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.

COURSE CONTENT
Week Learning Objectives Focal Competencies Teaching Strategies Values Evaluative
Points/Topics Measures
1 At the end of the session, the student is 1. Overview of the Planning and 1. Expectation Teamwork 1. Seat Plan
expected to understand: course Organizing setting for both Cooperation 2. Summarized
 Know the requirements for completing 2. Administrative Understanding students and student
the course successfully; matters professor; expectation sheet
 Articulating his/her own expectation from 3. Concepts and 2. Formulation of the 3. Quiz
the course and the professor principles relating to seat plan
 Nature, principles and scope of the preparation and 3. Lectures
accounting presentation of 4. Assignments
 Nature, principles and objectives of Financial
financial and related records of an Statements.
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
2 At the end of the session, the student is Financial Reporting Judgment 1. Lectures Flexibility 1. Quiz
expected to understand: Standards Council Understanding 2. Assignments
and Conceptual
 Financial Reporting standards Council Framework for the
(Creation, objectives and functions; Preparation and
Membership/composition; Standard Presentation of
setting process) Financial
 Statements
Week Learning Objectives Focal Competencies Teaching Strategies Values Evaluative
Points/Topics Measures
 The IASB, history, current structure and
processes, globalization of capital
markets, calls for the harmonization of
accounting standards, formation and
achievements of the IASC

3 At the end of the session, the student is Conceptual Judgment 1. Lectures Flexibility 1. Preparation of
expected to understand: Framework for the Understanding 2. Assignments Creativity Financial
Preparation and Presentation Accountability Statements
 Users and their information needs Presentation of Skills 2. Quiz
 Objective of financial statements Financial
 Underlying assumptions in the Statements
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)
Week Learning Objectives Focal Competencies Teaching Strategies Values Evaluative
Points/Topics Measures
4 At the end of the session, the student is Introduction to Understanding 1. Lectures Accountability 1. Quiz
expected to understand: Financial Analytical Ability 2. Assignments Flexibility 2. Internet works
Instruments Decision Making Patience
 Definition of financial instruments Skills
[ 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
5 At the end of the session, the student is Analytical Ability 1. Lectures Honesty 1. Preparation of
expected to understand: Accounting for Cash Problem Solving 2. Illustrative Integrity Bank
 Definition, nature and composition of Skills problems Fairness Reconciliation
cash and cash equivalents Presentation 3. Board work Accountability 2. Quiz
 Recognition and measurement of cash Skills 4. Assignment
 Management and control of cash
(Accounting of petty cash fund, Bank
reconciliation at a single date)
 Financial statement valuation,
presentation and disclosure
Week Learning Objectives Focal Competencies Teaching Strategies Values Evaluative
Points/Topics Measures
6 First Preliminary Examination
7 At the end of the session, the student is Accounting for Analytical Ability 1. Lectures Honesty 1. Quiz
expected to understand: Receivables Problem Solving 2. Illustrative Integrity
Skills problems Fairness
 Definition, nature and classification of Presentation 3. Board work Accountability
receivables Skills 4. Assignment
 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)

8  Receivable financing arrangements Accounting for Analytical Ability 1. Answering Honesty 1. Quiz
[Accounts Receivable, Pledging (general Receivables (cont’d) Problem Solving assignments Integrity 2. Case Study
assignment of receivables), Factoring, Skills 2. Lectures Fairness
Assignment of specific receivable]: Notes Presentation 3. Board work Accountability
receivable (Discounting)] Skills 4. Giving
 Notes/loans receivable impairment and assignment
un-collectibility
 Financial statement presentation and
disclosure
 Internal control measures for receivable
Week Learning Objectives Focal Competencies Teaching Strategies Values Evaluative
Points/Topics Measures
9 At the end of the session, the student is Accounting for Analytical Ability 1. Answering Honesty 1. Internet works
expected to understand: Investments in Problem Solving assignments Integrity 2. Quiz
Equity and Debt Skills 2. Lectures Fairness
 Investment in equity instruments covered Instruments Presentation 3. Board work Accountability
by Pas 32 and 39 [Investment in including basic Skills 4. Giving
marketable equity securities (designated concepts on assignment
at fair value through profit or loss, Derivatives (covered
Trading, available for sale), Investment in by Pas 32 and 39)
unquoted equity securities]
 Investment in debt instruments [Held-to-
maturity investments, not held-to-maturity
(Trading, Available-for-sale)]

10 At the end of the session, the student is Accounting for Analytical Ability 1. Lectures Honesty 1. Quiz
expected to understand: Inventories Problem Solving 2. Illustrative Integrity 2. Internet works
Skills problems Fairness
 Definition, nature and classes of Presentation 3. Board work Accountability
inventories Skills 4. Assignment Commitment
 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)
Week Learning Objectives Focal Competencies Teaching Strategies Values Evaluative
Points/Topics Measures
11  Inventory estimation methods [Gross Accounting for Analytical Ability 1. Answering Honesty 1. Quiz
profit method, Retail inventory method Inventories (cont’d) Problem Solving assignments Integrity
(excluding peso value and retail info)] Skills 2. Lectures Fairness
 Valuation at lower of cost and net Presentation 3. Board work Accountability
realizable value (Write down to net Skills 4. Giving Commitment
realizable value, Reversal of write-down) assignment
 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

12 Second Preliminary Examination

13 At the end of the session, the student is Accounting for Analytical Ability 1. Lectures Honesty 1. Quiz
expected to understand: agricultural activities Problem Solving 2. Illustrative Integrity 2. Case Study
and biological assets Skills problems Fairness
 Definition, nature and classes Presentation 3. Board work Accountability
 Recognition Skills 4. Assignment Innovation
 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

Week Learning Objectives Focal Competencies Teaching Strategies Values Evaluative

Points/Topics Measures
14 At the end of the session, the student is Accounting for Analytical Ability 1. Lectures Honesty 1. Quiz
expected to understand: Property, Plant and Problem Solving 2. Illustrative Integrity
Equipment Skills problems Fairness
 Definition, nature and classes Presentation 3. Board work Accountability
 Recognition Skills 4. Assignment Innovation
 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
Week Learning Objectives Focal Competencies Teaching Strategies Values Evaluative
Points/Topics Measures
15  Accounting changes affecting Accounting for Analytical Ability 1. Answering Honesty 1. Quiz
depreciation Property, Plant and Problem Solving assignments Integrity 2. Case Study
 Revaluation of property, plant and Equipment (cont’d) Skills 2. Lectures Fairness
equipment (Recording on date of Presentation 3. Board work Accountability
revaluation, Frequency of revaluation, Skills 4. Giving Innovation
Revaluation increase, Revaluation assignment
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
16 At the end of the session, the student is Accounting for Analytical Ability 1. Lectures Honesty 1. Quiz
expected to understand: Intangible Assets Problem Solving 2. Illustrative Integrity 2. Internet works
Skills problems Fairness
 Definition, nature and classes Presentation 3. Board work Accountability
 Recognition criteria Skills 4. Assignment Innovation
 Initial measurement and accounting for Transparency
intangibles (Patents, Copyright,
Trademarks and trade names, Franchise
rights, Lease rights, Computer software,
goodwill, Research and development
costs, Other intangible assets)
Week Learning Objectives Focal Competencies Teaching Strategies Values Evaluative
Points/Topics Measures
  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
disclosures
Internal control measures for intangibles
17 At the end of the session, the student is 1. Accounting for Analytical Ability 1. Lectures Honesty 1. Quiz
expected to understand: Other Types of Problem Solving 2. Illustrative Integrity
Investments Skills problems Fairness
 Investment in cash surrender value of life Presentation 3. Board work Accountability
insurance Skills 4. Assignment Innovation
 Investment in funds Transparency
 Investment property
 Interest in joint ventures*
 Interest in associates*
 Investment in subsidiary*
2. Accounting for
*Detailed discussion covered in Advanced Noncurrent Assets
Accounting subjects 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