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Course Title
Financial Accounting - Part 1
Course Code
ACCN04B
Course Credit
6 units (108 hours)
Pre- requisites
ACCN02B Fundamentals of Accounting Part 2
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 non-financial. 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. This course directly focuses on the recognition, valuation, presentation, and
derecognition of the above mentioned asset accounts.
1. To facilitate industry-based learning by offering programs that reflect the actual knowledge, skills and attitude, required by the industry, with focus on ways and means to increase
productivity.
2. To develop students proficiency in the field of accounting, within the context of decision making, whether small business or a multinational enterprise.
3. To develop students who are not only conversant with IT concepts for business systems but have sound knowledge in internal control , development of standards and practices, and
managing the security of information, all using the latest in information technology.
4. To develop morally upright students, who are not only tooled with relevant competencies, but are also imbued with the highest standards of professionalism and work ethics.
Performance Indicators:
1. define and explain terms, concepts and principles in the preparation of financial statements, including terminologies commonly used in the accountancy profession;
2. understand the theoretical accounting framework and 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;
3. appropriately apply the impact or effect accounting framework and objectives, conventions, 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;
4. Identify rules, methods and Generally Accepted Accounting principles applicable to the measurement and valuation of cash, receivables, inventories and investments; and
5. Identify and conclude that accounting process is not static but progressive which must respond to changes in economic, political and social environment.
Contents/Topics
Basic Accounting Concepts
Nature of accounting
Philippine Accountancy of Act of 2004 (RA 9298)
Professional Regulatory Board of Accountancy (BOA)
Conceptual framework of financial accounting
Generally accepted accounting principle
Users of Financial Information
Accounting vs. Auditing, Accountancy vs. Bookkeeping
Specialized Areas or branches of Accounting
Accounting Theory (Basic Objectives, Basic Elements, Basic Features and
GAAP)
Review of accounting process
Accounting for Cash and Cash Equivalents
Definition, nature and composition of cash and cash equivalents
Recognition, valuation and financial presentation, including related disclosures
Accounting treatment for petty cash fund
Bank reconciliation statement
Activities that may cause misstatement to cash
Control of cash and effective electronic banking and e-commerce
No. of
Hours.
15
12
TeachingLearning
Activities
Learning Outcomes
Lectures and
discussions
Power point
presentation
Homework, board
work, and library
work
Lectures and
discussions
Problem-based
learning
Homework, board
work, and library
work
3
Accounting for Receivables
Definition, nature and composition of receivables
18
Lectures and
discussions
Assessment
Method(s)
PRELIM EXAM
Problem-based
learning
Homework, board
work, and library
work
15
Lectures and
discussions
Problem-based
learning
Homework, board
work, and library
work
assignment)
Recitation and
participation
MIDTERM EXAM
Lectures and
discussions
Problem-based
learning
Homework, board
work, and library
work
3
18
SEMI-FINAL EXAM
Lectures and
discussions
Problem-based
learning
Homework, board
Accounting for changes in fair value of equity and debt securities covered by
PFRS 9
Accounting for impairment of equity and debt instruments
Accounting treatment for dividends received
Accounting for stock rights and warrants
Accounting for investments in associates
Equity vs. Cost method of accounting including possible effects of changes from
one method to another
Amortization of debt securities carried at amortized cost
Accounting for funds and other investments
Definition, nature and composition of funds and other investments
Recognition (initial and subsequent), valuation and financial presentation,
including related disclosures
Accounting principles applicable to funds, cash surrender value and other
investments
Lectures and
discussions
Problem-based
learning
Homework, board
work, and library
work
for investments
TEXTBOOK:
Financial Reporting (Theory and Practice) Part 1 A and B, Millan, Z., 2015 Edition, Bandolin Enterprise, 2015
REFERENCES:
Philippine Financial Reporting Standards as promulgated by the Board of Accountancy and Financial Reporting Standards Council
Financial Accounting Volume 1, Valix, C., Peralta, J., and Valix, C., 2015 Edition, GIC Enterprises & Co., Inc., 2015
Applied Auditing (with Comprehensive Review of PFRS), Asuncion, D., Escala, R., and Ngina, M., Real Excellence, 2015
Practical Accounting One Volume 1, Valix, C. and Valix, C., 2015 Edition, GIC Enterprises & Co., Inc., 2015
Theory of Accounts Volume 1, Valix, C. and Valix, C., 2015 Edition, GIC Enterprises & Co., Inc., 2015
Financial accounting 11th ed., Powers, Marian, 2012
Financial Accounting, Kimmel, Weygandt, Kieso 2014
Online References:
http://www.en.wikipedia.org/wiki/financial_accounting_standrds _board
http://www.freewebtown.com/saha037/conrado_valix.com
http://www.quickmba.com/accounting/fin
http://www.updates.zdnet.com/tags/financial&accounting.html
http://www.financialaccounting.com/index.html
http://www.infor.com/solutions/fms/faccounting
http://www.iasplus.com
http://www.ifrs.org.
COURSE REQUIREMENTS:
1. Class Performance
a. Participation during lectures and discussions
b. Quizzes, Seatwork and Recitation
c. Homework
d. Reports, Library work, and other alternative learning activities (ALA)
e. Student Portfolio
2. Examinations
a. Preliminary examination
b. Midterm examination
c. Semi-final examination
d. Final examination
GRADING SYSTEM:
Midterm Grade
Class Performance
Prelim Exam
Mid Term Exam
Midterm Grade
Final Grade
Midterm Grade
Class Performance
Semifinal Exam
Final Exam
Final Grade
33 1/3%
33 1/3%
33 1/3%
100.00%
40.00%
20.00%
15.00%
25.00%
100.00%
Prepared by:
Noted by:
Date of revision
JUNE 2015