ARELLANO UNIVERSITY

www.arellano.edu.ph
SCHOOL OF BUSINESS AND COMMERCE
B ACHELOR OF SCIENCE IN ACCOUNTING TECHNOLOGY (BSAcT)
SYLLABUS
COURSE TITLE

Financial Accounting & Reporting, Part III

COURSE CODE

ACC 04

COURSE DESCRIPTION

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 of presentation of liabilities and
shareholders equity, 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, employees
retirement benefits, deferred taxes, and other current related items.

GENERAL OBJECTIVES

At the end of this course, the students are expected to:

Cognitive:
1.

Have sound knowledge of the generally accepted accounting principles, applicable to the recognition, measurement and statement
presentation of creditors and stockholders equities.
2.
Integrate and apply the generally accepted accounting principles to problem situations involving creditors and stockholders equities that
are likely encountered in practice.
3.
Understand the application of accounting principles and reporting practices about financial accounting problems and issues such as
leases, deferred income tax, retirement benefits, and changing prices.
Psychomotor:
1.
Apply the principles and concepts of accounting which focus on equities and related revenue and expense items in the presentation of financial and
related information to meet external and internal obligations.
2.
Apply the skills in systematic problem solving.
Affective:
1.
Develop the value of honesty, objectivity and perseverance.
2.
Realize the contributions of accounting standards or GAAP to the development of a more socially responsible and morally upright
professional accountant.

3.
4.

Appreciate the role of financial accounting in meeting the informational needs of stakeholders as a basis for decision-making.
Appraise critically the role of International Accounting Standards in achieving harmonization of accounting standards throughout
the world.

UNITS

6 units

PRE REQUISITE/S

Financial Accounting & Reporting, Part I (ACC 03)

TEXTBOOK

:
Financial Accounting, Volume II, COnrado T. Valix , 2014 edition.

REFERENCES

Financial Accounting & Reporting Vol. 3, Cabrera/Ocampo 2013

Financial Accounting, Marian Powers, 10th edition, c 2010
Financial Accounting Theory, Stewart Jones, 3rd edition, c 2010
Financial analysis with Microsoft Excel, Timothy R. Mayes, 5th edition, c 2010
Financial Accounting, Robert Libby, 6th edition, c 2009
Financial Accounting and Reporting, Barry Elliott, 13th edition, c 2009
Financial and Managerial Accounting, Charles T. Homgren, 2nd edition, c 2009

UNIVERSITY VISION
A model institution of learning where relevant knowledge is acquired and skills are developed in response to the needs of the global community.

UNIVERSITY MISSION

To provide equitable access to learning through relevant, innovative, industry-sensitive and environment-conscious academic programs and
services.

COLLEGE VISION
A model center of learning for business disciplines that will acquire the knowledge of develop business skills and attributes to participate and
compete in the global business industry.

COLLEGE MISSION
To provide a relevant business and accountancy programs that will prepare individuals to participate and compete in the global business
environment.

COURSE OUTLINE
Objectives

Topic/Subject Matter

Time Frame

Methodology

Discuss & explain the

vision & mission of
Arellano University

Vision/Mission

2 hours

Lecture with visuals

1.

Accounting
for
Liabilities Current
Liabilities

1.1

Definition and composition

1.2

Recognition and measurement of

financial/nonfinancial liabilities

1.2.1 Recognition and measurement of financial

liabilities whose amount are definite trade
payables,
short-term
notes
payable,
commercial paper, current portion of longterm debts, accrued expenses
1.2.2 Recognition of current non-financial
liabilities unearned revenues, customers

24 hours

Lecture-discussion
Problem solving
Case presentation
Power point presentation
Group/Team learning
Drills and exercises
Problem solving
Board work
Assignments
Caselettes analysis

Evaluation
Tools
Recitation

Quizzes
Recitations
Assignments
Exercises

Values
Honesty

Integrity
Fairness
Truthfulness
Public
accountability
Social
responsibility
Justice
Honesty

deposits, outstanding gift certificates,

liability for warranty, outstanding premiums,
deposits for returnable containers, bonuses,
unearned service contracts, others
1.2.3 Derivatives
1.2.4 Financial statement
disclosures
2.

Noncurrent
Liabilities

presentation

and

2.1

Definition and Composition

2.2

Recognition and measurement of

noncurrent liabilities

2.3

Accounting for bonds payable

2.3.1 Issuance of bonds; accounting for interest

and amortization of premium or discount
using straight-line and effective interest
methods
2.3.2 Extinguishment of bonds prior to maturity
(including conversion bonds into ordinary
shares)
2.3.3 Financial statement
disclosures
2.4

presentation

and

Accounting for Long-term Notes

Payable

2.4.1 Nature of long-term notes payable

2.4.2 Accounting for issuance of notes (Issued
for cash; stated rate and market, Issued for
assets or services; stated rate and market
rate different, Installment note issued for
noncash consideration, Innovative mortgage
notes, Note with an unrealistic interest rate)

24 hours

Lecture-discussion
Problem solving
Case presentation
Power point presentation
Group/Team learni
Drills and exercises
Problem solving
Board work
Assignments

Quizzes
Recitations
Assignments
Exercises

Compliance with
provisions of law
Critical judgment
Public
accountability
Social
responsibility

2.5

Provisions, Contingent Liabilities

2.5.1 Definition and nature
2.5.2 Financial statement presentation and
disclosures

3.

Accounting
Shareholders
Equity

for

3.1

Contributed Capital
3.1.1 Share capital definition and
classification
(Ordinary
shares,
Preference shares cumulative,
noncumulative,
participating
and
nonparticipating)
3.1.2 Authorization,
subscription,
issuance of share capital

and

3.1.3 Subscription defaults

3.1.4 Share issuance costs
3.1.5
Additional paid-in-capital-definition
and sources
3.1.6

Rights issues, share warrants, and

share options

3.1.7

Share appreciation rights

3.1.8

Redemption and conversion of

preference shares

3.1.9

Share recapitalization and share

splits
3.1.10 Treasury shares
3.1.11 Financial
statement
presentation and disclosures

3.2

Retained Earnings

24 hours

Strategy/Methodology
Lecture-discussion
Problem solving
Case presentation
Power point presentation
Group/Team learning
Drills and exercises
Problem solving
Board work
Assignments
Students
to
submit
sample of lease contract
for discussion.

Quizzes
Recitations
Assignments
Exercises

Integrity
Accountability
Honoring
agreement
Neutrality

3.2.1

Definition

3.2.2

Fundamental errors (Correction of

errors in prior periods income,
Change in accounting policies)

3.2.3

Accounting for appropriations and

subsequent reversals

3.2.4

Accounting for dividends cash,

property, share, scrip, liquidating

3.2.5

Financial statement presentation

and disclosures

3.3

3.4

4.

Special Topics

Other Shareholders Equity Items

3.3.1

Revaluation surplus

3.3.2

Unrealized losses on decline in

value
of
available-for-sale
securities

3.3.3

Foreign
currency
adjustment

translation

Computation of earnings per share

and book value per share of preference
shares (if any) and ordinary shares
equivalents

4.1

Leases
4.1.1

Nature and classification

4.1.2

Accounting for leases lessees

viewpoint: Operating lease, Capital
lease/finance lease

4.1.3

Accounting for leases lessors

viewpoint: Operating lease, Direct
Financing lease, Sales-type lease,

25 hours

Lecture-discussion
Problem solving
Case presentation
Power point presentation
Group/Team learning

Activities:
Drills and exercises

Quizzes
Recitations
Assignments
Exercises

Hard work
Respect
for
human dignity
Loyalty
Fairness
and
equity
Justice

Sale of assets during lease term

4.1.4

Accounting
transactions

4.1.5

Leveraged lease

4.1.6

Disclosure requirements for leases

4.2

for

sale-leaseback

Income Taxes
4.2.1

Types of income tax allocation

(Intraperiod, Interpreriod, Interperiod
tax allocation)

4.2.2

Temporary
and
permanent
differences
(Taxable
temporary
differences
and
deductible
temporary differences, Recognition
and measurement of income tax
payable, deferred tax liabilities and
deferred tax assets, Current and
deferred tax expense and income
tax benefits, Financial statement
presentation and disclosures)

4.3

Accounting for Employee Benefits

4.3.1

Employee benefits defined

4.3.2

Short-term
employee
benefits
(Recognition and measurement)

4.3.3

Post-employment benefits [Nature of

pension plan, Types of pension plan
(Defined contribution pension plans,
Defined benefit pension plans),
Accounting for pension plans]

4.3.4

Termination benefits

4.3.5

Equity compensation benefits

Problem solving
Board work
Assignments

4.3.6

Pre-retirement compensation plans

4.3.6.1

4.4

GRADING SYSTEM

Share-based
compensation plans (Share
award plans, Share option
plans, Share appreciation
rights, Share purchase plans)

Share-based Payment

Class Participation
Attendance
Assignment
Recitation
Behavior
Seatwork
Others

45 %

Quizzes

25 %

Periodical Examination
Prelim

30 %

Midterm
Semi- Final
Final
:

GWA (General Weighted Average) = Prelim + Midterm + Semi-Final + Final

4

PREPARED BY

Mr. Marvin Celedio

Faculty Member

CHECKED AND REVIEWED BY

Mrs. Consuelo Caragan

Head, Accounting Technology

APPROVED BY

Mrs. Mary Jean N. Manalili

Program Chair, Business and Commerce

DATED

July 21, 2014

Cc

Mr. Victor Anthony Salvador

Librarian