FAR EASTERN UNIVERSITY - WordPress.com · Web viewFAR EASTERN UNIVERSITY Manila Institute of Accounts, Business and Finance COURSE SYLLABUS Course Code : FIN ACT 1 Course Title :

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


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




The IASB, history, current structure and processes, globalization of capital markets, calls for the harmonization of accounting standards, formation and achievements of the IASC


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


Flexibility CreativityAccountability

1. Preparation of Financial Statements 2. Quiz





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


AccountabilityFlexibilityPatience

1. Quiz2. Internet works


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



6 First Preliminary Examination



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. 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)


1. Answering assignments2. Lectures3. Board work4. Giving assignment


1. Quiz2. Case Study





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)




1. Internet works2. Quiz


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



HonestyIntegrityFairnessAccountabilityCommitment





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)



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



HonestyIntegrityFairnessAccountabilityInnovation




14 At the end of the session, the student is Accounting for Analytical Ability 1. Lectures Honesty 1. Quiz


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




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)



HonestyIntegrityFairnessAccountabilityInnovation



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



HonestyIntegrityFairnessAccountabilityInnovationTransparency




Subsequently incurred costs


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


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



HonestyIntegrityFairnessAccountabilityInnovationTransparency

1. Quiz

*Detailed discussion covered in Advanced Accounting subjects

2. Accounting for Noncurrent Assets Held for sale

18 Final Examination


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


Business World Harvard Business Review

Online/URL: http://www.picpa.com.ph http://www.iasplus.com http://www.iasb.org http://www.ifac.org


http://www.ifac.org/

http://www.iasb.org/

http://www.iasplus.com/

http://www.picpa.com.ph/

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


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


Documents

FAR EASTERN UNIVERSITY - WordPress.com · Web viewFAR EASTERN UNIVERSITY Manila Institute of Accounts, Business and Finance COURSE SYLLABUS Course Code : FIN ACT 1 Course Title :