ACCTG 201_Financial Accounting & Reporting Part I

QR-VPED-007Rev.016TH June 2012

156 M.L. Quezon Avenue, Antipolo City

COLLEGE OF ACCOUNTANCY

COURSE CODE : ACCTG 201

COURSE TITLE : Financial Accounting and Reporting Part I

CURRICULAR AREA : 2ND Year, College of Accountancy

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 (national concepts and principles as well as international accounting standards), 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 asset accounts. 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.

COURSE OBJECTIVE/S :

TIME ALLOTMENT : 6 hours

UNIT CREDIT : 6 units

PREPARED BY : Ms. Ilene Padilla

ADOPTED BY (if applicable) :

REVIEWED BY (Chair / Co-Chair) :

APPROVED BY (Dean) :

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DATE REVISED/UPDATED :

SUMMARY OF SUBJECT MATTER/TOPICS AND COURSE REQUIREMENTS

INCLUSIVE WEEKS

SUBJECT MATTER COURSE REQUIREMENTS

MONITORING

STATUS REMARKS

C NC

1st WEEK to 6th WEEK

I. Accounting Standards Council and Conceptual Framework for the Preparation and Presentation of Financial statementsII. Accounting for Cash III. Accounting for Receivables

1. Class Participation thru Class Recitations.

2. Quizzes/Assignments at the end of each chapter topic(s). 3. Field-Market-Store Visits Report (written & oral presentations) 4. Written Research Reports from business-related magazines, internet source materials by each student. 5. Reaction Paper to special

educational film/video material 6. Time Management discipline (punctuality & attendance)7. Major Exams (Prelim, Midterm, Final)

TEXTBOOKS: Financial Accounting Volume 1 by Conrado Valix, 2012

7th WEEK to 12th WEEK

IV. Accounting for Inventories V. Accounting for Prepayments VI. Accounting for Property, Plant and Equipment

13th WEEK to 18th

WEEK

VII. Accounting for Intangible Assets VIII. Accounting for Investments in Equity and Debt SecuritiesIX. Accounting for Other Types of Investments

* C - Complied; NC – Not Complied

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PRELIMINARY GRADING PERIOD

Timetable Specific ObjectivesSubject

Matter/TopicTeaching-Learning/

StrategiesTools and Aids References

Values Integration/

Issues

Evaluative Measures

1st Week . Accounting Standards Council and Conceptual Framework for the Preparation and Presentation of Financial statements

1. Accounting Standards Council

a. Creation, objectives and functionsb.

Membership/ compositionc. Standard setting process

2. Conceptual Framework for the Preparation and Presentation of Financial Statements

a. Users and their information needsb. Objective of

Lecture and Discussions

Computer Audio-Video Equipment (Powerpoint)

Financial Accounting Volume 1 by Conrado Valix, 2012

Recitations

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financial statementsc. Underlying assumptions in the preparation of financial statementsd. Qualitative characteristics of financial statements

Understandability

Relevance Reliability Comparab

ilitye. Principles of Recognition and MeasurementMeasurement base

2nd Week f. Elements of financial statements and their definition

Assets Liabilities Equity Income Expenses

g. Recognition and measurement of the elements of financial statementsh. Concepts of capital and capital maintenance

Financial concept

Physical concept

Group Discussions, and Individual Activities

Computer Audio-Video Equipment (Powerpoint),


Quiz

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3rd Week

II. Accounting for Cash Definition, nature and composition of cash and cash equivalents

1. Recognition and measurement of cash

2. Compensating balance requirement

3. Management and control of cash

Accounting of petty cash fund

Bank reconciliation at a single date

Financial statement valuation, presentation and disclosure

Lectures, Group Activities

Computer Audio-Video Equipment (Powerpoint), Hand-Out, Internet and prescribed textbook


Seat works

4th Week III. Accounting for Receivables 1. Definition,

nature and classification of receivables

2. Accounting for accounts receivables

a. Recognition

Lectures, Discussions Internet and prescribed textbook


QuizzesAssigments

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b. Initial measurement and valuation at net realizable value

c. Approaches to recognizing methods of uncollectible receivables

Direct write off method

Allowance method

d. Methods of estimating uncollectible accounts

Percentage of sales method

Percentage of accounts receivable method

Aging of accounts receivable

3. Accounting for notes receivable

a. Definition and types of promissory notes

b. Recognition

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c. Initial measurement and valuation at present value

5th Week

General rule Special rules

4. Receivable financing arrangements

d. Accounts receivable

Pledging (general assignment of receivables)

Factoring Assignment

of specific receivable

e. Notes receivable

Discounting5. Financial

statement presentation and disclosure

6. Internal control measures for receivable

Class Discussions, Problem Solving Activities

Computer Audio-Video Equipment (Powerpoint), Hand-Out,


PresentationRecitations

6th Week PRELIMINARY EXAMINATION

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MIDTERM GRADING PERIOD

Timetable Specific Objectives Subject Matter/TopicTeaching-Learning/


Values Integration/

Issues

Evaluative Measures

7th Week IV. Accounting for Inventories 1. Definition, nature

and classes of inventories

2. Recognition3. Initial measurement

at cost4. Inventory recording

systemsa. Periodic inventory systemb. Perpetual inventory system5. Inventory costing

methodsa. Items not ordinarily

interchangeable Specific

identificationb. For items that are

interchangeable: Benchmark

treatment – First in, First out method or weighted average cost methods

Lectures, Discussions Computer Audio-Video Equipment (Powerpoint),


Recitations Presentations

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Allowed alternative treatment – Last-in, First-out method

8th Week 1. Inventory estimation methods

a. Gross profit method

b. Retail inventory method (excluding peso value and retail info)

2. Valuation at lower of cost and net realizable value

a. Write-down to net realizable value

b. Reversal of write-down

3. Other Inventory Issues

a. Purchase commitment

b. Inventory valued at selling price

c. Use of more than one cost method

d. Borrowing costse. Lump-sum

acquisitionf. Inventory errors

4. Financial statement

Lectures, Group Discussions and Activities

Hand-Out, Internet and prescribed textbook Financial Accounting

Volume 1 by Conrado Valix, 2012

Quizzes

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presentation and disclosures

5. Internal control and management of inventory

9th Week

V. Accounting for Prepayments

1. Nature 2. Source of

payments

Fieldwork, Case Analysis

Computer Audio-Video Equipment (Powerpoint), Internet and prescribed textbook


RecitationsPresentations

10th Week

VI. Accounting for Property, Plant and

Equipment 1. Definition, nature and classes 2. Recognition 3. Initial measurementa. Cash purchaseb. Purchase on a deferred payment contractc. Issuance of securitiesd. Donation or discoverye. Self-constructionExchanges of non-monetary assets

Group and Individual activities, Fieldwork

Computer Audio-Video Equipment (Powerpoint) Financial Accounting

Volume 1 by Conrado Valix, 2012

QuizzesAssignments

11th Week 4. Expenditures subsequent to acquisition

a. Capital expenditures

b. Revenue expenditures

5. Valuation or measurement subsequent to initial

Fieldwork, Case Analysis

Internet and prescribed textbook


Recitations Presentations

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recognitiona. Benchmark

method – cost less accumulated depreciation and accumulated impairment losses

b. Allowed alternative method – revaluation at fair value less accumulated depreciation and accumulated impairment losses

6. Depreciation of assets

a. Definition, nature and causes

b. Factors affecting depreciation

c. Methods of depreciation

Straight-line method

Declining balance method

Sum-of-the-years’ digits method

Group and composite depreciation

7. Depletion of wasting assets

8. Accounting changes affecting depreciation

Revaluation of property, plant and equipment

12th Week

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MIDTERM EXAMINATION

FINAL GRADING PERIOD

Timetable Specific Objectives Subject Matter/TopicTeaching-Learning/


Values Integration/

Issues

Evaluative Measures

13th Week a. Recording on date of revaluation

b. Frequency of revaluation

c. Revaluation increase

d. Revaluation decrease

e. Realized revaluation

9. Impairment of assets

a. Definitionb. When to

recognize and how to measure impairment loss

c. Measurement of recoverable amount

d. Impairment loss for an individual asset

e. Impairment loss for cash-generating unit

f. Reversal of previously recognized impairment loss

Lecture, and Discussions



RecitationsSeatworks

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10. Retirement and disposals

11. Financial statement presentation and disclosures

12. Internal control and management of property, plant and equipment

14th Week VII. Accounting for Intangible Assets 1. Definition,

nature, and classes

2. Recognition criteria

3. Initial measurement and Accounting for Intangiblesa. Patentsb. Copyrightc. Trademarks

and Trade names

d. Franchise rights

e. Leaserightsf. Computer

softwareg. Goodwillh. Research

and development costs

i. Other

Lectures, Discussions, Group and Individual activities

Computer Audio-Video Equipment (Powerpoint), Internet and prescribed textbook


Quizzes

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intangible assets

4. Subsequently incurred costs

5. Measurement subsequent to initial recognitiona. Benchmark

methodb. Allowed

alternative method: Revaluation

6. Amortization 7. Impairment of

the value of intangible assets

8. Reversal of impairment loss

9. Retirements and disposition

10. Financial statement presentation and disclosures

11. Internal control measures for intangibles

15th Week VIII. Accounting for Investments in Equity and Debt Securities1. Definition of

Investment2. Classification of

Investment in Equity and Debt Securities

Lectures, Discussions, Fieldwork



Quizzes

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Trading Available for

Sale Held-to-

maturity3. Determining

Method of Accounting for Investments

4. Accounting Methods Applicable to Investment in Equity and Debt Securities Fair Value

Method Cost Method

Equity Method16 Week 5. Accounting for

Changes in Classification of Investment in Securities

6. Additional Issues in Investment in Equity Securities

Revenue from investments in equity securities

Stock dividends and splits

Stock rights7. Accounting for

impairment and uncollectability of investment in debt and equity securities. Impairment in

Discussions, Group and Individual activities



Quizzes Oral Reports

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value of trading and available-for-sale securities

Impairment in value of held-to-maturity investment

Reversal of impairment

17th Week

IX. Accounting for Other Types of Investments Investment

Derivatives (only a basic appreciation of the nature of derivatives may be taken up since this topic will be discussed in detail in Advanced Accounting)

Investment in Cash Surrender Value of Life Insurance

Investment in Funds

Investment Property

Interests in Joint Ventures

Investments in Associates

Discussion, Case Analysis



RecitationsOral ReportsSeatworks Quizzes

18th Week FINAL EXAMINATION

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POLICIES

1. All students are expected to attend classes regularly and to complete the academic work of the subject.2. Latecomers are allowed, five minutes after the class time. 3. Class Participation and Discussion are graded4. Cheating is not allowed wherein standard WCC or CHED policy will be applied.5. Missed Major Exams are per standard WCC policy.

TEXTBOOKS AND REFERENCES Financial Accounting Volume 1 by Conrado Valix 2012

GRADING SYSTEM

50% Major Exams 20% Oral Reports/Presentation, Written Reports 20% Quizzes, Seat-work, and Assignment 10% Class Participation

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Documents

ACCTG 201_Financial Accounting & Reporting Part I