FAR EASTERN UNIVERSITYManila
Institute of Accounts, Business and Finance
COURSE SYLLABUS
Course Code : FIN ACT 1
Course Title : Financial Accounting and Reporting, Part I
Course Pre-requisite : FND ACT 2 – Fundamentals of Accounting , Part II
Course Credit : Six (6) units
Course Description : This course introduces the nature, functions, scope and limitations of the broad field of accounting theory. It deals with 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. Emphasis is given on the interpretation and application of theories of accounting in relation to cash, temporary investments, receivables, inventories, prepayments, long term 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 in this course.
General Course Objectives : At the end of the course, the student is expected to be able to obtain a comprehensive knowledge and 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 20091
COURSE CONTENT
Week Learning Objectives Focal Points/Topics
Competencies Teaching Strategies Values Evaluative Measures
1 At the end of the session, the student is 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
1. Overview of the course2. Administrative matters3. Concepts and principles relating to the preparation and presentation of Financial Statements.
Planning and OrganizingUnderstanding
1. Expectation setting for both students and professor;2. Formulation of the seat plan3. Lectures4. Assignments
Teamwork Cooperation
1. Seat Plan2. Summarized student expectation sheet3. Quiz
2 At the end of the session, the student is expected to understand:
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
Judgment Understanding
1. Lectures2. Assignments
Flexibility 1. Quiz
Revised as of May 20092
Week Learning Objectives Focal Points/Topics
Competencies Teaching Strategies Values Evaluative Measures
The IASB, history, current structure and processes, globalization of capital markets, calls for the harmonization of accounting standards, formation and achievements of the IASC
3 At the end of the session, the student is expected to understand:
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 UnderstandingPresentation Skills
1. Lectures2. Assignments
Flexibility CreativityAccountability
1. Preparation of Financial Statements 2. Quiz
Revised as of May 20093
Week Learning Objectives Focal Points/Topics
Competencies Teaching Strategies Values Evaluative Measures
4 At the end of the session, the student is expected to understand:
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
Introduction to Financial Instruments
UnderstandingAnalytical AbilityDecision Making Skills
1. Lectures2. Assignments
AccountabilityFlexibilityPatience
1. Quiz2. Internet works
5 At the end of the session, the student is expected to understand:
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
Accounting for CashAnalytical AbilityProblem Solving SkillsPresentation Skills
1. Lectures2. Illustrative problems3. Board work4. Assignment
HonestyIntegrityFairnessAccountability
1. Preparation of Bank Reconciliation 2. Quiz
Week Learning Objectives Focal Points/Topics
Competencies Teaching Strategies Values Evaluative Measures
6 First Preliminary Examination
Revised as of May 20094
7 At the end of the session, the student is expected to understand:
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)
Accounting for Receivables
Analytical AbilityProblem Solving SkillsPresentation Skills
1. Lectures2. Illustrative problems3. Board work4. Assignment
HonestyIntegrityFairnessAccountability
1. Quiz
8 Receivable financing arrangements [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
Accounting for Receivables (cont’d)
Analytical AbilityProblem Solving SkillsPresentation Skills
1. Answering assignments2. Lectures3. Board work4. Giving assignment
HonestyIntegrityFairnessAccountability
1. Quiz2. Case Study
Revised as of May 20095
Week Learning Objectives Focal Points/Topics
Competencies Teaching Strategies Values Evaluative Measures
9 At the end of the session, the student is expected to understand:
Investment in equity instruments covered by Pas 32 and 39 [Investment in marketable equity securities (designated at fair value through profit or loss, Trading, available for sale), Investment in unquoted equity securities]
Investment in debt instruments [Held-to-maturity investments, not held-to-maturity (Trading, Available-for-sale)]
Accounting for Investments in Equity and Debt Instruments including basic concepts on Derivatives (covered by Pas 32 and 39)
Analytical AbilityProblem Solving SkillsPresentation Skills
1. Answering assignments2. Lectures3. Board work4. Giving assignment
HonestyIntegrityFairnessAccountability
1. Internet works2. Quiz
10 At the end of the session, the student is expected to understand:
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
Analytical AbilityProblem Solving SkillsPresentation Skills
1. Lectures2. Illustrative problems3. Board work4. Assignment
HonestyIntegrityFairnessAccountabilityCommitment
1. Quiz2. Internet works
Revised as of May 20096
Week Learning Objectives Focal Points/Topics
Competencies Teaching Strategies Values Evaluative Measures
11 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
Accounting for Inventories (cont’d)
Analytical AbilityProblem Solving SkillsPresentation Skills
1. Answering assignments2. Lectures3. Board work4. Giving assignment
HonestyIntegrityFairnessAccountabilityCommitment
1. Quiz
12 Second Preliminary Examination13 At the end of the session, the student is
expected to understand:
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
Accounting for agricultural activities and biological assets
Analytical AbilityProblem Solving SkillsPresentation Skills
1. Lectures2. Illustrative problems3. Board work4. Assignment
HonestyIntegrityFairnessAccountabilityInnovation
1. Quiz2. Case Study
Week Learning Objectives Focal Points/Topics
Competencies Teaching Strategies Values Evaluative Measures
14 At the end of the session, the student is Accounting for Analytical Ability 1. Lectures Honesty 1. Quiz
Revised as of May 20097
expected to understand:
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 method- cost 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
Property, Plant and Equipment
Problem Solving SkillsPresentation Skills
2. Illustrative problems3. Board work4. Assignment
IntegrityFairnessAccountabilityInnovation
Revised as of May 20098
Week Learning Objectives Focal Points/Topics
Competencies Teaching Strategies Values Evaluative Measures
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
Accounting for Property, Plant and Equipment (cont’d)
Analytical AbilityProblem Solving SkillsPresentation Skills
1. Answering assignments2. Lectures3. Board work4. Giving assignment
HonestyIntegrityFairnessAccountabilityInnovation
1. Quiz2. Case Study
16 At the end of the session, the student is expected to understand:
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)
Accounting for Intangible Assets
Analytical AbilityProblem Solving SkillsPresentation Skills
1. Lectures2. Illustrative problems3. Board work4. Assignment
HonestyIntegrityFairnessAccountabilityInnovationTransparency
1. Quiz2. Internet works
Week Learning Objectives Focal Points/Topics
Competencies Teaching Strategies Values Evaluative Measures
Subsequently incurred costs
Revised as of May 20099
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
disclosuresInternal control measures for intangibles
17 At the end of the session, the student is expected to understand:
Investment in cash surrender value of life insurance
Investment in funds Investment property Interest in joint ventures* Interest in associates* Investment in subsidiary*
1. Accounting for Other Types of Investments
Analytical AbilityProblem Solving SkillsPresentation Skills
1. Lectures2. Illustrative problems3. Board work4. Assignment
HonestyIntegrityFairnessAccountabilityInnovationTransparency
1. Quiz
*Detailed discussion covered in Advanced Accounting subjects
2. Accounting for Noncurrent Assets Held for sale
18 Final Examination
Revised as of May 200910
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: Accounting Times, PICPA IAS PLUS Newsletter, Deloitte and Touche Global Eye on IFRS, Ernst and Young
Revised as of May 200911
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 200912
Computation of Grades:
Computation of Periodic Grades
Class StandingAverage Quizzes (AQ)………………………………………………….…….30%Class Participation (CP) ………………………………………………...…...10%
Major Examination (PEx/MEx/FEx) ………………………………………….……..60%Total …………………………………………………………………….…………….100%
a. Determine 1 st Preliminary Grade (1 st PG)
1st PG = AQ(30%) + CP (10%) + PEx (60%)
b. Determine 2 nd Preliminary Grade (2 nd PG) and Midterm Grade (MG)
2nd PG = AQ(30%) + CP (10%) + PEx (60%)
MG = 1st PG (50%) + 2nd 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 200913
Grade Point System
Grade Point SystemDescriptive Equivalent
95 100% 1.00Superior92 94% 1.25
90 91% 1.50Very Good88 89% 1.75
85 87% 2.00Good82 84% 2.25
80 81% 2.50Fair78 79% 2.75
75 77% 3.00 Barely SatisfactoryBelow 75% 5.00 Failure
Prepared by: Reviewed by: Approved by:
NORINA S. SALVADOR JENNIFER T. BUENCurriculum Committee
ESTELITA D. BELLODean - IABF
Faculty
GERRY V. FERNANDOCurriculum Committee
Revised as of May 200914
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