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COLLEGE OF BUSINESS AND ACCOUNTANCY

School Year 2015-2016


Revised as of April 2015

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.

Program Educational Objectives:


1. Practiced public accounting as a sole practitioner or as a member of a statutory audit team in an accounting-auditing firm, acquired the requisite accreditations from applicable
government agencies, and rendered professional attestation and assurance services.
2. Performed as an accountancy lecturer-professor in academe and/or as a member of a management team in commerce, industry or government.
3. Acquired other related professional qualifications and certifications that are nationally and/or internationally recognized.
4. Obtained a graduate degree in management or accountancy, or alternatively, pursued a law degree and passed the Philippine Bar Examinations.

Student Outcomes (SO) addressed by the course


.

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)

Ability to discuss the different basic


accounting concepts, including the
accountancy profession
Ability to recognize the importance of
information needs of management to
wide-range of users

Written tests (quiz,


seatwork, and
assignment)
Recitation and
participation

Ability to define, illustrate, analyze,


and solve problems regarding cash
and cash equivalents
Ability to demonstrate the appropriate
preparation and presentation of bank
reconciliations
Ability to discuss best practices
controls for cash management

Written tests (quiz,


seatwork, and
assignment)
Recitation and
participation

Ability to define, illustrate, analyze,


and solve problems regarding trade

Written tests (quiz,


seatwork, and

PRELIM EXAM

Recognition (initial and subsequent), valuation and financial presentation,


including related disclosures
Accounting treatment for valuation items of receivables such as bad debts,
returns, allowances, discounts and freight charges
Accounting for accounts receivable, notes receivable and loans receivables
Principles applicable to collectability and impairment of receivables
Receivable financing arrangements such assignment (general and specific),
factoring and discounting receivables
Control of receivable and effective electronic banking and e-commerce
Accounting for Inventories
Definition, nature and composition of inventories
Recognition (initial and subsequent), valuation and financial presentation,
including related disclosures
Inventory systems (Periodic vs. Perpetual)
Inventory costing methods (Specific identification, First in, First out method, and
Weighted average cost methods)
Inventory estimation methods (Gross profit and retail inventory method)
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)
Control and management of inventory
Accounting for Biological Assets
Definition, nature and composition of biological assets
Recognition (initial and subsequent), valuation and financial presentation,
including related disclosures
Accounting treatment for agricultural produce
Accounting treatment for processed products
Other biological assets-related issue (breakdown of total change in fair value as
to either caused by physical or price factors; costs associated to acquisition of
biological assets; and land and other properties used in agricultural activity)
Accounting for Investments in equity and debt securities as covered by old
and revised standards
Definition, nature and composition of investments in equity and debt securities
Recognition (initial and subsequent), valuation and financial presentation,
including related disclosures

Problem-based
learning
Homework, board
work, and library
work

15

Lectures and
discussions
Problem-based
learning
Homework, board
work, and library
work

and other receivables


Ability to discuss best practices
controls for receivable

assignment)
Recitation and
participation

Ability to define, illustrate, analyze,


and solve problems regarding
inventories
Ability to discuss best practices
controls for inventories

Written tests (quiz,


seatwork, and
assignment)
Recitation and
participation

MIDTERM EXAM

Lectures and
discussions
Problem-based
learning
Homework, board
work, and library
work

Ability to define, illustrate, analyze,


and solve problems regarding
biological
Ability to relate the concepts to actual
situations

3
18

Written tests (quiz,


seatwork, and
assignment)
Recitation and
participation

SEMI-FINAL EXAM
Lectures and
discussions
Problem-based
learning
Homework, board

Ability to define, illustrate, analyze,


and solve problems regarding
investments in debt and equity
securities
Ability to apply concepts in accounting

Written tests (quiz,


seatwork, and
assignment)
Recitation and
participation

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

work, and library


work

Lectures and
discussions
Problem-based
learning
Homework, board
work, and library
work

for investments

Ability to define, illustrate, analyze,


and solve problems regarding fund
and other 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

Written tests (quiz,


seatwork, and
assignment)
Recitation and
participation
FINAL EXAM

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:

Reviewed and Approved by:

Noted by:

RAYMUND FRANCIS A. ESCALA, CPA, MBA


Faculty

FELIPE G. BALINGIT JR., CPA, PhD


Dean, College of Business and Accountancy

FLORA V. JAVIER, Ed. D


Executive Vice President/Vice-President for Academic Affairs

Date of revision

JUNE 2015

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