quiz 2 & 3
2.2.1. Financial liabilities with contingencies p. 1 82
definite amount Intermediate Accounting
Trade payables Vol. 2 2012 Edition
Short-term notes payable By PM Empleo and NS
Commercial papers Robles
http://www.bdo.com.ph/Pers
onal/DepositsInvestments/I Chapter 1 Liabilities
AS/CommercialPaper.asp p. 1- 63
Current portion of long- Financial Accounting Vol
term debt 2 2012 Edition
Accrued expenses By: CT Valix and JF
3.2.2 Non-financial liabilities Peralta
Unearned revenues
Customers deposits Chapter 13 Accounting
http://www.accountingtools. for :Liabilities
com/questions-and- p. 516 571
answers/what-is-a- Fundamentals of
customer-deposit.html Intermediate Accounting
Outstanding gift 2008 Edition By: Lieso,
certificates Fargher, Wise, Weygandt
Deposits for returnable and Warfield
containers
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Bonuses
Unearned service
contracts
Others
2.3. Financial statement presentation
and disclosure
MIDTERM PERIOD
WEEK/ READING
TOPICS ACTIVITIES EVALUATION
HOURS ASSIGNMENTS
Chapter 3 Bonds
Payable p. 98 to
187
Chapter 8 Notes
Payable and Debt
Restructure
p. 368 to 405
4.4. Long-term Notes Payable Topic discussion
4.4.1. Nature
4.4.2. Issuance of notes
For cash stated and market rate
For assets or services Group work:
Installment note issued for noncash Submission of
considerations sample actual
Innovative mortgage notes Lease Contracts
5. Note with an unrealistic interest rate
6. Special Topics
7. Shareholders Equity
7.1. Nature Chapter 3 Topic Discussion Class
7.2. Presentation on the Statement of Shareholders Equity Standing
Financial Position p. 172 296 Board work
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7.3. Contributed Capital Intermediate Seatwork
7.4. Par and No Par value shares Accounting 2012 Graded
7.5. Ordinary and Preference shares Edition by: PM Recitation
7.6. Equity Instruments under IAS 32 Empleo and NS
7.7. Authorized, Issued and Outstanding Robles Quiz 5
shares Quiz 6
7.8. Issuance of Share Capital
7.8.1. Shares issued with other securities
7.8.2. share issue costs and stock
assessments
7.8.3. reacquisition of share capital
7.8.4. share split or stock split
7.8.5. stock rights, warrants and options
7.8.6. share appreciation rights
7.9. Retained Earnings
http://blog.accountingcoach.com/what-is-
retained-earnings/
7.10. Current profit or loss
7.11. allocation of cash dividends between
preference and ordinary shares
7.12. appropriation of retained earnings
7.13. correction of prior period error
7.14. cumulative effect of change in accounting
policy
7.15. quasi reorganization
7.16. revaluation surplus
7.17. statement of changes in equity
7.18. book value per share
7.19. disclosure requirements
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WEEK MIDTERM EXAMINATION WEEK
12 1. Administration of MIDTERM Examination
2. Evaluation of MIDTERM examination
3. Discussion of MIDTERM exam solution to students
4. Computation of MIDTERM grades
5. Distribution of MIDTERM grade to students
6. Checking of columnar lecture note book
FINAL GRADING PERIOD
WEEK/ READING /
TOPICS ACTIVITIES EVALUATION
HOURS ASSIGNMENTS
Week 8.0. Leases(PAS 17) Chapter 4 Leases
13-16 7.1. Nature and classification p. 284-378
http://www.investorwords.com/27 Intermediate Accounting Topic Discussion Class
24 49/lease.html Vol. 2 2012 Edition Standing
hours 7.1.1. Lessees viewpoint By PM Empleo and NS Board work
Operating lease Robles Seatwork
Capital / Finance lease Graded
7.1.2. Lessors viewpoint Chapter 4 Operating Recitation
Operating lease Lease and Leaseback
Direct financing lease p. 188-217; Chapter 5 Quiz 7
Sales-type lease Finance Lease Lessee
Sale of assets during p. 218-263; Chapter 6
lease term Finance lease Lessor p.
7.1.3. Sale-leaseback 264-301
transactions Financial Accounting Vol
7.1.4. Leveraged lease 2 2012 Edition
7.1.5. Disclosure requirements By: CT Valix and JF
for lease Peralta
IAS 17 Leases
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18 - 19 Accounting for Income Taxes 12 hrs.
20-21 Accounting for Employee benefits(PAS 19) 12 hrs.
TOTAL NUMBER OF HOURS 30 hrs.
J. PRESCRIBED TEXTBOOK:
P. M. EMPLEO and N. S. ROBLES (2012) Intermediate Accounting Vol. 2; Millennium Books, Inc., Manila
K. READING REFERENCES:
Conrado T. Valix / Jose F. Peralta / Christian Aris M. Valix (2012) Financial Accounting Volume 2 GIC Enterprises and
Co., Inc
Alfredson, Keith, L. Ken., R. Picker, P. Pacter, and J. Radford. (2005). Applying International Accounting Standards.
Australia: John Wiley and Sons, Ltd.
Cabrera, E.B. Financial Accounting and Reporting, Theory and Practice Volume I, 2007 Edition, GIC Enterprises, C.M.
Recto, Manila
Valencia, E. and G. Roxas (2004). Financial Accounting. Mandaluyong: Millennium Books, Inc.
1. Understanding University Financial Statements & the Reconciliation Process, Accounting Coach
http://www.obfs.uillinois.edu
2. Liabilities and Stockholders Equity, (2011); Larry M. Walther, CPA and Christopher J. Skousen
http://www.ebooksdirectory.com/details.php?ebook=4078.
3. Principles of Accounting, (2011); Larry Walther, Ph.D., CPA, CMA
http://www.principlesofaccounting.com
M. GRADING SYSTEM:
83 - 85 = 2.25 - Good
Prepared by:
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